Infinitely divisible bitcoin exchange
Questions Tags Users Badges Unanswered. Bitcoin Stack Exchange is a question and answer site for Bitcoin crypto-currency enthusiasts. Join them; it only takes a minute: Here's how it works: Anybody can ask a question Anybody can answer The best answers are voted up and rise to the top. How is bitcoin infinitely divisible? This question already has an answer here: Why can we have small fractions of a Bitcoin?
CoinEnablers That should be an answer, because it is actually what is being asked. CoinEnablers 3 6. By that standard, why isn't every crypto infinitely divisible? Thank you so much in advance! The values in the bitcoin network are stored as the number of satoshis they are made-up from.
Gracchus In theory, every cryptocurrency modeled after bitcoin could be retrofitted for more or less decimal places. Some altcoins have made changes to these parameters already, but so far I have not seen anyone who has tried to alter one after issuance.
I have seen the movie and I agree the movie would be a great follow up! For anyone interesting the Banking on Bitcoin documentary is available on Netflix and probably rentable other places. However, people in the crypocurrency space often talk about the time warp phenomenon. You know how everything moves faster on the internet? A month in crypto is like 2 years in the real world.
That movie was released in , a lot of it was filmed in Very interesting reading, but beyond my expertise. There are some very smart people out there. I really enjoy all the comments and answers to questions. James, This is a very timely post on bitcoins. But I must side with Jack Bogle: Avoid bitcoins like the plague. Investing in the lottery is about as good, especially since I know the winning numbers.
I suppose buying a ticket would help. Great point about whether the typical reader here would wear a t-shirt announcing they are on The Path. My sense is we are mostly low profile types. Every time when people are talking about Bitcoin around me I smell fear and greed. Fear and greed and nothing more. Sadly, that is pretty much all you hear about Bitcoin because it now involves such vast sums of money.
It was all about freedom, about connecting the world, about bringing fairness and sanity back to money and finance. A lot of people, myself included, still believe in that ideal — right now we just have to ride out the waves of get-rich-quick hangers-on.
Like I said, the mania is just beginning. But it just seems like such a bubble. People are just buying it because it is going up not because of the other value that btc has. I like the idea of over coming the poor decisions of politicians and the fed through an alternative currency.
I purchased more than I needed. It would have been cool to get in early. Maybe now is still early, maybe when the next recession hits it will also get hit pretty bad. But I will probably buy then. I thought about putting in 2. But if the inflation ever happens that some people have said is coming for the dollar since forever then it might actually be nice to have some BTC if it can maintain its value despite the dollar inflation.
We are due or over-due for a good old fashioned market correction in the regular stock market 10 year non-stop bull run. If big money flows IN to Bitcoin when that happens as it does to Gold then we might really be on to something here. Thank you to everyone! The advice has consistently been: If someone comes to me and asks: Well, JLCollins would say… no! And it is so cute!
But I also then saw, from someone I respect, the comment: That is an emotional charge though, I fully feel the excitement as I write this. I see bitcoin the same way and this is the message I got from the post. Regardless of how it ends, bitcoin is making history and ignoring it seems unrealistic to me. Back in , we went to Vegas. The reason why everything was so cheap?
Our hotel and food was fully subsidized by the gamblers. Well what would you expect from a former Torontonian! Being that my only taste of Bitcoin was watching the numerous drug deals happen while sitting at a bar at FinCon, it just seems shady to say the least. Yep, we totally witnessed it. As for the shirt… The GodFIther… or the letter F, the picture of a female sheep and a stack of bills. Thanks Todd for getting it without any explanation! I was cracking up when I thought of it.
I fully expect the US Government to use a similar argument when they begin to attempt to regulate Bitcoin. It is true that in the early days, Bitcoin was used a lot in things like darknet marketplaces Silk Road, etc to transact really ugly business Talking about murder for hire, illegal weapons, etc — not about drugs, which is a different debate.
US Dollars, and every other currency, are used every day to transact that exact same business. Throwing the baby out with the bath water as it were, and arguing that Bitcoin is the cause of those awful things happening in the world is not really accurate.
I happen to think that we should mostly , but I can see perfectly valid points arguing against that. If the value increases by a factor of , which is not infeasible, the smallest amount of bitcoin that can be owned outright will be worth more than the smallest amount of US Dollar that can be owned outright.
IMO bitcoins are another distractions that ultimately leads people away from the perfect simplicity of the index fund. I promised myself I would never deviate from the simple path to wealth.
Even if I could have been a bitcoin billionaire, having enough money that the dividends of the total stock market covers my basic expenses is plenty for me.
If Bitcoin or some Cryptocurrency manages to take over the Index Funds will bring them into the fold or possibly even be denominated in Bitcoin. Index investors are still buying in to the world economy. I took out 5 times my original investment and now have 8 times my original investment still in. I wanted to invest not only less than I could afford to lose, but so little that I could tell my wife I lost it all without her turning white!
So the key question is: Let me throw a factoid into the mix: I would suggest that the answer is a big fat no, and that Bitcoin is about to get regulated right up its cryptowallet.
Heck, the entire world of high finance i. But here is what makes me wonder if that will matter in the long run: To see a real live case study of this happening now, read about Bitcoin in Venezuela. If you know what I mean. Venezuela is unique — and a good case for when crypto as a store of value could be beneficial runaway inflation, economy about to collapse.
