Comments for Current Bitcoin Exchange Rates https://coinaccess.com/blog Coin Access Wed, 21 Jan 2015 18:20:39 +0000 hourly 1 https://wordpress.org/?v=4.9.12 Comment on IRS recognizes bitcoin by John https://coinaccess.com/blog/irs-recognizes-bitcoin/#comment-5 Wed, 21 Jan 2015 18:20:39 +0000 http://www.coinaccess.com/blog/?p=50#comment-5 I consider $90k in USD value “real money”.Bitcoin is a “foreign currnecy’, more correctly, it is a distributed ledger system that has been adopted as a store of value. It is pseudo-anonymous, peer to peer, no banks involved. a quick google search can give you more specifics if you’d like.

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Comment on Investing in Bitcoins or Other Crypto-Currencies by Russ https://coinaccess.com/blog/investing-in-bitcoin-or-other-crypto-currencies/#comment-4 Wed, 21 Jan 2015 09:44:52 +0000 http://www.coinaccess.com/blog/?p=13#comment-4 I agree with 3) XRP is not particularly saocil or viral.That fact may hold the currency back (Bitcoin has first mover advantage).However, as more BTC are transacted over the Ripple network we will see a movement from BTC to Ripple and XRP will gain traction just because of its association with BTC and existence alongside BTC debt exchanges. It wil simply be more convenient to transact with one currency than with two. Since the Ripple distributed protocol is currently vital to the existence of BTC due to its address of fatal flaws (scalability issues, DDOS-like possibilities (responded to by limiting micro transactions defeating the purpose of BTC), 51% address) in the BTC protocol, Ripple will gain traction. Furthermore, XRP by its very design will be a more stable currency and thus a greater holder of long-term value. The argument that founders hold 20% of the currency and are thus profiteers does not resonate with me. The owner of the computer which mined from block one holds >1 million BTC, ~30% of total BTC probably Satoshi himself. Furthermore, a centralized mining conglomerate holds ~40% of all processing power in the BTC network and the few major exchanges essentially control the value of the currency. That does not sound like complete decentralization to me. However, I disagree with 2) XRP is not a great base currency for use by real people.This soft point does not resonate with me: However, XRP will never be easy to understand for the average person. Most people can understand the idea that “I can use bitcoins to buy things,” but it would be very difficult for them to understand what XRP is and how to transact with it.’Regular people do not need to understand the nuances that come with IOUs in order to use XRP as a currency. If XRP holds any value, it can be used to buy things the same way BTC can. The steps a regular person would take to use XRP as a currency are the same as they would take to use BTC as more gateways support XRP and as XRP gains traction.

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Comment on Is Bitcoin a Good Investment? by Evha https://coinaccess.com/blog/is-bitcoin-a-good-investment/#comment-3 Wed, 21 Jan 2015 09:23:31 +0000 http://www.coinaccess.com/blog/?p=6#comment-3 Thanks for your response, and what you’re sanyig is correct but doesn’t change the math. Your calculations, however, are exactly the same as mine with the exception that you introduce more complexity through depreciation and ming efficiency. You further assume that the miner will keep all coins to the end of the period and sell for a given exchange rate at that time. This introduces currency price speculation, which again just complicates things. I could counter-argue that a massive profit can be made by selling the card for coins at the low price and selling the coins at the high price. In the end, you’re just repeating the same argument, that total profit must the the result of mining revenue less depreciation and cost. In my calculations, mining doesn’t come into play because it is a minute factor and would balance out by a lower price with more coins being the same as a higher price with fewer coins. If you introduce mining, like you say, you need to introduce cost of electricity, depreciation, cost of operation (and for a $1000 rig, flipping burgers for minimum wage is far more profitable), and so on. I also don’t assume the end result denominted in a certain currency, which is exactly why I purchased’ one A at the beginning and held on to it. In the end, you hold exactly the same A as you had when you started. The point isn’t that one A is the best deal you could get, but to take trading and currency speculation out of the picture and show that when prices decline, you get far more coins than you do if you had held on to fiat or bought coins when the prices are higher.I go into far more details about in the book I’m writing (). You can download the preview chapter for free and you’ll see 8 scenarios with various permutations of mining, depreciation, selling low/high, and so on, but I’m afraid the results remain the same. Mining is most profitable when prices go down.

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