Questions tagged [finance]

28 questions
99
votes
11 answers

Why was 21 million picked as the number of bitcoins to be created?

Why did Satoshi pick 21 million as the number of bitcoins to be created? What is the significance of that number?
osmosis
  • 5,481
  • 5
  • 23
  • 28
35
votes
6 answers

What would a country adopting Bitcoins as official currency have to reinvent?

Let's say that a country decided to ditch their currency and go for Bitcoins. What would this country have to reinvent. The reason why I ask, is because I believe that if a tiny country was to adopt Bitcoins as their official currency, then this…
David
  • 3,444
  • 2
  • 27
  • 37
11
votes
8 answers

If the economy was based on bitcoin, how would someone go about getting a loan?

In today's society, people often take out loans from banks. In an economy that was run on bitcoins, how would someone go about getting a loan? I do not understand how this would work with Bitcoin's deflationary model. It seems a loan would be…
osmosis
  • 5,481
  • 5
  • 23
  • 28
10
votes
3 answers

What economics/finance methods and tools can be used to analyze and predict the Bitcoin market?

Bitcoin differs from standard markets in many ways. Some standard market analysis tools are inapplicable due to unique features of Bitcoin. Hence the question What methods/tools can used to analyze and predict the Bitcoin market? It is better if…
Artem Kaznatcheev
  • 2,016
  • 2
  • 15
  • 24
10
votes
3 answers

Why did GLBSE close?

I went to https://glbse.com/ and see it is closed. It was a stock exchange for shares of companies denominated in Bitcoins. Does anyone know why it closed?
B Seven
  • 871
  • 2
  • 9
  • 19
8
votes
3 answers

Do any ETFs purchase Bitcoins? Is that scenario possible?

Is there any ETF that allows for the purchase of Bitcoins? Is this possible? More info... An ETF is like a stock that is publicly traded on the stock market, and it can represent: A collection of stocks An asset, like gold or silver A position,…
makerofthings7
  • 12,656
  • 11
  • 60
  • 129
8
votes
4 answers

Where can we buy shares of ASICMiner

ASICminer did decide to keep the hardware and mine. They're selling shares with intent to payout the dividends from whatever profit is made. Okay, so we got three players. ASICminer. Avalon. And butterfly labs. Obviously ASICMiner is the one…
user4951
  • 1,188
  • 5
  • 18
  • 31
7
votes
2 answers

How can I measure the "health" of Bitcoin?

What are the metrics that matter when evaluating the overall "health" of Bitcoin? What are the thresholds? Specifically Economic (e.g. velocity, days destroyed, market volume & beta) Technical (e.g. rate of difficulty change, block size, tx fees,…
6
votes
1 answer

How do I get started in finance & market analysis?

I'am currently new to bitcoin & doesn't any finance or market background, currently I got huge interest to how this currency system will affect our life, as I spend more and more time reading about bitcoin, then I feel I need more knowledge about…
uray
  • 547
  • 5
  • 8
4
votes
1 answer

What financial instruments are under development for Bitcoin?

I'm thinking here specifically of instruments that take a Bitcoin-like approach to trusted parties, eliminating them wherever possible and typically built with Bitcoin as their platform. (As opposed to simply having a real-world trusted entity…
eMansipater
  • 14,376
  • 10
  • 50
  • 79
3
votes
6 answers

In the simplest way possible, describe how the 21 Million limitation is enforced to a non techie

In this Bloomberg video: Gold for Nerds , they ask How is the limitation of 21 million Bitcoins enforced? Though I am very familiar with the technical reasons why and how it's done I haven't seen an explanation suitable for a…
makerofthings7
  • 12,656
  • 11
  • 60
  • 129
3
votes
2 answers

What research papers cover Bitcoin's impact on Central Banks, "velocity of money", and reserves?

I'm looking for research papers that cover the impact Bitcoin may have on Central Banking, interest rates, velocity of money, and their reserve. What research papers or information from thought leaders exists w.r.t Bitcoin's impact on economic…
makerofthings7
  • 12,656
  • 11
  • 60
  • 129
3
votes
3 answers

Difficulty based derivatives and insurance

What would the basis of difficulty derivatives and insurance be? Like how could we structure someone such that if the difficulty goes above a certain amount there's a payout to protect miners, & stabilize their ventures?
Kinnard Hockenhull
  • 2,423
  • 3
  • 26
  • 36
3
votes
2 answers

How will a bitcoin ETF be any different from a bitcoin exchange?

The W.Twins bitcoin ETF/trust stock can be converted to real bitcoins. This means that we can buy $100 worth of stock and convert it to maybe 0.5 BTC depending on the current rate. And we can buy 0.5 BTC and convert it to maybe $100 worth of stock…
Pacerier
  • 2,115
  • 2
  • 21
  • 33
2
votes
1 answer

What would happend if a country were backed by its own cryptocurrency?

What would happen if instead of depending on dollars or gold, a country were backed by its own cryptocurrency, would this benefit its citizens and the country itself? How? I've read this answer but it's mostly about bitcoin, and not about a…
Willemoes
  • 121
  • 3
1
2