Bitcoin's protocol schedules a block reward 'halving' roughly every four years, as designed by Satoshi Nakamoto. But the artificial block size cap currently sanctioned by Core developers and a majority of miners alike may actually cause a catastrophic result come July 2016. Here's how.
Check out our new channel! http://youtube.com/dashorg
Connect with us!
[RSS feed]: http://TheDailyDecrypt.com/posts/feed
Wanna sponsor a show?
Blackhalo/Bithalo: http://blackhalo.info or http://bithalo.org
Bitcoin halvings (less inflation over time): https://bitcointalk.org/index.php?topic=130619.0
Difficulty readjustment details: https://en.bitcoin.it/wiki/Difficulty
Place where people will actually talk to you about this stuff: http://reddit.com/r/btc
"Paper Bag" by Fiona Apple: https://www.youtube.com/watch?v=BK30r_SIZ-g
ADN ico now BONUS 35%, x10 your asset when listing on exchange platforms 🚀🚀🚀
Please follow the steps to invest to ADN:
=>Go to https://advisorynetwork.io/Account/Register?ref=927340
=>Register an account and activate your account by confirming your email
=>Login to AdvisoryNetwork.IO
=>After logged in, you will see ‘ACCOUNT’ menu on the top right
=>Choose Dashboard in the ACCOUNT menu to go to Dashboard screen
=>Choose payment method by selecting Bitcoin or ETH
=>Transfer money to your selected wallet address
Amanda tell me about “Evan”, and “X” Coin which magically turned into “Dark” Coin and finally with more “magic” became “Dash” also tell me about the “instant mining” that happened “accidentally” way back in the beginning and (1) million coins were instantly mined, of course by “accident” where did those coins go ? who has those coins ?
so, did the block size get increased?? as i'm thinking about how long trades/sales take to be processed, what i've been hearing..meaning, what i've heard about how it varies, currently..from it being sometimes fairly instant to sometimes an hour or longer ..meaning, for people who are already established in the crypto-currency exchange-sphere..vs. new applicants or exchanges that have a reputation of typically taking a long time anyway to process orders.
Thanks for sharing! Everything new technology coming out combined with new emerging backing and options in altcoins seems to be spot on with your predictions! I guess time will tell. Either way I believe bitcoin will pave the way for unbelievable potential and ingenuity for future currencies that i hope change our financial world for the better:)
Just 1 btc in a wallet,just because is there can earn 50$ easy in 20 days to a month. Think a little bit about it. It is a posibility to loose your money, but loock for btc price 4 years ago... and today???
Wich bank do you work for?? Do they pay you a lot to make these video.. what about the people still making $$$ a lot money and bitcoins going up every day?? BANKS HATE BITCOINS. AND BITCOINS WALLET. BECAUSE THE MONEY IS NOT WORKING WITH THEYR BANKS.
True perspective coming from a PROFESSIONAL speculator
1st. This happens every four years, last time it happened everyone was using GPUs and ASICs JUST STARTED coming into the market. I was there when I used to mine.
This did cause volatility, but ultimately made higher highs... and it wasn't until months after, almost a year, where Bitcoin popped it's speculative bubble; expected because of the build up of eyes on the "blockchain" on Wall Street.
2nd. Now people have soooo many more GIGAFACTORIES and companies completely dedicated towards mining. Companies don't just rollover and die, they've been at it too long, they'll adjust accordingly and the ones that don't won't just sell all their Bitcoin! They'll hold on even more! Those are the only two options for them; hold closer the remaining bitcoins they have, or invest to increase productivity?... Think of the big fish, not the little fish.
3rd. We've been under the same circumstances before, price equaled higher!
check out bitcoin cloud mining website http://bitsrapid.com/?refid=167952 im earning more then 51.00 dollars daily on autopay you get a 10% bonus for referals and right now they have a contest and you can win a big bonus you also get 15 khs for free for signing up go check it out highly recommended and paying everyday
I have been seeing a bunch of cloud mining companies popping up promising gains such at 3% daily interest on your investment. Do you think this is because they are stocking up on peoples bitcoins so they can split with them once the halving is completed?
