You are viewing a single comment's thread from:
RE: Bitcoin is a storage of value.
" And it kept moving forward,
Marketcapwise maybe, but not payment wise they are struggling.
2019- 25-02
https://www.longhash.com/news/bitcoin-is-processing-fewer-payments-per-month-than-it-was-in-2016
Prolly because of the "10.000 btc pizza-man". Nobody wants to be that guy. So they just holdl.
In contrary with other payments-apps which are growing rapidly in certain countries. Im sorry dont shoot the messenger.
? But i got a question who is paying for the btc-machines as we speak? How does that work? Is there a sort of funding in the btc community? Do you know that?
Peace
Interpretation of numbers and figures, one states this, the other that. It depends on what kind of filter one uses. More transactions per month, there is a clear recovery I would state, the least. https://oxt.me/charts
How about considering the Lightning Network {LN} in the actual use of Bitcoin {BTC} for sending and receiving payments? To me the main blockchain of BTC is the slow one, keeping track of the large numbers, can be used to store value, to HODL as it were. Solutions like LN are the virtual 'Cash' part of that network. Although I do prefer Dogecoin {DOGE} for making fast en cheap payments, I also bought things like a laptop in NL with BTC. Payment took a while to finalize but hey, that is okay, got the laptop the next day. https://www.informatique.nl/bestellen-en-betalen/#betmogelijkheden
One thing I did notice is that the possibility of using Cryptos for payment often gets hidden at websites that support it. And of course the market 'crash' after the weird crazy pump had a lot of people and businesses running away scared. That is bad for the confidence in using things like Bitcoin {BTC} for day to day use.
And I'm peaceful btw so you are okay @markush, I do appreciate your reply. :-)
Do not know what payments systems you are referring to, but there will be plenty to choose from, I guess. A lot of things concerned are relative, as all things in life. The point I wanted to make was that although Cryptocurrencies overal got some hard beating to deal with it is still alive and moving forward. Sure, some companies stopped accepting payments using Bitcoin for instance, but others picked up the Lightning Network {LN}. And new startups are ready to rock.
As long as something keeps moving forward means it is still alive. Not waving Bitcoin flags while cheering loudly "Go Cryptos!" here but I do see a slow and steady recovery. Where the overall line is on the upwards movement. And I do also still HODL some BTC.
Who funds BTC machines?
It finances itself, through getting rewarded for finding blocks and because of payments for transactions. And as far as I know there is not external funding. Although it might be some future aspect that business will also invest in mining equipment, because their companies depend on it? Maybe this is already happening, for a part. When energy costs go to near zero, than it will be enough to get some small amounts of BTC for relaying and mining transactions into blocks. Some miners could also decide, or already have done so, to setup Lightning Network channels and earn from doing so. Besides also earning from 'locking' and 'unlocking' BTC for use on LN channels. Plus the settlements that will still be made on the main Bitcoin blockchain.
It is very interesting to look at some statistics about it: https://pool.viabtc.com/ Looking at the amount of nodes actively mining for BTC then it still seems to be worth the while. Development goes forward too. Less KWh per TH and maybe at some point there will be some changes made to the POW protocol. Also what is interesting to note is that there is an energy development that is completely self serving. It creates Hydrogen from water-vapor in our air, using solar cell panels. This gas can be stored for later uses and then burned to create any amount of energy in a form of electricity, resulting in water-vapor at the exhaust. And that can be used again...
When this gets mainstream then Bitcoin miners would be crazy to pay 'grey' electricity, when they can get it almost for free. Also reuse the heat that the hardware emits while finding block solutions. Heat can be converted into voltage too, maybe be used for creating Hydrogen gas, to be stored for later use. Or to cook food with, heat the house and so on and forth.
Because it will pay back itself innovation in the Cryptos realm will be going at a very high speed. That will be good for Bitcoin too. As machines will become cheaper to run and so become even profitable when just being financed by transaction blocks payments and LN channels . The higher the price of Bitcoin {BTC} will go, the more interesting this will get for many to get involved.
It is a very extended answer, there is a lot to it, as I see it. And maybe there are even in the community groups that finance the Bitcoin mining hardware. There are businesses where one can rent them. So these are not in hands of the home miner. Well, that one will be mining, but on a remote machine, or more than one. There are programs for that, which even will switch between several mining services, based on profit expectations.
Such a company will maybe even build those miners themselves, that is a possible business model. Just like there will be those who mine at home, invested about 3500 to be able too. But energy costs will be a key issue.
As long as it serves a purpose though this mining of Bitcoin will go on. Being it a community, a single private, a pool, a corporate thing or a combination of those things, it will keep itself going as long as it as least results in a break even and a profit, of some kind, on the long run.