Stack Exchange Network

Stack Exchange network consists of 174 Q&A communities including Stack Overflow, the largest, most trusted online community for developers to learn, share their knowledge, and build their careers.

Visit Stack Exchange
Join us in building a kind, collaborative learning community via our updated Code of Conduct.

About Bitcoin as it might be discussed in economics class, e.g. supply, demand and price in theory.

0
votes
2answers
67 views

whats the use case of bitcoins?

Before answering this question please go through this scenario Lets assume we have now become a bitcoin only economy nearly all bitcoins have been mined, now someone wants to do business and he needs ...
0
votes
1answer
29 views

List of dark markets that got shut down by the FBI

I’m writing a research paper on crypto currency darkmarkets, comparing and contrasting them. Does anyone have a list of dark markets using bitcoin that have been shut down by the FBI? So far I have: ...
2
votes
3answers
86 views

Where exactly is the scarcity?

In discussions on the intrinsic value of BTC, one often reads the claim that BTC is scarce because the maximum amount of BTC that can ever exist is 21 million BTC. However, since the "atom" is the ...
1
vote
2answers
39 views

What has the nonaggression principle to do with bitcoin trading?

In the Introductory page of the book 'Attack of the 50 foot Blockchain', the author says (in reference to Ross Ulbricht) : A young physics student starts a revolutionary new marketplace based on ...
1
vote
2answers
68 views

What is the source of bitcoin value?

From what I understood, the economic intrinsic value of Bitcoin as a currency is based on the "CPU-work" required to produce them. That is what makes Bitcoin rare enough to qualify as a currency. Is ...
0
votes
0answers
41 views

Confidential Transactions and the downsides of transaction privacy

I'm wondering whether there are resources discussing the following, or whether people have thought about it significantly: The potential downsides to the introduction of Confidential Transactions ...
0
votes
0answers
26 views

Will there be a credit card that works with Bitcoin?

There are a lot of Altcoins, like Eltcoin, who are looking to make a credit card with their cryptocurrency/token. Bitcoin can't make a credit card for a particular reason or is just a matter of time ...
2
votes
4answers
173 views

What is the advantage of a market-specific cryptocurrency?

Reading this article, http://nakamotoinstitute.org/mempool/the-coming-demise-of-altcoins/, I wonder why there would be a separate coin for each market, like a coin just for buying bananas, marijuana, ...
1
vote
1answer
127 views

Block chain and its uses cases for a non-financial asset market

So i have been reading a lot about block chain technology and its use cases in the finance and cryptocurrecncy markets. One thing that guarantees blockchain's success in the cryptocurrency market is ...
0
votes
1answer
391 views

Who receives the money when a bitcoin is purchased? [duplicate]

Where does the real money when someone buys a bitcoin? I understand that if you buy from someone or an exchange you are paying them in real money but who gets the money for a newly mined bitcoin?
0
votes
3answers
336 views

Mining = Printing money

Recently I got in a discussion with my brother over what bitcoin is and what mining is. He had never heard of it so I had to do my best to explain it all from the beginning. I had trouble explaining ...
1
vote
2answers
164 views

How would debt work in a bitcoin only economy, and why would anyone ever spend?

Been keeping track of BTC for a while and have always had these nagging questions about its feasibility as the "future" of currency. I like all the not tracked, no third party involvement, etc (i.e. ...
3
votes
3answers
168 views

Should USD savers be concerned about the rising popularity of cryptocurrencies? [closed]

I recently took an interest in cryptocurrencies. Mostly, I'm interested Ethereum and Smart Contracts, but all the news about Bitcoin's rising price has prompted me to study currencies and economics ...
-1
votes
1answer
162 views

How and where is Bitcoin price physically maintained? [duplicate]

Is there a physical mechanism that determines and maintains the price of cryptocurrencies, be it a robot or a human? Let's say there is a price surge and the first buyer bought a crypto unit at $1. ...
2
votes
3answers
2k views

Will I double my money after a bitcoin hard fork?

