Bitcoin's Energy Bill : The Indicator from Planet Money : NPR

An in-depth look at what happens when you undermine utility.

I want to fully analyze the talking point that "Bitcoin is a store of value," because it's one that I see very frequently and people have different views on how the value of an asset is generated.
This one is also fun because I get to put on my Economist hat instead of my Computer Engineering hat which has always been a strong secondary interest of mine.
Please buckle in, because this is a longer read, but if you have any doubts about how value is generated, I really think it's a worthwhile one.
Other Assets that Bitcoin is Frequently Compared To
I'm going to (mostly) skip some of the more common comparisons of cryptocurrency to (Beanie Babies, Tulips, Pets.com, etc.).
I'll only briefly address it here in saying: Beanie Babies are a poor comparison because they had only had perceived scarcity in the way they were distributed so they were heavily undermined from the supply side. Tulips have a debatable history in general as far as the magnitude of purchase, and even if that history is fully accurate, their utility was only really derived from a brief social fad... not a continuing stable utility. Lastly, Pets.com is closer to being apt, except that they arguably had no major utility from the start in that it was (almost) always more expensive and slower to order through their service as opposed to going to the local pet store.
The Basis of the "Store of Value Argument
So the main argument of "Bitcoin [being] a store of value" is rooted in Bitcoin being scarce... with utility not playing a major role. The counterpoint against this view is that it takes both scarcity and utility to give a premium value to a good or service.
So let's try to separate out the two factors.
We'll first look at a good that has premium value due to both utility and scarcity where neither factor has been undermined.
Utility Plus Scarcity
We'll start by taking a look at a good that has both utility and scarcity. I think the one thing in the world that best exemplifies this status, (and my friends over at /magicTCG can attest,) is the Black Lotus. This is the mack-daddy of all Magic cards and as of this year, a mint condition version from the earliest set can fetch a six digit price point.
First, let's talk about the Lotus' scarcity: Wizards of the Coast has a strict reprint policy where no card functionally identical to the Black Lotus may be reprinted. That means with the rare exception of an undetected fake, the pool of Black Lotuses will never get larger, and in the case of damage or destruction, will certainly get smaller.
Next we'll talk about the Lotus' utility: As arguably the most impactful card in the game, anyone wanting to play Vintage format on a competitive level absolutely needs to have a Black Lotus as well as (almost) every other power-nine card. If you want to see people still playing with pieces of cardboard worth over $10,000+ each, you absolutely can. Even though these cards have utility for only a select few and the price outpaces their direct value-earning potential, the fact that they also have maintained utility means that someone will very likely be willing to purchase this card down the road at the same or higher price than the person that owns it now. Because utility is maintained, the value will continually increase.
I'm not saying this price rise will continue forever though; Something could happen to undermine the utility or scarcity of MTG cards. The pool of people playing Vintage, or MTG at all could shrink, Undetectable counterfeits could surface, WotC could suddenly change the reprint policy. Etc.
In fact, if you would like further information about the Black Lotus from an economic standpoint, I recommend listening to the Planet Money episode: The Curse of the Black Lotus
Scarcity with Shrinking Utility
What about a good that is still just as scarce as it ever was, but has experienced a reduction in utility?
The best example of this phenomenon is probably the New York Taxi Medallion. Taxi Medallions were first introduced around the great depression where less than 12,000 were made. That number has increased to somewhere in the mid 13,000 range today. Regardless, this is clearly a scarce commodity - especially with the extreme growth of NYC itself and thus, the increased demand for cabs. NYC enforced the medallion law relatively strictly for many years, but the introduction of Uber and Lyft also came with less enforcement of the Medallion law. That has caused the value to plummet. I strongly recommend two podcasts that deal with this exact topic:
The first is another Planet Money episode: "The Taxi King"
The second is a New York Times Daily titled "The Taxi Driver's Plight"
If you don't want to listen to the entirety of each episode, I think the most poignant take-away is in the Planet Money episode at timestamp 13:40:
"You can understand where the banks are coming from, they were lending Friedman money based on the rarity of the Taxi Medallions. Those precious taxi medallions. But now, if you can operate something that works pretty much exactly like a taxi without a medallion, the banks are figuring that these medallions are not worth as much as they used to be."
The banks absolutely understand that even though the rarity has not changed at all, their value is based quite heavily on their utility. With less utility comes less demand, and the price has, in response, suffered greatly.
In fact, in the update to that podcast, they note that the price of a taxi medallion is now below $200,000 and they not it doesn't look like things will be better anytime soon.
Value Requires Both Utility and Scarcity
It is pretty clear that value is not based upon scarcity alone.
