About Bitcoin as it might be discussed in economics class, e.g. supply, demand and price in theory.
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2answers
91 views
(Ripple + wire transfer) x Banking (loans) multiplicator = 2x debt crisis?
if Ripple users would use % loans uncontrolled way?
For example:
system (gateway) have 100 bitcoins, the quantity is limited, bitcoin holders have issued 100 loans for 1 bitcoin each with 10% rate ...
1
vote
2answers
273 views
Economics of Bitcoin Mining [duplicate]
I thought I understood the gist of what "bitcoins" are: electronic currency tokens representing $X USD that could be used to trade, buy or sell online items.
But recently I heard the term "mining for ...
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1answer
26 views
How is Network Deficit Calculated?
I've seen this graph pop up around the interwebs, but never with an explicit explanation:
http://blockchain.info/charts/network-deficit
My question is how is this metric generated? Is it a ...
2
votes
6answers
397 views
How much energy will the Bitcoin network eventually consume? [duplicate]
A recent Bloomberg article stated that the Bitcoin network currently consumes about half as much energy as the Large Hadron Collider or enough to power 31,000 US homes. Even if the article is way off ...
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1answer
236 views
What is the network hash rate equilibrium?
The way Bitcoin is designed, there is always an incentive to bring in new mining nodes for generating coins. Even after 2140 when all the coins have been mined, new nodes and more hash power could be ...
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4answers
330 views
Where can I find well-written criticism about Bitcoin?
I couldn't find an article about criticism in the wiki. Is there some other place that contains well-constructed criticism for Bitcoin?
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0answers
28 views
Bitcoin: What effect his economic? [closed]
I am trying to understand what effect the Bitcoin price? I understand that as more people will recognize it, buy it and use it, his price will rise. I am asking more economic question as I am ...
3
votes
3answers
171 views
What happens when bitcoin loans start to appear?
Disclaimer: Me and my friend barely understand how bitcoin works.
With the limited knowledge, my friend is wondering what happens when bitcoins loans start to appear?
Loans have intrest rates that ...
2
votes
1answer
136 views
How Does BitCoin's Economy Work? [duplicate]
I just heard about BitCoin for the first time today, and I'm confused.
My understanding of economics may not be the best, but I do know that money, as in the paper and coins we use in everyday life, ...
2
votes
6answers
503 views
In the simplest way possible, describe how the 21 Million limitation is enforced to a non techie
In this Bloomberg video: Gold for Nerds , they ask
How is the limitation of 21 million Bitcoins enforced?
Though I am very familiar with the technical reasons why and how it's done I haven't ...
0
votes
3answers
222 views
How would bitcoins “crash”? [closed]
The value of bitcoins has been fluctuating like crazy over the last week, experiencing exponential growth in the BTC to USD valuation. There is no way that that can be maintained longterm. What would ...
0
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1answer
171 views
What happens if everyone suddenly adops bitcoins, or it becomes very easy to create blocks [duplicate]
I understand that bitcoins are currently produced at ~25BTC/10 min
If I understand correctly how fast a block is created is what determines how fast bitcoins are created.
If everyone starts using ...
-1
votes
1answer
58 views
Is possible to control the network? [duplicate]
Can anyone with enough computing power, take over the network ? This is following from a previous comment where I was asking :
... how can that be possible (to control the network) if mining tend ...
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votes
1answer
170 views
Could Bitcoin be a Ponzi scheme? [closed]
There are some valid points in this video:
http://www.youtube.com/watch?v=0UKC7iaBKvs
How come there were 6 million BTCs already in existence when the project started? Who owns them? That's now the ...
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2answers
125 views
Any Stock Trading using Bitcoin?
I would imagine Bitcoin is the perfect tool for students to learn about economic and learn about investing. Any out there available yet?
2
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3answers
440 views
How does Bitcoin “inventor” makes money?
Other than by having a non existent digital code become currency and riding on seeing the previously no-value cash become more valuable, how does the Inventors of Bitcoin profit from developing ...
2
votes
2answers
135 views
Can you use BTC without mining?
