Here’s how it works in simplest terms I can manage:
People don’t trust each other to do anything but serve themselves
Let’s turn that into a competition (mining)
Miners compete to build next block (set of transactions)
Everyone does random math to the current set of transactions over and over until someone’s math comes up with the right amount of leading zeros (nonce)
This guy wins the competition and his block is next in chain. He gets paid and all the other miners validate the block is legit. Game starts over.
So in the end you get emergent trust out of untrusted infrastructure. That trust has value. That value is emergent and extrinsic.
How does the mechanics of the blockchain influence the price? I can see how higher prices would make mining more attractive (given the high fixed and variable cost). But I don’t see how the act of mining has anything to do with market price, notwithstanding the marginal supply increase of each mined coin. I would think this price vol is mostly due to individual and institutional investors. But not miners, acting in the capacity you describe above. In summary to those who don’t follow our conversation. Think of Bitcoin as a lottery ticket (although probably a higher win probability and expected value). That is the key takeaway. But it is great to have nonlinear to explain this stuff. Knowledge like this is hard to find.
Miners put downward pressure on price as they dump for income. That’s about it. I’m just talking about the source of value not the volatility that results from some people not understanding the technological value and others speculating. That obviously drives the action for the most part.
@nonlinear I hope you don’t mind another question.
Someone said to me, don’t buy bitcoin with cash app or robinhood (which I already have the apps/accounts so I hate to just keep creating new apps/new accounts and such). Fearful of having my information in soooo many apps/accounts and such.
They said I shouldn’t use those as they are “Derivatives” and not really bitcoin…that I need a “real app” like coinbase/coinpurse?
No worries! This is both a professional and personal interest for me. So yeah you want to be able to transfer the tokens/coins to a private wallet ideally. Robinhood won’t let you. They may not even have the bitcoin… seems like retail is driving doge so I am wondering myself. Effectively though you can’t get your coins.
Coinbase Pro has instant free deposits and lowish trading fees. I buy there and transfer to private wallets when I think I’m done trading. Coinbase regular has more informative UI when it comes to the tokenomics. Start there I’d say. Get a hardware wallet like a ledger or whatever is cool these days when you’re comfortable.
“Some of the NFTs will also be used to redeem the physical and original hand drawn work. We see value in working with individuals that have been able to channel some of the most creative and iconic Art in history. To celebrate this merging, the first NFTs come with original hand drawn art by the marvel artists. The first wave of artists are Dan Panosian, Matteo Scalera, Dave Johnson, Andy Kubert, Adam Kubert, and Eric Canete.”
He is super smart and knows crypto! Great choice for SEC. Meanwhile. I keep seeing this NFT business what the heck is that? I see this Gary V post about it on Twitter.
Yeah all signs point to him balancing out Yellen’s ignorance and 2013 talking points.
NFT baby!! It’s the future of collectibles. I think we cover it pretty thoroughly in the thread here — if you have a specific question fire away and I’ll do my best to help
This is going to be so interesting to see unfold in the next coming years. Tangible Collectibles vs Digital Collectibles. That Beeple aka Mike Winkelmann sale of $70mil is incredible.
