What is the most reliable way to calculate the amount of fiat value that has been transferred into the bitcoin economy?

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I'm pretty sure you'll never get an accurate number. I'm not even clear what you mean by transferred into the bitcoin economy.

If I bought $100 worth of bitcoins 3 years ago, do we count that as $100 or the value of the BTC now?

If I buy a bitcoin for $100 cash (using localbitcoins), send it to my friend (who immediately converts it to $100 USD), how do we account for that? If I do that transfer millions of times, can we say that BTC has "Millions in cash invested" even though there was only ever $100 at a time?

Your best bet is to just add up the aggregate transfers on all the exchanges, and call that "GDP" (and you may never be able to account for non-public transactions like localbitcoin or private exchanges). Just like GDP, you will necessarily over-count what's really happening. (For example, my transaction "I buy shoes" is actually counted as "I buy shoes, the shoe seller buys the shoes, the shoe maker buys leather, the leather maker buys a cow, the...

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Find answers to recurring questions and myths about Bitcoin.

Table of contents

General

What is Bitcoin?

Bitcoin is a consensus network that enables a new payment system and a completely digital money. It is the first decentralized peer-to-peer payment network that is powered by its users with no central authority or middlemen. From a user perspective, Bitcoin is pretty much like cash for the Internet. Bitcoin can also be seen as the most prominent triple entry bookkeeping system in existence.

Bitcoin is the first implementation of a concept called "cryptocurrency", which was first described in 1998 by Wei Dai on the cypherpunks mailing list, suggesting the idea of a new form of money that uses cryptography to control its creation and transactions, rather than a central authority. The first Bitcoin specification and proof of concept was published in 2009 in a cryptography mailing list by Satoshi Nakamoto. Satoshi left the project in late 2010...

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Could the above scenario even happen? There seem to be a lot of indicators that it will.

Yes. Periods of expansion and contraction happen in cycles in my opinion. Boom periods are due to a very rapid rise debt, and then busts follow when deleveraging takes place on a large scale. This is what is happening in China most spectacularly, but the whole world is overleveraged. Martin Armstrong calculated that the business cycle takes place around every 8.6 years. 8.6 years ago was the beginning of the 2007-2008 crisis.

However in this case the first world is already exhausted from trying to combat the impact of the 2008 crisis and central banks have used up all their traditional means of combating a crisis. We stretched the rubber band as far as it can go, it can't stretch much further, so if there is another crisis it is not clear whether its impact can be mitigated.

Furthermore, the emerging markets and China supported the rest of the world in coming out of the...

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Price fluctuations in the Bitcoin spot rate on the Bitcoin exchanges is driven by many factors. Volatility is measured in traditional markets by the Volatility Index, also known as the CBOE Volatility Index (VIX). Volatility in Bitcoin does not yet have a generally accepted index since cryptocurrency as an asset class is still in its nascent stages, but we do know that Bitcoin is capable of volatility in the form of 10x changes in price versus the U.S. dollar, in a relatively short period of time (See the Investopedia Bitcoin Center for current updates on the price of bitcoin).

Here are just a few of the many factors behind Bitcoin's volatility:

1. Rate of adoption is hampered by bad press: News events that scare Bitcoin users include geopolitical events and statements by governments that Bitcoin is likely to be regulated. Bitcoin's early adopters included several mal actors, producing headline news stories that produced fear in investors. Headline-making Bitcoin news...

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Some Questions & Answers

Bitcoin and Taxes

First, tax regulations differ for each country around the world, so how Bitcoin is taxed in one country may not be the same elsewhere. Please look into the tax laws of your own country to find the specific details. What is pretty much global, is that buying Bitcoin or any other crypto-currency is not in itself taxable. However, you are likely to be taxed when you sell or even spend those coins and make a profit. How much depends on the amount of gains, how long you owned the coins and if and how your country taxes capital gains.

