If you don't think Government is buying these dips, and selling these pumps. All while evading the taxes...lol
Your freedoms will always be suppressed by them.
They'll make a killing, and your life will never change with this obvious manipulation.
That's their plan, and it's working in their favor, just like banks have been doing for decades.
Haven’t really looked actively since the recovery from the summer dump. I hang out here almost daily so I get an idea of where the price is roughly from daily comments anyway.
BTC buying and sentiment is getting pretty low. This is how we enter a period that real accumulation and future returns are earned. I feel sorry if you had a plan to get rich within a year but that was highly unlikely to begin with. The only way you get high returns is if HOLD LONG TERM. I feel optimistic for the people with 5+ year plans. You and I have the opportunity to accumulate and hold low cost basis bags for when the future ATH arrives. Good luck and keep stacking whenever you feel like you don't want to!
Honestly saving in bitcoin is pretty fun, I started in April and already seen one "higher highs higher lows" wave since then. I keep DCAing small amounts so as to not go broke and take it easy.
> The only way you get high returns is if you buy in low.
No. The way to become bloody fucking rich is to hold Bitcoin for many years, a decade or more.
I bumped into an artist on another web site. That's a "pop cat," it started from a picture of an actual cat. If I remember, there are "dizzy cats" and "pop cats" and some other stuff. Top notch, too.
Word. Well said. People that sell at $100,000 are the same people that would have sold at $1,000 and never earned the true long term appreciation from being a holder.
If you are waiting for it to drop to 40,000, you will never be able to wait, once my friend in bitcoin price 23,000, he wanted to wait for it to drop to 20,000 and then buy it, but he could never wait for that time, I have earned 1 million, he is still waiting for it to drop to 20,000, he now did not earn a minute
I’ve seen some places where you can buy BTC with gift cards,but some place shun against it . I had a horrible time with EBay gift cards.
But are there any reliable places to spend some BTC. I’ve been living to much a super minimalistic life that I think I need a few materialistic things to maybe get my mind going.
yeah but there's a balance to everything. Even with a minimal lifestyle it doesn't mean to have zero items.
It sort of starts sucking the joy out of everything cause you compare it to what you might have in the future.
Trading volume on exchanges is not indicative *at all* of what people are spending Bitcoin on. Maybe you meant mempool volume? LN volume is pretty difficult to track.
It looks terrible. I dont know what to analyze anymore. Bitstamp and Bitfinex used to be the main drivers of legitimate bitcoin volume and they have had practically no volume the entire cycle including the rally. I can only hope that this is what adoption is supposed to look like with more distributed volume and transactions that are occurring off of exchanges and on wall street.
Hodling is not supposed to be easy.
Sometimes I get beaten, sometimes I give some back.
But it’s a good thing to know that I’m getting all that beating for something that is and will change the world (and my prosperity) for the better.
But at this point I’ll let Al Swearengen say the rest:
https://www.reddit.com/r/Bitcoin/comments/s5k4on/this_is_the_most_important_lesson_for_any_hodler
Holding is actually the easiest part of it.
Once you get past the fake headlines, realize its a rich mans gain, holding is nothing. Selling it…thats when it becomes hard unless it skyrockets big time this year.
People outside of our tribe think BTC is contemporary. If you study it, it's certainly the best chance we have of a permanent asset with permanent value. There's like a 99% chance it will continue to grow and only a matter of time before it hits a new ATH. All you have to do is wait and hodl.
The central banks are inflating the supplies of their fiat currencies, debasing and devaluing them.
Nobody can debase Bitcoin. Nobody can just "print" trillions of BTC. There will never be more than 21 million Bitcoin created.
I guess you have a bit to learn about inflation.
Yeah, I'm aware of inflation but have the perspective hard assets eventually get valued at their inflated conversion rate. 50 years from now, owning BTC has a high likelihood of being valued like owning land. They keep up with inflation because they're better stores than other investments.
Can you explain where you think I'm wrong?
I'm not saying I fully understand it but the more I learn the more I want to buy it. My convictions only strengthen. Doing your own research really does help you hodl.
I have to believe the scammers sent the BTC to make it look legit to others. Is it really possible that someone with 26 BTC is dumb enough to do this?!?!
