How Long To Mine Ethereum ETH
How long would it take to mine 1 ethereum on a standard computer. (ETH) Mining Calculator. You need to enter the hashrate you are getting while mining ethereum. Sep 1, 2017 - This is largely because mining Ethereum coins requires lots of high-speed memory, which ASICs lack. There is no detection that happens, the algorithm that ETH uses is a “Memory Hard” proof of work algorithm. It is still profitable. Just for how long. Sooner or later we need another way than mining.
I'll break it down for you, show you how much it costs to get up and running, how much you'll make and how much you can expect to pay for electricity, but first I want you to know that You're probably asking the wrong question. You shouldn't be asking ' How much do I make in one day of mining Ether?' Here's why: Asking that, demonstrates that you might be getting into mining for the wrong reasons. If you're setting up a rig thinking you're going to strike it rich with a couple of GPUs in your parents basement and you've run up your credit card on 'case fans' like a hardware junkie, you might need to reconsider your goal.
There is NO Ether mining 'get rich quick' scheme, nor is Ether day-trading a smooth route to a quick buck. It takes some work to get the basics working for you, but what it really takes to make it work, is Time.
If you are setting up a rig for any other reason, then you might be a long haul believer, like me. As I explained in one of my first articles', Bitcoin never felt that exciting to me, but Ethereum held promise of a new 'form' of internet, the fuel of the new web, its' technological background is fundamentally different, and better. That alone is worth it for me, but then you add to that, the fact that some of the most valuable AltCoins are based on Ethreum as well. - that's why I voted for Ethereum with my dollars.
But not just buying in, I got GPUs and dedicated my PC to be a mining rig because I wanted to be a part of the support for Ethereum and learn first hand how it all fits together, I really only 'invest' in things if I can understand and see how it works - I don't buy black box anything. So, as much as I would have to pay for new GPUs, I also put some money directly into buying ETH coins with smaller purchases spread out over 2 months to try and take advantage of average buying prices rather than the extremes or timing the market. In terms of startup costs, I already had a PC with a power supply which could easily handle a couple more GPUs, as it only had the at the time. This PC was primarily used for work, editing, development, testing and the occasional Steam game, so it has a 12-core Intel i7-5930K on liquid cooling with 32 GB of Ram, which I had overclocked to 4.4GHz sometimes, as most people would.
Latest HTMLCOIN HTML Miners there. About 85% of the time the PC sat switched off though, nobody was using it. ( Explained in, if you wanted to build a rig just for mining it can actually be done for significantly less money). The cost for this was more of an upgrade fee, sold the 980 GTX for $320 (USD$) and picked up two new 1070 GTX's for a total of $1,100, taxes in. So that was the start-up cost $1,100, less $400 if you count the resale.
Not bad, $700 to get up and running. - I was actually up and running with a small test on the 980 GTX for a proof of concept before shelling out for new GPUs, but the production rate was just too low. Now, let's look at the running costs, Electricity. Of course this expense will vary depending on your local power-flavor's price, here we are paying $0.07 USD per KWh. I've been using a power consumption meter to monitor the usage and help keep track of costs as well as to know the system Power specs, listed below for the last 75 days of operation, since mining began.
Power Consumption Digital Meter Total Energy Cost So far: $57.58. • Operating Days, 75 • Operating Cost per Day, $0.77 per Day. • Total Energy Consumption to Date (KWh), 800.49 • Average Energy per Day (KWh), 10.67 • Average Energy per Hour (Watts), 445 • Voltage (V), 117.78 • Frequency (Hz), 60 • Amperage (A), 4.47 • Power Factor, 0.98 • Peak High Draw (Watts), 653 Since Electricity costs scale with your operation, it's important to keep in mind this is for two 1070 GTX cards on a very overpowered system. It's not far off the mark though to say the rate per GPU would be near 200-220 Watts per hour or near $0.0155 per hour, a Penny and a half. That covers the cost side of the equation, now let's take a look at the Earnings side.
