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Merged Bitcoin - Part 3

Dr.Sid said:
Yeah, in China the prices will drop. But the ban just means mining outside China got way more profitable. So ..
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.. so more people will get into mining thus upping the costs of mining again. Maybe not as high as when China was involved but enough to make mining not super profitable again.

Samson said:
If mining is profitable surely bitcoin price drops.
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No correlation. Bitcoin's price comes from speculation and not mining.
 
psionl0 said:
.. so more people will get into mining thus upping the costs of mining again. Maybe not as high as when China was involved but enough to make mining not super profitable again.
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The big mining operations in Russia aren't being shut down. I believe that's the other place that is hosting those operations. Shut them down and I think we'll see a considerable amount of "rebalancing". But I doubt that will happen.
 
arthwollipot said:
The big mining operations in Russia aren't being shut down. I believe that's the other place that is hosting those operations. Shut them down and I think we'll see a considerable amount of "rebalancing". But I doubt that will happen.
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Even if all the big nations shut down mining in their countries, there would still be enough clandestine mining as well as mining in other parts of the world to keep bitcoin going.
 
Belz... said:
I'd think the latter has something to do with it as well. If it costs a lot to mine, that could affect how much people are willing to spend on one.
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Yes.
Something like bitcoin a million means all world electricity production required.
 
Belz... said:
I'd think the latter has something to do with it as well. If it costs a lot to mine, that could affect how much people are willing to spend on one.
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It doesn't work that way. Speculators are not interested in how much miners spend on their mining activities.

As long as there is more than a handful of miners, your transaction will get on the blockchain no matter how many miners are competing with each other.
 
Binance, the world's biggest crypto-currency exchange, has been banned by the UK's financial regulator.

The Financial Conduct Authority (FCA) has ruled that the firm cannot conduct any "regulated activity" in the UK.
It also issued a consumer warning about Binance.com, advising people to be wary of adverts promising high returns on cryptoasset investments.

Binance said the FCA notice would have no "direct impact" on the services it provides from its website Binance.com.
Binance's existing crypto exchange is not UK-based so despite the FCA ruling, in practice there will be no impact on UK residents who use the website to purchase and sell crypto-currencies.

The FCA does not regulate crypto-currencies, but requires exchanges to register with them. Binance has not registered with the FCA and therefore is not allowed to operate an exchange in the UK.

Binance said that the firm's relationship with its users had not changed, stressing: "We take a collaborative approach in working with regulators and we take our compliance obligations very seriously. We are actively keeping abreast of changing policies, rules and laws in this new space."
Binance Group is currently based in the Cayman Islands, while Binance Markets Limited is an affiliate firm based in London. The firm has multiple entities dotted around the world and Binance Group was previously based in Malta.

The FCA said that Binance Markets Limited (BML), which is owned by Binance Group, is not currently permitted to undertake any regulated activities without the prior written consent of the FCA. It has until Wednesday to comply with the ruling.
The regulator also stressed that no entity in the Binance Group holds any form of authorisation, registration or licence to conduct regulated activity in the UK.

On Saturday, Binance announced it was pulling out of Ontario, Canada, after the Ontario Securities Commission (OSC) accused it and several other crypto trading platforms of failing to comply with province regulations.
And on Friday, Japan's Financial Services Agency (FSA) warned Binance for the second time in three years that it is operating in the country without permission.

https://www.bbc.co.uk/news/business-57632831
 
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Just a suggestion.

Why not stop Bitcoin where it now is? No more mining. Just divide and divide and the finite amount there currently is?

I thought crypto would crash. But then I also thought fiat would crash. I did not take into account that some things can be talked up and supported for very long periods. In 2004 one website gave up predicting a crash because it just kept going. In 2008 it crashed but society stopped it from fully playing out. The world has a new set of problems. Printing money.
 
PartSkeptic said:
Just a suggestion.

Why not stop Bitcoin where it now is? No more mining. Just divide and divide and the finite amount there currently is?
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How? Bitcoin is decentralized. Nobody can stop anyone else from making more of it.

There's no "President of Bitcoin" to pull a switch or adjust a dial on it.

IIRC correctly there's a built in limit to how many Bitcoins there can be, but it's built in to like... the math. It's nothing that can be implemented at a specific time.
 
JoeMorgue said:
How? Bitcoin is decentralized. Nobody can stop anyone else from making more of it.

There's no "President of Bitcoin" to pull a switch or adjust a dial on it.

IIRC correctly there's a built in limit to how many Bitcoins there can be, but it's built in to like... the math. It's nothing that can be implemented at a specific time.
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The closest thing to any authority are the big crypto exchanges. The credibility of these exchanges that convert real money into digital coins are important safe-harbors in a crypto world otherwise full of scammers and volatility. The only real lever that government has is to hamper the ability of these exchanges to convert crypto funbucks into real money, and even that is only an oblique attack.

A real effort to make it difficult to safely and conveniently convert speculation funbucks into USD would probably have a pretty significant impact and make it less attractive to get rich quick types.
 
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PartSkeptic said:
Just a suggestion.

Why not stop Bitcoin where it now is? No more mining. Just divide and divide and the finite amount there currently is?

I thought crypto would crash. But then I also thought fiat would crash. I did not take into account that some things can be talked up and supported for very long periods. In 2004 one website gave up predicting a crash because it just kept going. In 2008 it crashed but society stopped it from fully playing out. The world has a new set of problems. Printing money.
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My understanding, and I am not an expert, is that mining bitcoin plays a role in verifying and recording bitcoin transactions, so continued mining is necessary to the utility of bitcoin.
 
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