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Title: The problem bitcoin solves Post by: Hydrogen on November 13, 2018, 09:53:25 AM Quote Modern financial history is littered with hyperinflation, defaults and currency devaluation. Bitcoin could put an end to that, says Saifedean Ammous Paul Krugman, blogger, fiat-currency enthusiast and winner of the Nobel Prize in Economics earlier this year justified his scepticism about cryptocurrencies in the New York Times. He asked readers to give him a clear answer to the question: what is the problem cryptocurrency solves? He wrote: ‘Governments have occasionally abused the privilege of creating fiat money, but for the most part governments and central banks exercise restraint.’ He added that, unlike bitcoin, ‘fiat currencies have underlying value because men with guns say they do. And this means that their value isn’t a bubble that can collapse if people lose faith.’ Case closed, apparently. What he omitted to mention was that bitcoin has been operating successfully for almost ten years now, with no confirmed cases of fraudulent transactions. Every day, its traded volumes run to billions of dollars. In fact, bitcoin’s increasing reputation for security and the growth it is still undergoing suggests it is not about to go away. Could it be the market knows something about bitcoin and central banks that Krugman does not? A closer look at the track record of government money offers a perspective somewhat different to that seen through Krugman’s rose-tinted spectacles. As I write, Zimbabwe and Venezuela are undergoing the ravages of a collapse of government money, while Argentina, Iran and Turkey teeter on the brink. A quarter of a billion humans live in these failing economies — but not enough, evidently, to dissuade Krugman from endorsing government control of money so wholeheartedly. It’s not even as if what is happening in these countries is a new phenomenon. Hyperinflation has occurred 57 times since the end of the first world war, afflicting several billions of people. In every instance, it has been the type of money whose worth is supposedly protected by men with guns that has become, well, worthless. Indeed, hyperinflation is a form of economic disaster unique to government-created money. There was never an example of hyperinflation when economies operated a gold or silver standard. Government money is relatively cheap to produce, meaning governments in crisis are all too happy to produce it. In this way — as we have seen too often — it is possible for a society to lose all of its savings in the space of a few months, or even weeks. This is what happens when the wrong people gain control of the financial levers. Whatever alleged benefits government-managed money may have, a single episode of hyperinflation far outweighs them all. While most countries have not experienced hyperinflation, they have almost all experienced significant currency devaluation over sustained periods. Between 1960 and 2015, for example, money supply in all countries increased by an average 32 per cent per year. Krugman doesn’t seem to believe the value of government money needs to be justified intellectually. Instead, he believes ‘men with guns’ will suffice as an argument. The good news for him is that intellectual justifications do not ultimately matter when set against the realities of the market. The power of the state is usually sufficient to protect the economic monopolies he defends. However, the bad news is that the flow of bitcoin — which is decentralised, digital and cryptographically secured — is far harder to stop with guns. Krugman cites the relatively high cost of bitcoin transactions as a reason the cryptocurrency cannot compete long term with fiat currencies. He seems, mistakenly, to assume bitcoin is competing with consumer payment networks like Visa or PayPal. But as I argue in my book The Bitcoin Standard, that is not what bitcoin is best suited for. Rather, bitcoin is an international settlement network, one that competes with the central bank settlement systems that are the foundation upon which networks like Visa or PayPal depend. It must also be said that bitcoin transaction costs are relatively cheap compared with those of traditional settlement systems. And that’s not to mention that bitcoin offers international clearance within an hour, while the current banking system usually needs days, and sometimes weeks. Certainly, there is appetite for a credible alternative to government-controlled fiat currencies. In the nine years that it has been trading, bitcoin has appreciated 700,000,000 per cent against the dollar, despite the naysayers and warnings of its impending collapse. Perhaps the most compelling argument for bitcoin is the completely apolitical and predictable monetary policy it operates within. Bitcoin cannot be used for quantitative easing, for example. You can’t just print more of it when the whim takes you. If bitcoin’s continued growth deprives central banks of the ability to finance catastrophic wars by printing money, or if it prevents even one more tragic incidence of hyperinflation, the energy consumption required to mine it will be the best bargain humanity ever got. Could bitcoin collapse? Of course it could. Any investor who puts a large amount of money into bitcoin must know they are taking a significant risk. But