Earning Ether by mining is a function of 2 things: • The hash-rate of your GPUs and mining rig. • The difficulty of mining the blocks. So what kind of Hash-Rate can you expect for a 1070 GTX? Well I actually tested this extensively and the baseline hashing power you'll get from a fresh out of the box MSI Gaming X 8G 1070 GTX will be around 25-27 MH/s. If you, if you are lucky enough to have a card with Samsung memory your card could hit 9000+ MHz and get into the 32 MH/s region of power. Ethereum Hasing Rate Power for 1070 GTX and 980 GTX That's the good news, getting the power is pretty efficient in terms of an electrical cost to mining productivity ratio, and it scales well if you have a dedicated low power mobo/cpu and run up to 6 GPUs per motherboard, from there it's only linear scalability.
The bad news is that the Difficulty of mining the blocks is completely outside of your control, and is rising every day. In the future, more difficulty will bring output to a virtual crawl - When this rig started mining 75 days ago the average block time on was around 14 seconds, today it's 24 seconds. - which is why, everyone is always asking ' How long 'till ROI?' - the answer is IT DEPENDS! Ethereum Average BlockTime Chart 2017, from Etherscan.io R.O.I. Depends on the price of Ether and that really is the whole point, you cannot possibly predict what the price will be, whether or not ETH will be valuable at all ten years, one year or even one day down the road.
Anything could happen, as it often does, which might dramatically change the value. The way I see it though, if you're in on ETH, you better be in it for the long haul because everything else is just gambling and posturing. Being in ETH for the long hodl means you believe in the underlying infrastructure, and if you believe in that, then you know the price today is irrelevant. There are still changes to come, what will Ether be worth when Proof of Stake arrives. You mine, buy and hold ETH to act as a sort of hedge against either scenario going too far in one direction, if the price goes very high quickly, then it's a good thing you have mining gear that you paid a fixed price for. Really, ETH is, by the very definition of the word, an Asset, we don't know how big the future will be for that Asset, but we definitely believe it will be bigger in the future than it is right now, ETH has formidable growth potential.
How-ever, if you're a skeptic, and would rather take the money and run, we can look at what this all translates to for bottom line NET Profit ($). This all comes down to the Difficulty vs reward, over the last 75 days the average difficulty has risen 187% from 769 TH to 2,204 TH, which explains why the mining payouts are getting further apart and less frequent. So I'm ' Not Making as much Money as I used to'. Ethereum Block Difficulty Growth Chart, from Etherscan.io 2017 Plotting the data from and extrapolating from the last 75 days, we could easily see a block difficulty of 6,000 TH by then. This doesn't look like good news at all for mining profits. Ethereum Block Difficulty Growth Projection forward 2017 During these 75 days, this mining rig earned a total of 1.259 ETH via If the next 75 days follow the predicted difficulty growth, we could expect to see much less than what we made in the first 75 days. In truth, my intuition says the growth will be even faster than the exponential curve and even harsher for miners - but that's OK!
Because it helps with inflation, to increase the value overall in the long run. This is supposed to happen. So how would I answer the Question: ' If I've made 1.26 ETH in 75 days, how much more will I make in another 75 days?' No problem right, because thankfully the mining pool offers a dirty calc-u-later table that shows me 'experimental' forecasts.: Most people already know these tables don't factor in difficulty changes so it's a pretty useless table. Also, I've found the values to be off the mark quite a lot.
