Posted on 03/18/2017 2:08:03 PM PDT by Jyotishi
Just under $2 billion has been wiped off the value of bitcoin in under three days as a fight over the future of the technology underpinning the cryptocurrency wages on.
Bitcoin was trading at around $1,142.60 at time of publication, giving it a market cap of $18.53 billion, according to CoinDesk data. This is down from highs of $1,255.32 on Tuesday, which valued the total bitcoin pile at $20.36 billion.
Meanwhile, rival cryptocurrency ether is up over 84 percent from highs of $29.87 on Tuesday to trading at all-time highs of around $55 on Friday, according to Coinmarketcap.com. The market captilization shot from $2.68 billion to $4.95 billion. It is the only other cryptocurrency to be valued at over $1 billion.
Much of the inverse price movement stems from traders' worries over the future of bitcoin and the underpinning blockchain technology.
What's happened?
To understand the issue, it's key to look at how bitcoin transactions are processed. Transactions by users are gathered into "blocks" which is turned into a complex math solution. So-called miners, using high-powered computers work these solutions out to determine if the transaction is possible. Once other miners also check the puzzle is correct, the transactions are approved and the miners are rewarded in bitcoin.
But there's a massive backlog of transactions in bitcoin that are waiting to happen. The number of outstanding transactions is up more than four times from just six months ago, according to data from bitcoin wallet Blockchain. This is bad for a system that has promised fast and cheaper transactions than the traditional financial system.
(Excerpt) Read more at cnbc.com ...
How much crude oil would I need to give Walmart for my cart of groceries? Would they accept it? Would YOU accept it?
Test number 1 is where crude oil fails as a form of money. While, yes, it has value to some people, it can be used as a store of value and a means of accounting, it fails the general acceptability test.
"Ceterum censeo Islam esse delendam."
Garde la Foi, mes amis! Nous nous sommes les sauveurs de la République! Maintenant et Toujours!
(Keep the Faith, my friends! We are the saviors of the Republic! Now and Forever!)
LonePalm, le Républicain du verre cassé (The Broken Glass Republican)
"Ceterum censeo Islam esse delendam."
Garde la Foi, mes amis! Nous nous sommes les sauveurs de la République! Maintenant et Toujours!
(Keep the Faith, my friends! We are the saviors of the Republic! Now and Forever!)
LonePalm, le Républicain du verre cassé (The Broken Glass Republican)
I will give it a shot.
It was designed to allow parties to transfer value between them without having to use an intermediary.
In order to do that, there needs to be a method of “verifying” who we are, and that we have the store of value needed to make that exchange. The process of verification is called the block chain. It is public, and it verifies through a series of calculations.
So, if I am selling something and you want to buy it, you could use cash, a check, a credit card or bitcoin. (For this argument at least.). Well, the Fed could print up a whole bunch of cash, making your cash lose value. Your bank and my bank are going to make money off a check or credit card transaction. Banks are safe, so I will get my money eventually. If I sell you something for $10, I will get something like $9.95 in my checking account in 2-5 days. Your bank verifies your trustworthiness.
With bitcoin the transaction goes like this: we settle on a value (or use the current value at an exchange). I give you my public address or key. You send me the value of bit coin attached to YOUR key. The block chain verifies who we both are, and updates the ledger.
This confirmation is done several times as the network updates around the world.
I can instantly convert the bitcoin to dollars if I want, or I can retain them.
One of the key parts of bitcoin is that the fees are usually pretty low when compared to banks and international settlements. Another key is that bitcoins are limited in the number of coins that will ever be available. So there is no inflation of coins.
It is not run by a central bank. It is not “backed” by the full faith and credit of anyone other than the users.
The bitcoins themselves cannot be “hacked.” Exchanges and online “wallets” can be. But this is no different than someone finding your credit card and spending your cash.
Some of these things are good. Some may make you leery.
Personally, I see the value in the technology behind bitcoin. Bitcoin is simply the toll that gets you a place on the highway.
In terms of long term development, it is in its infancy. It is very speculative. And it can swing like hell from one direction or the other.
I hope that gives you a sense of what this is.
What nonsense. How many bircoins do you own or use? Does your grocery store , baby sitter, movie theater, restaurant, etc etc take them?
What type of commerce other than drug running and other nefarious things are they used for?
You bought the hype
Easy come, easy go!
Trusting Bitcoin?
Complete faith in complete strangers, despite all reasonable evidence and expectations they are are going to screw you.
In that way, it’s sort of like voting for the Clintons.
zzzzz..snorp!...koff koff..snorp!..zzzzzzzz
so are they saying it’s time to stick a fork in bitcoin?
I must have the IQ of a one year old then if this explains it to a 5 yr old.
How?
Can’t fool me, that’s a spork! ;o)
A solar EMP event would equal a wipeout.
If you see a fork in the road, take it!
Who said that?
If you need to get cash to your friend/relative in a foreign country it is basically free & fast (minutes) as opposed to Western Union or a bank wire transfer, etc..
Also, very handy if you live in Venezuela or Greece! ;-)
https://www.coinbase.com
or others. A checking account (ACH) transfer...buy/sell Bitcoin with dollars.
But this is exactly what happens when you accept Federal Reserve Notes in payment for goods or services. :)
None of which I do.
Also very easy for others to steal....plus it has devalued a bunch recently
Kind of like having the worlds best diamond...doesn’t do me much goid..
Almost impossible to steal...(an encrypted file/wallet in my personal possession). The thefts you have read about are from “exchanges”/trading platforms (ie. stock brokerage accounts)...never leave Bitcoin in those for longer than it takes to make a trade. (And you don’t have to use exchanges at all...just buy some Bitcoin off a “local” in your area: https://localbitcoins.com).
Bitcoin is a marginal “investment”...more of a tool. It was the first “blockchain” technology...it is going too be eclipsed by other better blockchain technology. The current infighting between devs will be it’s downfall. Other better managed cryptocurrencies will take it’s place eventually. I am pretty much down to the the original 3.5 Bitcoins that I CPU “mined” years ago for about a dollar in electricity at the start of the project, now worth about $3200., so I am happy.
I did miss the Inauguration Day spike in Trumpcoin though...could have made some $ that day...spiked to 53 cents per Trumpcoin...now back down to 5 cents. https://coinmarketcap.com/currencies/trumpcoin/
Actually no, because they have a history, as opposed to Bicoins, the Clintons, the DNC, multi-level schemes, French cars and TV preachers, of actually being there for me every time I have needed them.
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