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Comment: Re:perhaps what forbes highlights (Score 1) 692

by Stormalong (#43473425) Attached to: Steve Forbes: Bitcoin Not Money

That isn't what makes Bitcoin volatile. It is volatile because the market is so small. Which means that small players can cause large changes in the value by doing certain things. Sure, Bitcoins market cap is $1B USD, which sounds big, and it is for an individual. But in terms of the global economy its TINY. Once Bitcoin gets past $1T USD market cap its exchange rate will much more stable.

Comment: Re:Until they hit the max number of bitcoins (Score 1) 595

by Stormalong (#43452923) Attached to: Is Bitcoin Mining a Real-World Environmental Problem?

"Mining" is actually sort of a bad choice of word, because it implies that the purpose is to create the bitcoins. Its not. The purpose of mining is to verify the transactions and secure the blockchain. Bitcoins are given to miners as a reward for performing this service for the network.

And, as others have already said, this reward will gradually decrease until 21M coins are produced, at which point the miners reward will come entirely from the transaction fees instead.

Suddenly, Professor Liebowitz realizes he has come to the seminar without his duck ...

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