sipa changed the topic of #bitcoin-wizards to: This channel is for discussing theoretical ideas with regard to cryptocurrencies, not about short-term Bitcoin development | http://bitcoin.ninja/ | This channel is logged. | For logs and more information, visit http://bitcoin.ninja
<fluffypony>
"Uses fewer logical qubits than Shor; heuristically asymptotically breaks RSA faster than NFS"
goksinen has quit [Ping timeout: 246 seconds]
CubicEarth has quit [Remote host closed the connection]
CubicEarth has joined #bitcoin-wizards
rusty has joined #bitcoin-wizards
<Eliel>
fluffypony: except the constant qubit requirement is apparently unclear enough that they can't tell if this algorithm will actually require less qubits than Shor for 2048 bit RSA keys.
rusty has quit [Ping timeout: 260 seconds]
snthsnth has joined #bitcoin-wizards
Char0n has quit [Changing host]
Char0n has joined #bitcoin-wizards
DougieBot5000 has quit [Ping timeout: 240 seconds]
MaxSan has quit [Ping timeout: 240 seconds]
MaxSan has joined #bitcoin-wizards
MoALTz has joined #bitcoin-wizards
DougieBot5000 has joined #bitcoin-wizards
MaxSan has quit [Ping timeout: 255 seconds]
MaxSan has joined #bitcoin-wizards
mol has joined #bitcoin-wizards
molz_ has quit [Ping timeout: 252 seconds]
rusty has joined #bitcoin-wizards
MaxSan has quit [Ping timeout: 260 seconds]
MaxSan has joined #bitcoin-wizards
Burrito has joined #bitcoin-wizards
malte has quit [Ping timeout: 255 seconds]
<fluffypony>
Eliel: yeah seems a bit of a thumb suck
malte has joined #bitcoin-wizards
rusty has quit [Quit: Leaving.]
rusty1 has joined #bitcoin-wizards
rusty1 has quit [Ping timeout: 240 seconds]
goksinen has joined #bitcoin-wizards
goksinen has quit [Ping timeout: 258 seconds]
thrmo has joined #bitcoin-wizards
snthsnth has quit [Ping timeout: 240 seconds]
UnrealLife1 has quit [Ping timeout: 260 seconds]
sudo_pscience has joined #bitcoin-wizards
UnrealLife has joined #bitcoin-wizards
CubicEarth has quit [Remote host closed the connection]
goksinen has joined #bitcoin-wizards
goksinen has quit [Ping timeout: 246 seconds]
MaxSan has quit [Ping timeout: 255 seconds]
dnaleor has quit [Ping timeout: 260 seconds]
mountaingoat has quit [Ping timeout: 268 seconds]
pro has joined #bitcoin-wizards
MaxSan has joined #bitcoin-wizards
mountaingoat has joined #bitcoin-wizards
mountaingoat has quit [Ping timeout: 240 seconds]
gm2053 has joined #bitcoin-wizards
gm2052 has quit [Ping timeout: 260 seconds]
molz_ has joined #bitcoin-wizards
NewLiberty has quit [Ping timeout: 252 seconds]
mol has quit [Ping timeout: 246 seconds]
UnrealLife has quit [Ping timeout: 255 seconds]
mountaingoat has joined #bitcoin-wizards
Davasny has joined #bitcoin-wizards
Davasny is now known as Guest33355
mol has joined #bitcoin-wizards
molz_ has quit [Ping timeout: 240 seconds]
DougieBot5000_ has joined #bitcoin-wizards
DougieBot5000 has quit [Ping timeout: 255 seconds]
MaxSan has quit [Ping timeout: 240 seconds]
pro has quit [Ping timeout: 268 seconds]
pro has joined #bitcoin-wizards
laurentmt has joined #bitcoin-wizards
pro has quit [Client Quit]
pro has joined #bitcoin-wizards
Guyver2 has joined #bitcoin-wizards
tromp has quit []
tromp has joined #bitcoin-wizards
NewLiberty has joined #bitcoin-wizards
uiuc-slack1 has quit [Remote host closed the connection]
uiuc-slack has joined #bitcoin-wizards
RubenSomsen has quit [Ping timeout: 260 seconds]
MaxSan has joined #bitcoin-wizards
moli_ has joined #bitcoin-wizards
belcher has joined #bitcoin-wizards
RubenSomsen has joined #bitcoin-wizards
mol has quit [Ping timeout: 260 seconds]
Giszmo has joined #bitcoin-wizards
RubenSomsen has quit [Ping timeout: 240 seconds]
mol has joined #bitcoin-wizards
johntramp has quit [Ping timeout: 260 seconds]
moli_ has quit [Ping timeout: 240 seconds]
johntramp has joined #bitcoin-wizards
harrymm has quit [Ping timeout: 268 seconds]
MaxSan has quit [Quit: Leaving.]