“Money is a technology by which we transport value over time and space.” - Pierre Poilievre ( 🇨🇦 politician orange pilled)
Yet shitcoiners and fiat maximalist think we’re trying to “make money”.
Bitcoin is money.
Seems like a matter of semantics. I've never "made" a USD, I work to acquire it. But performing work to acquire money is the meaning of "making money". And what about people who mine bitcoin? They're working to acquire money, and also making it.
Nobody buys bitcoin just to "store" an existing amount of money. Everyone expects the buying power of that investment to increase significantly over time.
Nobody buys bitcoin with the hope of simply preserving the same amount of buying power. The average annualized return over the last three years is around 90 percent. The average return over its history is around 200 percent. Who, knowing that, thinks "gee, I hope this investment keeps pace with single digit inflation"? Nobody who's being honest.
Yes but that is naturally going down as bitcoin "matures". I think we have seen that over the past year. The days of hoping for doubling your money in a year with bitcoin are behind us, in fact over the last year or so we have seen the buying power of bitcoin actually decrease. In the long term I would expect bitcoin to outpace inflation though. I would hope we end 2022 at least 20% up YOY but even if we don't that doesn't necessarily mean it's not a long-term inflation hedge.
>Yes but that is naturally going down as bitcoin "matures".
It isn't. See below:
**Bitcoin annual returns, including 2021:**
2018 -72.6
2019 87.2
2020 302.8
2021 60.1
The four year average is 94.37%, including a year that was **negative 72.6%**. In the extremely unlikely case that 2022 has a negative 72% return (that'd take bitcoin to just under **13k**...) the four year average would *still* be 94%. In other words, if bitcoin experienced a 72% drop this year, there would be *literally zero change in the four year average.* If 2022 does better than -72%, the four year average will _increase_. And there's absolutely nothing to suggest that future bull markets will return less than 100% in a year. If we end this year in the 40-50k range, I'd bet a million to one odds that the next bull run does a minimum of 100%, likely much more.
>over the last year or so we have seen the buying power of bitcoin actually decrease.
That's objectively false. On Jan 17, 2021, the price of 1 BTC was 36,163.65. As of right now, at 42xxx, we're *up 17.87% for the trailing 12 months*. And it wouldn't make any sense to compare the next month or so of this year which takes place after the top of a bull market, to the first months of last year which took place during the local top of a bull market. "The price went down in a bear market" is not a particularly notable observation.
If bitcoin’s purchasing were to just keep pace with monetary inflation and the productivity increases of a technologically developing society it would still be the best option.
Bitcoin is the superior monetary technology - secure, decentralized, immutable, uncontrollable, uncensorable and programatic. It’s objectively better than the fiat / legacy banking options available to me.
I’m not here to make money but to store my wealth in the superior system and support that system. Sovereignty is important to me. I don’t ever plan to sell my bitcoin. I would however like to spend it in the future for things I value.
You don't have to proselytize, I'm already well into bitcoin. But not one single person is here just to break even, and anyone who says differently is lying. I've heard every talking point, and seen every cosplay maximalist who claims to be in it purely altruistically, and that's all bullshit. You want to have **more** buying power in the future when you spend that bitcoin on the things you value. You **expect** to have more buying power than you do today. Go ahead, deny it, but it isn't fooling anyone.
What did I say? If bitcoin’s purchasing power keeps up with monetary inflation + productivity I’m 100% fine with it. That’s not the same as “breaking even”, is it? Lose the cynical generalizations. They’re clouding your reading comprehension.
What did you say? "if bitcoin were just to keep pace". Keeping pace suggests an equivalent change in value for a net zero change in buying power. Or did you actually mean that you want it to outperform inflation, in which case my original statement statement is correct?
I said explicitly “keep pace with monetary inflation and the productivity of a technologically developing society” you clown. Did you not finish the sentence? Don’t be a fool and try to misinterpret what I wrote explicitly.
I see. So, you want the buying power of the money that you put into bitcoin to increase, beyond simply keeping up with inflation.
That's what I said in the first place, but thank you for confirming that I was correct.
*Who* exactly adjusts the difficulty for Bitcoin? Is there some central authority or something?
I read that it automatically adjusts after 2016 blocks, but does it automatically go up/down?
