Bitcoin transactions

[BillyStubbsTears]

I've read somewhere this week that every Bitcoin transaction uses over 2000kWh of electricity in the verification process.

Are there any experts on the topic here who can throw light on that? It sounds insane. If that's right, at the rates I'm being quoted for my next electricity contract, that'd be getting on for £1000 for every transaction.

[mugnapper]

My genius nephew has made over £250k on Bitcoin and similar erm products in the last 3 years.
He just bought his Dad a Jag (car not cat) for 'being an arse hole for 22 years' lol.
I asked him to explain to me the whole concept of Bitcoin. I didn't understand a chuffing word. It sounds like some sort of high tech pyramid scheme to me.
But then I don't understand music streaming either. And that's in both the technical sense and the business sense.

[nightporter]

To verify transactions, Bitcoin requires computers to solve ever more complex math problems. This proof of work consensus mechanism is drastically more energy-intensive than many people realize.

“In the case of Bitcoin, this is done by having many different competitors all conduct a race to see how quickly they can package the transactions and solve a small mathematical problem,” says Paul Brody, global blockchain leader at EY.

The miner who completes the mathematical equation the fastest not only certifies the transaction but also gets a small reward for their trouble in the form of a Bitcoin payment.

In Bitcoin’s early days, this process didn’t consume nation-state amounts of electricity. But inherent to the cryptocurrency’s technology is for the math puzzles to become much, much harder as more people compete to solve them—and this dynamic will only accelerate as more people attempt to buy into Bitcoin.

Multiple miners are using electricity in competition for rewards. Even though there may be hundreds of thousands of computers racing to solve the same problem, only one can ultimately receive the Bitcoin honorarium.

“Of course, this is wasteful in the sense that 99.99% of all the machines that did work just throw away the result since they didn’t win the race,” says Brody. While this process produces a fair and secure result, it also creates a ton of carbon emissions. “I very much doubt [whoever founded] Bitcoin anticipated such enormous success in the future and, consequently, the enormous amounts of power we’re talking about,” Brody says.

[nightporter]

There are many different blockchains, FLOW for example is a 'Proof of Stake' blockchain not proof of work and uses less power than 1 google search. Transactions are free on Flow too.

[mugnapper]

It’s beyond me. And I’m happy to accept that lol

[MachoMadness]

My genius nephew has made over £250k on Bitcoin and similar erm products in the last 3 years.
He just bought his Dad a Jag (car not cat) for 'being an arse hole for 22 years' lol.
I asked him to explain to me the whole concept of Bitcoin. I didn't understand a chuffing word. It sounds like some sort of high tech pyramid scheme to me.
But then I don't understand music streaming either. And that's in both the technical sense and the business sense.

It is a pyramid scheme. That's literally it. Good on those who got into it early and made their money like your nephew but that's how pyramid schemes get you. Early adopters get rich quick to lure in the rest. The fact that each transaction burns half a forest down is just the icing on top really.

[Not Now Kato]

A number of crypto currencies, such as Lunar, have collapsed leaving many punters broke!
 
For every punter who made a fortune there are many hundreds, maybe thousands, who lost everything they ‘invested’. In some cases those losses have been significant leading to people losing their houses, even attempted suicide! That’s always the risk with any pyramid system.

[BillyStubbsTears]

It's not quite a pyramid scheme, but it has similar vulnerability. Bitcoin only has value if people believe it has value. There is nothing underpinning its value but trust in everyone else not losing faith in it.

National currencies (mostly) retain their value because Governments and central banks can run policy in a way that encourages people to hold their currency. Like offering interest payment inducements. So holders who are a bit nervous have some incentive to hold their nerve.

What underpins crypto currencies? Absolutely nothing but faith and hope. And that means everyone who holds crypto and understands it is scared shitless that the bottom will fall out of the currency and they'll be left with bugger all.

So it's not quite like a pyramid scheme. More like a massive Mexican standoff. Everyone's cacking it that someone else is going to do them in, so maybe the best thing to do is to to pull your own trigger and sell up before some other bas**rd does.

Which is why Bitcoin has fallen 50% since the end of March, and 20% just today.

It's not and never was an investment. It's a mad gamble. Some folk have done well and good luck to them. But because Bitcoin has precisely zero inherent value, every quid that A has made us a quid that B had lost. It's a zero sum game, just like gambling on the flip of a coin.

[BillyStubbsTears]

Floor is dropping out of Bitcoin at the moment.

Down nearly 50% since the start of May, and 28% just since last Sunday.

[mugnapper]

https://news.sky.com/story/elon-musk-sued-for-258bn-over-claims-he-ran-a-pyramid-scheme-to-promote-dogecoin-12635334

Looks like someone else thinks it’s a pyramid scheme, well Dogecoin anyway. Oh and who’s in charge of fixing it?
Only the world’s richest man, who I’m not the biggest fan of.