thrmo has quit [Ping timeout: 240 seconds]
wangchun has quit [Remote host closed the connection]
dgenr8 has quit [Ping timeout: 240 seconds]
dgenr8 has joined #bitcoin-wizards
UnrealLife has joined #bitcoin-wizards
priidu has joined #bitcoin-wizards
UnrealLife1 has joined #bitcoin-wizards
UnrealLife1 has quit [Remote host closed the connection]
UnrealLife1 has joined #bitcoin-wizards
UnrealLife has quit [Read error: Connection reset by peer]
moli_ has joined #bitcoin-wizards
mol has quit [Ping timeout: 260 seconds]
wizkid057 has quit [Ping timeout: 264 seconds]
moli_ has quit [Remote host closed the connection]
moli_ has joined #bitcoin-wizards
mol has joined #bitcoin-wizards
wizkid057 has joined #bitcoin-wizards
blackwraith has joined #bitcoin-wizards
moli_ has quit [Ping timeout: 245 seconds]
priidu has quit [Ping timeout: 268 seconds]
tromp has quit [Remote host closed the connection]
MaxSan has joined #bitcoin-wizards
CubicEarth has joined #bitcoin-wizards
<Taek>
I have a thought experiment regarding something that has been bothering me quite a bit.
d9b4bef9 has quit [Remote host closed the connection]
<Taek>
Amazon has an annual revenue of about $135B
<Taek>
and the stock has a market cap of about $440B
d9b4bef9 has joined #bitcoin-wizards
<Taek>
What would happen to the market cap of the stock if Amazon suddenly required that all payments to Amazon be done using Amazon stock
<Taek>
(which is essentially how some cryptocurrency projects operate)
<Taek>
There'd be $135B (disregarding the amount of customers they might lose) of buy pressure on the Amazon stock
<Taek>
every year, and there'd be a lot of speculators recognizing this gap and getting in early to ride the wave to the top
<Taek>
and probably hodlers, etc.
<Taek>
so it seems not unreasonable that the market cap would be pushed into the trillions
itsme_ has joined #bitcoin-wizards
<Taek>
but in this experiment we haven't actually added value anywhere
<Taek>
we've created this giant bubble that's entirely propped up by $135B of buy pressure plus whatever speculative mania ensues
<belcher>
on the other hand, the stock market is enforced by the legal system, cryptocurrencies can never be equity in the same way, your token cant force a management change or anything like that
<Taek>
you are not wrong, but I don't see how that applies
<Taek>
the giant buy pressue that we've created in this hypothetical scenario comes entirely from the fact that we're forcing people to buy stock (perhaps even special stock with no vote priviledges) just to interact with us
<belcher>
yes ok, on the other hand amazon sells stuff that most people want to buy, do these alts do that (genuinely asking, i havent been following them)
sausage_factory has joined #bitcoin-wizards
<Taek>
you need eth to paricipate in an appcoin ico
<Taek>
so at the very least, there's fundamental buy pressure on the eth asset for the purpose of ico speculation
<belcher>
i guess eventually people will run out of appetite for ICOs?