I hope that users entering this space take a long look at what each cryptocurrency they are buying is useful for.
Cryptocurrencies that do the best job of maximizing their utility while remaining relatively scarce will do quite well. Cryptocurrencies that don't increase or expand their utility will certainly have their value proposition undermined.
TL;DR: Value clearly comes from both utility and scarcity. Invest responsibly.
Edit - ty for the gold, it's much appreciated. From here on out I would prefer tips as I am attempting to spur crypto adoption in my community. Now that BCH has good PoS solutions, it's great to have demo / tiny giveaway balances.
submitted by CaptainPatent to btc [link] [comments]

Of Wolves and Weasels - Day 49 - Such Memories

Hey all! GoodShibe here!
So, yesterday I started putting this thing together and WOW did you come out in droves to help! Thank you so much for sharing your ideas and memories. And thank you kindly to the mods for stickying that post!
In one day we reached 60% completion on a list of top 100 Memories and Achievements of Dogecoin! That's amazing! So many fantastic memories and accomplishments!
Which leads me to share some developments.
The title of this endeavor is now - unless someone comes up with something better:
Such Memories: The First 100 Days of Dogecoin
I'm going to be putting this together as a 100-ish paged commemorative book - for free in PDF, probably with some cost as a fancy, printed book (Sold as close to 'at cost' as I can get it -- slipstream- has recommended selling it at a small profit, with profits going toward charities or Dogecoin Foundation for charities, etc - thoughts?).
Artists, if you've got Dogecoin-themed artwork you want to see in this, please, put forward some links to hi-res CMYK copies and I'll do my best to fit it in.
Also! Let's find the funniest, best Dogecoin-related memes that we have put together so far and include them as well! :D)
We're also going to need a cover.
Any artists out there care to try their hand at designing a cover for this?
We'll put it to the community to vote for the one they like the most, and we'll include the others in the book somewhere :D) If you're an artist who submits to the project, you'll get full credit and promotion for your site inside the book (probably in a credits section at the back).
I also want to hear from the community - think up some interesting stories, maybe what got you into Dogecoin. What your fondest memories of Dogecoin are. These first 100 days have been an exciting rollercoaster of adventure... let's make that we never forget all the fun memories we've had together. If you have personal, fun pictures you'd like to share, fun, personal stories you want to see get into the book, then start working on them now, put them into the comments, keep them on hand!.
Here's the list that I have right now - in no particular order:
MOMENTS/ACHIEVEMENTS:
  1. ummjackson's first 'joke' on Twitter about Dogecoin being 'the next big thing'
  2. The original bitcointalk Dogecoin forum page
  3. Dogewallet Hacked
  4. The first Dogecoin paperwallet design
  5. Save Dogemas is put together by the community, to help out victims of the hack. (News articles?)
  6. 15 Million doge raised by the community to save dogemas
  7. SilentShibe's first tip (not sure when that was)
  8. Ophrahshibe's mass-tippings
  9. The forming of the Dogecoin Foundation
  10. Vault of Satoshi adds the first DOGE->USD/CAD exchange
  11. Dogesled - Helping to fund the Jamaican Bobsled team - NPR article
  12. Shibes actually getting to meet with the Jamaican Bobsled team after funding! (pics?)
  13. Olympics Funding: Shibes raise funds to send Indian Lugers to Sochi in a matter of hours
  14. Strange Donuts - The very first brick-and-mortar food purchase with DOGE!
  15. NYC Dogeparty
  16. Doge 4 kids
  17. Doge is now accepted at experiment.com
  18. DOGE bought pizza for the homeless
  19. DOGE's first fork. Scary! slipstream- has found the exact time and date of our first fork: 2014-01-05 00:09:17 (UTC). That's Day 28
  20. The first time a /dogecoin post reached the top of /all (Thanks 42points for the link!)
  21. The first News article to cover Dogecoin - (http://wwwh.eavy.com/tech/2013/12/dogecoin-what-is-shibe-cryptocurrenc/) on Heavy.com dated Dec 9th, 2013, but not sure if it counts as 'News'. Thoughts?|
  22. The first-ever Of Wolves and Weasels post
  23. the creation of Dogec0in.com - a popular Dogecoin waterbowl/chat room
  24. the Christmas Day Dust Fix
  25. Kabosu's owner started accepting dogecoin for charity
  26. Reddit freaked out because they didn't realize it was an online wallet and thought that tiny withdrawals were indicative of hacking
