Paid off the loan I took out to cover the cost of a Bitcoin transaction.
Not as impressive as a paying off a house, a student loan, a cable bill, the mafia, lunch, or a parking meter but....this is getting fucking ridiculous. (The rise of BTC transaction fees, that is. So thanks Eth, for not costing these amounts).
The cost of a bitcoin transaction compared to the alternative
Say, you live in the US and want to pay someone in Europe. Your home to airport: $20, 1 hour Plane to Europe $300, 10 hours The guy you like to pay, has to come to the airport and return home: $40 You give him some gold Plane back to the US: $300, ~10 hours Airport to home: $20, 1 hour In the mean time you don’t earn any money for about 1 or 2 days: $200 So transaction fee $880.00 , duration 22 hours Bitcoin: $0.25, 0.5 hours 3520 times cheaper, 44 times faster
I've been confused if the investing price of bitcoin is the actual price of a bitcoin. I.e the lastest price spike to $15k, did that mean at that moment a bitcoin was worth $15k? I'm just trying to get more familiar
I have read numerous articles/posts online about the cost of mining a bitcoin. I have also heard at numerous conferences/events that the figure is at circa $4000. (No substantiation offered for this figure, but the figure I have heard muted usually sits around this value). I have often heard it as the reasoning bitcoin won’t drop below $4000 a coin. Whilst I accept there will never be an exact figure for the price due to constantly varying factors ( cost of energy, hardware, laboumanagement, privacy etc etc). I do think we should be able to have an indicative cost/benchmark to create a bitcoin based on existing data. Maybe $4k is the correct figure, I am just interested in how that is calculated. I am not trying to say there is a correlation between the cost of mining the asset V the market value, but it can help give some indication of the “value/cost” for creating the asset, at the point of creation. This obviously won’t factor in any future value or use cases, it is merely a means of measuring the cost of creating the digital asset for use at that point in time, based on the real world consumption costs associated with creating it. Example just taken off Twitter: The correct way to estimate Bitcoin energy usage by ######, not the invalid methodology used by Digiconomist cited in MSM FUD articles. “Annual consumptiom: 35TW/year Capacity: 4000MW % world energy: 0.03% Cost: 1.7B$/year Efficiency gains help offset increased consumption. This gives a total cost of $1,700,000,000.00 for worldwide consumption. “ Based on the above “calculation” that would mean each bitcoin has a creation cost of 1800 (bitcoins mined a day) X 365 ( days per year) = 657,000 Bitcoins a year (2018) $1,700,000,000/ 657,000 = $2,587.52 per bitcoin. Obviously there are a lot of assumptions in the above assessment. -The figure doesn’t include a cost for hardware/maintenance. -The figure doesn’t include any housing or management costs. -The energy $ value makes an assumption of $TW which does change considerably depending on location. Any links or info that would help add some meat to this would be appreciated. Mucho Mucho
In Alien, the starship that Ripley blew up cost only $42million. Today, SpaceX Starship will cost at least $2billion to develop. This gives us a sense of how inflation has changed the perception of dollar value since 1979, and why the crypto movement began in Bitcoin.
I made a formula to calculate how much Bitcoin turnover my business would need to break even on the cost of implementing Bitcoin. Thought any business owners on the fence might find it useful.
This is for a brick and mortar store accepting bitcoin via a bitcoin processor on a tablet. n = number of employees p = how much you pay them per hour t = the cheapest android tablet you can find e = time it takes you to teach an employee how to use bitcoin f = % you pay for CC processing b = % you pay for bitcoin processing c = custom you'll need to do to recoup your costs of implementing Bitcoin c = (n * p * e + t) / ((f-b)/100) So, a business that:
Has 5 employees
Pays them £6.50 an hour
Has employees that can be trained in 1 hour
Can buy a tablet for £89.99
Pays 2% for CC processing
Can pay 0% for bitcoin processing
The equation will look like this: (5 * 6.5 * 1 + 89.99) / ((2 - 0)/100) = £6,124.50 of bitcoin turnover before you break even on the cost adopting Bitcoin. HTH
I am new to nano and drawn to it as I learn about the superior speed and energy efficient of nano comparing to bitcoin. This almost sounds too good to be true. There is a few things that I would like to learn more and I hope you guys help can help me. I am particularly interested in the use case of cryptocurrency as digital gold (store of value) and right now we all know that bitcoin is king in that regard. Nano does have one big problem in my view. It doesn’t seem to have a way to incentivize people to adopt it. From what I understand (please correct me if I am wrong), nano coins were created at once and already distributed and right now for new users to acquire nano coins, one has to either purchase it or get them as gifts/donations? We can’t argue that the biggest reason for someone to purchase cryptocurrency is a chance for it to appreciate in value. Bitcoin does a really good job at this by creating an ecosystem of miners and users. There is a real cost of producing bitcoin, thus miners are incentivized to either sell it to make immediate profit or hold it for appreciation. Early adopters are rewarded because the protocol is designed to exponentially reduce the supply every halving cycle driving the price up (at least it somewhat follows the stock-to-flow model) In order to convince people to use nano and compete with the network effect that bitcoin has, there need to be good reasons for early adopters (esp financially) more than just saying that it’s faster and much more energy efficient. How would you convince someone to adopt nano as digital gold? Or is the goal of nano really is not for it to be digital gold but something else?
