Does Bitcoin Have A Place In Argentina's Economy ?

D.B. Cooper

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I'm not sure how bitcoin works in Argentina, but here's an interesting article from the NYTimes.

http://www.nytimes.com/2015/05/03/magazine/how-bitcoin-is-disrupting-argentinas-economy.html?hpw&rref=magazine&action=click&pgtype=Homepage&module=well-region&region=bottom-well&WT.nav=bottom-well
 

scotttswan

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Castiglione joked about the corruption of Argentine politics as he peeled off five $100 bills, which he was trading for a little more than 1.5 coins, and gave them to his client.

It would only be 3 $100 bills today. :lol:

The article also ignores the cost per transaction $6.70 (down from $57 in June last year) and the fact the inefficient network each coin mined last year released about 103 kilograms of CO2 into the atmosphere, an event that took place every 24 seconds. The energy required to produce a coin is only going up. By May 1, 2015, each coin will release 1.6 tons (about 1,602 kilograms) of CO2 into atmosphere. That adds up to 5,767.2 tons of CO2 per day from coin mining.
 

camel

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The article also ignores the cost per transaction $6.70 (down from $57 in June last year)

Which transaction cost are you talking about? The bitcoin transaction cost is currently 0.0001 btc, or US$ 0.02. I can demonstrate this to you at coffee chat today, in person, if there is any doubt.

Edit: and this txn cost applies no matter how many bitcoins I send. You can send US$100,000 in btc for US$0.02 txn cost.
 

scotttswan

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Also ignores the whole fact that it was at 1000 a coin was due to Magic: The Gathering Online eXchange doing some seriously dodgy trading pumping up the price
http://goo.gl/vNCGzH

In addition to preventing users from extracting money from the exchange so people kept on buying coins and taking them out as it was the only way to get your balance off of the site.
 

scotttswan

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Which transaction cost are you talking about?

The network cost. There's a huge subsidy to the miners by giving them free coins in place of transaction fees. This is due to cut in half again next year and Baby needs a new pair of shoes.
 

camel

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The network cost. There's a huge subsidy to the miners by giving them free coins in place of transaction fees. This is due to cut in half again next year and Baby needs a new pair of shoes.

You are correct, there is a miner's fee, and it is 0.0001 btc, or $0.02. You said above it was $6.70, which is false. Maybe if you can cite your source, I can clear up your confusion on the issue.
 

scotttswan

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You are correct, there is a miner's fee, and it is 0.0001 btc, or $0.02. You said above it was $6.70, which is false. Maybe if you can cite your source, I can clear up your confusion on the issue.

There is no confusion you are ignoring the free 25 coins they get per block and each block contains anywhere between 200 to 900 transactions.
http://goo.gl/ah4mmw
 

camel

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There is no confusion you are ignoring the free 25 coins they get per block and each block contains anywhere between 200 to 900 transactions.
http://goo.gl/ah4mmw

There are two separate things, and you are thinking they are the same. One is the miner's block reward, which is currently 25 btc. The people making transactions don't pay for the miner's reward. That's where the transaction fee comes in, which is 0.0001 btc, and the miner earns this on top of the 25 btc block reward. The only way new bitcoins come into existence is through the block rewards. https://en.bitcoin.it/wiki/Mining

I will be at coffee chat, and I will send a transaction to myself, and pay 0.0001 btc fees. If I am wrong, I will buy you any starbucks coffee you want. Deal?
 
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