The Bitcoin Game - - Cryptocurrency Podcast

Will Altcoins Undermine Bitcoin's Deflationary Characteristic?

When people talk of deflation and Bitcoin, they mean that you need to pay fewer and fewer bitcoins for the same things because the demand for bitcoin grows much quicker than the supply.
We generally assume this will continue and when people talk of a price of $100k per bitcoin or similarly enormous sums, they implicitly assume that Bitcoin will be the only one. You arrive at these sums by taking all the use-cases, industries and functions that Bitcoin can do better than the current financial system, you calculate amount of money that will be needed as a consequence, take into account velocity, divide by the number of bitcoins and voila: We have a super-high price and we’re all rich:)
But there is one thing that is generally ignored. The cryptocurrency infrastructure can handle any of the cryptocurrencies similarly well. For a provider like BitPay it would (presumably) be very easy to switch to Litecoin, Dogecoin and Whatevercoin with ease. Even more importantly, they could accept different cryptocurrency simultaneously. (As long as a liquid market exists for them.) In the future payment providers, wallets and other services will handle multiple currencies simultaneously.
This could, for example, mean that you’ll need ‘a’ cryptocurrency to do remittances cheaply, but any number of them would do the job.
It seems, this could destabilize the deflationary characteristic of Bitcoin. If cryptocurrencies can be substituted for each other, then we need to think of the money supply not in terms of Bitcoin but in terms of cryptocurrencies and obviously the supply is no longer limited.
The key question this revolves around is how large are the network effects? How much more utility does one currency vs many currencies provide? Currently, you can’t do much with other cryptocurrencies so there are strong network effects. But if services make seamless, cheap and instantaneous exchange possible between currencies (and I think they will) these effects will decrease.
Am I correct? I would love to hear some thoughts and scenarios about how this will play out.
Note: - These concerns were mentioned by several people in the recent Goldman Sachs report on Bitcoin: I highly recommend reading it. While it’s critical, it’s well-written and thoughtful. - We also discussed this question on our last podcast episode (Epicenter Bitcoin) with Sebastien Couture and Jonathan Levin of Coinometrics: (The relevant discussion starts around 1h24m)
submitted by crainbf to Bitcoin [link] [comments]

TRANSMISSION 10 : Epicenter Bitcoin EB90 – Dave Hudson: Insights From The Data Mine And Other Adventures Around The Block EB123 – Brock Pierce: From Digital Goods To Digital Currency EB138 – Sergio Lerner: How RSK Will Bring Smart Contracts To Bitcoin EB83 – David Andolfatto: Fedcoin And The Implications Of Cryptocurrencies Issued By Central Banks

Bitcoin Calculator. iOS Crypto Wallet. Android Wallet App. Cryptocurrency Charts. Mining Pools. Buy With Bitcoin. Crypto Chrome Extensions. Blockchain Developer. Bitcoin YouTube. Cryptocurrency Guide. Cryptocurrency API. Cryptocurrency Blogs. Bitcoin Wiki. Blockchain Events. Cryptocurrency Podcast. Pro Cryptocurrency Trader . Ted Talks Cryptocurrency. Bitcoin Twitter ... Recipe Cost Calculator // // This free calculator will determine the cost for each ingredient (up to seven ingredients total) and the final cost of a recipe. Directions: 1. Enter your recipe information, replacing text i… Banks Finance Satoshi Nakamoto Bitcoin Cryptocurrency Blockchain Technology Crypto Currencies Computer Science Economics Business Ideas. Nxt vs Peercoin —A comparison of ... Bitcoin Generator Tool Review; Tagesgeld Zinsen Pro Monat!. 4 days ago - Bei der Betrachtung der regionalen Preisentwicklungen zeigte sich heute die Nordsee-Ölsorte BRENT kaum bewegte und am Handelsoption · Massenölpreise · Futures und Rohstoffe Handel · Brent roh Preis Diagramm · Handel auf Aktienmarkt · Was ist der Handel am Eigenkapital .Free transfers between Freewallet users. The Bitcoin Uncensored podcast is a cryptocurrency podcast hosted by Chris DeRose. The podcast has over 100 episodes and has been publishing content since 2015. DeRose is very active in the cryptocurrency industry. DeRose regularly participates in public speaking events and is an active journalist. DeRose also regularly posts video content on his YouTube channel. There are close to 10,000 ... The Bitcoin Game will receive a referral fee for purchases using this code, however, that did not influence the content of this episode. Before purchasing, please consider electricity usage in addition to the cost of the miner itself, and note that Bitcoin and Lightning Network features are not active yet.

[index] [7960] [43108] [35972] [20818] [21266] [28707] [41327] [40696] [24539] [6450]

TRANSMISSION 10 : Epicenter Bitcoin

Christian Decker is a PhD student at ETH Zurich, where he is currently finishing up the world's first PhD thesis entirely about Bitcoin. The computer scientist has been part of the Bitcoin ... But others believe that Bitcoin is unsuited for a lof of 'Bitcoin 2.0' applications and that permissioned ledgers have wide-reaching potential to increase efficiency and transparency. Tim Swanson ... Support the show, consider donating: 18ZSe3qvW3rCc9ScS5BjQYmcPYPzuAJu5X ( We're joined by Brock Pierce, Chairman of the Bitcoin Foundat... Many people think of Bitcoin as the ultimate contender against the power of central banks, most importantly the Federal Reserve System. But that is certainly not the only way that cryptocurrencies ... Donate BTC: 19LsH8NPDu5ozG9byojL8CqqWTUHTSb8VG Donate Doge, XDP, or assets to: DHLTxVS1XZ3KeVhLocRWYd9E9WAmosUsrb Donate Viacoin, XCP, or assets to: VoYVELff...