Can anyone truly be Long on BTC?
I notice that over 13million of the maximum 21million bitcoins have already be mined.
Sure, this is anti inflationary and mining gets harder and BTC value increases per the model.
The heyday of mining has been and gone though. Hardware advances meant that way too many coins have been mined way too early.
With diminishing coins, harder hash rates, more expensive gear and diminishing returns, mining is going to become less and less worthwhile and less and less popular. Mining will soon only be profitable to larger and larger players, for narrower and narrower margins.
Mining as I see it, is the flaw as BTC goes forward. All transactions require the mining network to be up, running and healthy in order to even exist.
For the currency revolution of the future, a network doomed to become less widespread, a whole load slower, and against a theoretical backdrop of mass adoption, it will fall to pieces.
It already takes over an hour to complete a bitcoin transaction. So this is by no means a usable method of purchasing anything other than v high value commodities that take time to exchange, like real estate or businesses for instance.
So with growing traffic and lower network availability, an hour is probably the best we can ever expect!
A currency that requires such a network in order to exist is going to fail.
Only a network built on the transactions themselves could ever sustain itself. Because the only thing that will increase with mass adaption is the number of transactions...so the network has to be sustained by transactions, not by mining, which is going to be less worthwhile, less profitable and done by fewer and fewer people.
Any thoughts?
I notice that over 13million of the maximum 21million bitcoins have already be mined.
Sure, this is anti inflationary and mining gets harder and BTC value increases per the model.
The heyday of mining has been and gone though. Hardware advances meant that way too many coins have been mined way too early.
With diminishing coins, harder hash rates, more expensive gear and diminishing returns, mining is going to become less and less worthwhile and less and less popular. Mining will soon only be profitable to larger and larger players, for narrower and narrower margins.
Mining as I see it, is the flaw as BTC goes forward. All transactions require the mining network to be up, running and healthy in order to even exist.
For the currency revolution of the future, a network doomed to become less widespread, a whole load slower, and against a theoretical backdrop of mass adoption, it will fall to pieces.
It already takes over an hour to complete a bitcoin transaction. So this is by no means a usable method of purchasing anything other than v high value commodities that take time to exchange, like real estate or businesses for instance.
So with growing traffic and lower network availability, an hour is probably the best we can ever expect!
A currency that requires such a network in order to exist is going to fail.
Only a network built on the transactions themselves could ever sustain itself. Because the only thing that will increase with mass adaption is the number of transactions...so the network has to be sustained by transactions, not by mining, which is going to be less worthwhile, less profitable and done by fewer and fewer people.
Any thoughts?