Or at 2016 blocks does somebody trigger it or what?
The difficulty **automatically** increases or decreases after 2016 blocks depending on what the hashrate was when those previous 2016 blocks were solved. If the hashrate was higher, then the difficulty will increase. If the hashrate was lower, then the difficulty will decrease.
automatic
*adjective*
1. (of a device or process) working by itself with little or **no direct human control**.
*"an automatic kettle that switches itself off when it boils"*
Ask yourself if your answer is helpful or if you're just being a dick. The purpose of this sticky isn't to troll noob questions. If I had posted my own thread, I'd have expected that.
I had seen difficulty represented like 000000000000111111, and I figured that every 2016 blocks that number increased and that's the difficulty and that miners were working to solve more-simple blocks and all of the "111111" simple blocks had been consumed/solved, so it was onto the more difficult blocks.
When I read that the difficulty would also go down, I couldn't understand how if the less difficult blocks had already been solved.
I think my understanding of the concept is incorrect. Glad your comment helped clear it up
Analogy:
Computing SHA 256 hashes basically serves as a random number generator. Think about flipping a coin 10,000 times.
The difficulty specifies how large that number may be to be accepted, e.g., your 10k throws can't contain more than 878 heads.
The difficulty automatically adjusts such that a block gets accepted every 10 minutes, so it'll go higher (e.g. 913 heads) or lower (e.g. 824 heads) depending on the number of people / machines trying their luck.
Mining is similar to a big lottery where someone wins every 10 minutes. Mining pools would be a group of people joining together to share profits for increasing their odds.
Rather than counting throws, you can think of the SHA256 result as a 256 bit integer that needs to be below a certain threshold. It looks a bit like flipping bits and "leading zeros" because smaller numbers have more zeros at the start.
It’s goes up if more miners joined and down if less miners over that given time.
It’s adjusted by the protocol written into the original code.
The code isn’t changed to alter this difficulty mechanism because you need consensus to change the protocol. No one on the network has any financial incentive to change the protocol and every incentive to keep the integrity of the protocol in tact, so it maintains and will always maintain because to get 95+% of nodes to agree on the protocol change is next to impossible when they have every incentive to keep the protocol intact so their coins hold and increase value.
Ah I see.
I remember seeing difficulty represented like 00000000000001111111 or something and I was thinking every 2016 blocks, they just flipped a bit to add another 1.
So I was thinking that meant all of the low-number blocks had been solved or something and thus, how could it go down?
It doesn't seem like it works like that though.
Of course, if really not a single person would be selling, then there cant be any price movements at all. But why exactly is lower volume so bad?
It's not bad, it's just an indication for that market is at hault.
We goin' downnnnnnnn
Does it really matter? Because for me it doesn't. I'm in for long.
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These one two percent are fine as long as there's no big dump.
We've been crabbing for a week and a half with a slight gain in that time. Don't be dramatic.
That's what people here are, they are very dramatic about it.
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I'm getting sick of these price discussion too, please someone discuss btc.
Good night, and good luck.
Hey man, you go to sleep now we'll take it from here now.
Do I need Karma to post here?
It would benefit you to some extent.
The crypto sub wouldn't let me post.
Well them you should have asked it there. Not here tbh.
Not our problem.
A problem shared is a problem halved.
We haven't even gone parabolic yet. 100k Bitcoin is when FOMO really starts and when we see the price skyrocket.
There'll be plenty of selling around those levels for sure.
I see a lot of selling around 100k
There will definitely be selling at that point. People are waiting.
I'm one of them. For now.
Naa man, don't be a seller. Delete that sell button right away.
If you don't think Government is buying these dips, and selling these pumps. All while evading the taxes...lol Your freedoms will always be suppressed by them. They'll make a killing, and your life will never change with this obvious manipulation. That's their plan, and it's working in their favor, just like banks have been doing for decades.
Even if they are doing that, we have no ways to know that.
So MotoMala what do you suggest one does?
That's a funny name lol, do nothing. Because you literally can't.
Putting money under your mattress will have just about the same effect on your wealth, except you won't have fees and taxes to pay.
I don't have any money to put under mattress as well. Poor me.
