Crypto Currency

Discussion in 'West Mall' started by AC, Mar 25, 2020.

  1. Seattle Husker

    Seattle Husker 10,000+ Posts

    You'd think but Crypto doesn't operate by your school taught supply/demand principles. It's not a tangible asset thus belief/confidence in the viability of it's future drives the market. Actions like this and Tesla backing away from Bitcoin hurt that confidence. Environmentalists have Bitcoin in their sights. My guess is that's what turned Tesla away from bitcoin. Someone showed Musk that his customer base puts a huge value on the perceived environmental impact of electric cars. His base particular is wealthy and looking for ways to virtue signal.

    Some crypto currencies have no mining at all and have no limit on the volume in the market the creator can release.
     
  2. bystander

    bystander 5,000+ Posts

    I was thinking solely of Bitcoin concerning my mining comment. I think there is a limit to the number of bitcoins that can be mined, which some analysts thought would support it's value (besides the huge confidence component) because supply will be capped.

    It does make sense that Musk would have an environmental sentiment but his ego is so large; I think he likes to watch how he can press buttons and see the market respond.

    https://finance.yahoo.com/news/bitc...rency-prices-14-june-elon-musk-074438737.html
     
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  3. Seattle Husker

    Seattle Husker 10,000+ Posts

    I'm not sure if there is an end limit but the rate of bitcoins mined halves every X number of years. 2024 is the next point where the mining rate will drop by 50%. The Crypto market overall is a wild wild west with little sanity. Of course, looking at WallStreetBets impact in the US stock market is proving that it too is easily manipulated and the "fundamentals" we've been told that drive stock price are suspect theories.

    Yep, Musk is the "Trump" of the business world. He loves to be contrarian, push the medias buttons and generally hates his investors that made him one of the wealthiest men in the world. He flies close to the sun all the time. If/when he crashes lots of people will enjoy the fall.

    With that said, Tesla and SpaceX are solid companies making very good products. Both have received massive government subsidies to become the companies they are though. Elon Musk reminds me a bit of the Russian Oligarchs.
     
  4. bystander

    bystander 5,000+ Posts

    What Happens to Bitcoin After All 21 Million Are Mined?.


    The Supply of Bitcoin Is Limited to 21 Million
    In fact, there are only 21 million bitcoins that can be mined in total.1 Once miners have unlocked this number of bitcoins, the supply will be exhausted. However, it's possible that bitcoin's protocol will be changed to allow for a larger supply. What will happen when the global supply of bitcoin reaches its limit? This is the subject of much debate among fans of cryptocurrency.

    Currently, around 18.5 million bitcoins have been mined. This leaves less than three million that have yet to be introduced into circulation.

    While there can only ever be a maximum of 21 million bitcoins, because people have lost their private keys or have died without leaving their private key instructions to anybody, the actual amount of available bitcoins in circulation could actually be millions less.
     
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  5. Driver 8

    Driver 8 Maybe

    omg
     
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  6. Monahorns

    Monahorns 5,000+ Posts

    bystander, over time a lower number of bitcoin will cause the $/coin to go up, as long as there is demand for it.

    The reason that the $/coin went down when Tesla and China signaled they were against it was because that indicates the future demand will be decreased.

    Of course El Salvador now accepts it as legal tender and will accept taxes in the currency. Several other countries are considering the same thing. I can't think of a better thing for South America. It will force the governments there to be more honest.
     
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  7. AC

    AC 1,000+ Posts

    Elon Musk reversed the whole won't accept Bitcoin for Tesla's, they do accept it now. I believe 73% or 74% of Bitcoin mining is from renewable energy sources. Once Elon saw that he reverted his previous stance. I have a friend who is moving a lot of the (antminer S9's, S17's, S19's) mining equipment from China to Texas. I am helping to mine Bitcoin on flares in Gas Plants and Power Plants. Wasted gas or steam can be converted to power to mine Bitcoin. Once 21Million Bitcoin are mined around the year 2140, the protocol would revert to a fee based system instead of mining as proof of work. Mining Bitcoin makes it reliable and trustworthy and it helps not hurts the environment.
     
  8. AC

    AC 1,000+ Posts

    That is not going to happen until Bitcoin has mined 21 million coins. Around the year 2140. It is a mute point for everyone on this board. By then they could, and presumably would go to a fee based system. I won't be living to 173 years old so.....
     
  9. AC

    AC 1,000+ Posts

    Chris and I met on Thursday at the Austin Bitcoin meet up on E 5th St. Unchained Capital office. He says we are going to work together on more bills for Bitcoin mining, several other people as well. He thinks Texas will become a sovereign State mining Bitcoin, accepting it as payment. Similar to El Salvador. Abbott is pro Bitcoin, he gets it!
     