Question: Can I just buy/sell/trade to BTC and hold it and still be profitable? I mean with money you'd need to invest it in stocks, bonds, and etc to make more cash and simply holding on to cash over ...
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1answer
205 views
Mining with a very increased price of energy [closed]
Let's suppose a very increased price of energy.. let's say 100 times more than now.
How this will affect mining and BTC value?
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4answers
399 views
Why aren't early adopters intervening in the market in order to stabilize the BTC price?
They have every motivation to do so.
Extreme volatility is bad for confidence and can hurt the chance of Bitcoin becoming a respected currency.
Say for the sake of argument that Satoshi owns ...
4
votes
1answer
118 views
How can I measure the “health” of Bitcoin?
What are the metrics that matter when evaluating the overall "health" of Bitcoin?
What are the thresholds?
Specifically
Economic (e.g. velocity, days destroyed, market volume & beta)
...
2
votes
2answers
332 views
What would be the value of Bitcoin if coin generation was complete and Bitcoin was strongly accepted today?
Bare with me for a moment during this thought experiment. Currently, there is about $1.18 trillion US dollars in circulation at the moment. With that said, my one dollar bill currently represents ...
1
vote
4answers
392 views
Would bitcoin be destroyed if a wealthy organization obtained a CPU majority for a sustained period?
Inspired by this question ("Could bitcoin be destroyed by an entity cornering the market?") and the top comment on this answer to this question ("How much would it cost to execute a 51% attack?").
...
20
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3answers
3k views
Why was 21 million picked as the number of bitcoins to be created?
Why did Satoshi pick 21 million as the number of bitcoins to be created? What is the significance of that number?
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3answers
321 views
Will bitcoins be devalued by competing digital currencies? [closed]
Bitcoin is becoming more recognizable and trusted. But as it's popularity increases, the supply isn't going to change significantly because the supply is fixed to the internal mining algorithm. This ...
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vote
3answers
567 views
How will other coins like LiteCoin influence market price of BTC? [closed]
More generally, in economic aspect, when new currency are issued, and be accepted by groups of people, how will the new currency affect existing currency, ignoring other factors.
Ex. How will BTC ...
6
votes
1answer
313 views
Is Bitcoin's Economic Majority those who already own coins or those who will buy or keep coins?
The Economic Majority theory says that the power to control the Bitcoin protocol is held by those who [own] bitcoins.
But the article then goes on to read:
The ability for a protocol change to be ...
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1answer
220 views
Publicly destroying bitcoins by setting high transaction fees
I’ve been thinking about a system that allows you to publicly destroy bitcoins to let people build networks with some protection against Sybil attacks other than the difficulty of getting IPv4 ...
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1answer
118 views
it goes up and up and up
New to bit coin use. I have noticed over the past few months that the exchange rate has ballooned from 13 to now 22 $ a coin, this presents a problem, prices are almost never adjusted to account for ...
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4answers
215 views
Is a gold standard commodity-backed bitcoin possible?
I like bitcoin in the sense that it decentralizes currency. I would like to know though if it is a commodity-backed currency similar to the gold standard decades ago? Is it possible in the near ...
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2answers
328 views
Is Bitcoin Days Destroyed a measure of hoarding?
Is Bitcoin Days Destroyed a measure of hoarding? Also, is it possible to derive velocity of money (i.e. bitcoin) from Bitcoin Days Destroyed?
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votes
4answers
486 views
How is hoarding to be prevented?
If all humans used bitcoins now (Jan 2013) for most of their transactions, then a dollar would be worth about a billionth of a bitcoin (1/10 Satoshi).
If bitcoins take ten years to catch on that ...
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vote
2answers
138 views
Can a bitcoin bank solve the problem of intensive value fluctuation caused by hoarding?
Let's assume a bank dealing in bitcoins is not any central of government bank that could control the money supply.
Instead, let's say there was a bank where the people would deposit money at some ...
0
votes
1answer
149 views
Are there studies about a Bitcoin-like economy with inflation?
Assume, we create an alternative cryptocurrency ("InflationCoin") based on the bitcoin software with one change to the protocol:
The Block reward is constant, e.g. 50 InflationCoin
Technically ...
