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To: BiglyCommentary
"Fiat money is a government-issued currency that is not backed by a physical commodity, such as gold or silver, but rather by the government that issued it. "
https://www.investopedia.com/terms/f/fiatmoney.asp


They got the first half of the definition wrong, but the second half right. I have long long long been an advocate of making the usd dollar not "backed" but fungible, at a flat rate, by gold and/or silver. This was, in fact the status of the USD for years when our currency stated "The US Government WILL PAY...etc etc" upon demand. Dollars were like bonds in that they were acknowledged as debts owed by the USGov.

So when Russian just announced the ruble was "backed" by gold, traders adjusted the price of rubles. But according to you, they can't justify that price adjustment by the new backing. You live in an alternative universe from the rest of the trading and financial community.

Interesting assessment, since I made markets in options on the floor for a time and have been trading professionally for some time now. Always nice to be corrected by those with deep and substantive knowledge of things.
Anyway, Russia's decision to put the rouble on a gold standard simply means that the rouble can be exchanged for gold. This is certainly a wise decision in that it means the rouble is not backed by "fiat" or the dictate of the state. However, the price of gold floats, as does silver. The only thing "backing" this is the relative rarity of gold. If Musk could figure out how to mine a gold asteroid, the rouble would be "backed" by nothing.
The characteristics of a commodity which makes it desirable as a currency are: utility, uniformity, durability, rarity, portability, divisibility, and acceptability. You alluded to several of these above. I am in total agreement. It is interesting that you do not see that BTC actually meets every one of these requirements for currency.

"So know it all, what is the maximum rate for bitcoin transactions?"

That is a question so ambiguous as to be devoid of meaning. Do you mean the speed of transactions? The number of transactions? The cost per transactions? However, to attempt to answer you, there is no fixed "rate" for bitcoin transactions (maximum or minimum), just as there is no fixed "rate" for any accepted currency.
36 posted on 05/09/2022 8:38:00 AM PDT by tanstaafl.72555
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To: tanstaafl.72555
"So know it all, what is the maximum rate for bitcoin transactions?" That is a question so ambiguous as to be devoid of meaning. Do you mean the speed of transactions? The number of transactions? The cost per transactions? However, to attempt to answer you, there is no fixed "rate" for bitcoin transactions (maximum or minimum), just as there is no fixed "rate" for any accepted currency.

WRONG! You blow a lot of smoke but once again are living in your own universe. That answer shows you don't know that much about bitcoin other then pouring money into it else you would know exactly what that question referred to. Is is widely discussed. It is why bitcoin will be going the way of the dodo bird as I said because this is a huge design flaw that limits it's ability to scale out. Other coins professionally engineered to scale out will replace bitcoin.

https://en.bitcoinwiki.org/wiki/Maximum_transaction_rate

Maximum transaction rate

The maximum transaction rate is the block size limit divided by the average transaction size. The block size limit is well known, 1MB, however the average transaction size isn't. Here we'll look at what influences that size.

...

Each transaction input requires at least 41 bytes for the previous transaction reference and other headers and each transaction output requires an additional 9 bytes of headers. Finally every transaction has a header at least 10 bytes long. Added up we get 166 bytes for the minimum-sized Bitcoin transaction. For 1MB (1,000,000 byte) blocks this implies a theoretical maximum rate of 10tx/s.

https://en.m.wikipedia.org/wiki/Bitcoin_scalability_problem

The Bitcoin scalability problem refers to the limited capability of the Bitcoin network to handle large amounts of transaction data on its platform in a short span of time.[1] It is related to the fact that records (known as blocks) in the Bitcoin blockchain are limited in size and frequency.[2] Number of transactions per month, on a logarithmic scale

Bitcoin's blocks contain the transactions on the bitcoin network.[3]: ch. 2  The on-chain transaction processing capacity of the bitcoin network is limited by the average block creation time of 10 minutes and the original block size limit of 1 megabyte. These jointly constrain the network's throughput. The transaction processing capacity maximum estimated using an average or median transaction size is between 3.3 and 7 transactions per second.

38 posted on 05/09/2022 9:27:27 AM PDT by BiglyCommentary
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