Power of consumer!!
Guys.. Halving just time set.. Actually u all r generate n running this bitcoin. Increase or decrease bitcoin is put on u when u all using it all over the world rite!!!
So keep using bitcoin transaction for make it large of digit.. Peace no war
If the halfing causes the price of Bitcoin to increase wouldn't that make it more profitable for minors to continue mining? And even if minors shutdown production wouldn't that just add to the price momentum move upward?
Why does everyone think that a protocol, or operating system has to be perfect.. Or even really good to succeed? I've been in IT since he nineties, we used Windows everywhere, because no IT manager got fired for installing Windows NT servers.. They were crap. Linux would have done far better in most applications that Windows was called to do.. Even on the desktop, but it never took off.. Why? Because Windows is the industry standard.. I was away from Windows for over ten years, I come back to IT, and it's still crap.. And everyone still uses it! Bitcoin doesn't have to be perfect to succeed, it doesn't even have to work as well as it already does, because whenever I talk with my non-tech friends, they all recognize Bitcoin. That's all you need folks, when your grandma can finally pay with Bitcoin like she finally sent that one email in 2011, then we are good for eternity.
The reason I'm not buying this is that the miners are not so fickle about turning off their machines. First of all, the bulk of the mining cost is in the hardware, so while miners do care about electricity costs, they aren't as sensitive to it as they're often thought to be. In addition to that, the price has already more than doubled since last summer, so even at current prices, mining will be more profitable after the halving than it was a year ago, and there weren't any mining issues then.
On the flip side, while there should be a price rise as a result of the cut supply, in my opinion it's not as dramatic of a cut as people are making it out to be. So I don't think we'll be living in heaven or hell, it'll just be a reasonably pleasant middle-ground scenario that won't grab as many headlines.
Price should go to $700. WE can spread the word about the Halving and get the MSM to pick up the story. Use the #HalvingHype hashtag in all your Halving related Tweets and videos. Hype the Halving and bring the price to $700!
well its be one year since ur post and bitcoin has gone from Six hundred to Three Thousand... i bet u wish u just invested in a few of them,,, its still going up again.. next halfening in 2020..... bitcoin will probably b $25,000 range.... digital money is our future... look at the money n ur wallet... look whos on them... thats old times old technology... the blockchain is here to stay
You people pumping this like a penny stock are sick... Probably bagholders from 2012 trying to get rid of their bag at the highest price possible and view the halving as their last chance to get out at least with a significant portion of their money back. Halving means nothing, there still hasn't been any major improvements in Bitcoin tech, scalability is limited, and adoption rates have declined. I support btc, but facts are facts...this price increase is just a bubble.
there is a speculation here.... I mean how you can predict that more time for comfirmations leads to bid dump? After all it will be in the heart of summer and the most transactions will be within the same market for the most of us..... and when I am selling my bitcoins or buying within the same market... then no comfirmations are needed.... I really think that all these stories are very suspicius , looks to me that someone wants to create panic in order to buy cheaper....
Why do the heavy hitters in Bitcoin militate against upgrades that would almost certainly benefit themselves--and prevent Bitcoin from being superseded by a superior alternative? One might expect the leading cryptocurrency journalist to offer an opinion on such an important question.
Years ago I got kicked off second life and they gave me bitcoin 2009? because I had a lot of lidons ? or whatever they cashed me out with this crap called bitcoin . Well to make a long story short ..... This was luck or what...257 bitcoins at $470.00 now!!! F.T.W.
Actually when miners drop off it creates a tight supply of bitcoin exactly as it is design to. What needs to be understood is the expansion of fiat currencies is exponential in comparison. What you describe here is that a lower issuance of currency is a bad thing which has never been the case anytime in history for currencies.