When doing analysis, sometimes you would find the data you're trying to analyze isn't well behaved, this happens in the real world. Nanopool Ethereum Mining Calculator Assuming all other things are constant, such as the mining pool payout remains the same, the share ratio the same, the fees the same, the efficiency of the code etc. Then to answer this question I look for a proxy to the data I want, but can't use. In this case, I like the proxy of ' Number of Days Since Last Payout', because the payouts are always fixed and controllable by me to occur at 0.2 ETH, and the data in this example is smooth because my rig typically has 98% up time and that's something that also is unlikely to change. Which means if everything else stays the same, I will observe a pattern in how many days it has been taking me to earn equal payouts, and should be able to use that data to estimate my future payouts - but what about the difficulty change? Ah, that's baked in to the analysis already because the growth delay rate of the payout frequency already includes factors that depend on the difficulty, so I don't need to go crazy trying to model future block difficulty rates when I can just measure and extrapolate the piece of data I'm most interested in. The Payout Frequency.
The one Caveat here is that if there is a difficulty bomb that dramatically slows production, then the model will be off, but we can't know the future until it happens, so this is the best approximation I think we'll be able to get, given the data available now. First, set up an X-Y Scatter plot, on the X-Axis goes the Independent Variable, in our case The Number of Days in Mining Operation, on the Y-Axis we put the Number of Days Since Last Payout. We should expect to see an exponential growth curve because we know as difficulty increases it's going to take us more and more time to get that 0.2 ETH payout. Ethereum Mining Payout Frequency Projection The curve fits with an R-Squared of 0.984, and gives the equation Y = 7.2121e^(0.012x), where X is the Number of Days in Mining Operation and Y is the Number of Days since Last Payout. If we plug in an estimate for the next point to be approximately 19 days after the 75th day, the equation outputs the next point ' 22 days since last payout'. This equation can be used to predict as far as you like, but I doubt it'll be very accurate beyond 75 days anyway, since we only have a low number of data points to work with.
But for now, I am satisfied that this will very likely be my yield for the next 75 days, an additional 0.6166 ETH, bringing my total estimated mined Ether to 1.875 ETH for 150 Days of Mining using two 1070 GTXs. What does that mean in Dollars though? Now, translating ETH into Dollars is a whole other can of worms because settling out your coins into fiat value is all about timing, and really depends on when you execute your sells. So let's look at a few scenarios, what if you sell your ETH at the price of: • Theoretical Fixed ETH High Price over 75 days • Theoretical Fixed ETH Average Price over 75 days • Theoretical Fixed ETH Low Price over 75 days • Sell your ETH immediately upon Payout Receipt because you have trust issues. • You have a Crystal Ball and manage to hold your ETH until the highest point of what you're holding to sell at the exact right moments. Basically you had perfect timing. The first three scenario's are shown straight forward in the table below, we're basically not at the break-even point for any price of ETH that has occurred so far except for the theoretical high price.
Theoretical because that price occurred a few days into mining and we can't sell coins we don't own yet, the Arrow of Time only goes one-way. Today's price is $340 though, so we aren't far off from the high were we to liquidate right now, we would receive about $428 USD for the 1.259 ETH we've mined. Which put's us ($428 - $700) = $272 away from break-even, but - the GPUs still have resale value right now and could be sold to recoup costs.
We would need an ETH price of ~$586 to be at break-even with 1.259 ETH. To answer point #4, we simply need to check the price of ETH at each payout and sum the individual 'would-be' sell orders. Taking any arbitrary price within each day combined with the payout amount, the summed total would be $345.42 USD, which would be $358 away from break-even.
Skepticism has a cost. What if I sold Ethereum as soon as I got Payout? To answer point #5, What if you had a crystal ball? Take a look at the chart below showing Ethereum price in USD for the time period in question. If you knew the price today was coming, you never would've sold at any point historically, - except perhaps that 0.05 ETH on day 3 for $390. -Because you will have been waiting for this weeks' price, one of the higher prices recently, but there in lies the point, in the real world, you either believe in something, or you don't. If you're in on ETH, I suggest you go long, Long, and Hard on ETH as much as you can.
When it reaches a value you feel comfortable with, perhaps take out a small% and let the rest go for a while longer, just like averaging the buys, you can average the sells. The only caveat to this, is if you know something we don't know. The point is, no matter which why you slice it, our R.O.I. And Profit is tied to the Price of ETH, and the more ETH we're holding the more leveraged we become.
