BITCOIN as an alternative to regular currency

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superfrank
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Humanity has found a way to create a currency backed by energy and it will make the world a much better place. We live in incredible times.
https://tftc.io/martys-bent/issue-971-i ... gy-stupid/
The process of mining works like this:

energy --> electricity --> hashes --> bitcoin

The front end of this process starts with something that exists in our physical reality; energy. The energy source can be water molecules, wind, solar, natural gas, nuclear, or another form of energy, it doesn't matter. All that matters is that it can be converted to electricity. Once that energy is converted to electricity, that electricity is used to power ASIC miners that create hashes specific to the hashcash SHA 256 mining algorithm. At this point something from our physical world has transformed into something that exists in the digital world. The number of hashes that are produced are astronomical and, in and of themselves, don't have any value. However, hashes that prove to be smaller than the current difficulty target of the network are special as they enable miners to add a block of transactions to the ledger and as a result they get rewarded with bitcoin.

The journey and process that takes a scarce asset in the physical world and turns it into a scarce asset in the digital world is a revolutionary process that will thrust humanity forward in ways our small monkey brains cannot fathom at this current moment. Satoshi's design, a proof of work consensus mechanism with a built in difficulty adjustment to calibrate the pace of block production and supply distribution, will be recognized as one of the most beautifully designed systems ever created on this planet. He figured out a way how to merge the physical and digital worlds in a way that was never before possible. It is a breakthrough on par with the invention of the wheel.
weemac
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Existing fiat currencies are only built on something intangible: trust. Just a belief of the promise by the issuer that they can and will make good the value of the currency. None of that pesky energy required - just an idea inside your head. Far more revolutionary, surely?
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Euler
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superfrank wrote:
Thu May 13, 2021 1:52 pm
Humanity has found a way to create a currency backed by energy and it will make the world a much better place. We live in incredible times.
https://tftc.io/martys-bent/issue-971-i ... gy-stupid/
The process of mining works like this:
Nice theory, but unfortunately when Bitcoin has burnt all those fossil fuels you have converted it into nothing and can't burn Bitcoins to bring that energy back. It's a colossal drain on resources for something that actually does nothing. I'd prefer Tulips to Bitcoin because at least they had some ultility.
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superfrank
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Economic activity and the creation of wealth requires energy consumption. It's a spurious argument.

Bitcoin miners pay for their energy like any other business. Free markets are great things.
btfath
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weemac
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I'm gonna create a new currency using gravity. Zero production cost, and when you drop a coin gravity creates another one.
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Naffman
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btfath wrote:
Thu May 13, 2021 5:40 pm
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Tbf though how many people use BTC compared to regular banking? 1% maybe and that's being generous so per capita that looks really bad.
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Realrocknrolla
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Euler wrote:
Wed Nov 27, 2013 6:12 pm
Bit coin break $1000 bubble bubble bubble

http://www.bbc.co.uk/news/technology-25120731
This has aged well. My cousin was involved at $100 and still is to this day.

Way to volatile for me.
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gazuty
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Interview with Cameron and Tyler Winklevoss on Bitcoin, Ethereum, NFTs, Crypto, and More

https://youtu.be/aAqKlKJ3v2o
Zenyatta
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Bitcoin plunging faster than a falling knife, Elon Musk has to dump 1.5 billion soon or lose it all :lol:
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megarain
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Yeah - it maybe Tesla buying that was a serious strategic mistake.

I am also not sure why the SEC isnt involved - Musk can easily be accused of market manipulation - hard to know when he
can legitimately buy/sell without being accused of something.

Hard to keep up, but a poker player I respect has dumped all his ETH and moved it to BTC - thou acknowledging the bull run is likely over.

I have a v small exposure to some alt coins.
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megarain
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Charlie Munger must be happy.

Market forces are quite something to behold when everyone is racing for the exit.
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Euler
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megarain wrote:
Wed May 19, 2021 2:09 pm
Charlie Munger must be happy.

Market forces are quite something to behold when everyone is racing for the exit.
Y, this is always the problem with the greater fool theory. Everybody panics to sell when it's clear it's hit the top.
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Naffman
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I hope Musk has made his money manipulating the market as Tesla is about to bomb with it
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Tuco
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Euler wrote:
Wed May 19, 2021 2:29 pm
Y, this is always the problem with the greater fool theory. Everybody panics to sell when it's clear it's hit the top.
...'correct-a-mundo' https://www.youtube.com/watch?v=QcqmYwEGfaQ

...it's a deflation race back to ZERO as that's what all cryptocurrencies are worth: no more than the next fart captured in your closed fist! (which you can at least throw at someone and enjoy their reaction, so it's intrinsic value is just above ZERO :lol: )

[Back in the '80's during a previous life of mine, in the USA they used to sell a can of 'Farmyard Spray'...and much fun was had with that :lol: ]
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