I am interested in supporting the adoption of crypto. Thinking of sponsoring a few local bitcoin machines that have decent premiums (rather that the 10%+ I have been seeing). Any leads on how I could get started with this (lower cost devices to utilize with decent owner/operator support)?
Bitcoin is *incredibly* energy efficient, it is actually the best ratio of security/electricity cost you can experience in the world today. The belief that bitcoin burns a ton of electricity for nothing is only the consequence of small blocks
This is an article I wrote in 2018 but I repost it in this sub because people are wondering about this question. ____ So you learned that Bitcoin uses Proof-of-Work and it is good because it forces miners to reinvest into the system but also uses a ton of electricity. You might be wondering:
Why is the requirement to reinvest a good thing? If we can get a secure blockchain that doesn't need to burn a shitton of electricity, I'm all in.
And the answer is a thing of beauty to me: because in nature, not evolving is dying. The fact that everything is always changing is the only thing that doesn't change. Security is the same, it is not a state to reach, it is a battle to fight everyday. We must constantly improve the security of the network because attackers are going to constantly improve their own capacity to attack. Bitcoin does not burn a shitton of electricity for nothing, that's a lie but I can see why you think that. Ready to change your mind ? here we go: everytime you increase the blocksize, bitcoin becomes X times more efficient in electricity. Think about it : BSV can currently process more than 300 times more transactions than BTC for 1% of the hashpower so it is currently 3'000'000% more energy efficient. Even if BSV reached 100% hashpower it still could process 300x more transactions and thus be 300x more energy efficient ! and it will increase even more in the coming years. The energy efficiency of the network is actually easy to check because it is reflected in the network fees. Low fees = very efficient. And of course a centralized system would have the lowest fee and be the most efficient, but the least secure too. That's why we need to take into account the security/electricity-cost ratio, which is the same as hashpoweaverage-fee. Energy efficiency increases when blocksize increases, and it should never have come up as a concern if the blocksize had been increased in time, it is only a consequence of preventing scaling. As Bitcoin proves that it is the most secure blockchain in the world, more people start to use it, which drives the number of transactions and price higher, which leads to a blocksize increase, which makes bitcoin more energy efficient. The more I understand it, the more I realize the beauty and genius of it. ____ Still not 100% convinced ? here is the ultimate argument against bitcoin mining being a waste of energy and causing climate change by Bitcoin's creator himself: https://youtu.be/wansagfJnbo?t=1 (first minutes)
Bitcoin’s original inventor is known under a pseudonym, Satoshi Nakamoto. As of 2020, the true identity of the person — or organization — that is behind the alias remains unknown. On October 31, 2008, Nakamoto published Bitcoin’s whitepaper, which described in detail how a peer-to-peer, online currency could be implemented. Bitcoin was the first cryptocurrency to successfully record transactions on a secure, decentralized blockchain-based network. Launched in early 2009 by its pseudonymous creator Satoshi Nakamoto ... The world’s first cryptocurrency, Bitcoin is stored and exchanged securely on the internet through a digital ledger known as a blockchain. Bitcoins are divisible into smaller units known as satoshis — each satoshi is worth 0.00000001 bitcoin. bitcoin mining can still turn a profit but requires skill Much has been made of large pools taking over the mining space , notably with regards to Bitcoin. Of particular note is the fact that the most advanced mining rigs often become available to these enterprise operations months before they can be purchased by independent consumers. Considering the cost to mine Bitcoin for both big mining centers and individual miners can range in between $5,000 and $8,500, miners have more incentive to sell to cover operational costs rather ...
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