Author Topic: Why bitcoin will fail as money  (Read 7848 times)

wachtwoord

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Re: Why bitcoin will fail as money
« Reply #10 on: July 20, 2016, 03:12:22 PM »
Without decentralization the blockchain is just an extremely expensive and inefficient database. Definitely not an improvement. It's fiat currency (completely worthless since Nixon) which is under attack here.
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PatientCheetah

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Re: Why bitcoin will fail as money
« Reply #11 on: July 20, 2016, 04:02:15 PM »
I would love to have more worthless fiat currency. In order for society to prosper, controlled inflation/debasement is a desirable feature - it gradually reduces the debt burden coming from investment already made and frees up cashflow to invest for future growth.
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wachtwoord

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Re: Why bitcoin will fail as money
« Reply #12 on: July 20, 2016, 04:06:13 PM »
I would love to have more worthless fiat currency. In order for society to prosper, controlled inflation/debasement is a desirable feature - it gradually reduces the debt burden coming from investment already made and frees up cashflow to invest for future growth.

I see you paid attention in economics class and can recite the Keynsian mantra. Challenge what they try to indoctrinate you with! Look at the Keynsian teachings and you'll see it's all bullshit. There is no basis. Even Keynes recognized that.

Inflation is not needed for a well functioning economy. In fact, it's detrimental.
« Last Edit: July 20, 2016, 04:54:34 PM by wachtwoord »
"Beware of he who would deny you access to information, for in his heart he dreams himself your master"

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scorpioncapital

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Re: Why bitcoin will fail as money
« Reply #13 on: July 20, 2016, 04:44:59 PM »
Where does all this debt go to if it is inflated away? This sounds like magic! No consequences?

rkbabang

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Re: Why bitcoin will fail as money
« Reply #14 on: July 21, 2016, 05:41:48 AM »
Where does all this debt go to if it is inflated away? This sounds like magic! No consequences?

"That's the way you do it. Get your money for nothin' get your chicks for free" --John Maynard Keynes

The beauty of it is that the consequences can be kicked down the road for a while.  Remember to always think short term, because in the end we are all dead.  Who gives a rat's ass about future generations?
 

Aberhound

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Re: Why bitcoin will fail as money
« Reply #15 on: January 04, 2017, 12:35:22 PM »
Aberhound and SharperDingaan, you both could not be more wrong. Bitcoin is miles ahead of any other digital currency in the only metrics that matter: decentralization and security. The only other currency which offers any sort of competitive advantage is Monero (anonimity) but its probably way to far behind to catch up.

If you believe a government issued cryptocurrency will be anything but a good joke its clear you have no idea what you're talking about. Either educate yourself and profit, or don't.

"If you donít believe me or donít get it, I donít have time to try to convince you, sorry." - Satoshi Nakamoto, July 29, 2010

I wanted to publicly thank Wachtwoord for helping to clarify my thinking on Bitcoin. I decided to put skin in the game to learn more. I concluded in August that Bitcoin was just moving from the early adopter to early majority phase so the chart would start moving exponential. It did. Fortunately I invested 75% of the allocation at the start and the rest in the fall.

What is interesting is how doing so changes your thinking. I finally start to fully understand Buffet's comments about how buying almost anything made no sense as his foregone return was enormous. It also motivated me to sell any surplus stuff as it is all worth a fortune if you convert it to Bitcoin and wait! In 1932 to top Dow companies had not dropped 90% in intrinsic value. What occurred was bank failures made it possible to buy bank IOUs at 25 cents on the dollar and use that to pay off debt. The consequence was that people sold everything to eliminate as much debt as possible. This process will eventually occur with Bitcoin. The biggest mistake people make is that made in the first post of this chain. Bitcoin will get too expensive they say. It will act like any other commodity, stock or bond they say ie rise and fall. The reality is that there will always be transactional users who quickly move in and out who do not care about price. To get Bitcoin it is like a narrow staircase. as more people join the price has to bid more to get them. This process will not end soon. This will likely go on for another 5 years moving up an exponential curve. Watchwoord's point about decentralization being the key to the Bitcoin security is important as that creates moat. As people adopt Bitcoin it will wipe out competition for the same reasons as Microsoft Word etc..