Leverage is an interesting property because it allows smaller things to exert bigger forces. But just like real life, if things slip and start to go the wrong way, and you're leveraged when things go bad, they go much worse depending on the degree of leverage now acting against you, instead of for you. If the price goes around $400, we should be at break-even in the next 75 days, so a total of 150 days to break-even IF the price is at $400, which isn't unreasonable.
Everything after that is profit, minus the electrical cost, which account for such a small%. So far, Mining Ethereum is worth it, but it takes Patience to see the value, and Time to let the value grow, if you believe in that sort of thing. Good Hodling, and happy mining, Part 2 is now updated. Nice read but you don't seem to be very up to speed with what is coming RE the difficulty. Difficulty is rising exponentially right now due to Ice Age or the 'Difficulty Bomb'. Yes, the blocks are 24.5 secs now and will increase to about 31 secs on September 24th.
What you haven't taken into consideration is that when Metropolis Byzantium is released (they are aiming for Sept 24th but likely it will be in late October), the difficulty bomb will be delayed by 1.5 years. This means block times will return back to 14secs however they will reduce issuance to 3 ETH instead of 5 ETH. This still means that after that update, we will earn slightly more ETH than we do right now - 5 ETH at 24.5sec = 12.24 ETH per min compared to 3 ETH at 14sec = 12.85 ETH per min or a 5% increase.
Once this happens, the difficulty charts you are looking at won't really matter, the only thing that will effect mining difficulty will be Network Hashrate which should pretty much then equate to block difficulty. This will likely continue to rise at a rate of 15% - 20% per month that we have seen in August and September but may climb a bit more if the price shoots up like expected after the Issuance Reduction. A decrease in earnings of 15% - 20% per month is significantly better than what you have predicted in your models:). Don't forget that by the time genesis mining preorders start mining you will have your initial investment back on hashflare.I bought 5 TH of SHA-256 just shy of 1 year ago.
My Verdict, it is truely a great product, great returns, especially if you decide to reinvest your funds. After the first 1.5 Months your initial investment would have been covered, from then on, all returns are profit (If you decide to withdraw). And you can start from as little as 2.2$. I highly recommend reinvesting, as Albert Einstein once said 'Compound interest is the eighth wonder of the world'. I have made over $10000 from a simple $750 investment, that being because I reinvested. To signup here is the link.
Limited contracts left. Is all about GPU speed and power! With the performance we were getting from one single new, the only next logical thing to do, is Double It! Adding a second GPU brings with it a few concerns though, it's not as straight forward as plug and play, although it could be. First you need to make sure your Power Supply Unit is up to the challenge of powering 2 high-end GPUs like that, I'm using a Corsair AX860, 860 Watts Platinum + certified efficiency. The PSU needs to have the various 8-pin or 6-pin, or 6+2 pin cables required per GPU. The next question will be HEAT, do you have adequate airflow and cooling to handle the heat that will be generated from two cards?
Because it's a lot more heat than just one card. Try to space the GPUs out as far away from each other as you can, when you're mining the number of PCIe Express lanes a slot has doesn't matter, as long as the GPU fits it will work. Unfortunately, if you hav. After, I was using my MSI GeForce 980 GTX 4G and getting between 18-19 MH/s on Genoil (1.1.7) Ethminer (0.9.41).
Which is alright considering it's an older card now compared to the 10 series from Nvidia, but what happens when we squeeze a little more juice from the GPU? Overclocking the 980 GTX to increase the hash rate while mining. The first step in Overclocking any hardware is to learn about the standard settings first. Let's go over a few of the basics and the stock parameters. Software while overclocking: Some people use MSI Afterburner, I wasn't fond of it so I used GPUz to read data on the sensors and speeds, while using NVinspector to tweak the card (version # 1.9.7.3 from Guru3d). Stock speeds, temperatures and voltages: The GPU core runs stock around 1200 MHz at 1.05-1.125 Volts and hovers around 65 degrees C. The GPU memory runs around 7000 MHz (full.
