Does Bitcoin Have A Place In Argentina's Economy ?

[scotttswan]

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.

Yes they do, the miners have to sell these coins to pay for the huge amounts of energy they are wasting thus drive down the price and the value of all the coins in the network.

Once the rewards are gone (they cut in half again next year) who's going to pay the miners to keep the whole thing working? Direct transaction fees.

 

[Sleuth]

I would consider using Bitcoin to get money into the country, but the company that this article mentions (Digicoin) wants a 10% cut! My money guy takes 5%. Still, it's a better rate than using Xoom, so for some people it might make sense.

 

[Chet]

A lot of miners use the extra heat for households, you can't really figure the power costs that clearly.

 

[scotttswan]

A lot of miners use the extra heat for households, you can't really figure the power costs that clearly.

A lot of miners use the extra heat for households, you can't really figure the power costs that clearly.

I'd bet the majority aren't being used as expensive space heaters. Rather the majority are most likely in dodgy sites in China and the rest of Asia.