27 votes
Accepted

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

The price of bitcoin is affected by demand and scarcity. Scarcity decreases as more bitcoin are mined (up until the 21 million bitcoin limit is reached---this is the maximum number that can ever be ...
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12 votes

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

Assume for a second that we found a proof of work algorithm that had all of the good properties of sha256, but was also useful for SETI and maintaining world peace. Now suppose a group of miners ...
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  • 431
9 votes

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

Most websites offering online wallets store your bitcoins against their own private key (giving them control over them), and provide you with tools to spend the bitcoins. While you don't have the ...
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5 votes

Why did Bitcoin lose value so fast in early January 2015?

Adding to my answer on What are some of the proposed ideas to why the Bitcoin dropped to sub $400 in the end of summer 2014?, which I think is still mostly accurate: Bitstamp loot There are about ...
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  • 64.4k
3 votes
Accepted

"stable-coins": A formal definition?

Lets tackle them one by one: 1) Is this definition true? Not entirely. Stable coin need not be pegged only to fiat currencies. We can also peg a stable coin to exchange traded commodities like ...
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  • 6,978
3 votes

Why did Bitcoin lose value so fast in early January 2015?

1) I don't know anyone actively uses Bitcoin, or other altcoin, that is not mining it and/or trying to profit from it. 2) Bit coin price fluctuates, so as a business I would only use it to process a ...
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  • 31
2 votes

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

If you made the computation "useful" in some other sense, then in principle you could just sell that "useful" output, and thereby decrease the net economic expenditure securing the blockchain, making ...
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2 votes

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

Pretty much the same will happen as with a Halving now: The only thing that changes is how many bitcoins may be created with the Coinbase transaction; except this time it drops to Zero instead of ...
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  • 64.4k
2 votes

Is Bitcoin still an experiment?

Is Bitcoin still an experiment? I don't think so. There's no control, and nobody's made one of those three panel boards. In all seriousness, though, I think Satoshi probably wrote and published ...
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  • 28.7k
2 votes

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

The effect would be to make the remaining bitcoins worth more over time as the others remain unspent, as I understand it.
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  • 21
2 votes

Is there a central repository that states a country's latest policy on bitcoin?

The best I found so far is Wikipedia. It is actually quite up to date. https://en.wikipedia.org/wiki/Legality_of_bitcoin_by_country
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  • 61
2 votes

What percentage of Bitcoin use is legitimate?

Silk road wallet hold 144,000 Bitcoins. It had 1,2B USD in annual volume. This was 2014. Since then darknet markets have flourished. See Measuring the Longitudinal Evolution of the Online Anonymous ...
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2 votes
Accepted

What is the advantage of a market-specific cryptocurrency?

Consumers have little need for vendor-specific coins I am not an economist, but a lot of vendor-specific crypto sounds like Trading Stamps, Coupons, or maybe even Company Scrip. These might be ...
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2 votes

What is the advantage of a market-specific cryptocurrency?

Why is there more than one fast-food service? Why is there more than one internet browser? The competitive altcoin economy encourages other coins to surge with better implementations. Bitcoin has very ...
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2 votes

What literal thing is determining the price of Cryptos / stocks?

The "current Bitcoin price" from an exchange like Coinbase is simply the last price at which a buyer and seller agreed to trade Bitcoin at that exchange, also known as the "last price&...
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  • 2,002
2 votes
Accepted

How does Bitcoin protect against inflation?

Inflation is increase in price without increase in utility. A car with similar features helps you get from point A to point B just like it did one year ago (same utility). However, the cost of the car ...
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  • 6,978
1 vote

How to calculate circulating supply of coins in Bitcoin?

The first blocks had a 50 BTC subsidy The subsidy of block 0 is unspendable This subsidy is cut in half every 210.000 blocks Block height now is 704558 This script (in Ruby) calculates the total ...
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  • 186
1 vote

What does "buy the dip" mean?

I get that it means that you should buy Bitcoin while the price is temporarily low, but what do they mean by it? Do they assume that people have a bunch of money just sitting around waiting to be ...
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1 vote

Value of cryptocurrencies: Why does noone make Bitcoin2, 3, 4,...?

Why does noone use the exact same technology of the Bitcoin and create Bitcoin 2? They have, there are hundreds of copies of bitcoin known as "altcoins", one prime example is bcash. If they did, ...
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  • 11.4k
1 vote

Why did Bitcoin lose value so fast in early January 2015?

Bitcoin’s price has crashed. There is simply no other way to describe the -40% price decline that occurred in the first two weeks of 2015. It’s dismal, it’s disappointing and it’s a normal part of ...
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1 vote

I bought Bit Coins while on a Bidding site. They were bought with my Credt card. How do I trace them?

You can go back and check your credit card records for the purchase. That should at least give you a name of a company. Contact that company (if they still exist), and see if they can give you ...
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  • 8,734
1 vote

Is a loss of trust in USD necessary for the success and mainstream adoption of Bitcoin?

There is not black and white answer here I guess, but here is my logic. Let's say that trust is a proxy of security and stability and satisfaction is a proxy of liquidity, usability etc. If we look ...
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1 vote

How much Bitcoin volume is for purchasing stuff versus trading/speculation/investment?

It's been estimated (with many assumptions) to be somewhere around 1-4% of the total trade volume. This seems bad until you learn that the speculation market for USD is $5 trillion a day.
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  • 11
1 vote

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

miners will depend on transaction fees.. a block will continue to be mined every 10 mins. Though bitcoin will not live till that day. For bitcoin to live till that day, it will have to be worth more ...
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1 vote

"Market capitalization" over time

Isn't this what CoinMarketCap provides?
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