  27. The first Halvening
  28. Our massive jump up from 25 Satoshis
  29. Dogecoin mentioned in the Australian senate (official Transcript here!)
  30. Payment systems for online shops: Moolah.ch, Coinpayments.net, Dogeapi.com
  31. PoS systems for brick and mortar: dogePoS, moolah (still in beta)
  32. Markets to sell product in dogecoin: shibemart.com, muchmarket.com
  33. Classifieds: suchlist.com
  34. Micro jobs network: dogerr.com
  35. The birth of Dogetipbot v1 - Went Live on 12/15/2013 - First ever dogetip!
  36. Rise of the tipbots: Youtube, Facebook, Twitter, Imgur, etc.
  37. Fork #2
  38. The "inflationary" characteristic of Dogecoin announcement from devs
  39. DogeTEL. The first cryptocurrency phone service!
  40. Fido.pw - sending DOGE via SMS anywhere in the world!
  41. Stuffcoins.com - created by stuffcoins an eBay for Dogecoins
  42. alwaysgeeky, Indie dev sells his game VOX for DOGE.
  43. triverske and friends over at /dogecrafters teach our DOGEs how to play Minecraft! with us - and share our DOGEs on any Minecraft Server
  44. vBulletin Forums Integration! daveaite has created a free plugin for vBulletin, allowing users to directly tip one another in Dogecoin!
  45. 'Universal' DOGE Tippers: DogeTip.co, built by woowdoge and Altcend, created by altcy. Send (password protected) tips - both the sender and the receiver have to sign up.
  46. DogeBucket.com is a Crowd Funding/Crowd Tipping website created by Goldiepurps and their team!
  47. Doge Lodge in Tehran, Iran - created by lincoln_lava - is a homestay if you happen to be in the area (or want to visit) for 10K DOGE per night.
  48. ÐTunes, created by hjras is a great place to sell and buy independent music for Dogecoins. Very cool!
  49. Stat-checkers: DogePulse, created by shibeous and Dogedump, created by cryptogaz
  50. Armstrong Steel - A Steel Building OEM Manufacturer is now accepting Dogecoin! Thanks to SekcRokStallion for their efforts to bring their workplace on board! That's most-definitely a first!
  51. Corinthian Transportation is now allowing you to pay for Limo services with Dogecoin!
  52. Buying homemade bbq/marinade sauce with DOGE - dogesauce.com
  53. @Adult's record-setting DOGE-tip on Twitter
  54. (http://www.reddit.com/dogecoin/comments/1yfnrx/looks_like_kraken_got_doge/) that the exchange [Kraken.com](http://www.kraken.com] is now accepting Dogecoin!
  55. The UniverseProject will be using Dogecoin as the main currency for their game VoidSpace.
  56. The "SnowDoge" Competition! Check it out HERE
  57. MultiDoge - First altcoin light wallet.
  58. Treats.io - The first place to buy giftcards with DOGE
  59. Buygold.io - The first place to buy Reddit Gold with DOGE
Added today:
TOTAL: 100/100
Also: I was thinking we might have a pour-one-out for all the Orphans - a page dedicated to all the blocks we lost along the way... thoughts?
What have I missed?! Let me know in the comments!
It's 8:29AM EST and we're at 53.95% of DOGEs found. Our Global Hashrate is spiking from ~61 to ~98 Gigahashes per second and our Difficulty is down slightly from ~1024 to ~1014.
Lots of fantastic things in store, let's keep this list growing!
As always, I appreciate your support!
GoodShibe
TL;DR: 100/100!!!
submitted by GoodShibe to dogecoin [link] [comments]

The List: Work in Progress

MEMORIES/ACHIEVEMENTS
  1. ummjackson's first 'joke' on Twitter about Dogecoin being 'the next big thing'