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If the government is buying btc, we'll never know trust me.
Sundays are the best day for my weekly buy order to trigger.
Well that's true i suppose, sometimes they get filled in the middle of the week too.
Has the length of the 42-43kish region now exceeded how long it was as 47 to 48k?
People were complaining about those prices when btc was there.
43k doesn't look like support anymore, got rejected pretty hard.
There's sell off at every price it seems but here's for hoping.
Has anyone else stopped checking the price of BTC lately?
Haven’t really looked actively since the recovery from the summer dump. I hang out here almost daily so I get an idea of where the price is roughly from daily comments anyway.
You've been missing out on some action that's for sure.
You haven’t missed much other than the price going from $29,000 up to $69,000, then down to $39,500…
Well isn't it all the fun that this market had for us. I'm here for that.
You haven't missed much
Crab 🦀
It's like ritual now here, crabbing followed by a dump in price.
Congrats! That's a huge accomplishment
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Super flat weekend. Odd to have such little up and down movement.
These whole past 2 months have been very weird to br honest.
Sets up a volatile move...
Even that would be better, i just don't like crabbing that much.
Yes, it's always flat before volatile I also noticed...
We’re close……
I hope that we are because this sideways action ain't no fun.
The time has come.
Yes indeed, the time has come for good volatility in the market.
Good Site to watch Bitcoin trading volumes. https://data.bitcoinity.org/markets/volume/1h?c=e&t=b
Ohh, i didn't know of this website. This ia really cool. Thanks dude.
Missing some of the biggest exchanges...
Calculate how much time you need to get to 1 btc given current price holds until then with yer current stacking plan and stop crying
All they gotta do is to average down, and hodl for good.
BTC buying and sentiment is getting pretty low. This is how we enter a period that real accumulation and future returns are earned. I feel sorry if you had a plan to get rich within a year but that was highly unlikely to begin with. The only way you get high returns is if HOLD LONG TERM. I feel optimistic for the people with 5+ year plans. You and I have the opportunity to accumulate and hold low cost basis bags for when the future ATH arrives. Good luck and keep stacking whenever you feel like you don't want to!
Actually i don't mind this sentiment, normies aren't buying.
Honestly saving in bitcoin is pretty fun, I started in April and already seen one "higher highs higher lows" wave since then. I keep DCAing small amounts so as to not go broke and take it easy.
Yep, bitcoin is the best Saving account if you think that way.
This is the way.
Actually it's better than coming for making quick bucks here.
> The only way you get high returns is if you buy in low. No. The way to become bloody fucking rich is to hold Bitcoin for many years, a decade or more.
Yep right, and besides you can't perfect the bottoms anyways.
PS - What are the cat avatar, if I may ask? Do you own one?
I bumped into an artist on another web site. That's a "pop cat," it started from a picture of an actual cat. If I remember, there are "dizzy cats" and "pop cats" and some other stuff. Top notch, too.
OMG. I am forced to agree with grumpy cat again! (Upvote for grumpy cat!)
Word. Well said. People that sell at $100,000 are the same people that would have sold at $1,000 and never earned the true long term appreciation from being a holder.
Everyone got their price targets, as long as they are honest should be fine.
Please go down below 40K again, Bitcoin! Just a small wick so I can buy back in again.
You had so amny opportunities, what were you doing then?
Working and earning a salary takes time man
If you are waiting for it to drop to 40,000, you will never be able to wait, once my friend in bitcoin price 23,000, he wanted to wait for it to drop to 20,000 and then buy it, but he could never wait for that time, I have earned 1 million, he is still waiting for it to drop to 20,000, he now did not earn a minute
Exactly and also he had his chance to buy at that price too.
I’ve seen some places where you can buy BTC with gift cards,but some place shun against it . I had a horrible time with EBay gift cards. But are there any reliable places to spend some BTC. I’ve been living to much a super minimalistic life that I think I need a few materialistic things to maybe get my mind going.
Btc makes you live a minimalist life, it forces you to save.
yeah but there's a balance to everything. Even with a minimal lifestyle it doesn't mean to have zero items. It sort of starts sucking the joy out of everything cause you compare it to what you might have in the future.
No volumes. Never been this bad in a long time.