Amanda is talking out of her ass. "Why do bitcoins miners seem hell bent on shooting themselves in the foot?" The Question should be why do non miners seem so certain that they know better than the miners. The miners are ignoring the block size "problem" so perhaps those trying to sell us a "classic" solution should start investigating their own lies. Calling a fork of Bitcoin "Classic" is the first most obvious lie, but it's just the tip of the iceberg.
Disinformation. If one wants a rapid transaction then pay for it. This will sort out the "overburdened" blocksize. It is that simple - Andreas Antonopoulos speaks eloquently on the subject. Ignore people who make problems where they don't exist.
This is an oversimplification of Bitcoin. Bitcoin transactions tend to be higher in times of mass selling (low prices) compared to times of high prices. Raising the blocksize is not simple. The algorithm used for block calculations increases exponentially, so a doubling of block size is a quadrupling of difficulty (aka, time spent calculating). In terms of miners abandoning bitcoin just because the transactions are congested is like abandoning a venue because it's crowded. Typically admission to the venue will increase (miner/transaction fees), some people will leave, both most will stay. There is also no mention of SegWit, which will alleviates and paves the way for increased transaction capacity.
You just made the same argument that was made before the first halving.
"The miners won't make enough money so they'll stop mining, then transactions will be delayed to the point that the difficulty adjustment will never happen!"
It was all true. Bitcoin stopped in 2012. RIP
Oh no, that's right. Nothing happened then soon after the price went up 20x.
the reason for the issue in 2016 wasnt the block size or the difficulty or the halving, it was the number of miners connected during the influx of transaction that slowed things down. durring that time the bitcoin price was low to where not as many miners had there machines running cause of power and other cost issue to be as profitable at the time.
the difficulty only effects mining profitability for new bitcoins being given out, but transactions can still go on to being processed. if more people would keep using and buying bitcoin and include transaction income for the miners and not just miners just earning what bitcoins that gets release, there would be more miners active to take on these sudden influxes, miners dont just earn when new bitcoins are released but also transaction payments that can be included to any transaction, but to many people dont, then have the audacity to complain about the transaction times.
If miners are centralized enough couldn't the miners drop the difficulty for say 3 or so adjustments before?
How much bitcoin do they hoard? If this dooms day is possible surely they have enough bitcoin to want to prevent it right?
Dear ladies , gentlemen and enthusiastic technologist llike myself. My name is David James , and I am currently in my 3rd year of medical school and my main aim for writing to everyone reading this is because I am currently out of finances to fund my education and my school has a strict no working policy and as such I would like to soliciit funds from fellow bitcoin enthusiasts who can send me any amount of bitcoins they can afford to spare and would sincerely appreciate it if you can leave your contact behind so that I can thank you personally and send you my grades to justify the purpose of your donation. Kindly find my bitcoin adresse below and any amount is welcome.
Thank you very much
Think about all of the physical SHA-256 ASIC hardware that will be pushed out of their profit margins and no longer be competitive enough to mine in the bitcoin network. This is physical hardware designed for one sole purpose; where will it be put to use next? Most Forks of Bitcoin and Peercoin established ASIC resistant Proof of Work algorithms. This means that there will be no significant speedup by implementing the algorithm in an ASIC, as compared to a CPU based implementation. There is no incentive for the non competitive ASIC coming from the Bitcoin network to mine in those network. If there is incentive for this continually growing pile of no longer profitable hardware , where will it be found? The Peercoin blockchain is not secured by Proof of Work but by Proof of Stake; this mitigates the risk of a 51% attack during the transition(We should acknowledge the possibility of 51% attacks to smaller Proof of Work secured networks (Non ASIC-Resistant) during this halving transition. ). The beauty of Peercoin is that it is still maintains a Proof of Work component regardless of not using it for securing the blockchain. The purpose of it is to maintain continual distribution where Proof of Work block rewards halve with every x16 increase in difficulty. Instead of being tied to a block reward halving to occur every X amount of blocks , this allows halvings to occur at times that correlate to increased competition. One thing is for certain. The growing pile of ASICs that are transitioned off of the Bitcoin blockchain will move to where they maintain a the greatest advantage.