blackwraith has quit [Ping timeout: 260 seconds]
<Taek>
And Sia is another example of this, you need siacoin to buy storage on the platform. Granted, Sia has a market cap of $20M and the fundamental buy pressure is only around $10k per month
<Taek>
but I would expect the multiplier there to always be very high due to speculative involvement
<andytoshi>
i think you want to use profit rather than revenue (and then use apple i guess rather than amazon :)) ... and then i think this is identical to an alternate thought experiment where apple puts 100% of its profit into its own stock
<Taek>
andytoshi: why profit rather than revenue?
<andytoshi>
Taek: because amazon has to somehow pay its suppliers, which would put sell pressure on the stock
<waxwing>
"company store"
<Taek>
true, but if they pay their suppliers every month, then at the very least they are creating this scarcity
<andytoshi>
so in the apple scenario, this is actually a stock buyback, which is a fairly normal thing to do. and it wouldn't cause a runaway market cap because it would reduce the supply of stock
<Taek>
because the sell pressure does not immediately follow the buy pressure
<Taek>
hmm
<Taek>
but also wouldn't you expect people to keep an operating amount of amazon stock so that they don't have to go through the hassle of buying some when the time comes?
<andytoshi>
sure, i'm just saying that the stock that goes into amazon is black-holed and no longer contributes to market cap
<andytoshi>
i guess not necessarily, they can hoard stock without deissuing it
<andytoshi>
but i think this is a technical thing that would cause distortions in what "market cap" means, but nothing more than that
<andytoshi>
i saw on reddit you complained about ICO pricing where the "market cap" does not include founders' tokens, misleading investors into thinking they're getting in at a lower price point than they really are...which sounds true, but also sounds analogous to "you're being lied to when you buy amazon stock because tomorrow they could issue enough to quadruple the supply, screwing you", which sounds
<andytoshi>
false
<Taek>
I'm still gathering my thoughts, but if the market cap runs too far away from the actual amount of value in the system, then you get a really severe boom-bust cycle
<Taek>
Admittedly I'm not super familiar with all the regulations and rules surrounding stock issuance, but I believe that sufficent dilution introduced into the ecosystem by Amazon would result in legal action
<Taek>
hmm. I think that most stock has anti-dilution protection of some kind
<Taek>
maybe not for publicly traded stock though
<Taek>
but the company analogy also goes farther. Unissued shares in a company are different from founder owned shares
<Taek>
When you calculate the valuation of a company like Uber, you include all of the shares that the founders own
<Taek>
what gets excluded is the shares that they could print to do more funding rounds
<Taek>
but the money they get from printing shares essentially boosts the value of the product by the amount input
<Taek>
If you buy 10% of newly printed shares, you are giving the company a huge boost in operating capital which suppedsly is equal to the value of the shares printed
tromp has joined #bitcoin-wizards
<Taek>
when the devs sell shares of something like Gnosis, is that same equation there?
<Taek>
or do they just go to barbados?
<Taek>
and, as a holder of common stock in a public company, I actually benefit when that company gains a ton of new capital, because I have (in a soft sense) claim to that capital
<Taek>
or rather, the company is legally bound to use that capital following the best interests of the shareholders
tromp has quit [Ping timeout: 252 seconds]
Chris_Stewart_5 has joined #bitcoin-wizards
<Taek>
I think you are right about the revenue vs. profit thing. The sell pressure on the stock from Amazon needing to pay expenses would ensure at least some liquidity
laurentmt has quit [Quit: laurentmt]
<Taek>
so at best you get pressure from the profits, and pressure from the friction that happens between buying the stock, buying the goods, then Amazon paying its expenses
<Taek>
if that cycle takes a month, you get a bonus buy pressure of 1 month's worth of revenue