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  10. Chop

    Chop 5,000+ Posts

    This may be the greatest societal positive to come out of all this crypto stuff. Latin American, and other third world countries prone to bouts of hyper inflation (and the inevitable revolutions, civil wars, and tyrannies that follow) will have an alternative currency to operate with when the poop hits the fan.

    It won’t cure their underlying ills, but it could help stave off an utter collapse into the abyss. There will still exist a currency that people can trust to buy and sell with.

    I suppose those sorts of countries could also use dollars, Euros, and Yen, but they lack the supply and crypto is more universal—and less tied to politics and manipulation.
     
    • Like Like x 2
  11. AC

    AC 1,000+ Posts

    Fix the money fix the world!
     
  12. Driver 8

    Driver 8 Maybe

    Bitcoin mining operations are shutting down in China or relocating to friendlier jurisdictions. A good deal of that hashrate likely to land in the US/Texas, some in Canada
    Politically a bad move for China possibly
     
  13. Chop

    Chop 5,000+ Posts

    Price and reliability of electricity could play a role when it comes to where they locate. On that front, we probably looked a lot better before that big winter storm in February. We’re making up for it now with friendly political overtures to the big Bitcoin miners. I would think they’d prefer to go where they are warmly welcomed.

    Canada has some very cheap energy with all that hydro power. They also have a history of wide open low regulation Wild West style stock markets. If Canada has an equivalent to the SEC, I don’t think it actually does very much. As a neighboring country that has favored low regulation in capital markets (despite high taxes and a robust welfare state), I could see them being very friendly to all sorts of crypto, and loathe to regulate it. I can see them competing well.
     
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    Last edited: Jun 19, 2021
  14. AC

    AC 1,000+ Posts

    I’m meeting with NRG and Southcross Energy next week about mining Bitcoin from their steam and waste gas respectively. I have the equipment to do it. We can shut down flares and steam incinerators with this technology. If any of you is in Environmental at an Oil and Gas company with flaring let me know. Thanks!
     
  15. Chop

    Chop 5,000+ Posts

    That’s awesome. Using a current waste product for something good. Good luck to you on your efforts.
     
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  16. AC

    AC 1,000+ Posts

    Thanks Chop. Recycling is what I do.
     
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  17. Monahorns

    Monahorns 5,000+ Posts

    This is what the market does. Every resource is utilized. Processes become more efficient. Using waste heat to generate electricity or to be used in other processes is a long term improvement that has been creeping along.
     
    • Agree Agree x 3
  18. AC

    AC 1,000+ Posts

    Not the central banking system. They fund wars to creep along. Bitcoin is one of the only truly free markets in the world!
     
  19. Driver 8

    Driver 8 Maybe

    Good luck @AC! - I would love to see posted updates on your mining progress if you don’t mind - this is fascinating stuff
     
    • Like Like x 1
  20. AC

    AC 1,000+ Posts

    It's not easy, but I will keep you updated!
     
  21. iatrogenic

    iatrogenic 2,500+ Posts

    Bigfoot lives!
     
  22. bystander

    bystander 5,000+ Posts

  23. Musburger1

    Musburger1 2,500+ Posts

    Big changes will be coming down the pike before long. Central banks will have their own respective digital currencies. Most likely many crypto exchanges will be forced to shut down with new regulation, the big players (Goldman, Chase, etc) will move in to fill the void. Eventually, virtually all assets from real estate to baseball cards will be put on blockchain and tokenized.

    Possibly institutions such as the IRS, state unemployment offices, and other bureaucracies will replace antiquated record keeping and accounting systems with blockchain, automation, and real-time payment transfers. The trade-off for efficiency gains would be more control over the issuance of money by central authorities. Non-centralized protocols such as Bitcoin are seen as a threat by government (federal reserve banks, IMF, BIS, etc) and will be targeted as green unfriendly threats to the environment and money-laundering facilitators. Lots of battles await.
     
  24. AC

    AC 1,000+ Posts

    • Like Like x 1
  25. Monahorns

    Monahorns 5,000+ Posts

    God I hope so. But at this point bitcoin is the Rebellion and the state is literally the Empire.
     
  26. AC

    AC 1,000+ Posts

    Uhhh, can I be Luke Skywalker?
     
  27. iatrogenic

    iatrogenic 2,500+ Posts

    So if we believe in something, its price goes up? Negro please. Only acting on the beliefs will change the price. Supply and demand holds for Crypto as it does for everything else.
     
    • Like Like x 2
  28. AC

    AC 1,000+ Posts

    That’s true, Bitcoin goes up when there is a supply shock. It has nothing to do with belief. That supply shock has’nt kicked in yet for the second round of the bull run but it will!
    Bitcoin Adoption Keeps Growing, Why?
     
  29. Chop

    Chop 5,000+ Posts

    Sure, why not?

    The Hutts have been taking crypto currencies as payment for at least 5 millennia.
     
    • Funny Funny x 2
  30. AC

    AC 1,000+ Posts

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