Not to mention, 7 transactions a second Bitcoin and other Proof of Work means that we will have to wait days for our Starbucks payment to process…. At a time when humanity is still burning fossil fuels to generate electricity and there are billions of people in the world without access to adequate energy to meet their daily needs, that amount of electricity to undertake the essentially meaningless task of solving computational problems for the purpose of generating more Bitcoin is unethical, in my view.
On one hand, the electricity used by mining really is polluting because of what you mentioned — we are still using fossil fuels, coal, etc — and the crypto community should work to change how mining works to use less. The same fossil fuel argument could be used for anything.
It was true before the Internet revolution. We were on fossil fuels then, and we still are now. Imagine how much electricity all computers in the world use? It must be staggering. But no one says: Computers are powered by electricity made by oil, therefore Computers are unethical. Food is grown using machines fueled by oil. Clothes are made with machines powered by oil. Water is piped to your house with electricity made by coal. Instead we say, and should continue to say until it changes: That oil, coal, etc are unethical energy resources and we should all move everything to renewable energy as soon as possible regardless of what the electricity they generate is used for.
Lucas — I appreciate the article, but find your response to the environmental impact angle to be a dismissive and poorly reasoned attempt to white wash a real concern. The world is making real progress towards reducing greenhouse gas emissions through accelerating deployment of renewables. Bitcoin mining and the associated electricity demand is wiping out those gains and growing exponentially. In other words, the cost to benefit ratio of the energy deployed in this endeavor is horrible.
This problem will only worsen as the popularity of bitcoin increases. Climate change has very real consequences for human health, national security, wildlife, and our economic vitality. We need a healthy planet to live on more than we need speculative cryptocurrencies. At a time when transportation is moving away from ICEs to EVs and hybrids, battery storage and renewables are being paired to make a more sustainable electric grid, dirty coal is being replaced with natural gas, and gains in efficiency are putting a real dent in greenhouse gas emissions, this is a huge and completely unnecessary step in the wrong direction.
It would be short-sighted to brush this off as a minor issue. It requires a real debate and real solutions. I am not sure what the debate could be. Is mining using huge amounts of energy? Is this energy use adding greenhouse gas emissions? Are people going to stop mining because all of a sudden they develop a conscience, I will let you answer this one for yourself. I think Lucas generously attempted to calculate the possible plus and minuses of mining carbon footprint but I am afraid the variables are too many for us to even consider finding a solution.
Noble vision, but probably your efforts to protect the planet will receive better support in other arenas than what they can get in the bitcoin community. Bitcoin mining operations have just as much financial incentive to move to renewable energy to save money as every other industry. In fact, the crypto mining industry has an EASIER time doing that than any other, because their location does not matter.
They only need an internet connection This is why we see the largest mining operations in places like Iceland — where Genesis mining company is running on geothermal.
And places like rural china where the mining is powered by hydro-electric power companies because it is cheap. What could possibly be better than a decentralized money system that will destroy that paradigm?
Hilarious post and thanks for the in depth research. In the immortal words from the Grinch, not gonna touch it with a thirty-nine and a half foot pole! My Brother and I have had a few conversations over bitcoin in the past few months.
We both agreed, like FireCracker mentioned above, that is is pure and simple gambling at this point. Maybe it will be the future of maybe something else will At one point MySpace what the most visited website on the internet and Facebook was only open to college students.
As for the shirt I would love to have a collection from the great FI bloggers so I would probably buy one. However, I think the slogan needs some work. Bitcoin has my mind spinning. It could either implode in a massive dumpster fire or this could just be the infancy of something massive. The momentum is building.
However, it has to stabilize before merchants take it seriously. No way I see a company like Amazon or Best Buy taking it. Although, if this list is to be believed, some major companies are already taking it: All I know is that I want a jlcollinsnh t-shirt and possibly, a set of underwear: Hey wife, look at my new undies!! I have zero ability to value a bitcoin.
You mentioned Ben Graham in the name of the post — but I saw zero discussion about how to value it. Ben Graham was able to value businesses and profit from valuation discrepancies he found. Bitcoin is mad gambling by comparison, not investing. I see none of that happening in bitcoin land. This is speculation, not investing. In my opinion this is a very good summary of Bitcoin viewed through the principles of Benjamin Graham.
The way I would purchase today is make my bet, let it double or triple, sell my initial investment, let the profit ride as a free trade. If one cracks all crack. If you want to get cocky buy some puts when they become available.
It is a directional measure of greed and the game is to be slightly less greedy than the last sucker on the chain. But the entire industry is too new to know for sure. Once the industry and technology matures I have a feeling everything will look very different than it does today.
Well written article on a hot topic! Love to profit from a bursting bubble as I missed the Dutch Tulip frenzy. How can I short any of the popular cryptocurrency markets?
Well some of the…. I am so happy that, for once, I did things exactly like you and your friend Lucas suggest here. Having zero debt, I bought a small amount of bitcoin and eth some time ago with money I did not need and I considered the money immediately lost. Might still do it anyway, btw my wife says that I am ridiculous checking bitcoin price 20 times a day…one of my safest bets is to assume my wife is always right. Some of my friends play video games, I play with the crypto-market.
I get just as much entertainment value out of it. The key is treating the money as already gone. The Simple Path to Wealth. Out of all the outstanding commenters this post has drawn, Lucas has chosen you as the winner of the free audio book, The Simple Path to Wealth! To seal the deal or to say: This deserves a special reply. Of course I am paying attention, in fact I wanted to say I truly appreciate that you are taking the time to answer each comment personally and that you share so freely of your hard earned financial knowledge.