It turns out there are massive opportunities in Bitcoin. I have hired a computer programmer and I am creating Bitcoin trust products. This spring Bitcoin smart contracts will start becoming available. The economy is going to expand rapidly as the smart contracts allow the billions of unbanked people to start to participate in the economy. For instance in Mexico 2/3rds do not have bank accounts and it turns out many young men who want to play video games yet cannot get credit cards can do so if they open a Bitcoin account. How many of these millions will become Buffetts when they hoard their Bitcoin instead of wasting them as the price escalates following the S curve chart?

I do not think the globalists will stop this because it will achieve their purpose of weakening the nation states. Poorly run nation states will weaken more quickly than in the past and those who get into Bitcoin will save their wealth. Why hold anything else if Bitcoin prices will rise faster? The key is to learn how to keep them safely. Inventive people will come up with countless ways to move Bitcoin around internationally and any government that tries to stop this will only hasten their collapse. Consequently people who love Liberty should also support Bitcoin as it will weaken tyrannical governments. This "private wave" trend is forecast by Martin Armstrong to continue until 2032. Enjoy the ride.

SharperDingaan

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Re: Why bitcoin will fail as money
« Reply #16 on: January 04, 2017, 02:22:20 PM »
Just be mindful that there are two types of blockchain network; non-permissioned (Bitcoin), and permissioned (most bank syndicates). The non-permissioned networks are too slow (10 minute mining) for high volume purposes, the miners are consolidating into cartels (independence issue), & it is not really scalable. Permissioned networks have none of these limitations, but are wholly private - and operate under a very different understanding of what 'trust' means (counterparties, software code, etc.); the major downside is a much less robust fault tolerance (excluding mixer and check node workarounds).   

Most Bitcoin wallet holders are not spending their coin, they are hoarding it. The argument is that there are a fixed total number of bitcoin, & over time less & less new coin is created; convince a small number of people that bitcoin is a safe store of value (ie: raise demand) and the price of that very limited quantity of it must increase - convince a lot of people, & you get another tulip mania. The kicker is that the existing design total of bitcoin could be changed at any time, simply by mutual consent; collapsing the bubble.

You may also want to look up the 3rd party oracle providers, before you go too far down the programing route.
Much of the basics needed to operate and run a blockchain application are already available via cloud providers. It's very basic, but enough for 'proof of concept' - and everyone has to start somewhere.

SD   

     

flesh

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Re: Why bitcoin will fail as money
« Reply #17 on: January 04, 2017, 02:31:24 PM »
Bitcoin/blockchain noob here. Doesn't bitcoin encourage black markets and reduce govt tax revenue? If yes, how big must it get before the govt clamps down and rightly so?

In the usa, couldn't the govt shut down all the businesses facilitating the trade of bitcoin. Also, couldn't laws be passed that made it a severe criminal offense? Does the govt have/could it use it's billions/agencies too find all sorts of ways to stop it?


cherzeca

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Re: Why bitcoin will fail as money
« Reply #18 on: January 04, 2017, 02:37:33 PM »
Bitcoin/blockchain noob here. Doesn't bitcoin encourage black markets and reduce govt tax revenue? If yes, how big must it get before the govt clamps down and rightly so?

In the usa, couldn't the govt shut down all the businesses facilitating the trade of bitcoin. Also, couldn't laws be passed that made it a severe criminal offense? Does the govt have/could it use it's billions/agencies too find all sorts of ways to stop it?

agree with this, and was somewhat surprised that when govt prosecuted silk road it didnt go after cryptocurrencies generally. 

Liberty

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Re: Why bitcoin will fail as money
« Reply #19 on: January 04, 2017, 03:20:37 PM »
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