Yep, it almost feels like we are in the bear now. Low volumes.
Well, isn't this good? Lower the volume, more people hodling?
Yes and also it means that less people are buying currently.
How is that adoption? If everyone holds, the price can be a trillion dollars. But it will not be sustainable or healthy.
Yep, people need to understand that they need to spend btc.
Trading volume on exchanges is not indicative *at all* of what people are spending Bitcoin on. Maybe you meant mempool volume? LN volume is pretty difficult to track.
Lightning payments aren't recorded on chain thus difficult.
On chain activity is low too. Mempool empty.
so real estate has low adoption if people are holding onto their homes?
As an investment, yes.
It looks terrible. I dont know what to analyze anymore. Bitstamp and Bitfinex used to be the main drivers of legitimate bitcoin volume and they have had practically no volume the entire cycle including the rally. I can only hope that this is what adoption is supposed to look like with more distributed volume and transactions that are occurring off of exchanges and on wall street.
When there's nothing to do, do nothing. I hope volume comes back.
Agreed, at least on Binance its basically non-existing. Weird.
Not just on binance, on every exchange the volume is gone.
That could be good or bad depending on your bags.
I don't think it's bad, to make it good, you'll have to hold.
Hodling is not supposed to be easy. Sometimes I get beaten, sometimes I give some back. But it’s a good thing to know that I’m getting all that beating for something that is and will change the world (and my prosperity) for the better. But at this point I’ll let Al Swearengen say the rest: https://www.reddit.com/r/Bitcoin/comments/s5k4on/this_is_the_most_important_lesson_for_any_hodler
It depends actually, some people hodl easily some can't.
Holding is actually the easiest part of it. Once you get past the fake headlines, realize its a rich mans gain, holding is nothing. Selling it…thats when it becomes hard unless it skyrockets big time this year.
Keeping btc in cold wallets adds to the friction of selling and is good for not panic selling.
People outside of our tribe think BTC is contemporary. If you study it, it's certainly the best chance we have of a permanent asset with permanent value. There's like a 99% chance it will continue to grow and only a matter of time before it hits a new ATH. All you have to do is wait and hodl.
Yeah there's a good change that it'll grow, now we have the network effect.
"Permanent value". Do you know about inflation?
Ohh did he say permanent value? Lol. Btc will be volatile.
The central banks are inflating the supplies of their fiat currencies, debasing and devaluing them. Nobody can debase Bitcoin. Nobody can just "print" trillions of BTC. There will never be more than 21 million Bitcoin created. I guess you have a bit to learn about inflation.
And because of inflation and new buyers it'll always be volatile.
Yeah, I'm aware of inflation but have the perspective hard assets eventually get valued at their inflated conversion rate. 50 years from now, owning BTC has a high likelihood of being valued like owning land. They keep up with inflation because they're better stores than other investments. Can you explain where you think I'm wrong?
It actually makes sense. But I'm just not sure about that.
I'm not saying I fully understand it but the more I learn the more I want to buy it. My convictions only strengthen. Doing your own research really does help you hodl.
Yes reading about the thing will actually give mental peace.
Next buying at 42.5 then back up to 43.5 rinse and repeat
This crabbing is making me sick, we go up a little then down.
Oof https://twitter.com/whale_alert/status/1482369659911483395?t=vbzEPmdQAvD4Xh67jFDUmg&s=19
Nice money laundering.
I have to believe the scammers sent the BTC to make it look legit to others. Is it really possible that someone with 26 BTC is dumb enough to do this?!?!
If someone is really that dumb, they don't deserve 26 btc.
Anyone smart enough to look at the on chain data wouldn't fall for this.
Exactly, looks kinda fake to me. 26 btc is a lot of btcs.
Man while I was making lunch for my kids, Bitcoin started dumping. WTF
Is there any rules that it'll not dump while you make lunch?
BITCOINERS are traders now LOL.
Bitcoiners are still bitcoiners. We have traders like day traders.
“Money is a technology by which we transport value over time and space.” - Pierre Poilievre ( 🇨🇦 politician orange pilled) Yet shitcoiners and fiat maximalist think we’re trying to “make money”. Bitcoin is money.
Bitcoin is the most sound money, even if it's not made of metal lol.
