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Title: Article on goldseek about Bitcoin Post by: sidhujag on January 29, 2014, 08:17:37 PM Keith Weiner tries to fit in the bitcoin model into today society, surprise surprise, lending markets would crash, no value is given to capital and labor BIG ISSUE to him... these are his gamebreakers that let him dismiss the idea of Bitcoin mostly to the use of people in remote areas that would otherwise not be able to participate in the market. Essentially he says Bitcoin is not for the "real world":
http://news.goldseek.com/GoldSeek/1390916002.php Discuss :) Title: Re: Article on goldseek about Bitcoin Post by: mediaspree on January 29, 2014, 08:46:31 PM Quote Without a mechanism for responding to increased market demand by creating more currency, there is a fatal flaw. This is what I don't understand about those who "don't understand" bitcoin. Firstly, bitcoin is almost infinitely divisible (for the number of people on the planet at least) Secondly, creating more currency in response to market demand is the fatal flaw of fiat! Bitcoin seeks to remedy this. Title: Re: Article on goldseek about Bitcoin Post by: Akka on January 29, 2014, 08:53:00 PM Always the same with those Golbugs articles, you only need to read the last section:
Quote Only gold serves as the objective measure of value necessary to act as the numeraire. It is no coincidence that the quantity of monetary gold is not fixed, but has elegant mechanisms to expand and contract in response to changing market demand. It's impossible for those guys to even imagine, that anything but gold could work for this purpose. It's basically a religion. Should always be a reminder for us cryto nerds to not become like this. ;) Title: Re: Article on goldseek about Bitcoin Post by: sidhujag on January 29, 2014, 08:57:18 PM Quote Without a mechanism for responding to increased market demand by creating more currency, there is a fatal flaw. This is what I don't understand about those who "don't understand" bitcoin. Firstly, bitcoin is almost infinitely divisible (for the number of people on the planet at least) Secondly, creating more currency in response to market demand is the fatal flaw of fiat! Bitcoin seeks to remedy this. Yea I think he tries to justify inflation deflation forces is todays economy by being able to battle those forces through expansion/contraction like PPC coin kinda... and I kinda agree a lil bit that a small amount of inflation is good... but being divisible may or maynot work in that favour as a bitcoin is still a bitcoin is still a bitcoin regardless of divisibility. There are several coins that have a stable expansion of supply for example DeVCoin has a steady expansion that will never change. In several cases it is a benefit to have a known expansion rather than dynamic expansion like PPC because this creates incentive to skew the expansion controlling mechanism. By knowing that no matter what its going to have x amount of more coins, that seems sufficient to me, as a stable user base growth will lead to a stable currency exchange rate. Seems as the critics are hard on bitcoin because of the inherent structure breeding volatility in the rate.. Title: Re: Article on goldseek about Bitcoin Post by: greyhawk on January 29, 2014, 09:01:13 PM It's impossible for those guys to even imagine, that anything but gold could work for this purpose. It's basically a religion. Should always be a reminder for us cryto nerds to not become like this. ;) Stop it. I'm getting cramps from the laughter. :D Title: Re: Article on goldseek about Bitcoin Post by: alekfor on January 29, 2014, 09:10:45 PM Now consider bitcoin. Bitcoin is not a fiat currency. No government forces anyone in any way to use it. However, bitcoin is irredeemable. That is, there is no agreement by anyone to redeem bitcoin in exchange for a defined quantity of gold, silver, or any real good. With its fixed quantity, there are no arbitrages regarding the value of bitcoin. So what does this mean? What will happen?
Good Title: Re: Article on goldseek about Bitcoin Post by: sidhujag on January 29, 2014, 09:26:36 PM Now consider bitcoin. Bitcoin is not a fiat currency. No government forces anyone in any way to use it. However, bitcoin is irredeemable. That is, there is no agreement by anyone to redeem bitcoin in exchange for a defined quantity of gold, silver, or any real good. With its fixed quantity, there are no arbitrages regarding the value of bitcoin. So what does this mean? What will happen? Good Please read the entire article what will happen. I think something like open transactions works to counter this type of situation. |