My counterarguments to exponential miner dropout:
1. Miners have a vested interest in getting a profit out of bitcoin. Especially the big miners that do most of the work, not only short and medium turn but in the long run. Keeping most of the mining power in the system will still generate new blocks at a fair speed, still generating reward at a reasonable pace. Transactions can of course still be greatly delayed.
2. The people most likely to drop out when delays start to increase drastically are regular investors and especially newcomers. Bitcoiners who are aware of why this happens will stay calm and ride out the storm. That base is quite solid
3. When people flee bitcoin during these scary time delays, they will have a hard time finding buyers or even believing it is possible to sell because it seems to them like the whole network is freezing up and "is breaking". This should slow down further transactions
4. Considering (3), invested miners will ride out the storm because there is a solution on the other side and this will just be another crash that bitcoin will recover from. Also this makes it a huge incentive for stubborn nay-sayers to upgrade the block size to change their mind. Nothing changes concensus like a crisis staring people straight in the face.
5. Since the majority of mining power will stay in the system (this is my prediciton) and most of the dropouts are bitcoin investors (especially new ones) the transactions will eventually catch up (especially since "people giving up on investing in bitcoin" less transactions will be made after this point in time) and during this time period we will have a strong consensus to change block size upgrade and the crash will not be a severe. Bitcoin will recover like it has done every time it crashes, for various reasons. This is just another (unique) reason.
Real miners will never turn off all their machines. They would rather have a little of something, than a lot of nothing....too much invested in contracts, and pre-paid leases and electricity, business partners etc. Even if it costs more to mine than buy for a while, they will never turn off all their miners, they will just ALSO buy bitcoin as part of their business expenses, and do the usual monthly streamline the mining operation as much as possible. They know that the price of bitcoin is destined to go up.... The doomsday scenario is not likely, if the price drops dramatically, LOTS of traders will simply buy the cheap bitcoin and hold it, I would imagine many are hoping for this. Even mining companies will buy back bitcoin if there is a 'death spiral'....they have all been doing this long enough to know the game. Business is business, miners dont all mine for the price now, they mine for the future price...if during some periods the price is cheaper than what they mine, no big deal.
Hey, I think you made a mistake about there being less supply of bitcoins. Bitcoins will still be produced, so the supply of bitcoins will still increase. To have less suply you would need a deflation. Since bitcoins do not get destroyed or used up, like goods and services, the supply of bitcoins does not decrease and therefore the price should not go up. What is actually hapening is, that the bicoin price is rising despite the supply of bitcoins increasing every ten minutes. So what could happen is that the price will increase even more, BUT because the inflation gets slowed, not because the supply decreases.
Please correct me if I'm wrong.
You can look at it like forces:
The current demand force is x
The current supply force is y
If price moves up, then that means that the force of x is higher than the force of y, and vice versa.
y = 25 bitcoins added to the market per 10 minutes + the force (if you will) of people currently holding bitcoins that are looking to sell at an asking price at, or below, the current spot price of bitcoin (selling pressure)
x = # of holders of bitcoin and people bidding to buy bitcoin at, or above, the current spot price of bitcoin (buying pressure)
Because the price has moved up, as compared to about 6 months ago, then it's safe to assume that x has been, on average (over the last 6 months), greater than y.
Now, assume that x (buying pressure) remains the same at the time of the halving as it is now. Assume also that the selling pressure from market participants remains the same. Come the reward halving: y will equal 12.5 BTC + selling pressure.
Since there's now less pressure from y than before (since the selling pressure is the same from the market, but halved on the minting rate), yet the same pressure from x, then there can be no other possibility than an increase in the rate at which price goes up.
Of course, the demand may decrease significantly by that time, as may the selling pressure from the market participants, so it's hard to say for sure what effect the decrease in minting rates will have on the market.
