Bitcoin

Out of context: Reply #1300

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  • shapesalad2

    Interesting perspective:

    shapesalad 2Permalink
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    • there is something called mining difficulty which adjusts itself according to how many users are mining, so than no more than x BTC are mined every hourdrgs
    • in theory 100 users could mine and support all BTC transactions, without creating any shortage, so its not directly comparable to golddrgs
    • I though tthe difficulty only ever went up though, not down? If BTC imploded and it dropped to 100 users, would the hashing in turn become simpler?detritus
    • BTC mined per hour goes down yes, but this number is independent from numbers of miners. Unlike with gold, more miners gives more golddrgs
    • Yeah, so complexity never recedes, only increases?detritus
    • There are two levels of complexity, one is constantly increasing (total BTC mined), the other one is adaptable (number of miners)drgs
    • important to distinguish between bitcoin and blocks. BLOCKs are mined on average every 10 minutes and the difficulty adjusts with the total hashing power toridg0026
    • stick to that ~10 minute timeline. BITCOIN are rewarded to to the miner(s) who succesfully solve that block but the total supply of bitcoin that will ever beridg0026
    • produced is 21 million, with the block reward (bitcoin awarded to the miner for each successful block mined) reducing by half every four years (2020 next)ridg0026
    • thats where the 'scarcity' comes into play. 21 million max - genesis reward - lost keys, etc. = total supplyridg0026
    • ^ 21million bitcoins, code, 010101's on hard disks around world - Can it really be worth more than 21g of gold? Only if it has use/value...shapesalad
    • well the concept of trustless, secure transactions is really interesting -- and I can see the value there. Will be interesting to watch it develop and evolveridg0026
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