Receiving or buying Bitcoin is much like buying a gift card. Generally there are no income taxes or sales taxes (a notable except is Australia that does charge GST on the Bitcoin amount) but you might have to pay sales taxes or VAT on the fees portion charged by the exchange for the service of selling you the coins. Much like you might have to pay tax on the...

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Fundamental analysis is a methodology used by investors, in which the ‘real world’ value of an investment is estimated, and then compared to the more speculative price at which it is trading on financial markets, in order to judge the potential for future price gains or losses. It is based on the assumption that short term price may differ greatly from underlying value, due to the nature of financial markets, but that over a longer time horizon the two will tend to converge. Investors can therefore profit by using this methodology to gauge whether something is undervalued or overvalued, and then buy or sell accordingly.

The use of fundamental analysis is most closely associated with stock markets. Stock traders will examine a company’s accounts, looking at a range of data including income, expenditure, profits, assets, and liabilities. To a lesser extent these techniques are also used by foreign exchange, or ‘forex’, traders to examine the value of a currency. In this case...

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7 Reasons Why Bitcoins Are Better Than Fiat Currencies

One of the most asked questions I get when people discover I work in the Bitcoin industry is ”Evander, why should I start using Bitcoins when I have Dollars (Or any other fiat currency)?” Instead of explaining it to each person for ten minutes, I figured I’d just make an article about it that I can send out with a simple hyperlink. Hell, I might put the link in my email signature!

FYI, “fiat currency” is any national currency decreed legal by the national government, but is intrinsically valueless money. Fiat currencies no longer represent gold deposits or other things of known market value. They are just the accepted pieces of national paper, printed by a private central bank and loaned to the national government, with interest. All fiat currencies are debt instruments.

The U.S. Dollar and other fiat currencies certainly have their own inherent advantages, which mostly revolve around their acceptance by...

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With Bitcoin enjoying a spike in price against government currencies, there is lots of talk about it on the Interwebs. If you’re not familiar with it yet, here’s a good Bitcoin primer, which also counsels reading a lot more before you acquire Bitcoin, as Bitcoin may fail. If you like Bitcoin and want to buy some, don’t go all goofy. Do your homework. As if you need to be told, be careful with your money.

Much of the commentary declares a Bitcoin bubble for one reason or another. It might be a bubble, but nobody actually knows. A way of guessing is to compare Bitcoin’s qualities as a currency and payment network to the alternatives. Like any service or good, there are many dimensions to value storage and transfer.

I may not capture them all, and they certainly don’t predict the correct price against the dollar or other currencies. That depends on the ultimate viscosity of Bitcoin. But Bitcoin certainly has value of a different kind: it may discipline fiat currencies...

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Money is something that is accepted as a form of payment for products or services, or for the payment of obligations. It is a medium of exchange with a specific value by which the value of all other things can be measured, which greatly facilitates trade and allows modern economies to enjoy the benefits of the division of labor.

Barter

Without money, trade would have to be conducted through barter, where traders would exchange the things that they want less for things that they want more. The problem with barter is that it is difficult and time-consuming to determine the value of specific items. Additionally, most forms of barter cannot be broken down to buy things of lesser value, nor is it easily transportable. Barter also suffers from the requirement that the traders must have a coincidence of wants — that each trader happens to have what the other wants. Money solves these problems of barter. However, networks, including electronic networks, have made barter much...

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We’ve known for a long time that Bitcoin is unsustainable, but now we’re beginning to get a look at just how unsustainable it really is. One major drawback of the cryptographic system underlying bitcoin is that it takes an incredibly large amount of electricity to run the hashing algorithms that make the cryptocurrency work. This week, researcher Sebastiaan Deetman took the time to plot just how bad things could actually get over at Motherboard. The conclusion? If pessimistic but not unrealistic projections hold, by 2020 Bitcoin could require more than 14 Gigawatts of electricity just to run. That’s equivalent to a small modern country — like Denmark, for instance.

In simple terms, this means that Bitcoin is doomed — but cheer up, because maybe it’s actually not. See, Bitcoin may end up being remembered as an interesting footnote in the evolution of finance, but the technology allowing it could be have much wider impact. Called the blockchain, it could help to revolutionize...