Could anyone please explain to me how this fork will work? Examples would be greatly appreciated. The way I'm understanding is, if I have 1 BTC on Coinbase, they will match it. So after the fork I ...
3
votes
1answer
221 views

How to obtain inputs and outputs of a bitcoin block more quickly, using JSON RPC or similar

Currently, it takes me almost 1.5 hours to obtain all inputs and outputs of a bitcoin block from January using JSON RPC. At this pace, it will take a significant amount of time to go all the way back ...
1
vote
1answer
25 views

What benefit of Bitcoin (to governments) outweighs the cost of not being able to control the value of a fiat currency?

I've read some books about finance / economics, and one of the things I've read is that governments often like having the ability to control the value of their own fiat currency. This allows them to ...
0
votes
2answers
977 views

Why bitcoin is not inflationary? [duplicate]

I understand that a lot of people today stack Bitcoin instead of spending them and that makes sense because there is a limited number of bitcoins. However, I think that for bitcoin to be a real ...
3
votes
2answers
1k views

Can an altcoin be worth less than 1 satoshi (0.00000001 BTC)?

I have a friend who thinks that it's safe to invest in any altcoin that approaches 1 satoshi (0.00000001 BTC) in value, because there will always be someone who is willing to buy it at that price, and ...
0
votes
2answers
473 views

Exchange-based vs over-the-counter (OTC)

I read an article about China ban on exchange, which mentions that ... the ban on exchange-based cryptocurrency trades will not extend to over-the-counter (OTC) transactions. I am confused over ...
5
votes
2answers
3k views

If cryptocurrencies have no intrinsic value, how do they originate?

In theory, anyone could create an infinite quantity of their own cryptocurrency right now. However, if you were to do this, it would have no value and, thus, it would be useless. Since value comes ...
1
vote
2answers
147 views

Would free energy cause a market collapse?

Consider a world where energy is free and plentiful. Bitcoin, and other cryptocurrencies, are given value since they are 'proof' of work. This work comes at the cost of: a. time b. energy By ...
-1
votes
1answer
89 views

Bitcoin usage over time: investment vs spending

1) Some people buy bitcoins as a method to invest/save money, other also spend them directly for purchasing stuff "here and now". First question is how ever can we estimate the ratio: ...
1
vote
1answer
106 views

Bitcoin boom and bust - Inherent instability of Bitcoin

I'd like to put the a question to the community regarding the inherent stability/instability of Bitcoin. I hope it's not off-topic since it's more a economics-type question. So, here's the scenario in ...
3
votes
5answers
3k views

Why does bitcoin have a value? [duplicate]

I got this pretty good question the other day - why does bitcoin have a value at all? After all it's nothing - who is willing to pay for nothing?
1
vote
1answer
223 views

What would happen to the world if Bitcoin were the only allowed currency? [closed]

Could a world economy be based solely on Bitcoin? I mean the only mean to pay would be bitcoin. From the point of view of economy would this be possible or would all the economy collapse? Could we ...
2
votes
2answers
6k views

Halving reward, price effects? [duplicate]

What is the case after halving reward takes place: Would bitcoin price gets double, since its harder to mine? Would Blockchain introduces more blocks (e.g: 1/5mins)?
4
votes
1answer
112 views

Will people not spending their Bitcoin cause Bitcoin to fail? [duplicate]

Everyone I know that owns Bitcoin (including myself) seems to plan to sit on it until it becomes widely accepted/used and the price sky rockets to a ridiculously high value (100000 dollars each). It's ...
1
vote
0answers
244 views

Selection of dependent variables - Time series regression on Bitcoin Price in USD

We are doing a time series regression project to identify the variables that impacts the bitcoin price in USD. We came up with the following explanatory variables: 1) GDPs of US, Canada, Europe, ...
0
votes
1answer
181 views

Economic effect of Bitcoin

I am an accounting student and I recently read about bitcoins, I was wondering if anybody could clear up my questions from my basic understanding of the bitcoin system. Since Bitcoins on a whole, ...
3
votes
4answers
324 views

How do transaction volume and block reward relate?

As an example, assume a block has 10 transactions with a total value of 1BTC. Does a miner get 25 BTC for validating and committing that 1BTC? What's the economics of this model?
5
votes
1answer
139 views

Inheritance and Bitcoins

A basic economic property of any currency is the ability to hold its value in the long term. While Bitcoin's ability to hold its value is evident, since there is no central authority to control the ...
4
votes
1answer
110 views

Can transactions scale sufficiently to compensate the diminishing block reward by fees?