It's time to put aside the old 980 GTX and upgrade to the 10 series of Nvidia's newest Pascal series GPUs, let's see what kind of hash rates we could get with these cards while mining Ether. First the facts, the old would use about 160 Watts. The new Nvidia 1070 GTX does about 25-27 MH/s stock and only uses 140 Watts. Efficiency and speed are significantly improved and so is compatibility. Here's a scatter graph I put together using 3 sets of values from each of the 980 GTX and 1070 GTX, so that we can see visually how they spread in terms of performance metrics and results.
While I had to use old rolled back, the new 1070 worked with the latest Nvidia drivers right away and worked well too, giving solid 25-27 MH/s without any tweaking at all. The 1070 was running very cool by itself as well, never crossing 65 C while running Genoil Ethminer. What does it take, to go from not knowing a thing about crypto-currencies, to being able to mine a coin from the internet? I'll tell you.
It begins with curiosity, You first need to ask questions and be interested in what these internet coins are, you need to care about where they come from, what they're worth and what it means for the future of the world. At this point, if you're not asking these questions, you're not participating in the world, the New World, and you're missing out on something incredible.
This, is the convergence of some independently deep learning paths one might follow, but multiplied across many and then combined, like the cross product of math, computer science, programming, finance, statistics, economics, psychology and design all rolled into one nice, neat little word. For centuries of civilizations before us, coins have represented worth and value, were trade-able and exchangeable liquid as cash - depending on whose face or log. It's about 150 days into the mining operation now, so about time for an update and after posting this article last time 75 days in, titled: A number of readers raised several very good points that should be mentioned and are interesting relative to mining in general, so worth while to explore. The mining rig setup is, overclocked and running about 57-60MH/s, Some quick figures on the mining rig's results so far, 150 days in: 1.795 ETH has been paid out in total.The rig has consumed 1357 KWh of electricity for a total cost of approx $117 CAD + Tax.The present Net Profit if we were to liquidate all mined ETH at today's price of $400 CAD would be $660 after electricity costs, which is about the same price of one of the 1070's, at this point one card is paid for at this price of ETH. Let's begin with Byzantium, the Ethereum Network update, someth. When I first, I wasn't sure if my mining results would ever actually get transferred to me.
There's always a bit of doubt initially. I was pointing to Nanopool and I could see on my ETH Stats from Nanopools' website that I had accumulated about 0.094 ETH and wanted to see how it works when it's time for a payout, where does that ETH go? Well, it goes to the wallet you would have setup when you first made an account, and sync'd the blockchain on Ethereum wallet, or Mist wallet, which is potentially also connected to your email address. The standard payout in nanopool is 0.2 ETH, but you can actually lower this to 0.05.
The lower the payout limit the more frequently you'll receive payouts to your wallet, but each transfer comes at a cost of ETH to complete the transaction, so it's actually beneficial ( if you can tolerate it) to set a higher payout and be paid less frequently, you'll save some ETH in doing so. However for now the cost.
By now, everyone and their dog has at least heard of While no government will accept tax payments in Bitcoin just yet, it’s ridiculously close to being real money. We’ve even paid for pizza delivery in Bitcoin. But it’s not the only cryptocurrency in town.
Ethereum initially launched in 2015 is an open source, it has been making headway among the 900 or so Bitcoin clones and is the number two cryptocurrency in the world, with only Bitcoin beating it in value. This year alone, the Ether has risen in value by around 4000%, and at time of writing is worth $375 per coin. And while the Bitcoin world is dominated by professional, purpose-built mining rigs, there is still room in the Ethereum ecosystem for the little guy or gal. Ethereum is for Hackers There may be many factors behind Ethereum’s popularity, however one reason is that the algorithm is designed to be resistant to ASIC mining. Unlike Bitcoin, anyone with a half decent graphics card or decent gaming rig can mine Ether, giving them the chance to make some digital currency. This is largely because mining Ethereum coins requires lots of high-speed memory, which ASICs lack. The algorithm also has built-in ASIC detection and will refuse to mine properly on them.