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Nowadays traders have a good amount of tools which help them to predict market behavior, estimate possible return or count all the ratios. The latest technologies and programs make trader’s job more efficient, fast and accurate. One of such programs is a bitcoin investment calculator.

There are two main types of such calculator, first and the most popular is bitcoin calculator of mining profitability. The second one is Bitcoin return calculator. Well, let’s pay an attention to them and understand what they are designed for.

Mining Calculator

Mining is a profitable but a very specific business today. A few years ago, almost everyone could download a proper software and start mining on his own computer. Then if a user wanted to do a serious deal and earn more bitcoins he could acquire additional Graphic Processing Unit or even ASIC (Application Specific Integrated Circuit). It would definitely cost a good sum of money but then user could get quite a high return...

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What is money?

Money is generally defined as something that can be used as a medium of exchange between equal values of work and resources. In this way money can act as a store of value, a unit of account, and as a medium of exchange.

When discussing how bitcoin functions as both a currency and as a payment system, it’s useful to understand how society has transferred value historically. Over many generations, people have adapted different mediums to transfer value amongst them, and each of these methods has responded to inefficiencies in the methods that preceded them.

Historically, people used the barter system in which they traded something they owned for something they wanted.

The medium of exchange in this system ranged from livestock to grains to textiles depending on what groups had in supply or needed from others.

The value of these goods is not guaranteed in any way, rather the parties have the obligation to inspect the goods and...

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Contents of Earn Bitcoins

Earn Bitcoins by accepting them as a means of...
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Today we turn our attention to bitcoin – the world’s first and most famous cryptocurrency. We’ll decide whether it’s a buy or not. But first I want to look at exactly what it is you’d be buying: is bitcoin more like gold, or is it just another fiat currency?

Yes, my friends. Today we’re going well and truly down the rabbit hole. If you’d rather not question precisely what the money in your wallet or savings account is – whether it really has any value at all – then stop reading now! Ignorance is bliss sometimes. It just depends whether you’re willing to be ignorant. Your call.

Why bitcoin surged 120% in 2016

Bitcoin was the world’s best performing currency last year.

It went up 120%.

Ditto for 2015, though it only went up 40% (which still makes it an outlier in the currency markets, and frankly the stockmarket too).

Of course, bitcoin has always been highly volatile. It’s been in a near constant state of frenzy, either buying or selling,...

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Bitcoin has occupied front pages and preoccupied media for many weeks now and there are mountains of information (or misinformation) about this crypto-currency. Is it for real, or money from nothing? Is it a bubble that’s due to burst? Is it a scam, a ponzi scheme? While complex in itself, the basics ideas of Bitcoin are comprehensible to those willing to invest the time necessary to understand them. And understand we must because regardless of its ultimate failure or success, Bitcoin’s very nature challenges the core concepts of the world that we live in today.

What is Bitcoin, really?

This explanimation mentions several key characteristics. It’s a decentralized internet currency. There’s no central authority, like central banks or federal reserves, regulating it. “Coins you can send through the internet,” as succinctly stated, with the underlying assumption that the party receiving finds it valuable and its willing to part with goods and services in exchange.

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Ask YOUR question!

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If not, don't be afraid to ask!

Find answers to recurring questions and myths about Bitcoin.

Table of contents

General

What is Bitcoin?

Bitcoin is a consensus network that enables a new payment system and a completely digital money. It is the first decentralized peer-to-peer payment network that is powered by its users with no central authority or middlemen. From a user perspective, Bitcoin is pretty much like cash for the Internet. Bitcoin can also be seen as the most prominent triple entry bookkeeping system in existence.

Bitcoin is the first implementation of a concept called crypto-currency", which was first described in 1998 by Wei Dai on the cypherpunks mailing list, suggesting the idea of a new form of money that uses cryptography to control its creation and transactions, rather than a...

0 0
20

The expected return on a bond can be expressed with this formula:

RETe = (F-P)/P

Where RETe is the expected rate of return,

F = the bond's face (or par) value, and

P = the bond's purchase price.