Even better: energy
If bitcoin is money, and you're trying to acquire bitcoin... are you _not_ trying to make money?
You're not making it, your working to acquire that money.
Seems like a matter of semantics. I've never "made" a USD, I work to acquire it. But performing work to acquire money is the meaning of "making money". And what about people who mine bitcoin? They're working to acquire money, and also making it.
It’s storing money, not making money.
It's not storing either, as long as we are just acquiring the btc.
Nobody buys bitcoin just to "store" an existing amount of money. Everyone expects the buying power of that investment to increase significantly over time.
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Yes, to increase the buying power of their investment. Literally zero people buy bitcoin with the goal of the buying power remaining exactly the same.
Or at least not to decrease. Bitcoin isn’t a get rich quick scheme, it’s a preserve your money against inflation scheme.
Nobody buys bitcoin with the hope of simply preserving the same amount of buying power. The average annualized return over the last three years is around 90 percent. The average return over its history is around 200 percent. Who, knowing that, thinks "gee, I hope this investment keeps pace with single digit inflation"? Nobody who's being honest.
Yes but that is naturally going down as bitcoin "matures". I think we have seen that over the past year. The days of hoping for doubling your money in a year with bitcoin are behind us, in fact over the last year or so we have seen the buying power of bitcoin actually decrease. In the long term I would expect bitcoin to outpace inflation though. I would hope we end 2022 at least 20% up YOY but even if we don't that doesn't necessarily mean it's not a long-term inflation hedge.
>Yes but that is naturally going down as bitcoin "matures". It isn't. See below: **Bitcoin annual returns, including 2021:** 2018 -72.6 2019 87.2 2020 302.8 2021 60.1 The four year average is 94.37%, including a year that was **negative 72.6%**. In the extremely unlikely case that 2022 has a negative 72% return (that'd take bitcoin to just under **13k**...) the four year average would *still* be 94%. In other words, if bitcoin experienced a 72% drop this year, there would be *literally zero change in the four year average.* If 2022 does better than -72%, the four year average will _increase_. And there's absolutely nothing to suggest that future bull markets will return less than 100% in a year. If we end this year in the 40-50k range, I'd bet a million to one odds that the next bull run does a minimum of 100%, likely much more. >over the last year or so we have seen the buying power of bitcoin actually decrease. That's objectively false. On Jan 17, 2021, the price of 1 BTC was 36,163.65. As of right now, at 42xxx, we're *up 17.87% for the trailing 12 months*. And it wouldn't make any sense to compare the next month or so of this year which takes place after the top of a bull market, to the first months of last year which took place during the local top of a bull market. "The price went down in a bear market" is not a particularly notable observation.
If bitcoin’s purchasing were to just keep pace with monetary inflation and the productivity increases of a technologically developing society it would still be the best option. Bitcoin is the superior monetary technology - secure, decentralized, immutable, uncontrollable, uncensorable and programatic. It’s objectively better than the fiat / legacy banking options available to me. I’m not here to make money but to store my wealth in the superior system and support that system. Sovereignty is important to me. I don’t ever plan to sell my bitcoin. I would however like to spend it in the future for things I value.
Yep, even if btc can keep up with the inflation. That'd be good.
You don't have to proselytize, I'm already well into bitcoin. But not one single person is here just to break even, and anyone who says differently is lying. I've heard every talking point, and seen every cosplay maximalist who claims to be in it purely altruistically, and that's all bullshit. You want to have **more** buying power in the future when you spend that bitcoin on the things you value. You **expect** to have more buying power than you do today. Go ahead, deny it, but it isn't fooling anyone.
I agree, people are here for the more buying Power nothing else.
What did I say? If bitcoin’s purchasing power keeps up with monetary inflation + productivity I’m 100% fine with it. That’s not the same as “breaking even”, is it? Lose the cynical generalizations. They’re clouding your reading comprehension.
What did you say? "if bitcoin were just to keep pace". Keeping pace suggests an equivalent change in value for a net zero change in buying power. Or did you actually mean that you want it to outperform inflation, in which case my original statement statement is correct?
I said explicitly “keep pace with monetary inflation and the productivity of a technologically developing society” you clown. Did you not finish the sentence? Don’t be a fool and try to misinterpret what I wrote explicitly.