Small-scale Bitcoin miners were stung when the mining technology jumped from GPU to ASICs. ASIC-based miners simply outperformed the home gamer, and individuals suddenly discovered that their rigs were not worth much since there was a stampede of people trying to sell off their high-end GPU’s all at once. Some would go on to buy or build an ASIC but the vast majority just stopped mining. They were out of the game they couldn’t compete with ASICs and be profitable since mining in its self uses huge amounts of electricity.
Economies of scale like those in Bitcoin mining tend to favor a small number of very large players, which is in tension with the distributed nature of cryptocurrencies which relies on consensus to validate transactions. It’s much easier to imagine that a small number of large players would, for instance.
Ethereum on the other hand hopes to keep their miners GPU-based to avoid huge mining farms and give the average Joe a chance at scoring big and discovering a coin on their own computer. Ethereum Matters Ethereum’s rise to popularity has basically undone Bitcoin’s move to ASICs, at least in the gamer and graphics card markets. Suddenly, used high-end graphics cards are worth something again. And there are effects in new equipment market. For instance, AMD cards seem to outperform other cards at the moment and they are taking advantage of this with their release of for their new Vega architecture. Indeed, even though AMD bundled its hottest RX Vega 64 GPU with two games, a motherboard, and a CPU in an attempt to make the package more appealing to gamers than miners, with Ethereum miners being blamed. Besides creating ripples in the market for high-end gaming computers, cryptocurrencies are probably going to be relevant in the broader economy, and Ethereum is number two for now.
In a world where even in an attempt to get in on the action, cryptocurrencies aren’t as much of a fringe pursuit as they were a few years ago. Ethereum’s ASIC resistance is perhaps its killer feature, preventing centralization of control and keeping the little hacker in the mining game. Only time will tell if it’s going to be a Bitcoin contender, but it’s certainly worth keeping your eye on. Posted in,, Tagged,,,,,,, Post navigation.
According to the Ethereum white paper: The current intent at Ethereum is to use a mining algorithm where miners are required to fetch random data from the state, compute some randomly selected transactions from the last N blocks in the blockchain, and return the hash of the result. This has two important benefits. First, Ethereum contracts can include any kind of computation, so an Ethereum ASIC would essentially be an ASIC for general computation – ie. A better CPU. Second, mining requires access to the entire blockchain, forcing miners to store the entire blockchain and at least be capable of verifying every transaction. [] one notably interesting feature of this algorithm is that it allows anyone to “poison the well”, by introducing a large number of contracts into the blockchain specifically designed to stymie certain ASICs.
Please expand, if you don’t mind. What part of the world do you live in, how large is your mine, how resilient are you to fluctuations in the currency market, and do you have a backup plan if things become unsustainable? And given the power requirements for an operation which I’m guessing is not small, do you think about the environmental impact at all? I have to admit I like the idea of unbanking currencies especially in develoyregions. I’m not sure it works for me at this point in the US where my employer and entities I have credit with require a bank account.
But the thought of someone far away (or close to home) using crypto currency to pay for things with their phone skipping any middle man is really compelling to me. But the impact of standing up KWh mines on anything but solar gives me pause. I don’t really consider any financial upside to be worth it to me personally.
Faiyazah – yes, the developing countries will be likely be the first to see mass adoption of the technology as they don’t have well developed banking and credit infrastructure that already works well for people. It will be funny how the western countries get leap-frogged in adoption due to having ‘good enough’ payment networks already.
I think there will be some truly amazing societal advances to come of blockchain technology. For instance, in the era of you-tube censoring content they don’t politically agree with (not that I blame them for disagreeing), and domain registrars similarly revoking service, it will feed blockchain based autonomous services such as steemit or dtube where there are no such gatekeepers. I think this is a needed service as most all developed nations appreciate and rely on free speech, and arguably social media and the web are today’s most prevalent forms of speech.
