The Economics of Bitcoin - Econlib

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Bitcoin - The Internet of Money

/btc was created to foster and support free and open Bitcoin discussion about cryptocurrency, Bitcoin news, and exclusive AMA (Ask Me Anything) interviews from top Bitcoin and cryptocurrency leaders. Bitcoin is the currency of the Internet. A distributed, worldwide, decentralized digital money. Unlike traditional currencies such as dollars, bitcoins are issued and managed without the need for any central authority whatsoever. Learn more about Bitcoin, Bitcoin Cash, cryptocurrency, and more.
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The economics of Bitcoin, why there hasn't been a drop in hashrate, and Blockstream's business model

To me, it seems clear as day why BTC still continues to have a significantly higher hashrate than BCH. When it comes to the reward halvings, obviously BCH's hashrate dropped because it was less profitable to mine BCH when compared to BTC. One interesting thing is that the same didn't happen to BTC at the time. I think this can be explained for a few reasons:




I'm no computer scientist, but this gives me a few ideas. I think we would all be better off if we took out the dev tax, replacing it with PURELY voluntary transaction fees. If we can voluntarily pay slightly more for a transaction, it would make more sense for miners to switch over to our network. Not only this, but I think we should voluntarily use our funds to help with development of BCH.
submitted by 1MightBeAPenguin to btc [link] [comments]

The Economics of Bitcoin - YouTube

The Economics of Bitcoin - YouTube
The Economics Of The Art Market: Why This Painting Isn't Worth $450 Million - YouTube
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Steve Patterson: "Not long ago, it was common knowledge in the Bitcoin Cash community that "paid transactions are not spam transactions." So what changed? Not the technology. Not the economics of Bitcoin. What changed is the ideas of a handful of devs. I've seen this story before."

Steve Patterson: submitted by Egon_1 to btc [link] [comments]

The Economics of Bitcoin | Malavika Nair

The Economics of Bitcoin | Malavika Nair submitted by ExcitingAds to ExcitingAds [link] [comments]

The Economics of Bitcoin | Malavika Nair

The Economics of Bitcoin | Malavika Nair submitted by ExcitingAds to ExcitingAds [link] [comments]

The Economics of Bitcoin

The Economics of Bitcoin submitted by Bubbly_Taro to EconomicsExplained [link] [comments]

The economics of Bitcoin mining pools

The economics of Bitcoin mining pools submitted by bitireland to bitcoin_ireland [link] [comments]

"The roadmap for SV is to eventually lift all limits while not messing with the parts of the protocol that can have unforeseeable impact on the economics of Bitcoin. That’s what makes it stable. The best stabilization comes when it’s driven by economics, not by central planning."

submitted by cryptorebel to bitcoincashSV [link] [comments]

The Economics of Bitcoin | Malavika Nair

The Economics of Bitcoin | Malavika Nair submitted by DarthCoinMaster to Bitcoin [link] [comments]

The Economics of Bitcoin (Part 1) - Ryan X Charles

The Economics of Bitcoin (Part 1) - Ryan X Charles submitted by wired8888 to btc [link] [comments]

"The roadmap for SV is to eventually lift all limits while not messing with the parts of the protocol that can have unforeseeable impact on the economics of Bitcoin. Thats what makes it stable. The best stabilization comes when its driven by economics, not by central planning."

submitted by ABitcoinAllBot to BitcoinAll [link] [comments]

"The roadmap for SV is to eventually lift all limits while not messing with the parts of the protocol that can have unforeseeable impact on the economics of Bitcoin. Thats what makes it stable. The best stabilization comes when its driven by economics, not by central planning."

submitted by cryptoallbot to cryptoall [link] [comments]

This guy really knows his stuff and understands Bitcoin: Ryan X Charles on "The Economics of Bitcoin (Part 1)"

This guy really knows his stuff and understands Bitcoin: Ryan X Charles on submitted by satoshi_vision to bitcoincashSV [link] [comments]

The Economics of Bitcoin (Part 1) - Ryan X Charles

The Economics of Bitcoin (Part 1) - Ryan X Charles submitted by ABitcoinAllBot to BitcoinAll [link] [comments]

The Economics of Bitcoin (Part 1) - Ryan X Charles

The Economics of Bitcoin (Part 1) - Ryan X Charles submitted by cryptoanalyticabot to cryptoall [link] [comments]

The Economics Of Bitcoin – Why Mainstream Economists Lie About Deflation

The Economics Of Bitcoin – Why Mainstream Economists Lie About Deflation submitted by Anenome5 to Bitcoin [link] [comments]

The Economics of Bitcoin Highly Incentivize Miners to Enable On Chain Scaling

The Economics of Bitcoin Highly Incentivize Miners to Enable On Chain Scaling

 
1) With capacity limited at 1MB blocks, Bitcoin can never process more than about 3 tx/second, or about 250,000 tx/day.
 
2) While short term spikes in fees may temporarily occur during demand surges, markets will never sustainably price Bitcoin transactions at more than a few cents each.
This is because increasing transaction costs will push demand for transaction processing to other readily available, less expensive alternatives. If this is not apparent: it is similar to the idea that if you are the only coffee shop in town, and there is a coffee shortage, you might sell a few cups of coffee at $10 each; but not sustainably. Eventually market forces will cause more people to ship in more coffee and open more coffee shops. People will move to use those shops, and prices will move back in line with norms. Analogously, if the Bitcoin blockchain gets too expensive, people will eventually create other less expensive blockchains, and users will move to use those other blockchains. This is already happening.
 
