The price of bitcoin is expressed relative to fiat currencies and changes only due to the imbalance of supply and demand in the moment. The price of bitcoin is not related to electricity. No one can guarantee the possibility of buying electricity or anything. Any AI is a dead algorithm that can simulate signs of life, but cannot be alive.
The price of bitcoin is expressed relative to fiat currencies and changes only due to the imbalance of supply and demand in the moment. The price of bitcoin is not related to electricity. No one can guarantee the possibility of buying electricity or anything. Any AI is a dead algorithm that can simulate signs of life, but cannot be alive.
Is Slow, Expensive, Partially Anonymous Bitcoin the Only Crypto Suitable for AI? Arthur, are you serious?
Anything that is inflatable like fiat it is unsuitable like fiat. That leaves you with one viable option, Bitcoin. Doesn't even matter if anyone likes it or not.
There are dozens of cryptocurrency projects that work faster and cheaper than bitcoin with crutches in the form of a lightning network. It is beneficial for Arthur to advertise bitcoin, which is not only worse, but also takes away electricity that can be used to run AI. Arthur's arguments look pathetic and unreasonable. The only justification for his article is that he knows something about the future bitcoin pump and is trying to give a hint to his readers with very strange justifications for this pump.
The price of BTC is totally related to the price of electricity. The market only determines the premium to that baseline price. Google energy gravity, if you want to learn. Otherwise you're just making statements from a position of a lack of knowledge.
And he's stating it's the only crypto suitable because it's the only crypto that's truly decentralized, truly censorship resistant AND still totally secure. All three of those things go together. If those things are paramount to an AI, then they will pick BTC. Of course, we can't know if those criteria would be super important to an AI, Hayes is just hypothesizing.
From 2021-2022, the price of bitcoin has fallen by 77%. Have we on the planet at this time so the price of electricity fluctuated? :) The 77% dump is all you need to know about the relationship of prices with electricity and the price of bitcoin. :)
Bitcoin is decentralized, but all its decentralization completely ends when you exchange any tokens for fiat money through a centralized exchange. Exchanges are also running out of censorship resistance. You tell about security to those people from whom bitcoin was stolen by hackers or they lost tokens due to errors, or because of a crypto-exchange scam. There are no such irreversible problems when working with banks. AI itself will never choose anything, and large corporations that own AI need fiat to pay for the same electricity.
Dumps like that 77% happen every cycle because the market price gets too far ahead of the price of producing a bitcoin. The premium people are willing to pay in a euphoric market gets all out of whack and comes crashing back down toward the price of production. In November of last year it cost about $16-17K to produce a bitcoin- where did the price eventually settle at the bottom? Not $10K or $5K like many people were calling for who think price is wholly dependent on the market. After a parabolic bull run the price will always eventually crash back down toward the price of production- it will happen again this cycle. Then the market will reset. The price of electricity can remain relatively stable, but the cost of production will continue to increase as long as the difficulty continues to increase. The constant increase in difficulty will continue to drive the price up over time because even if the price of electricity doesn't change, miners have to use more and more electricity to produce a bitcoin. Once you understand this, then you understand when to buy bitcoin and when to sell it.
No, it does not depend only on speculative demand. The baseline price of a bitcoin depends on the cost of electricity to mine it, which is the rate times the amount, the amount being of more importance because it is the variable that changes more over time, as the network difficulty increases over time. Speculative demand determines the premium over the baseline price. Right now, it costs about $18k to mine a bitcoin, and at this minute speculation is adding $11500 to that. Both components determine the price. Cost of production plus speculation on how much the network is worth, which nobody knows yet, hence the constant price discovery.
Jason, there is no base price for a BTC/USD pair. It does not exist in nature. If you know how miners place orders in the order book, tell us about the base price for BTC/USD for the next 30 days. :) If you don't know, then filling orders in the glass for an outside observer is an absolutely random process, which is regulated by speculative demand.