  2. BillyM2k introduces ummjackson to the first version of the Dogecoin QT client
  3. The original bitcointalk Dogecoin forum page
  4. Dogewallet Hacked
  5. The first Dogecoin paperwallet design
  6. Save Dogemas is put together by the community, to help out victims of the hack. (News articles?)
  7. 15 Million doge raised by the community to save dogemas
  8. SilentShibe's first tip (not sure when that was)
  9. Ophrahshibe's mass-tippings
  10. The forming of the Dogecoin Foundation
  11. Vault of Satoshi adds the first DOGE->USD/CAD exchange
  12. Dogesled - Helping to fund the Jamaican Bobsled team - NPR article
  13. Shibes actually getting to meet with the Jamaican Bobsled team after funding! (pics?)
  14. Olympics Funding: Shibes raise funds to send Indian Lugers to Sochi in a matter of hours
  15. Strange Donuts - The very first brick-and-mortar food purchase with DOGE!
  16. NYC Dogeparty
  17. Doge 4 kids
  18. Doge is now accepted at experiment.com
  19. DOGE bought pizza for the homeless
  20. DOGE's first fork. Scary! slipstream- has found the exact time and date of our first fork: 2014-01-05 00:09:17 (UTC). That's Day 28
  21. The first time a /dogecoin post reached the top of /all (Thanks 42points for the link!)
  22. The first News article to cover Dogecoin - (http://wwwh.eavy.com/tech/2013/12/dogecoin-what-is-shibe-cryptocurrenc/) on Heavy.com dated Dec 9th, 2013, but not sure if it counts as 'News'. Thoughts?|
  23. The first-ever Of Wolves and Weasels post
  24. the creation of Dogec0in.com - a popular Dogecoin waterbowl/chat room
  25. the Christmas Day Dust Fix
  26. Kabosu's owner started accepting dogecoin for charity
  27. Reddit freaked out because they didn't realize it was an online wallet and thought that tiny withdrawals were indicative of hacking
  28. The first Halvening
  29. Our massive jump up from 25 Satoshis
  30. Dogecoin mentioned in the Australian senate (official Transcript here!)
  31. Payment systems for online shops: Moolah.ch, Coinpayments.net, Dogeapi.com
  32. PoS systems for brick and mortar: dogePoS, moolah (still in beta)
  33. Markets to sell product in dogecoin: shibemart.com, muchmarket.com
  34. Classifieds: suchlist.com
  35. Micro jobs network: dogerr.com
  36. The birth of Dogetipbot v1 - Went Live on 12/15/2013 - First ever dogetip!
  37. Rise of the tipbots: Youtube, Facebook, Twitter, Imgur, etc.
  38. Fork #2
  39. The "inflationary" characteristic of Dogecoin announcement from devs
  40. DogeTEL. The first cryptocurrency phone service!
  41. Fido.pw - sending DOGE via SMS anywhere in the world!
  42. Stuffcoins.com - created by stuffcoins an eBay for Dogecoins
  43. alwaysgeeky, Indie dev sells his game VOX for DOGE.
  44. triverske and friends over at /dogecrafters teach our DOGEs how to play Minecraft! with us - and share our DOGEs on any Minecraft Server
  45. vBulletin Forums Integration! daveaite has created a free plugin for vBulletin, allowing users to directly tip one another in Dogecoin!
  46. 'Universal' DOGE Tippers: DogeTip.co, built by woowdoge and Altcend, created by altcy. Send (password protected) tips - both the sender and the receiver have to sign up.
  47. DogeBucket.com is a Crowd Funding/Crowd Tipping website created by Goldiepurps and their team!
  48. Doge Lodge in Tehran, Iran - created by lincoln_lava - is a homestay if you happen to be in the area (or want to visit) for 10K DOGE per night.
  49. ÐTunes, created by hjras is a great place to sell and buy independent music for Dogecoins. Very cool!
  50. Stat-checkers: DogePulse, created by shibeous and Dogedump, created by cryptogaz
  51. Armstrong Steel - A Steel Building OEM Manufacturer is now accepting Dogecoin! Thanks to SekcRokStallion for their efforts to bring their workplace on board! That's most-definitely a first!
  52. Corinthian Transportation is now allowing you to pay for Limo services with Dogecoin!
  53. Buying homemade bbq/marinade sauce with DOGE - dogesauce.com
  54. @Adult's record-setting DOGE-tip on Twitter
  55. (http://www.reddit.com/dogecoin/comments/1yfnrx/looks_like_kraken_got_doge/) that the exchange [Kraken.com](http://www.kraken.com] is now accepting Dogecoin!