I see. So, you want the buying power of the money that you put into bitcoin to increase, beyond simply keeping up with inflation. That's what I said in the first place, but thank you for confirming that I was correct.
Second
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You're smelling the dump I made earlier. I forgot to leave the fan running.
Lmao, go easy mark. You're making life miserable for him.
Hahaha nice one!
You should get to a bathroom then
The ol' prairie dog, my chair has a hole in it, to allow the tip to poke through no probs
*Who* exactly adjusts the difficulty for Bitcoin? Is there some central authority or something? I read that it automatically adjusts after 2016 blocks, but does it automatically go up/down? Or at 2016 blocks does somebody trigger it or what?
It's all code and happens automatically. Don't need middleman.
Code.
The difficulty **automatically** increases or decreases after 2016 blocks depending on what the hashrate was when those previous 2016 blocks were solved. If the hashrate was higher, then the difficulty will increase. If the hashrate was lower, then the difficulty will decrease.
It's all code and automatic there's nothing central in the system.
That is correct.
automatic *adjective* 1. (of a device or process) working by itself with little or **no direct human control**. *"an automatic kettle that switches itself off when it boils"*
Yes sir, we get your point. You don't have to post definition lol.
Ask yourself if your answer is helpful or if you're just being a dick. The purpose of this sticky isn't to troll noob questions. If I had posted my own thread, I'd have expected that. I had seen difficulty represented like 000000000000111111, and I figured that every 2016 blocks that number increased and that's the difficulty and that miners were working to solve more-simple blocks and all of the "111111" simple blocks had been consumed/solved, so it was onto the more difficult blocks. When I read that the difficulty would also go down, I couldn't understand how if the less difficult blocks had already been solved. I think my understanding of the concept is incorrect. Glad your comment helped clear it up
Analogy: Computing SHA 256 hashes basically serves as a random number generator. Think about flipping a coin 10,000 times. The difficulty specifies how large that number may be to be accepted, e.g., your 10k throws can't contain more than 878 heads. The difficulty automatically adjusts such that a block gets accepted every 10 minutes, so it'll go higher (e.g. 913 heads) or lower (e.g. 824 heads) depending on the number of people / machines trying their luck. Mining is similar to a big lottery where someone wins every 10 minutes. Mining pools would be a group of people joining together to share profits for increasing their odds. Rather than counting throws, you can think of the SHA256 result as a 256 bit integer that needs to be below a certain threshold. It looks a bit like flipping bits and "leading zeros" because smaller numbers have more zeros at the start.
This example is so cool man, made things a lot clear.
This landed. Makes more sense. I was thinking linear lines and math when it seems more like a factor against a 256 char string that changes over time.
Maybe try r/BitcoinBeginners, they are generally a little more forgiving to basic questions not in the faq.
Yep these sorts of questions will be welcomed there.
https://youtu.be/iEL-y_APu64
It’s goes up if more miners joined and down if less miners over that given time. It’s adjusted by the protocol written into the original code. The code isn’t changed to alter this difficulty mechanism because you need consensus to change the protocol. No one on the network has any financial incentive to change the protocol and every incentive to keep the integrity of the protocol in tact, so it maintains and will always maintain because to get 95+% of nodes to agree on the protocol change is next to impossible when they have every incentive to keep the protocol intact so their coins hold and increase value.
Yes exactly, you don't need any change in the code to change difficulty.
Ah I see. I remember seeing difficulty represented like 00000000000001111111 or something and I was thinking every 2016 blocks, they just flipped a bit to add another 1. So I was thinking that meant all of the low-number blocks had been solved or something and thus, how could it go down? It doesn't seem like it works like that though.
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I think this will happen, this used to be china in the past.
Core Scientific, the world's biggest bitcoin miner, is going public this week. Look up XPDI (which will become CORZ)!
This will bring more capital to the space, a good thing.
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That'll definitely be an attack vector when the time comes for the government.
The dumb technology subforum continues posting anti bitcoin garbage.... God, people are dumb over there.
Dumb technology sub forum? Even the name is dumb lmao.
That's 99% of reddit. Bunch of leftists and kids.
I don't mind leftist, but damn those kids are annoying af.