risk is risk. true but that is Market risk that each investor trader has to take and can't complain about it however I think what we are talking about here is either broker failure or in crypto case exchange failure risk... That is not what a trader wan;t to undertake... Client asset safety should be paramount for any TRUE exchange or OTC broker / product provider SIPC only covers equity account NOT Futures or forget any OTC FX / CFD in UK it's own govt guarantee covers all three ( having siad that did MF Global UK clients got anything back? as MF was pure FCM futures!) ASIC sucks MAS Singapore may be good , don't know they allow Cryto exchanges like Sparow but discourage local residents from participating ! strange HK ? Canada? Germany? France? Swiss?
For those reading the thread that do not get the reference of the title...It was a thing on the 'Net years ago, for a brief period of time. Kinda' like how Chuck Norris could beat everyone up. Original... The meme...
Hey deaddog, late reply, was out and about today. I would not worry about Bitcoin fees, they have really come down a lot because many improvements over the years, Segwit, Batching transactions Sending from Coinbase to your local wallet, the fees and priority cannot be altered as that's up to Coinbase, but as you saw, sending from Coinbase even $7500 would cost 17 US cents and it's the same even if I was sending $25,000, the fee would still be 17 cents Sending from your wallet to Coinbase or any other address you can control the fees, which are charged in satoshi/byte, depends on the size of your transaction, but in your case it would be small in size as you'd probably have 1 input per transaction In my case, I sometimes I have to select multiple inputs and size is bigger so I pay more fees but negligible, always less than $1 and most of the time less than 50 cents Bitcoin network is very busy atm, but you can see below transaction costs and if you want to be on the next block or the one after it Just accept whatever your Bitcoin wallet is recommending as it adjusts based on how congested the Bitcoin network is EDIT: RBF or replace by fee, there's a vendor that gives me a warning to turn off RBF, as the name implies, you can replace the transaction by paying a higher fee, this is useful to expedite a transaction but as the name implies, you can change the transaction details by paying a higher fee and the vendor doesn't want to deal with the mess --------- The cost to mine Bitcoin is vastly different for every miner. Think of yourself, you got 1 Bitcoin miner, you got solar power, it may take you 10 years to mine 1 Bitcoin but it's free, lol A big miner like Riot or MARA can scale operations and get lower cost per unit So but let's say Bitcoin goes to $10K and Mara has 100,000 Bitcoin miners and their cost to mine 1 BTC is $12K, they can power off 30,000 Bitcoin miners and the cost to mine 1 BTC for them may become $9K but will take them longer coz they will have lower hashrate versus other Bitcoin miners on the network And other Bitcoin miners will also do the same thing and the difficulty for Bitcoin mining will become lower as there's lower network hashrate and the Bitcoin software is designed to adjust every couple of weeks give or take a few days For the home Bitcoin miner that has solar power, it will now take him 9 years to mine 1 BTC Hope I touched all the variables of Bitcoin mining. Same concept for Ethereum miners before it goes PoS
Thanks John. The only point I'm not clear on is that the whole system seems to depend on miners to get transactions recorded. Is there a possibility, even a very remote one, that the price of bitcoin drops enough that miners won't be profitable? No miners no transactions. It might be the problem with a decentralized system is that no one is responsible for keeping it operating.
There will always be miners That's what I said with Mara Let's say there are 1 million bitcoin mining units out there and cost to mine 1 btc is $25K Price of btc goes to $10K The miners will simply turn off 800K bitcoin mining machines, now their cost to mine 1 btc is $5K I'm simplifying it, so problem solved, the difficulty to solve the next Bitcoin block is much easier compared to the past ---------- Here's an example, in 2009, you can mine 50 bitcoins with a laptop The difficulty was very low. Hardly anyone mining 50 bitcoins had no value, everyone giving them away The miners were just doing it to solve the next block and keep the Bitcoin network going --------- Conclusion, I will be a Bitcoin miner when the Bitcoin miners quit because the price of btc has gone down. There are millions like me
Here's one thing I do not understand john... The last bitcoin is estimated to be mined by what was it? 2140? Upon what metric is that based? On the current computing power of the current mining fleet? What if the entire world's computing power were suddenly dedicated to mining the chain, looking for the BTC. Are you saying it could NOT happen faster, no matter what? If all the BTC were found tomorrow, what would happen to the infrastructure? P.S. And I think you answered this before...Once all BTC are found, the miners would then simply make money by processing fees, or some such?
Hey Overnight, so let's answer the easy one first, after all bitcoins have been mined, the miners will still get paid but only the transaction fees so for example on this latest block that was mined by F2Pool, the aggregate transaction fees paid by everyone that transferred bitcoin is 0.25220057 So let's say in 2140, there's no more block rewards (during this current cycle, it's 6.25 btc per block reward), only the 0.25220057 btc will paid to the miner that solved the bloc x the price of btc $100M each, so about $25M ----------- There's no way to speed it up, the difficulty to solve the block gets adjusted every 2016 blocks (or about 2 weeks at a block per ~10 minutes) https://www.coindesk.com/learn/bitcoin-mining-difficulty-everything-you-need-to-know/ To be able to visualize how effective this difficulty adjustment is, imagine that you had a laptop in 2009 that can produce 100,000 hashes/second, you might be able to solve 15 blocks per day and you would have received 750 bitcoins (50 bitcoins per block) if you were running the laptop non-stop 24/7 So the assumption is that you had 10% of the network hash 1 Million hashes/second The block interval was about 10 minutes apart in 2009 So now, let's say you're a very big bitcoin miner bigger than Mara and riot combined, you have 10% of the network hash so you can solve 15 blocks per day, about 22 Million Trillion hashes/second You would receive 93.75 btc per day for solving 15 blocks plus all the transaction fees The block interval today is still about 10 minutes apart Every bitcoin miner is working to solve the next block only, once the block is mined, the hash is used for the following block so there's no way to solve the next 100 blocks, it's always 1 block at a time ------------ Here's the chart of the Bitcoin rewards schedule per the halving every 210,000 blocks or about 4 years