Questions tagged [bitcoin]

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Cryptocurrency perpetual futures shorting mechanism

I am trying to understand shorts in a perpetual futures market. Let's consider a market of ETH/USDC, trading at 1000 USDC. When user A shorts 1 perp (assuming no leverage) they pay 1000 USDC, the ...
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1 answer
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Best way to fix the assumptions in linear regression with cryptocurrency data?

Hi I'm doing my undergraduate thesis, I want to predict closing price of Bitcoin using linear regression model, So i check the assumption using R then It is all not satisfied, so I want to fix It but ...
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can someone help to interpret ACF and PACF graph?

can someone help to interpret ACF and PACF graph? in the graphs, I don't see any decay. am I right about that assumption other than that what can I comment about both? the data plotted is squared ...
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0 votes
2 answers
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What does the price of bitcoin per ounce of gold tell us?

For example, see the below graph from https://charts.woobull.com/bitcoin-vs-gold/ It seems that intention is to isolate the effect of US dollar when assessing bitcoin's value, e.g. BTC quoted in US ...
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3 votes
1 answer
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Why does the entire cryptocurrency market go down when BTC goes down?

While reading about what was happening in Kazakhstan, I came across this Reuters article. Basically, the bitcoin hashrate dropped after Kazakhstan cut internet after the deadly protests. The country ...
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How interest payment work in lending under bitcoin standard?

In Fiat Standard lending creates money. Whenever the debt is fully paid the monetary supply increases. What happens under bitcoin standard? Assume all the bitcoin has been mined and BTC has become the ...
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Is it possible for a coin / token to act as long-term store of value and money at the same time?

I have recently watched a discussion about Bitcoin and its usage and one person argued that Bitcoin is a good way I will make the question as focused as possible by narrowing the terms: store of ...
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How can anyone possibly predict how the price of anything (stocks, Bitcoin, fiat, etc.) will change without "insider knowledge"? [closed]

Other than the fact that all centralized (and thus "quick") exchanges require KYC/AML nonsense, making it impossible for me to have an account there, I've never dared to even try once to &...
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19 votes
5 answers
9k views

If Bitcoin becomes a globally accepted store of value, would it be liable to the same problems that mired the gold standard?

I am reading this article here that explains why bitcoin is a better store of value than gold. In sum, here are some of the reasons proposed: If someday a "bitcoin standard" does come to ...
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4 votes
1 answer
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How digital currency (like Bitcoin) proponents solve the problem of its high volatility to make it a good candidate to replace fiat?

I have recently read an article about a family living with no fiat currency for several years. Indeed there are lots of advantages of using a digital currency. I am wondering if having an important ...
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1 answer
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How does a perpetual futures contract affects the price of the underlying?

As long as I understand, a futures contract is kind of a prediction for the underlying's price at the time when it expires. But what happens if this futures contract is perpetual, and doesn't have a ...
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1 vote
1 answer
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Did Bitcoin increase the money supply of the world?

I was reading about M2 and it somehow got me asking this question: did Bitcoin, by merely popping into existence, increase the money supply of the world? Is it classified as "near money"?
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4 votes
1 answer
486 views

CO2 footprint per bitcoin transaction

Out of personal interest I wanted to find out which carbon footprint one bitcoin transaction produces. Following I will present my calculation. The result surprises me and my question is Is this ...
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1 vote
0 answers
37 views

How does the dollar value of all bitcoin compare with the total cost of the electricity required to generate it?

The world's Bitcoin mining in the aggregate uses surprisingly large amounts of electricity. Princeton computer scientist Arvind Narayanan estimates that Bitcoin mining now uses about five gigawatts ...
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Why do graphic card prices rise due to bitcoin miners?

I thought it would mean more sales thus more production and more profit, so why does nvidia and amd simply dont ramp up production if the trend has been now quite a long one? And as far as I can see ...
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4 votes
2 answers
91 views

Can the function of the Central bank become automated?

How plausible is the idea of the central banks function becoming automated. Central Banks seem to function as a feedback depending on the flow of money, inflation and fractional reserve. If the ...
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3 answers
163 views

Theoretical market capitalisation of a crypto currency?

Here’s the context. I want to know what the theoretical market capitalisation (say eg $US / Bitcoin times Q the number of coins - it doesn’t have to be Bitcoin) of a crypto currency? Assume that the ...
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What are the most common methods of determining valuation used by economists that claim Bit-Coin is on the verge of being a bubble

I have seen many economists saying that bit-coin is highly overvalued and on the verge of a massive corrections. What are the most popular models being used to determine the proper price for bit coin?...
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2 answers
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How can all the bitcoin in the world be worth more than McDonald's Corporation?

What makes bitcoin so valuable? It has already surpassed the value of almost all publicly traded companies. I understand it can be used to buy things like digital money but why does the price go up? ...
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2 votes
2 answers
174 views

What does the value of bitcoins depend on?

I've been looking up stuff about bitcoins for some time now and i have two question stuck in my mind: How is the value of bitcoins so unstable? And can there be bitcoin inflation?
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How should I interpret (BTC/CNY) / (BTC/USD)?

So, I've been following bitcoin for a number of years now and I decided to look at how it plays with the dollar and the Chinese yuan. I'm wondering if someone can help me interpret the graph below. I ...
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4 votes
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because bitcoins do not generate earnings, then (it is a ponzi scheme)?

What does the author mean with: Since Bitcoins do not generate any actual earnings, they must appreciate in value to ensure that people are willing to hold them. Why must they appreciate in ...
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1 answer
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How can 1 BTC gain value in USD if inflation is happening?

So, right now, 1 BTC (bitcoin) is worth ≈ 578.25 USD. But, with the inflation of the USD, how can 1 BTC still hold its value at 578.25? Why doesn't it decrease? Let's set this example: 1 BTC = 1 USD....
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1 vote
2 answers
141 views

The independence of Central Banks [closed]

How do such digital currencies such as Bitcoin affect the independence of Central Banks? Thank you
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5 votes
1 answer
706 views

Why is deflation not considered the opposite of inflation?

In this article from 2013 on bitcoin, the author casually states the importance of knowing that "deflation is not the opposite of inflation", without expanding or elaborating. I'm sure that there are ...
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2 votes
0 answers
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Why in localbitcoins Spain, the selling price is the same as the buying price?

I use to buy bitcoins through localbitcoins.com in my country, Argentina, and I noticed that there is an important gap between the buying and the selling price. This gap is around 200 ARS (~20 EUR). ...
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5 votes
2 answers
12k views

Does Dogecoin or Bitcoin have a more appropriate rate of monetary inflation?

The supply of new Bitcoins and Dogecoins is depicted in the graph below. The Bitcoin inflation rate is currently higher than the Dogecoin rate, but it reduces sharply to a rate close to zero. It ...
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8 votes
3 answers
412 views

What determines the exchange rate of two fiat currencies if the supply of each is known?

In this blog post, economist Steve Landsburg posed a question about the value of Bitcoin which he didn't know the answer to. Imagine a future in which Bitcoins (or some other non-governmental ...
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