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22

Wikipedia (Gold): A total of 174,100 tonnes of gold have been mined in human history, according to GFMS as of 2012.2 This is roughly equivalent to 5.6 billion troy ounces or, in terms of volume, about 9261 m3, or a cube 21.0 m on a side. Since Bitcoin is often compared to gold, the total number of bitcoins matches the total amount of gold mined in human ...


9

The exact number of Bitcoins is not important. Whether the end result is 1 million or 100 billion makes little real difference. The important aspect here is the process, not the quantity. New Bitcoins enter the system in an orderly, predicable way. Outside forces cannot arbitrarily flood the currency with new money. An incentive is provided for people ...


5

A Bitcoin Trust fund registration statement was filed today with the Securities and Exchange Commission. If approved it would be the first Bitcoin ETF you can trade in the market. UPDATE: The Bitcoin ETF was not approved. As discussed further below, the Commission is disapproving this proposed rule change because it does not find the proposal to be ...


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For a good portion of its history the bitcoin network has seen continuous increases in difficulty, which warps the average block time to be below 10 minutes until the next difficulty adjustment. If the reverse were true the block time would be longer in kind. This latency serves to protect nodes against isolation attacks where you could otherwise ...


2

This was done based on production rate mostly. They did take some things into account but the number doesn't have a real economical explanation rather than the fact that they had to stop production somewhere to maintain a value.


2

Normally, ETFs define a "Creation Units" (CU), for which they are exchangeable electronically with the ETF administrator. If the size isn't be practical for a retail investor, then the value of any discrepancy is eventually captured by HFT arbitrageurs, thus forcing the prices into alignment. This tends to be very effective in keeping the prices within ...


2

You don't get the bitcoins themselves. Your investment fluctuates in response to the exchange rate. From the brothers W: The investment objective of the Trust is for the Shares to reflect the *performance* of a weighted average price of Bitcoins, less the Trust’s expenses. In other words, if the average exchange rate USD/BTC is $230, and you buy $...


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42 is the Answer to Life, the Universe, and Everything. Bitcoin block rewards are cut in half every 4 years. Half of 42 is 21. Nearly every person can understand what x "million" means, but comprehension breaks down rapidly with larger numbers. Therefore 21 million. ;-)


2

I suspect it has something to do with the M1 USD supply at the time Satoshi was developing Bitcoin. If you look at the decade prior to the white paper, inclusive of the quantitative easing period commencing with the 2008 housing bubble, the M1 money supply shows a trendline with a slope of ~58, using years as 4 digit integers. This means, that if ...


2

Bitcoin itself has no returns: 1 Bitcoin is worth 1 Bitcoin, always. Presumably you actually want to discuss the returns of a Bitcoin plus ordinary currency pair, such as BTC/USD. In that case you'd would treat it the same as you would treat any other asset trading against USD and use some presumed near zero risk bond rate, like US treasuries, in your ...


1

Yes it's real. If you don't believe it you can simply look at a block explorer and view many other transactions of similar sizes.


1

I think you should use Treasury bonds from your country to calculate the risk-free ratio. Risk free rate is just a theoretical rate of return of an investment with "zero risk", which would be your local Treasury bonds. If you are in US, you should use about 2% for 10 years, which is the approximately rate of return of US bonds. Anything below this rate ...


1

Look at the backgrounds of the top Bitcoin core devs. Here are the top 3: Wladimir J. van der LaanUniversity of Groningen Institute for Mathematics and Computing Science (IWI) Pieter Wuillecomputer science degree at U. of Leuven Gavin AndresenBachelor's degree in computer science from Princeton


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Generally, Bitcoin is a poor fit for the needs of most financial institutions. They want features which are incompatible with Bitcoin, or require unsupported workarounds: Holding local currencies. Reversing transactions. Keeping transaction information secret from the public, but available to regulators. The ability to kick others off of their platform if ...


1

Financial experts do not hate Bitcoin. Some might hate Bitcoin -for several reasons including a conflict of interest as you suggested, but not all of them. There are countless financial experts in the world including founders and investors in Bitcoin based businesses. Just do some more in depth research and you'll find them. I looked at that page you ...


1

Lots of people that we know about and probably many more that we don't know about are developing a diversity of financial instruments for bitcoin. What instruments exactly will depend on your definition of instrument. Here is an interesting one: cvToken: An effort to stabilize the bitcoin price by pegging a token backed by a basket of commodities to it.


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As for now (years after this question was published), there are metrics discussed and published on several sites trying to achieve that. Basically you would be googling for "fundamental analysis" metrics. Because searching for the health of the underlying product to the traded asset is basically fundamental analysis common in other spheres of trading and it ...


1

There are other practical challenges a country need to face: Before even starting the change, a government must convince people. Old people here in Hungary still insist on using cash, and nobody can convince them to use bank cards: they got their salaries on the bank account and the first thing they do is going to the bank and withdraw the entire account as ...


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