Today, the bitcoin network is secured by massive computing power, which is expended in the process of mining. The miners are rewarded by newly mined bitcoins, plus transactions fees. The security of ...
2
votes
4answers
5k views

How to get paid providing full node services?

I run a full node. I would like to get paid for the services I provide. How can I go about getting that to happen?
0
votes
1answer
171 views

Can a cryptocurrency exist in a closed system?

I am developing a online game that requires a realistic economy and currency. I know I can create a new crypto coin currency with out much effort. What I am unclear on, is it possible for me to mine ...
5
votes
3answers
494 views

Are loans with enforced repayment possible on the blockchain?

Are loans with interest possible in Bitcoin, such that repayment is enforceably encoded with Bitcoin Script on the blockchain from the establishment of the lending contract?
3
votes
6answers
7k views

Who issues bitcoins and how?

I can't find information on who actually issues the bitcoins. I understand that miners generate new bitcoins but what party is responsible for issuance?
0
votes
2answers
240 views

What will be happen if 21 million of bitcoins become the property of one?

Let's assume, that the day already came, when emission of bitcoins completed, and we have the 21 millions of bitcoins. Let's say it happen that all these Bitcoins at one moment became the property of ...
0
votes
1answer
166 views

Correlation between business cycle and BTC price

I would like to know if there is a correlation between business cycle and Bitcoin price, whether it is negative or positive. I am wondering because Bitcoin is deemed as commodity in my country's law, ...
1
vote
2answers
112 views

An “Almost” decentralised currency

I've been interested in Bitcoin for a while. I've been thinking I'd like to give it a go and see if I can make my own cryptocurrency, just to see if I can. I run my own small web hosting company, the ...
5
votes
1answer
657 views

What are some of the proposed ideas to why the Bitcoin dropped to sub $400 in the end of summer 2014?

Having seen that BTC was around $600 early summer of 2014 (May-July). It is currently almost 50% of that value. I read many varying reports of the cause of such a big drop. Can someone give a list of ...
1
vote
0answers
135 views

How does the Bitcoin forex work?

Does it work differently in relation to a regular forex because of its underlying technology? How can the market calculate its value?
3
votes
1answer
478 views

How efficient are bitcoin markets?

There are several bitcoin exchanges which trade bitcoins to $US and also several other markets which trade bitcoin for other currencies. Each exchange however quotes a different price in effective $...
1
vote
1answer
65 views

Are there any instruments that I can use to trade bitcoin volatility?

In the stock market, there are several financial products that allow an individual investor to trade/hedge daily volatility? As an example, there is the VIIX. Are there any such financial products ...
2
votes
2answers
144 views

How are new bitcoins created without monetary inflation?

As bitcoins are mined are older bitcoins retired? If not, how is monetary inflation prevented? Wouldn't the additional bitcoins cause the overall value of bitcoins to be deflated?
0
votes
3answers
57 views

How could a large owner of Bitcoin give back to the Bitcoin community in an equal way?

If there was one large owner of Bitcoin, for example somebody who owned 3% of all mined Bitcoins, would there be a way for that person to give back their Bitcoins in an equal way? I'm thinking more ...
1
vote
1answer
146 views

What are the economics of confirming a block of transactions?

From what I understand, CREATING a block to confirm or verify transactions is hard work, and is rewarded with 25 bitcoins, or something like $12,325 (depending on the daily exchange rate). But how do ...
2
votes
1answer
153 views

How do goods & services sellers manage price instability?

How do retail outlets manage the massive price instability? Are they really repricing every second with 25-50% spikes and drops over 24 hours? How much does it cost to maintain accurate prices? ...
0
votes
2answers
55 views

How can other currencies be “issued” via Bitcoin?

I've heard a few prominent bitcoiners (Andreeseen, ppl from BitPay) say that currencies such as US Dollars can be "issued" over the bitcoin network. I'm not exactly sure how this is possible, and I ...
1
vote
1answer
772 views

How to calculate velocity of Bitcoin?

So determining the value of bitcoin is not the question at stake here. Suppose there's a new bitcoin with a production algorithm that's tied to the feedback rule proposed by McCallum and adjusts ...