As far as the cost and environmental impact of mining – do gold investors or miners make the same consideration of their industry? There’s arguably a fair amount of environmental detriment coming from precious metals industries, so perhaps a better question is how does the environmental impact of this currency compare to alternatives. I’m hopeful that cryptocurrencies will, over time, switch more to proof-of-stake based systems, which are much less computationally intensive and should limit the amount power used. Ethereum is making this switch, but I must say, proof-of-work (mining) has been a very democratizing way to get ether into the hands of as many people as possible.
I’m saying if you applied the resources devoted to that $150B industry to something more worthwhile, humanity could advance as a whole at a much more expedient rate. The same applies to most of the financial field.
Example: A software engineer could spend his time writing software for a computer to analyze a press release and buy or sell stocks based off that in. The main problem of these blockchains is that their functioning *REQUIRES* that there are enough miners willing to invest both computing power and electricity to mine blocks. Who controls/owns the mining pools essentially owns the blockchain too – this has perfectly manifested itself recently when the Bitcoin forked thanks to some big profile miners not being happy with the status quo. The crucial question is – do you really want to depend on a bunch of guys with a lot of money somewhere in Asia that are running the largest mining pools (and are likely linked to money laundering and crime too) for running critical infrastructure for you? Because this is what most of the blockchain projects assume – that someone somewhere will always do the mining and thus enable adding transactions to the blockchain. However, few projects actually bother themselves with such details as who will guarantee that the miners will not jump to the new shiny thing/coin/protocol instead, leaving your project dead in the water a year later. They aren’t doing it because of their love for children ( UNICEF) but because they can currently get a lot of money that way.
Once that dries up (and most of these “coins” are designed to become progressively harder over time) – or something else will be more profitable – bye bye. Why hasn’t anyone invented a coin that A: that has inbuilt inflation, something like 5% per year disappearing from your wallet and unhashed to be mined again and B: a fixed length encryption so mining didn’t become incrementally harder? That would solve the problem that haunts Bitcoin as everyone would rather keep them as they increase in value the longer you keep them thus making them unfeasible as a payment system. Bitcoin and other static coin systems have the property of Dutch tulip stock from the 1700’th century. At one point 95% of bitcoins in existence will be owned by a handful of people and the value will collapse.
There is simply no incentive to spend them. It is like countries that have no capital tax. All money end up in the hands of a few wealthy families and society is left poor and uninvested. :-) Those who like to speak legalese and those who like to split hairs are justified in calling it something else than counterfeiting, but whatever word they choose to use will be a lame euphemism. For everyone else what the feds do to “create” money is just as destructive and dishonest as those printing C notes for themselves in a discrete facility.
At the very least the federal government should be selling bonds at market prices to accommodate all debt increases. What goes on at the federal banking level is no less dishonest than printing money yourself. The only difference is that those in power bless one operation and try to stop the other while we all head along that path to slavery. Massive cryptocurrency use could put all that felonious/treasonous nonsense to an end and. Because of this, I expect the transition to be very dynamic as the powerful resist every new innovation that liberty minded people come up with.
New solutions WILL keep coming and will ultimately prevail as sure as water seeping through an earthen dam. Its just a matter of continuous pressure and time.:-).
Cryptocurrency is fiat, and I suspect those who mine it use other fiat to purchase cryptocurrency, and redeem their cryptocurrency i exchange for fiat so they have something they can purchase goods from those who don’t accept cryptocurrency. Mining for tangible resources is speculative, cryptocurrency mining is as speculative, and cryptocurrency is is an intangible. On taxes governments have taxed intangible assets in the past, so cryptocurrency has no inherent communities. Hopefully cryptocurrency mining will crash and burn before before it gets too pervasive, saving the non-speculators a lot of grief.