Questions tagged [bitcoin-economy]

Specifically, the economy which has sprung up around the Bitcoin project including goods and services purchasable with bitcoins. Do not use for questions about Bitcoin deflation, etc. as such questions are better tagged "Economics"

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104
votes
13answers
11k views

Is there a way to set up proof-of-work systems so they would be even more useful?

One of the arguments made against Bitcoin's design choices is that it wastes resources authenticating transactions. In particular, finding small hashes is completely useless for the world. Are there ...
42
votes
5answers
27k views

What will happen to mining after the 20 999 999th Bitcoin?

After the 21 millionth bitcoin or 20,999,999th bitcoin is mined, what will happen to bitcoin mining? - will it just stop, or will we make a further division of the satoshi thanks to Bitcoin's infinite ...
52
votes
14answers
10k views

Will deflation destroy Bitcoin?

With the limited total quantity of bitcoins, and people losing their wallets constantly decreasing that number, won't rampant deflation destroy Bitcoin?
14
votes
7answers
2k views

What are some ways that the powerful elite can thwart cryptocurrencies?

What are some ways that the powerful elite can thwart cryptocurrencies? Cryptocurrencies appear to be not susceptible to most forms of power, regulation, or control. Due to their decentralized and ...
9
votes
2answers
2k views

How can determine the fundamental theoretical value of the Bitcoin based on steady state daily velocity (BTCDD)?

The VISA network (VisaNet) supports 4.4 Trillion dollars of commerce per year (2009). If we assume (somewhat arbitrarily), that the Bitcoin Days Destroyed metric approaches 50% (half of all coins are ...
10
votes
8answers
1k views

What are the obstacles to pegging the value of bitcoin to an established stable currency?

Many people will not touch bitcoin due to it's historically extreme volatility. Many new currencies have pegged their value against an established currency until such time as it is sufficiently ...
3
votes
2answers
2k 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 ...
30
votes
1answer
9k views

What are colored coins?

What exactly are colored coins? I've tried understanding, but I don't quite get it yet . . . Do any examples exist?
11
votes
5answers
758 views

Can bitcoin transaction data be used to study markets?

The nice thing about bitcoin is that it generates partially anonymous data about every single transaction. Can this data be used to gain insight about real-world markets? Or are there some fundamental ...
8
votes
5answers
4k views

Is there any good reason to buy Bitcoins?

I've read the introduction to bitcoins. But the main question remains: what reasons could push me to buy bitcoins today?
3
votes
3answers
2k 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 ...
13
votes
5answers
691 views

Does the bitcoin design make bitcoins suitable as a medium of exchange, a store of value, or both?

Money is often seen as having various functions, such as "medium of exchange" (something useful for conducting transactions, and "store of value" (something valuable as an investment). Was bitcoin ...
4
votes
3answers
4k 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 ...
3
votes
4answers
496 views

Can the price of Bitcoin ever be stable to the USD?

It seems like the only way to sell BTC for products/services is to have the BTC reflect how other currencies are doing. I'm not great in economics but can it ever be stable?
5
votes
3answers
5k views

What happens to cash used to buy bitcoins?

Are there any requirements to Bitcoin exchanges [USD/EUR/etc], as to for what the [USD/EUR/etc] may be used? Or is the [USD/EUR/etc] received property of issuer of bitcoins? Unfortunately, this is ...
23
votes
3answers
6k views

How does lost BTC affect the market in the long run?

I bought some bitcoins in 2012 and forgot about it. Now years later I discovered that the company who maintained the wallet went bankrupt and their website no longer works. I therefore have lost ...
14
votes
2answers
713 views

How could recurring payments be implemented?

I pay for some things on a regular basis. They generally fall into two categories: Things I pay for or lose, eg a variety of online services (Spotify for example) Things I'm legally obliged to pay ...
5
votes
4answers
677 views

Can Bitcoin software be used to create a private currency (single issuer)

I understand Bitcoin software can be used for private currencies. Can it be used to create a private currency (the NewCurrency) where there is only one issuer of NewCurrency and any monies raised are ...
7
votes
4answers
2k views

Why did Bitcoin transaction volume heavily increase in November and December of 2011?

Looking at this chart: http://blockchain.info/charts/estimated-transaction-volume It's clear that the amount of bitcoins moved between November 14th and December 12th of 2011 was much larger than any ...
4
votes
2answers
177 views

Probablity that a Bitcoin has been Lost

I am building some new metrics to better understand the Bitcoin economy and one that seems to be useful is a probabilistic notion that a Bitcoin has been lost. I'm aware of the bitcoin days destroyed, ...
4
votes
0answers
287 views

What has caused bitcoin to double in value in the last ten days? [closed]

What is the reasoning behind bitcoin's value skyrocketing in the last 10 days? Why the sudden influx of Chinese investors? Does this constitute another bitcoin bubble?
0
votes
1answer
381 views

Could Bitcoin work as a world currency? [closed]

We've seen the issues taking place with the Eurozone, notably that countries who share monetary union seem to ultimately need to share economic union, which tends to lead to political union. Is there ...