The larger the difference between the face value and the purchase price, the higher the expected rate of return.

For instance, Generic Investments purchases a $1,000 bond issued by Fictional Fashion for $900 in the bond market. The expected return on the Fictional Fashion bond is:

(1000-900)/900

= 100/900 = 0.1111 = 11.11 percent.

As the bond markets fluctuate, Pretend Partners purchases a $1,000 Fictional Fashion bond for $800. The expected return for Pretend Partners is:

(1000-800)/800

= 200/800 = 0.25 = 25...

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How? Or TL;DR

The fastest method I've found is a combination of tar, mbuffer and ssh.

E.g.:

tar zcf - bigfile.m4p | mbuffer -s 1K -m 512 | ssh otherhost "tar zxf -"

Using this I've achieved sustained local network transfers over 950 Mb/s on 1Gb links. Replace the paths in each tar command to be appropriate for what you're transferring.

Why? mbuffer!

The biggest bottleneck in transferring large files over a network is, by far, disk I/O. The answer to that is mbuffer or buffer. They are largely similar but mbuffer has some advantages. The default buffer size is 2MB for mbuffer and 1MB for buffer. Larger buffers are more likely to never be empty. Choosing a block size which is the lowest common multiple of the native block size on both the target and destination filesystem will give the best performance.

Buffering is the thing that makes all the difference! Use it if you have it! If you don't have it, get it! Using (m}?buffer plus anything...

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What is the most reliable way to calculate the amount of fiat value that has been transferred into the bitcoin economy?

I'm pretty sure you'll never get an accurate number bitcoin price ticker firefox. I'm not even clear what you mean by transferred into the bitcoin economy.

If I bought $100 worth of bitcoins 3 years ago, do we count that as $100 or the value of the BTC now?If I buy a bitcoin for $100 cash (using localbitcoins), send it to my friend (who immediately converts it to $100 USD), how do we account for that? If I do that transfer millions of times, can we say that BTC has "Millions in cash invested" even though there was only ever $100 at a time?

Your best bet is to just add up the aggregate transfers on all the exchanges, and call that "GDP" (and you may never be able to account for non-public transactions like localbitcoin or private exchanges). Just like GDP, you will necessarily over-count what's really happening. (For example, my transaction "I buy...

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By: Margarette Burnette, March 27th 2017

Buying a used car can be a great deal — if you play it smart.

Most 3- or 4-year-old cars and trucks are very reliable, because automakers have done a lot to improve the safety and durability of every model.

Used vehicles cost a lot less, too, with an average financed amount of $19,101, around $10,000 less than the amount for a typical new auto, according to Experian's most recent State of the Automotive Finance Market report.

Buying a used car also means you avoid the depreciation hit new-car owners get in the first year, so a used car can hold onto its value longer, says Ronald Montoya, consumer advice editor for auto research company Edmunds.

But buying a used car can be an expensive and tragic game of "rush-in" roulette if you're too hasty.

You don't want to overpay or get a car or truck that's been abused, crashed or dunked in a flood, then dried out and shipped off to be sold to the...

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Submitted by Eric Zuesse, author of They’re Not Even Close: The Democratic vs. Republican Economic Records, 1910-2010 and of Feudalism, Fascism, Libertarianism and Economics,

U.S. President Barack Obama has for years been negotiating with European and Asian nations — but excluding Russia and China, since he is aiming to defeat them in his war to extend the American empire (i.e, to extend the global control by America’s aristocracy) — three international ‘trade’ deals (TTP, TTIP, & TISA), each one of which contains a section (called ISDS) that would end important aspects of the sovereignty of each signatory nation, by setting up an international panel composed solely of corporate lawyers to serve as ‘arbitrators’ deciding cases brought before this panel to hear lawsuits by international corporations accusing a given signatory nation of violating that corporation’s ‘rights’ by its trying to legislate regulations that are prohibited under the ’trade’ agreement, such as by...

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