so it's valuing atm fees?
Crypto Talent
- Thread starter GlobalMacro90
- Start date
so it's valuing atm fees?
In case of BTC I wouldn't call it ATM fees and rather compare it to Western Union without the hassles.
For other chains you pay fees when you want to run a smart contract, so the use case is slightly different.
Once you get past the lingo, things are actually pretty easy to understand. It's a market like Dotcom, but probably 10x crazier and with a lot more opportunity
@angrytrader Just wondering, do you know of any large, traditional finance markets that settle in <10 minutes?
(@GlobalMacro90 wasn't directly talking about 'efficiency' in that post, which is a vague, wide concept until more carefully defined, but rather he was talking about settlement time and participants making irrevocable commitments to their trades.)
I've been enjoying comments from all sides in this discussion...
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Fair I guess. Efficiency is vague in a way. The general assumption is if everything settles in 10 minutes the efficiency of the market increases.
Right now the system is basically: do a bunch of trades with a bunch of counterparties ... as we will see who owes what in 3 days.
Now, of course, there is a negative to this. Trades cant be revoked/undone easily. While that can cause problems, I think the benefits outweigh the costs, but would love to hear other opinions.
Bitcoin does not settle in less than 10 minutes, some transactions might do, but the average can be a couple of days depending on the number of transaction to be processed , that's one of the problems of the network, it doesn't scale as well as it should. OP is bringing the best time possible just to help the point, but we know that the average is different.
We know stock markets settle in 2-3 days, but the point of using Bitcoin is to have an alternative to regular banking systems, so comparing stock markets with Bitcoin does not make sense, stock markets need clearance from liquidity providers to function. External participants interacting with the stock market are what take most of the time, but the network itself is ready for it. You could compare the Bitcoin network with the Forex market but still it would be a weak comparison.
It makes sense to compare a payment with Bitcoin at a regular shop the very same way that you would use a Visa transaction, and there is where the argument starts. You can see your settlement at your bank account almost instantly after your have purchased an item with your debit card, and that is the main point to challenge the need for Bitcoin to pay for goods.
thanks. that puts some of this in perspective. seriously, none of the guys i know can explain it and some of them are big fintech players.
No way, Im going to need a source on this one. Calling BS.
Every ~10min a new block is made. I have heard of companies requiring transaction counterparties to wait a couple blocks, lets say 4 (40min) or so, but never days.
The rest of this is just you trying to put bitcoin in a box (mental construct) that it cant fit in. Its many things. Its not just a payment network. Its not just an asset.
It is BS, can't even believe someone actually posted that
The process goes, you send btc by signing a transaction and broadcasting it to the network, it goes to the mempool
Transactions in the mempool are unconfirmed, depending on the fee you pay, it may be picked up immediately for the next block by the Bitcoin miners, when it is mined
1 block confirmation is sufficient for most transactions but a transaction that involves hundreds of millions of $ worth of btc may require 6 block confirmations
The fear is that someone can 51% attack and rewrite 1 block, but rewriting 6 block confirmations is nearly impossible, maybe if someone's hiding a quantum computer
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Don't trust but verify
Run your own full node, use a local wallet, send a transaction and track on the blockchain
https://www.blockchain.com/explorer
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