[SydneyRover]

I think the crypto market is done for a while, I can't see how it could rise with the regular stocks on a downer and confidence tumbling.

[Bristol Red Rover]

I wonder how much crypto is held by the more established banks and investment institutions? I suspect not that much so far, though who knows the big players may well be behind the whole thing anyway!

If they are currently outside this system, a crash of the various cryptos could lead to a mainstream banking buying into them as they bottom out. Then I wonder how soon the secrecy of transactions will be eroded? Or is it more beneficial to maintain this? Some dilemma is that for the powers that be.

[BillyStubbsTears]

Why on earth would anyone buy into crypto when it bottoms out? It is literally worth nothing, whatever the price.

[turnbull for england]

Given the issues over gambling sponsorshiphttps://fanbanter.co.uk/national-league-cause-more-controversy-as-worrying-plans-come-to-light/  this doesn't look the sharpest idea

[Bristol Red Rover]

Why on earth would anyone buy into crypto when it bottoms out? It is literally worth nothing, whatever the price.

Because its more than likely that crypto will ultimately be the way the money system works, albeit with some checks and balances, ones that benefit the rich obviously.

[BillyStubbsTears]

Bottom has dropped right out of Bitcoin. It's in free fall. Down 60% in the past 3 months, 40% in the past 3 weeks, 20% in the past 3 days.

[BillyStubbsTears]

What was I saying about Bitcoin being a Mexican Standoff?
https://mobile.twitter.com/BondHack/status/1538135172100521987

[mugnapper]

Over a million are owed money by failed crypto exchange https://www.bbc.co.uk/news/technology-63624894

Will this affect the price of Bitcoin and the like?

[SydneyRover]

A simple explainer, what just happened ........

''The collapse of the cryptocurrency exchange will cost investors billions. But why would anyone give money to a man who plays video games in important meetings?''

https://www.theguardian.com/technology/commentisfree/2022/nov/15/why-were-so-many-smart-people-so-dumb-about-ftx-did-they-seriously-just-like-sam-bankman-frieds-vibe-

[Colin C No.3]

My ‘Obotu beans’ are dropping like flies!

The markets ‘there’ are apparently going crazy with a ‘skinned cat’ now fetching two bananas.

Should I switch to coconuts?

[Glyn_Wigley]

Why on earth would anyone buy into crypto when it bottoms out? It is literally worth nothing, whatever the price.

Because its more than likely that crypto will ultimately be the way the money system works, albeit with some checks and balances, ones that benefit the rich obviously.

Governments do NOT want a money supply they can't affect as part of economic policy. Especially one that evades money laundering legislation, one that terrorists use because of that.

[normal rules]

 They reckon a million people who had money invested in crypto via FTX have lost everything with no chance of compo as Uk based FTX customers had no protection under the financial conduct compensation scheme.

[Glyn_Wigley]

That's what you get for giving your money to rogue schemes. They can't say they weren't warned.

[wilts rover]

If something looks too good to be true - it usually is.

Anyone want to buy some tulips?

[Glyn_Wigley]

If something looks too good to be true - it usually is.

Anyone want to buy some tulips?

I'll give you some magic beans for them.

[roversdude]

I wonder if Crawley will end up in serious financial trouble

[drfchound]

They just might do if they had invested in FTX.

[Colemans Left Hook]

My ‘Obotu beans’ are dropping like flies!

The markets ‘there’ are apparently going crazy with a ‘skinned cat’ now fetching two bananas.

Should I switch to coconuts?

lest we forget

https://benthamscience.com/chapter/8455#:~:text=Shells%20have%20been%20used%20for,%2D4th%20centu%2Dry%20BC.

could say  Ftx is a "shell company" ........ the tide has after all turned and the punters are beached

[mugnapper]

I’m told shiny beads are still acceptable as currency in Stainforth.

[mugnapper]

https://www.theguardian.com/business/2000/jul/02/theobserver.observerbusiness5

Brain took only a week to remember this: South Yorkshire’s own pyramid scheme - Alchemy.

I was actually approached to join this by a dad and lad combo, who I’d asked to quote me for chopping down some leylandii and replacing them with fencing.
They gave me a video and a nice glossy brochure and an impressive verbal presentation where it seemed I could have all the money in the world, just by recruiting more people to the scheme. And when those people I got to join recruited yet more folk, I was going to earn more money than Croesus.
 When I said ‘This is a pyramid scheme’ it was like telling the Jehovas that there is no God.
Anyhow, I got rid of them and months later it collapsed leaving the guy at the top in prison.
Didn’t get them to do the hedge either.
Bad day all round for them.