  56. The UniverseProject will be using Dogecoin as the main currency for their game VoidSpace.
  57. The "SnowDoge" Competition! Check it out HERE
  58. MultiDoge - First altcoin light wallet.
  59. Treats.io - The first place to buy giftcards with DOGE
  60. Buygold.io - The first place to buy Reddit Gold with DOGE
  61. ABC Australia National TV does a full story on Dogecoin
  62. Buy a real Copper Dogecoin from ShibeMint.com
  63. The first Science Project to receive donations in Dogecoin
  64. Howtodoge.com and dogecointutorial.com helping our new-shibes!
  65. The first time that Dogecoin had more transactions in one day than all the others cryptocurrencies together
  66. Erowid.org starts accepting Dogecoin donations
  67. Bill to legalize cryptocurrency in California mentions dogecoin, page 4
  68. Jackson Palmer refuses to sell out, turns down $500k VC investment offer.
  69. Dogeminer - A cookie-clicker-esque Dogecoin minesimulation Game
  70. PartyDoge - created by DeepSteeped sells Dogecoin-themed party supplies!
  71. Dogecracy - Supporting Medical Marijuana through Dogecoin
  72. Mining Doge from an airplane! Link to original thread
  73. Passing Peercoin's marketcap for the first time!
  74. a YouTube Tip App for Chrome created by _DarkAngle_
  75. Glitchmob's album is leaked early online - user downloads then pays for it with Dogecoin via Twitter (image). Thread Link
  76. The first time ummjackson says '1 Doge = 1 Doge' - Do we have a link to that somewhere? Also, for 2 consecutive months now, 1 Doge = 1 Doge ("such stability!" says SomeTree)
  77. The creation of doge-dice
  78. netcodepool tipa mohland 10 Million DOGE
  79. Dogecoin.avi - the original Dogecoin Hype Video
  80. Ð is for Dogecoin winning the Hype Video Contest - and getting put on Dogecoin.com
  81. BunsenBrewer brewery accepts Dogecoin for beer!
  82. WheretoDoge.com
  83. DogeEarth.com
  84. DogecoinStickers - First Sticker sold 12/22/2013 11:32pm MST to fruitwoop
  85. SORRYYOUSUCK's excellent Shibe-Onomics series
  86. foxfaction launches first ever Dogecoin only album
  87. The BurgerBear Dogecoin adventure
  88. gargoylenz becomes the first person in the entire UK (and, I dare say, the World!) to buy a beer in a bar with Dogecoin
  89. Unidan visits /Dogecoin to thank us for supporting Experiment.com - "Having the internet's money be silly dog photos makes sense." - Unidan
  90. The DogeParty NYC Documentary Video
  91. /Dogecoin becomes a top 300 Subreddit (do we have a time/date etc for that?)
  92. Dogecoin on the Wall Street Bull. Original Thread here.
  93. CryptoByPost - USB DOGE Wallet - Original Thread.
  94. Ladera Granola - Buy Granola with Dogecoin!
  95. Dogecoin first added to Coinedup.com -- next, Cryptsy.com
  96. The Original Cloud-Computing Mining-for-DOGE guide!
  97. wil - Wil Wheaton - becomes the first celebrity to accept a Dogetip
  98. We discover: Alt 0 2 0 8 to make a "Ð"
  99. The Original 4Chan Dogecoin Prophecy
  100. Dec 25, 2013: /Dogecoin grows larger than /Litecoin
  101. First Home listed for sale in Dogecoin
  102. /Dogecoin Shibes donate 100K DOGE, becomes an official sponsor of University of Virgina's first-ever Hackuva, Large-scale Hack-a-thon event.
  103. Doge4Water gets funded!
  104. savethemhood donates 14,000,000 Doge via Twitter to top up and finish Doge4Water
  105. QT Wallet 1.6 is released
  106. Dogecoin adopts Digibyte's 'Digishield' algorithm to help protect against multipools
  107. Dogecoin Hard-Forks on block 145,000 - getting rid of random block rewards, moving to 250,000 coins mined per block.
TOTAL: 107
submitted by GoodShibe to GoodShibe [link] [comments]

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Episode 816: Bitcoin Losers : Planet Money : NPR NPR The bitcoin market has gone crazy. And it’s revealing something strange. A lot of people can’t find their bitcoins. We go looking for lost billions. and more » Bitcoin's Energy Bill : The Indicator from Planet Money The computers that mine Bitcoin use a lot of electricity. That's created some unique arbitrage opportunities in different parts of the world ... In a recent episode of Planet Money, a podcast and blog produced by National Public Radio (NPR), an independent American non-profit media organization, venture capitalist Ben Horowitz and financial journalist Felix Salmon were brought together to discuss the result of a bet on Bitcoin adoption that they made in February 2014 (during another episode of Planet Money). The IRS still considers bitcoin a property, not a currency, which limits the feasibility of doing bitcoin businesses in many states. Moreover, the latest regulation of the European Parliament regarding transfer of funds (20 May 2015) has put a lot of restrictions on money transfers that point to the fact that Europe will not be comfortable soon with an anonymous virtual currency like bitcoin. Bitcoin is the currency of the Internet: a distributed, worldwide, decentralized digital money. Unlike traditional currencies such as dollars, bitcoins are issued and managed without any central authority whatsoever: there is no government, company, or bank in charge of Bitcoin. As such, it is more resistant to wild inflation and corrupt banks. With Bitcoin, you can

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