A Bitcoin Transaction Takes Thousands of Times More Energy Than a Credit Card Swipe

[Covertibility]

Interesting read:
A Single Bitcoin Transaction Takes Thousands of Times More Energy Than a Credit Card Swipe



So there's a cap of 21 million bitcoins and people are going to use this fixed amount to buy things? This seems like a game of hot potato or musical chairs, keep the coin as long as possible before the eventually bottom falls out.

 

[stevegee58]

It doesn't sounds like you've done enough research on Bitcoin to have an informed opinion.

 

[Xela]

It doesn't sounds like you've done enough research on Bitcoin to have an informed opinion.

How can you possibly tell how much research the OP has done, just from one post linking to one article he's read, Steve?

I suspect that what you really mean is that his opinion seems to be different from your own?

 

[Pekelo]

It doesn't sounds like you've done enough research on Bitcoin to have an informed opinion.

Nothing like refuting someone with FACTS. OP is actually right, and bitcoin's usability as a popular payment tool depends on constant price increase. An instrument that is mostly held instead of circulated is not good for currency purposes.

 

[Tibster]

There's also the cost to preserve a currency integrity that is not included in the CC transaction cost.

How much does it cost to prevent attacks on the USD? For example, someone changing their account value to 1 trillion and spending it. That's what transaction costs on a blockchain are used for. CC companies get this for free.

 

[just21]

Once the mining is done and all 21 million coins have been created why would you keep your mining computer connected to the network?

 

[stevegee58]

How can you possibly tell how much research the OP has done, just from one post linking to one article he's read, Steve?

I suspect that what you really mean is that his opinion seems to be different from your own?

Actually it wasn't the link I was referring to but:

So there's a cap of 21 million bitcoins and people are going to use this fixed amount to buy things? This seems like a game of hot potato or musical chairs, keep the coin as long as possible before the eventually bottom falls out.

The factual answer to the above statement is:
Yes, 21 million Bitcoins is enough to buy things. The smallest division of a Bitcoin is a Satoshi which is 10^-8 BTC. That's 2.1x10^15 Satoshis. In other words it's sufficiently divisible to support a huge market cap in exchange with another currency.

 

[stevegee58]

Nothing like refuting someone with FACTS. OP is actually right, and bitcoin's usability as a popular payment tool depends on constant price increase. An instrument that is mostly held instead of circulated is not good for currency purposes.

What "price"? You mean the exchange rate against the USD? That exchange rate is variable depending on the forces of supply and demand. And has nothing to do with Bitcoin itself.
Hypothetically imagine a world without government issued currencies and Bitcoin was adopted as the world-wide exchange medium. What's the price of Bitcoin then? It would be "how many BTC/loaf of bread" or "how many BTC/hour of labor".

 

[stevegee58]

Once the mining is done and all 21 million coins have been created why would you keep your mining computer connected to the network?

Remember that miners aren't mining Bitcoin but blocks. Miners are rewarded with Bitcoin for solving blocks but the reward decreases over time. After all the rewards are paid out, miners will continue to be paid for blocks with fees. Mining blocks to hold transactions is vital to the health of the Bitcoin network.

 

[Pekelo]

Yes, 21 million Bitcoins is enough to buy things.

Only if the dollar valuation is high enough. At current valuation try to pay for a 10 million bucks purchase with bitcoin and see what happens...