Let's talk about Cryptocurrencies

[Fuzz]

But even when the last bitcoin has been produced, miners will likely continue to actively and competitively participate and validate new transactions. The reason is that every bitcoin transaction has a transaction fee attached to it.
These fees, while today representing a few hundred dollars per block, could potentially rise to many thousands of dollars per block, especially as the number of transactions on the blockchain grows and as the price of a bitcoin rises. Ultimately, it will function like a closed economy, where transaction fees are assessed much like taxes.

https://www.investopedia.com/tech/wh...million-mined/

[chedder]

Originally Posted by bootsnixon

From my basic understanding of PoS it will effectively make electricity use inconsequential.



https://spectrum.ieee.org/computing/...-by-99-percent



This article states a 99% reduction of electricity demand for ETH's switch to PoS.

So this article is from January 2019 and is interesting. Has anything happened in the 2 years since?

[afc wimbledon]

Originally Posted by Fuzz

https://www.investopedia.com/tech/wh...million-mined/

isnt bitcoins point it is uncontrolled, if so then how do the fees get raised like taxes unless its already built into the system?

[Canadianman]

Originally Posted by Hemi-Cuda

I bought some ADA yesterday with this method which worked well, but then I wanted to take it out of Binance and put it into my Daedalus wallet so I could stake it. But they've disabled ADA withdrawals for "maintenance" that's been going on for more than 24 hours now, not impressed at all with them. I think I'll use Kraken for any future ADA purchases

I think it is because of the recent hard fork. They are updating software to allow the withdrawal. I am waiting for the same thing.

[accord1999]

Originally Posted by chedder

So this article is from January 2019 and is interesting. Has anything happened in the 2 years since?

In early December, Ethereum 2.0, POS/Staking launched. You can now earn interest on Ethereum.

https://launchpad.ethereum.org/

However, mining is still ongoing and there's still no hard date on when POS will takeover completely (if ever).

[accord1999]

Originally Posted by afc wimbledon

isnt bitcoins point it is uncontrolled, if so then how do the fees get raised like taxes unless its already built into the system?

Fees are paid per transaction, the goal is that by the time block rewards end, the number of transactions and their fees are high enough to incentivize miners to keep mining. At the moment, total transaction fees per day usually exceed 100 BTC:

https://btc.com/stats/fee

[afc wimbledon]

Originally Posted by accord1999

Fees are paid per transaction, the goal is that by the time block rewards end, the number of transactions and their fees are high enough to incentivize miners to keep mining. At the moment, total transaction fees per day usually exceed 100 BTC:

https://btc.com/stats/fee

I get that an increase in the number of transactions would increase the amount of fees paid, I dont understand how the actual fee itself would get raised, isnt the amount built into the system already?

[chedder]

Originally Posted by accord1999

In early December, Ethereum 2.0, POS/Staking launched. You can now earn interest on Ethereum.

https://launchpad.ethereum.org/

However, mining is still ongoing and there's still no hard date on when POS will takeover completely (if ever).

Thanks. What I just learned while trying to answer my own question is that if crypto currency mining was a country it would be in the top 30 for energy usage. Unreal.

Where are all the environmentalist celebrities' outcries on this!?

[Fuzz]

Originally Posted by afc wimbledon

I get that an increase in the number of transactions would increase the amount of fees paid, I dont understand how the actual fee itself would get raised, isnt the amount built into the system already?

You pay a transaction fee for every transaction. So if you sell 1 BTC, you pay and addition 0.0001BTC(number made up) that goes to the miners/verifiers. I believe that's how it works. So it's like a CC transaction fee, not like cash.

[accord1999]

Originally Posted by afc wimbledon

I get that an increase in the number of transactions would increase the amount of fees paid, I dont understand how the actual fee itself would get raised, isnt the amount built into the system already?

Because the number of transactions are capped in each block, sometimes during high transaction demand periods you need to bid a higher fee in order for your transaction to be processed faster. If your bid is too low, you could end up waiting for a long time. There's a website that shows this in a pretty cool graphical manner:

[afc wimbledon]

Originally Posted by accord1999

Because the number of transactions are capped in each block, sometimes during high transaction demand periods you need to bid a higher fee in order for your transaction to be processed faster. If your bid is too low, you could end up waiting for a long time. There's a website that shows this in a pretty cool graphical manner:

that makes sense and is an elegant solution, thanks

[afc wimbledon]

would I also be right in assuming that if more bitcoins are being transacted more often then the amount of power needed to allow that goes up proportionally?

[accord1999]

Originally Posted by afc wimbledon

would I also be right in assuming that if more bitcoins are being transacted more often then the amount of power needed to allow that goes up proportionally?

It's not quite the direct connection; if every miner chose not to buy new equipment to increase their own hash rate, then the amount of power used remains the same.

But it's human nature that if the fiscal rewards are increasing (especially if its in terms of fiat) then many miners are going to invest in more equipment (and new ones start up) to try to catch that increase, resulting in a new increase of power used, up till the point where it reaches equilibrium of where it's only modestly profitable after accounting for electricity and capital costs.

[afc wimbledon]

Originally Posted by accord1999

It's not quite the direct connection; if every miner chose not to buy new equipment to increase their own hash rate, then the amount of power used remains the same.

But it's human nature that if the fiscal rewards are increasing (especially if its in terms of fiat) then many miners are going to invest in more equipment (and new ones start up) to try to catch that increase, resulting in a new increase of power used, up till the point where it reaches equilibrium of where it's only modestly profitable after accounting for electricity and capital costs.

so really it would be a good thing if the money went down and less people were mining, it being hard to see how to justify using the power consumption of Norway in perpetuity in order to enable the function of a simple currency

[DownhillGoat]

Originally Posted by GGG

Demand for gold is driven by fear of inflation.

I meant why was he asking.

Not why has it increased in value.

[underGRADFlame]

If you are mining using Phoenix miner they are recommending stopping immediately... although it seems they were suspicious a month ago on NiceHash

https://www.nicehash.com/blog/post/s...er-immediately

[DownhillGoat]

McAfee in the news again - indicted on fraud and money laundering charges by the DOJ for the old pump-and-dump.

https://www.ctvnews.ca/sci-tech/john...tter-1.5336608

[MonsieurFish]

Hi All - I'm new to the crypto game but have just started dipping in the last couple of weeks. I'm wondering if anyone could provide any insight on wallets? Right now all of my coins reside in Binance - are they secure there, or do I need to buy a wallet (hardware wallet)? Any information or recommendations are much appreciated - thanks!

[dino7c]

Ethereum seems like the biggest bull on this bull cycle for me, I think its about to really take off

[Yoho]

https://twitter.com/user/status/1368928265176571907



We are still early.