The price of bitcoin is expressed relative to fiat currencies and changes only due to the imbalance of supply and demand in the moment. The price of bitcoin is not related to electricity. No one can guarantee the possibility of buying electricity or anything. Any AI is a dead algorithm that can simulate signs of life, but cannot be alive.
Is Slow, Expensive, Partially Anonymous Bitcoin the Only Crypto Suitable for AI? Arthur, are you serious?
Anything that is inflatable like fiat it is unsuitable like fiat. That leaves you with one viable option, Bitcoin. Doesn't even matter if anyone likes it or not.
You need to learn more about the lightning network then. What Arthur describes in the article is already happening as proof of concept.
See here
https://twitter.com/documentingbtc/status/1677402198458679296?s=61&t=YZDbj0ACzq_AFqRsx404cw
There are dozens of cryptocurrency projects that work faster and cheaper than bitcoin with crutches in the form of a lightning network. It is beneficial for Arthur to advertise bitcoin, which is not only worse, but also takes away electricity that can be used to run AI. Arthur's arguments look pathetic and unreasonable. The only justification for his article is that he knows something about the future bitcoin pump and is trying to give a hint to his readers with very strange justifications for this pump.
The price of BTC is totally related to the price of electricity. The market only determines the premium to that baseline price. Google energy gravity, if you want to learn. Otherwise you're just making statements from a position of a lack of knowledge.
And he's stating it's the only crypto suitable because it's the only crypto that's truly decentralized, truly censorship resistant AND still totally secure. All three of those things go together. If those things are paramount to an AI, then they will pick BTC. Of course, we can't know if those criteria would be super important to an AI, Hayes is just hypothesizing.
From 2021-2022, the price of bitcoin has fallen by 77%. Have we on the planet at this time so the price of electricity fluctuated? :) The 77% dump is all you need to know about the relationship of prices with electricity and the price of bitcoin. :)
Bitcoin is decentralized, but all its decentralization completely ends when you exchange any tokens for fiat money through a centralized exchange. Exchanges are also running out of censorship resistance. You tell about security to those people from whom bitcoin was stolen by hackers or they lost tokens due to errors, or because of a crypto-exchange scam. There are no such irreversible problems when working with banks. AI itself will never choose anything, and large corporations that own AI need fiat to pay for the same electricity.
Dumps like that 77% happen every cycle because the market price gets too far ahead of the price of producing a bitcoin. The premium people are willing to pay in a euphoric market gets all out of whack and comes crashing back down toward the price of production. In November of last year it cost about $16-17K to produce a bitcoin- where did the price eventually settle at the bottom? Not $10K or $5K like many people were calling for who think price is wholly dependent on the market. After a parabolic bull run the price will always eventually crash back down toward the price of production- it will happen again this cycle. Then the market will reset. The price of electricity can remain relatively stable, but the cost of production will continue to increase as long as the difficulty continues to increase. The constant increase in difficulty will continue to drive the price up over time because even if the price of electricity doesn't change, miners have to use more and more electricity to produce a bitcoin. Once you understand this, then you understand when to buy bitcoin and when to sell it.
The price of bitcoin against fiat currencies depends only on speculative demand, and not on electricity prices.
No, it does not depend only on speculative demand. The baseline price of a bitcoin depends on the cost of electricity to mine it, which is the rate times the amount, the amount being of more importance because it is the variable that changes more over time, as the network difficulty increases over time. Speculative demand determines the premium over the baseline price. Right now, it costs about $18k to mine a bitcoin, and at this minute speculation is adding $11500 to that. Both components determine the price. Cost of production plus speculation on how much the network is worth, which nobody knows yet, hence the constant price discovery.
Jason, there is no base price for a BTC/USD pair. It does not exist in nature. If you know how miners place orders in the order book, tell us about the base price for BTC/USD for the next 30 days. :) If you don't know, then filling orders in the glass for an outside observer is an absolutely random process, which is regulated by speculative demand.