3) As the Bitcoin block reward decreases in accordance with Bitcoin’s inflation schedule, long term mining revenue will be increasingly, and eventually entirely made up of transaction fees.
 
4) Since blocks are found about once every 600 seconds, transactions of 1MB blocks are capped at about 3tx/second, and fees can sustainably rise to only about several cents — let’s say 5 cents, a reasonable estimate for mining revenue per 1MB block in the far future should be about 600s / block * 3 tx/s * $0.05 / tx = $90 / 1MB block.
 
5) At such low revenue of $90/1MB block, miners would go out of business: the revenue would be insufficient to sustain enough hash power to secure the blockchain, and Bitcoin would be destroyed.
 
6) Therefore Bitcoin cannot survive in the far future if it keeps the block size limited. Few transactions each paying a large fee is economically impossible (#2), and few transactions each paying a small fee yields insufficient mining reward to sustain the security of the network (#5).
 
7) However Bitcoin can survive in the far future if it increases the block size. With millions of transactions each paying a small fee, mining revenue would be quite high enough to sustain the security of the network.
 
In conclusion, the economic incentive on miners is very strongly in favor of increasing on chain capacity. Doing so does not guarantee the success of Bitcoin, however not doing so almost guarantees its failure.
 
Please share thoughts.
   
NB: Some people argue it is necessary to keep block size limited at 1MB to prevent computing costs associated with independently downloading and validating the blockchain from becoming too high. These arguments are largely unsupported, as factually:
submitted by mickeybob to btc [link] [comments]

The Economics of Bitcoin

The Economics of Bitcoin submitted by ABitcoinAllBot to BitcoinAll [link] [comments]

The Economics Of Bitcoin - Why Mainstream Economists Lie About Deflation

The Economics Of Bitcoin - Why Mainstream Economists Lie About Deflation submitted by pineapplepaul to Libertarian [link] [comments]

The Economics of Bitcoin | Malavika Nair by #Mises https://t.co/xKuPfnwRgx

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misesTV - The Economics of Bitcoin | Malavika Nair

misesTV - The Economics of Bitcoin | Malavika Nair submitted by some_kind_of_user to LibertyTV [link] [comments]

The Economics of Bitcoin - Malavika Nair @ Mises Institute

The Economics of Bitcoin - Malavika Nair @ Mises Institute submitted by block_the_tx_stream to btc [link] [comments]

The Economics of Bitcoin (Part 1) The Economics of Bitcoin Malavika Nair The Economics of Bitcoin. BTC and BSV compared and debated. Is Bitcoin about to crash!!! Ciamac Moallemi: The Economics of Bitcoin The Economics Of Bitcoin And Why It’s A Long Term Asset - Simon Dixon Interview

What is most striking about the economics of bitcoin is the juxtaposition of the certainty of supply and the uncertainty of demand. The rate at which bitcoin is mined has been highly predictable and, unlike almost any other asset, currency or commodity, its ultimate supply is a known quantity, fixed in advance. There will never be more than 21 million coins. This feature makes bitcoin supply ... BITCOIN ECONOMICS. Everything about Bitcoin and crypto currencies. BitcoinEconomics.io is a purely educational web site. The material here is not financial advice. We want to cut through the crap and bullshit that surrounds Bitcoin and other crypto currencies, expose positive as well as negative myths and give you a clearer picture of the crypto space. We do not plan to do an ICO, IEO, IPO or ... Economics of Bitcoin. Kiran Vaidya. Follow. Dec 11, 2016 · 8 min read. Central banks control the money supply of a nation. In Bitcoin, the monetary policy is part of its algorithm and this will ... Discussion of Bitcoin Economics and Related Events that affect the ecosystem. The Economics of Bitcoin. 0 . By Robert P. Murphy. SHARE POST: “No external technological or physical event could cause Bitcoin inflation, and since no one is in charge of Bitcoin, there is no one tempted to inflate ‘from within.'” B itcoin is an ingenious peer-to-peer “virtual” or “digital currency” that challenges the way economists have traditionally thought about money. Its ...

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The Economics of Bitcoin (Part 1)

The next video is starting stop. Loading... Watch Queue Ciamac Moallemi, Associate Professor, discusses his research "The Economics of Bitcoin" at a no Free Lunch seminar on March 27, 2018. The Program for Financial Studies' No Free Lunch Seminar ... The Economics Of Bitcoin And Why It’s A Long Term Asset - Simon Dixon Interview - Duration: 57:23. Crush The Street 28,640 views. 57:23. The Economics of Bitcoin Malavika Nair - Duration: 46 ... Mises University 2017. Recorded at the Mises Institute in Auburn, Alabama, on 27 July 2017. 11:00 The economics of Bitcoin and why its a long term Asset 24:00 Can Ethereum scale to match VISA? 26:00 Is it too late to get involved in Bitcoin? 32:00 Mainstream adoption of Bitcoin 39:55 ...

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