1/ Trying to find explanations to this #bitcoin dump, e.g. are early adopters cashing out? The answer is no. The graph of cumulative bitcoin days destroyed. No significant change in slope. Maybe slightly steeper, but not much.
2/ Could it be stolen coins being sold? We’ve had a couple of large exchange hacks recently. Maybe. But the downstrend started before the hacks. So it is unlikely.
3/ Negative news? We’ve had positive news as well. So again unlikely. I don’t think this is news related at all.
3/ The most protracted of the four stages is the establishment of a good as a store of value. Once a store of value is widely owned, its purchasing power will stabilize and it will quickly become suitable as a medium of exchange and unit of account.
1/ I always sympathize with open-minded nocoiners because we haven't had sound money in the world for a *very* long time. But I always wonder how would it be if it were the other way around. What if someone tried to sell the idea of easy money in a sound money world?
2/ The picture above is from "The Travels of Marco Polo". The interestingly-titled chapter "How the Great Khan Causes the Bark of Trees, Made into Something Like Paper, to Pass for Money All Over His Country" introduced the idea of paper money to the western world.
3/ "All these pieces of paper are issued with as much solemnity and authority as if they were of pure gold or silver", he says. "‘Of this money the Khan has such a quantity made that with it he could buy all the treasure in the world."
1/ An indicator for assessing #bitcoin's use by exchanges and mining pools vs everyday users and how we can scale without ANY code change. $BTC
Using an UTXO batching model.
2/ There are two ways to reduce transaction fee's on the bitcoin network.
3/ Input consolidation or UTXO consolidation is the process of merging many transactions into one by periodically (when network fee's are low) sending UTXO sets to yourself so when you need to send the tx you only need to sign once.
1)Those that have tried to 'fix' #Bitcoin by changing it to something else entirely have done so because they do not understand the *invisible hand*. They feel it should be their hand there instead.
2) This is why we have BTC thought leaders telling people that 'their node gives them power over the network' and that 'miners are evil'. They simply do not understand the incentives of the system i.e. the invisible hand.
3) Network participants are all incentivised to *naturally* do what benefits themselves and the system. I.e. #Bitcoin aligns the incentives of the system with the participant.
$BCH isn't a scam, but it kinda is. BCash isn't a scam because #Bitcoin is an open-source project and anyone can fork it (and sometimes it feels that almost everyone did at some point). The software isn't the problem, it's certain people behind it that are committing fraud.
BCash came into existence as an attempt to strong-arm Bitcoin users and businesses. It was backed and funded by 3 people: Roger Ver, Jihan Wu and Craig Wright. Again: no issue with them forking off, their choice and they want to try to take a different route, which is fine.
It resulted in a centralized coin (3 main backers) with centralized development (3/4 different "implementations" by devs who lack experience and all funded by the same people) and centralized mining. Nothing special about it, although claiming it to be decentralized isn't true.
Cryptocurrency is effecting a turning of the tide from Gresham's Law to Thiers' Law.
2/ Gresham’s Law states that "bad money drives out good.” It applies when both forms of money are considered legal tender and have their exchange rate set by law.
3/ People will hoard the “good” money (which becomes the store of value) and transact with the “bad” money (which becomes the medium of exchange). Merchants are forced to accept this “bad” money because of the legal tender laws.
1/ Bitcoin is still cheap at $8500. People that acted pro bitcoin in the last 6 months only to run away at a price crash make me laugh. If you can manage to accumulate 1 coin or even 0.1btc and hold it for 10 years you will have a lot of purchasing power.
2/ Bitcoin investing requires an iron stomach, but it's easy to get an iron stomach if you can grasp a firm understanding of how and why Bitcoin works. Once you've crossed this mental threshold you realize the price today or tomorrow doesn't matter...
3/ you just know you must accumulate as much as you reasonably can before wide spread adoption occurs. #bitcoin
1/ #Bitcoin is in a mania. I admit that. People are accumulating. If bitcoin was a typical investment, it would be setup for a 90% sell-off. But this isn't a typical investment.
2/ It's important to understand that #bitcoin is divisible to 8 decimal places. 0.00000001 btc = 1 Satoshi, the smallest unit (that the base layer will recognize).
3/ It's true, #Bitcoin isn't usable for everyday payments at the base level, no cryptocurrency is, but it is good at making transactions that are censored by credit cards and other payment methods. ie wikileaks donations, dark mrkt prescription drugs, etc.