Silk Road forums
Discussion => Newbie discussion => Topic started by: CCC123 on January 26, 2013, 01:25 pm
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So what happens when all the blocks have been solved etc... and no more bitcoins will be added? Will the currency depreciate? Collapse? Appreciate? What effect will it have on bitcoin prices on here?
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I think the amount of blocks is infinite. I know the blocks get harder to solve as time goes on meaning less new coins. This would make the value go higher I'd imagine. I read somewhere that's the reason BTC can be split into many decimal places.
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coins are just gonna get more expensive. I remember a btc forum 2-3 years ago when someone offered 100coins for a pizza delivery.
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There is a limit of bitcoin generation at 21 million, currently 10.7m have been mined. The reward for generating bitcoins drops over time and it is the eventual zero reward that will limit the total number available.
At that point the value will depend entirely on demand. If more people want to use them the price will go up and v.v. BTC is still a very new currency, you could consider it an investment but the risks are extremely high. If a weakness in the algorithm is exploited, or there is rampant market manipulation your investment could suddenly become almost worthless. On the other side a lack of market liquidity could cause a price spike.
I think most people are expecting bitcoin to become more popular over time, which would cause an increase in the value of the currency, but that is far from certain. Government regulation could significantly dint the adoption of bitcoin in the wider community if they so desired.
You can expect the prices on here to shift in turn with the value of the currency. So something currently costing 10BTC might end up costing 1BT but that'll will cost you 10 times as much to acquire in a state currency. Likewise the opposite might happen...
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scary investment but fun to day trade with extra cash laying around
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not possible for "no more to be made" but I think the price would go down as more are made kinda like a stock split.. i tihink.
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A block is added to the chain on average every 10 minutes, each a lottery winner among trillions of attempts. Each block contains a reward for mining (currently 25BTC) and a bunch of other transactions. Miners make millions of blocks per second and try damn hard to make one that will win a place in the block chain, allowing them to claim that 25BTC reward.
Why the hell should they bother to include your transaction in their blocks? Because if you're not stupid and you want your money to actually be sent, you'll bribe the miners with a transaction fee.
Every four years the mining reward is cut in half so eventually miners will get the vast majority of their income from these mining fees. Right now we've got an easy ride because more money is being created so transaction fees can be minuscule, but in the coming decades moving bitcoins around will be damn expensive.
edit: By expensive, let's quantify this by saying there's several hundred transactions per block (about 300, see blockchain.info) and there's a several hundred dollar reward per block (say $425). If we assume we want the same level of security (mining power) then we'll need to pay a $1-2 transaction fee in a few decades time.
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You will use Sovereign coins.
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not possible for "no more to be made" but I think the price would go down as more are made kinda like a stock split.. i tihink.
you are wrong about "not possible for no more to be made"
only 21 million bitcoins will ever be created. ever.
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But the difficulty will be constantly increasing. It will be an incredibly long time before that last BTC gets mined.
I don't think BTC will massively spike in value, most BTC transacted even today are bought from others, not created.
I think they'll just move around faster to account for reduced production, where no one is really holding them for anything more than the shortest period of time. Off-line (out-of-network) trading systems will be created to avoid network transaction fees, but with that, a loss of anonymity and many of the other advantages of BTC will occur.
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So what happens when all the blocks have been solved etc... and no more bitcoins will be added? Will the currency depreciate? Collapse? Appreciate? What effect will it have on bitcoin prices on here?
In my opinion if that happens I think bitcoins will increase price a lot if the demand is way bigger than the supply the price will increase and people will start paying like 0.01 for a product and anyone who had stored bitcoins would make a fortune.
And in my opinion I think there are a lot of frozen bitcoins out there and this will continue to increase due to mistakes in sending to the right address,hacks,lost wallet problems etc. which will contribute to the increase in price if the criteria for that applies like i mentioned before.
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A month ago 1 BTC was worth 7.50 in the UK now it's 11.50 for 1 BTC this is due to idiots buying and actually saving them ie holding onto them so if this goes on for long enough the whole BTC market n idea will be F, as no one will use them anymore I mean i'm definitely not buying them at this price now at 11.50 UK i'd rather buy my drugs off of the street why the flip should I make some person rich through BTC transactions with them when I can simply make a phone call and do a street deal ie instead of paying 500 UK for whatever when I can really get it for 30 UK from the street F, that BTC are just mad don't get me wrong good idea but it's got a long way to go to make it rite ie as good as money
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Prices will tend to go up if demand remains constant or increases
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not possible for "no more to be made" but I think the price would go down as more are made kinda like a stock split.. i tihink.
you are wrong about "not possible for no more to be made"
only 21 million bitcoins will ever be created. ever.
Correct. And the 21 millionth will be mined in 2140.
When he first announced it, Nakamoto said that total circulation would be 21,000,000 coins. 10,500,000 coins would be distributed to miners in the first 4 years, and the number distributed cut in half every 4 years after that. Thus the number of Bitcoins available to be mined will trickle to a stop by 2140.