2
votes
2answers
328 views
What research papers cover Bitcoin's impact on Central Banks, “velocity of money”, and reserves?
I'm looking for research papers that cover the impact Bitcoin may have on Central Banking, interest rates, velocity of money, and their reserve.
What research papers or information from thought ...
3
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1answer
113 views
What is the “unit of account” in terms of Bitcoin?
Traditional economics depend on a "unit of account". Can anyone explain how a "unit of account" would be manifested in Bitcoin if so desired?
3
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1answer
207 views
Why are fiat Currencies inflationary and Bitcoin deflationary?
Why are all fiat currencies inflationary, and lose value with time? Could governments make them deflationary? What are the advantages of inflationary currency compared with deflationary currency?
...
7
votes
6answers
616 views
Why was Bitcoin designed with a decreasing production rate?
I have no doubt that the person who designed Bitcoin was many times smarter than me but with the benefit of hindsight was the decreasing number of bitcoins a good design decision given the 'hoarding' ...
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2answers
211 views
How many coins are needed to ensure stability i.e. neither inflation nor deflation?
The key to currency stability is to have neither too many nor too few of a currency in circulation. So what is the "Goldilocks" area going to be if Bitcoin really catches on and everybody wants to use ...
4
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4answers
2k views
What happens once mining reward gets cut in half?
Sometime around the end of 2012 the mining reward is expected to be cut in half from 50BTC/block to 25BTC/block.
What effect will this have? Doesn't this mean it will be less economic to run a ...
3
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2answers
254 views
If the computer calculation rate becomes 100x faster, would the value of bitcoin drop to 1% of the previous value?
This is my main concern, but are there any other design flaws with Bitcoin?
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2answers
171 views
Virtual currency used as alternative currency
Would it be feasible for a virtual currency to be used in the same way as alternative currencies such as Berkshares and Brixton Pounds ? Furthermore, do you think it is possible to make it independent ...
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0answers
49 views
Encouraging virtual exchange and independance from hard money? [closed]
With all the talk of economic sustainability and the dangers of infinite growth how do you think a virtual currency could be used to encourage the trade of virtual goods ? Or possibly a more efficient ...
0
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1answer
423 views
Is using bitcoin for savings a risky choice? [closed]
I'd like to start saving money and there are a few options.
Cash provides anonymity but it's very susceptible to steal and I must have a physical space for it.
A bank account is much safer but I ...
3
votes
1answer
122 views
BTC Days Destroyed, Lifo or Fifo?
Imagine I've got 100 BTC in my wallet, which I accumulated at different points of time. When spending a fraction of my BTC, e.g. 10 BTC, which one of my 100 BTC do I actually spent? The last one I ...
1
vote
1answer
414 views
Will the transaction fee economy in Bitcoin follow the commission model?
I've been analyzing the long term results of the block chain. In the process I realized the relationship between the distribution of coins over time, transaction fees, and coins being lost. The full ...
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8answers
1k views
Could bitcoin be destroyed if an entity cornered the market?
I know the US Government is opposed to competing currencies. It seems that it would be a rather simple solution for them to destroy Bitcoin before it grows too much by merely buying all the currency, ...
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1answer
214 views
Is it a good idea to buy some bitcoins now as stock in this revelation? [closed]
Will the value of these bitcoins go up ?
3
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5answers
381 views
Does bitcoin improve on “hard” currencies in any way?
Question is in the title. Anyone who's toyed sufficiently long enough on the foreign exchange understands that currencies are largely driven by sentiment or manipulated on the odd occasion. Plus, ...
6
votes
7answers
593 views
What is a simple explanation for how the number of bitcoins in circulation is determined?
Often times when I explain to someone that there is a limited supply of bitcoins available that need to be divided across all the people who want to have bitcoins, the people who are computer ...
2
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2answers
100 views
Has anyone patched the code to experiment with the currency supply model?
Since the supply model of a currency is a key factor in it's economic properties, I think it would be interesting to experiment with supply models that could be changed easily.
It could perhaps then ...
