Title: On one hand he says it will fail and on the other proposes a similar solution Post by: poblico on April 04, 2013, 02:23:43 PM “The Bitcoin Bubble and the Future of Currency” by @felixsalmon https://medium.com/money-banking/2b5ef79482cb just another financial dude bashing bitcoin. One thing he got right is the deflationary problem. Title: Re: On one hand he says it will fail and on the other proposes a similar solution Post by: MysteryMiner on April 04, 2013, 04:22:45 PM Quote If All in Vain had noticed the theft within a couple of minutes of it happening, it’s conceivable that he could have got his money back. But he was asleep — and ten minutes after the theft occurred, it was utterly permanent and irrevocable Amazing! He don't know how hacking or Bitcoin works but still don't keep his mouth shut.Quote Inflation is bad, but deflation is worse. The reason is that in a deflationary environment, no one spends money — because whatever you want to buy is sure to become cheaper in a few days or weeks. People hoard their cash, and spend it only begrudgingly, on absolute necessities Example of corrupt capitalistic thinking. It is not a drawback at all. It is very good thing. People will not spend all money on unnecessary shit but only things they really need and cannot live without.Title: Re: On one hand he says it will fail and on the other proposes a similar solution Post by: Rassah on April 04, 2013, 04:26:57 PM I like how all those people begrudgingly line up for blocks to be the first iPhone buyers, knowing full well that the price will drop by a lot within just a few months.
Title: Re: On one hand he says it will fail and on the other proposes a similar solution Post by: MysteryMiner on April 04, 2013, 04:46:20 PM I like how all those people begrudgingly line up for blocks to be the first iPhone buyers, knowing full well that the price will drop by a lot within just a few months. Exactly! And they don't know that Nokia N8 or Samsung Galaxy S2 are better than any iPhone. Consumerism at the height of madness.Title: Re: On one hand he says it will fail and on the other proposes a similar solution Post by: poblico on April 04, 2013, 04:58:01 PM Interest on money is not much different from goods becming cheaper in a deflationary economy, in both cases you horde your money so it will take value,
the difference being with interest you accumulate value with deflation goods become cheaper. In the case of bitcoin "interest" levels are determent by the market forces while in the traditional monetary systems the banks decide the interest levels. And I am not sure letting the market forces decided that is the best thing but it's probably better then corrupted institutions. Title: Re: On one hand he says it will fail and on the other proposes a similar solution Post by: MysteryMiner on April 04, 2013, 05:00:56 PM So does it mean that Bitcoin have more natural and realistic "interest" mechanism?
Title: Re: On one hand he says it will fail and on the other proposes a similar solution Post by: Wekkel on April 04, 2013, 05:05:29 PM If nobody does anything anymore because of an appreciating currency, will that currency keep on appreciating while the economy goes into shambles?
Those 'experts' are at it again. Do your own thinking. Title: Re: On one hand he says it will fail and on the other proposes a similar solution Post by: MysteryMiner on April 04, 2013, 05:17:03 PM People will build less crap with planned obsolescence built-in to keep economic growing and spending. And start making devices with 25 year warranty. Or start building really necessary things like farms for growing food, houses, cheap heat and free electricity. Tanks and ICBM missiles to keep the better knowing and selfless capitalists at bay. Like North Korea does.
My dad in college purchased reel tape recorder with 20 year warranty, the highest quality class had 25 year warranty. And it worked for more than 30 years with only scheduled maintenance required when the recorder was sold. It is possible to build such long lasting electronics today but none does it because it means next 20 years the person will not buy again. They manufacture new cellphone model with incremental upgrades and with low quality casing that does not stand the use like casing of Nokia 5110 did. And the result is huge waste of half-working gadgets and polluted earth. Title: Re: On one hand he says it will fail and on the other proposes a similar solution Post by: Rassah on April 04, 2013, 07:35:33 PM Oh man, I just read this whole thing, and I'm sad how it turned out. The article starts out REALLY well, going into the major benefits of Bitcoin, what sets it apart from government currencies and privately owned virtual currencies (like Facebook credits), and does a nice job describing it's potentials and why people are so interested in it. The first half of the article could well be used to promote Bitcoin to new people.
But then half way down, the article takes a very sad turn for the (at this point) expected old misconceptions. We have
Reading this article is like reading a nicely summarized list of all the most popular misconceptions about Bitcoin. But, thankfully, at the very end, there is a quote that made me smile: Quote Bankers in general, and central bankers in particular, tend to be extremely conservative, and anything which could facilitate money laundering or other illegal transactions is going to have a lot of difficulty getting traction. If you want to know why that's funny, just read the recent news about big banks getting busted for money laundering and illegal transactions, and then being too big to sue. The claim that banks are wary of these illegal things, instead of embracing them as a way to make money, is rather amusing. |