If the market gets too crazy and over-estimates what price bitcoin should be valued at, by too many people hoarding BTC and raising their bidding prices to get in (chasing price up), with not enough people selling to match that demand, then it's possible that price will rise too far too fast to have any chance of stabilizing at those levels once the reality sets in that the market was behaving too optimistically. In this scenario, no amount of lowering the rate of newly minted bitcoins is going to stop the price from falling, because the lowered rate of minting will be more than made up for by the increased selling pressure from market participants that fear being stuck holding a severely over-valued bitcoin.
The point is that there's more to supply than just how many new bitcoins are being made per 10 minutes. It's just one of many other factors that are in opposition to the demand for bitcoin.
Thanks for that.
Sadly I understood almost nothing of it.
Are you yourself predicting that Bitcoin is going to fail?
Could someone please link me to a page that explains some of the points she made?
She seems to be saying that computers' reaction times to communications from other computers actually slow down according to a 'perception' - that is the value of Bitcoin.
The most likely situation is that she didn't say that, but i listened twice and it seemed that way to me.
Thanks for your help.
Man, 101 is no joke in crypto currency. The learning curve starts very step and hardly gets easier. Lot of info out there these days. Listen to some Andreas Antonopolis explaining the basics, he explains well.
Thank you for taking the time to write that for me. I am clearly in need of doing Bitcoin 101, as it were, to bring to me to somewhere near to having a chance of understanding what you wrote.
Thank you for the help anyway.
+staninjapan07 Thing is, the 'perception' that is the value of bitcoin keeps the lights on for the miners. They sell 95% of the coins they earn (theoretical number) to cover expenses and stay upgraded. If they start earning half as many bitcoins one day, and nothing else changes, they are no longer profitable. If miners drop out the hash rate drops in relation to difficulty and block times could become very long. You see, the blocks are completed only when a miner mines a reward. And if the block times are 2 hours instead if ten minutes, we might not see the difficulty decrease we need to 'fix' the issue for like 5-6 months.
Now; block size is a different issue entirely as far as I ever knew. Only relationship being both can cause delays. This might be causing confusion for some.(possibly Amanda?) I'm personally doubtful we would ever see such a sharp drop in hash rate that the difficulty wouldn't correct fast enough to keep mining profitable somewhere. Remember, network demand/capacity has very little/nothing to do with mining hash rate. Running a Full Node strengthens the bitcoin ledger network, mining hash rates simply secure it from attack.
"Resources from things that dont work are transfered to things that do work"
You forgot to mention thats the opposite of government/socialism as well. Which when it fails asks taxes even more and grows even bigger, compounding the bad situation
Suppose those currently using "miner's" could just start to slowly sell (keep more in accts) off what they have mined? The halving will be similar and cause the same end result. Much Much higher price... IMO.
How to become bitcoin trader? Exactly like Bitcoin, multiple digital currencies exist in the marketplace. So if you prefer to buy a few other currencies which aren`t available on Indian Exchange than you can utilize Bittrex. All you have to do is locate an exchange that you favor. Cryptocurrency exchanges have a massive potential to modify peoples minds and opinions concerning cryptocurrencies generally speaking and their application in actual life. So even in the event the exchange is attacked, its still true that you have your money. Furthermore, the exchanges prepare each and every industry for Bitcoin expansion. Existing stock exchanges will also compete to be able to fulfill the users configuration requirements. Sooner or later later on, the prices will grow more equal, meeting somewhere in the middleyour profit is equivalent to the quantity of convergence. No matter how far it is from Kijun, it is likely to return and test that level at some point. The amount of bitcoin is perpetually changing. In the US, it is 1000 USD. Whats even better, seek the services of a seasoned lawyer or at least ask for an in depth consultation. So youve read the newspaper about the meteoric growth of crypto currencies including Bitcoin or Ripple. Then coming up with 1000s of exchange rates simply to go out and get groceries is nearly impossible. Many cities around the world provide a bitcoin ATM where you are able to trade cash for bitcoin. The cryptocurrency world isn`t efficient.