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The State of Cryptocurrency

FordGT90Concept

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Current state of cryptocurrency mining: free heat. :laugh:
 
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What if one uses a chiller:rockout:
The heat still has to go somewhere I guess...? But it wouldn't be nearly as efficient.
 

hat

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Then the chiller produces heat... more heat to keep the water chilled to whatever temp you set when you have more hardware in the loop...
 

FordGT90Concept

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Not really. Says on the page that they use BitPay to convert to USD on transaction. Ohio could get burned by doing that.

And no: only the federal government has the ability to establish legal tender in the USA. What Ohio is doing is like reprocessing something to pay back taxes. They sell what they take because only the dollars matter to them.
 
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Yes they have to convert to the local usd, but the demand for btc keeps growing, slowly but surely.

And yes Ohio will get burned from dealing with bitpay, like other companies have learned, nobody should deal with bitpay. Awareness is starting to spread, so I wouldn't think they'll be many transactions if any because of that.
 

FordGT90Concept

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Yes they have to convert to the local usd, but the demand for btc keeps growing, slowly but surely.
It is not. One can determine how popular a market is by trading volume:
https://coinmarketcap.com/currencies/bitcoin/
btc_volume.png

About $5 billion per day and stagnating.


And yes Ohio will get burned from dealing with bitpay, like other companies have learned, nobody should deal with bitpay. Awareness is starting to spread, so I wouldn't think they'll be many transactions if any because of that.
If BitPay fails to do the trade, it's not Ohio that will be in trouble but the payer. It is every tax payers responsibility to make sure taxes are paid in full.

I think what is most likely going on here is that Ohio is trying to lure ICOs to their state so they can use their coin to pay owed state taxes.
 
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It is not. One can determine how popular a market is by trading volume:
https://coinmarketcap.com/currencies/bitcoin/
View attachment 111683
About $5 billion per day and stagnating.



If BitPay fails to do the trade, it's not Ohio that will be in trouble but the payer. It is every tax payers responsibility to make sure taxes are paid in full.

I think what is most likely going on here is that Ohio is trying to lure ICOs to their state so they can use their coin to pay owed state taxes.
Marketcap doesn't really work well with cryptos. Also with the growing offchain transaction & settlement possibilities now working I'd expect that metric to show stagnating, and most probably declining usage in the coming weeks/months. The Lightning protocol alone is growing impressively quickly and can settle dozens+ of transactions for 1 recorded onchain.

Using bitpay is asking for trouble, unfortunately still lots of people will learn the hard way and blame bitcoin for it when it's just that company.
 
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Not really. Says on the page that they use BitPay to convert to USD on transaction. Ohio could get burned by doing that.
Doesn't matter how you want to look at it, a government is accepting cryptocoin as payment for taxes. In doing so they are recognizing and legitimizing it as an accepted form of currency.
 

FordGT90Concept

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They are not. The amount owed is in USD. They're using BitPay to convert x number cryptocurrency to equal amount owed in USD. They only accept USD. Ohio is simply providing a convenience tool for that want to use it.

Marketcap doesn't really work well with cryptos.
I wasn't talking about market capitalization, was I?
 
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https://www.fnlondon.com/articles/opinion-bitcoin-is-near-to-becoming-worthless-20181204

In a MarketWatch column I wrote last April, I explained what it would take for bitcoin to become worthless. Bitcoin is getting close to that point. As I argued, once Bitcoin’s price falls below its cost of mining, the incentive to mine will deteriorate, thrusting bitcoin into a death spiral.

That is, without the mining activities supporting the ledger that maintains the records of who owns what — bitcoin is, after all, a set of encrypted numbers that cannot establish the ownership of anything — bitcoin will become worthless.
...

If the price continues to drop and the cost of mining does not fall correspondingly (the cost of mining will algorithmically decrease, but not necessarily to same extent as the decline in prices), bitcoin will quickly go to zero.

Bitcoin proponents will argue that bitcoin’s price has dropped by large percentages before. Except this most recent decline is different in three significant ways.

First, the magnitude of the recent decline dwarfs the magnitudes of past declines. Second, the losers in the recent decline are new investors who will likely retreat until there is more clarity around bitcoin’s use cases. Third, the futures markets have changed the game, enabling miners to estimate their mining losses and profits at the outset — if you can buy in a futures market at a price below my mining costs, why mine for a sure loss?
 

FordGT90Concept

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Ha! Good point I overlooked. Transaction fees will have to soar to incentivize miners. High transaction fees means people choose not to use the network which means the market shrinks. Rinse and repeat until there's only a handful of hobbyists left that don't care about the money.
 
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https://www.fnlondon.com/articles/opinion-bitcoin-is-near-to-becoming-worthless-20181204

As I argued, once Bitcoin’s price falls below its cost of mining, the incentive to mine will deteriorate, thrusting bitcoin into a death spiral.
That is pretty far from the truth as it can get. Bitcoin is not a company product, it similarities are more of an ant mound. The cost of mining is set so high that I wonder why no one has crunched their numbers. It is business to complain about prices.
 
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They are not. The amount owed is in USD. They're using BitPay to convert x number cryptocurrency to equal amount owed in USD. They only accept USD. Ohio is simply providing a convenience tool for that want to use it.
Yes, but they are accepting cryptocoin as a valid form of payment, even if it's converted to USD. That is by lawful definition recognition of value and as cryptocoin is established and identified as a form of digital currency, by virtue of attrition, Ohio is recognizing cryptocoin as a form of currency, whether intentionally or not. It would be no different than if someone wanted to pay in British pounds. It would need conversion, but is a form of currency that is recognized. The states of Utah, California, Idaho, Texas and Florida are also considering accepting cryptocoin as well. Even the IRS is looking into it. Cryptocoin maybe at a low point but it is, for better or for worse, here to stay. I predict that it will soon become somewhat regulated.
 
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Ha! Good point I overlooked. Transaction fees will have to soar to incentivize miners. High transaction fees means people choose not to use the network which means the market shrinks. Rinse and repeat until there's only a handful of hobbyists left that don't care about the money.
Till the time hot money enters crypto, again ~ rinse & repeat! So long as there's (more) money to be gained/grown crypto will never die, but it also means that it'll never replace any major Fiat currency either.
 
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Believe me, this low point in crypto only exists so it can climb again. Hence, draw interest.
 

FordGT90Concept

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Everybody cries manipulation when it goes up, but when it goes down, it's definitely the death of crypto and not manipulation. :rolleyes:
 

FordGT90Concept

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BTC literally lost 15% in a matter of minutes on November 14. No wallet holds that much value.

Then we see the same kind of manipulation on Nov 30-Dec 1where it dove about 8% to recover 8% on Dec 2. And again on Dec 3-4 where it dove and recovered about 5%. And again on Dec 5-6 where it dove and recovered about 4%. The pattern is too consistent to be coincidence. Everytime it happens, whomever is doing it is likely sucking millions, if not billions out of the market.
 
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FordGT90Concept

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