bitcoin’s price-falls these days bottom out at prices many times higher than they did only a few years ago. Can government currencies and bonds collapse, or drop significantly in value, despite the ‘men with guns’ that protect them? The answer — after 100 years and more of hyperinflation, financial repression and sovereign default, which together have affected billions of people — is a resounding yes. It’s no wonder so many people do not share Krugman’s enthusiasm for the last century’s experiment with government-controlled money, and herein lies the problem that bitcoin solves. Bitcoin offers anyone in the world an escape from being controlled by economists who believe they are immune to the lessons of history. https://www.spectator.co.uk/2018/11/the-problem-bitcoin-solves/ .... Here we have someone addressing fundamental economics & finance topics mainstream sources have a tendency to avoid. This could be a neglected area where discussion and debate are in dire need, as well as greater awareness and proliferation of information. Many have talked about the importance of skepticism and peer review to maintain good standards in society. The question could be raised of whether Paul Krugman's stance: "fiat money retains value as it is backed by guns" is verifiable by history. Certainly many are aware of venezuela and other nations issues with inflation and overprinting of fiat currency. However most seem not to comprehend the negative consequences of these principles until they have first hand, real life, experience with them. That learning curve could blind many to the intrinsic value of crypto currencies. Its possible bitcoin is still undervalued. Anyways, I would be interested to know if anyone cares to defend Paul Krugman's stance in late 2018. Some consider Krugman to be a valid source due to him being awarded a nobel prize in economics. However there is a recent school of thought which says: nobel prizes like the nobel peace prize haven't been awarded to deserving recipients in recent times. Obama received a nobel peace prize for *some say* making war in the middle east and around the world worse than it had been before he took office. There could be a precedent for Paul Krugman doing similar things with fiscal, financial and economic policy in terms of him pushing quantitative easing (QE), economic stimulus and other policies which are controversial in nature. Title: Re: The problem bitcoin solves Post by: Linkkoin on April 02, 2019, 04:02:21 PM While Bitcoin and other cryptocurrencies can help people living in struggling economies, for now, cryptos with their volatility are still not so useful as speaking of business. Imagine, that you are an owner of eg. shipyard (or any other business where you are basing your business activities on long term contracts, which usually are not amendable). You sign contracts for building ships for like 2-3 years in advance. And even regular fiat currency exchange rates can bring the company to the edge of bankruptcy. Until we get over the volatility, we cannot say the problem is fully solved.
But still, a partial solution is much better than having no alternative at all. Title: Re: The problem bitcoin solves Post by: HouseStark on June 19, 2019, 09:36:01 AM Penultimately, Bitcoin offers the kind of financial freedom that hasn't been experienced anywhere.. not ever. Humans can't be oppressed or restricted forever. We always fight for liberation and Bitcoin is the first time, humans have been financially liberated from the "oppressors," and more importantly, it is digital also...not something physical like Gold that can be easily tampered with (seized, withheld, etc). I'll forever love Bitcoin!
Title: Re: The problem bitcoin solves Post by: jademaxsuy on June 19, 2019, 09:47:59 AM I do not think also that bitcoin only can solve government problems especially when it comes to fiat currency that were being controlled by the government. There is no efficient way in having an absolutism for every system therefore bitcoin needs other system like in that fiat currency system that will also let users to decide whether of the two systems will be used. This is how should be done for the government and for bitcoin.
Title: Re: The problem bitcoin solves Post by: pokeronlinestatus on June 21, 2019, 07:49:01 AM All these people saying that Bitcoin is helping those living in countries with bad economies, it seems you all are dummies. If Bitcoin can't help those living in countries with good economy, then how is it going to help those in countries where their economy is very bad? Do you think that Bitcoin is a free money for those living in poor countries? You think they don't need money to buy it? People in Venezuela are in no way benefiting from Bitcoin, don't know why people keep saying rubbish that Bitcoin is helping Venezuela, funny. How exactly, through faucets? Faucet is the only free money in Bitcoin and as long as I'm concerned, they pay less than pennies and are the worst thing anyone should be doing.
Title: Re: The problem bitcoin solves Post by: LeGaulois on June 21, 2019, 02:12:59 PM Bitcoin won't be able to solve economic problems alone. People have a lot of work to do on themselves, about their mentality with money and how the current system really works and that they understand there are alternatives. but it's something going to happen soon.
People follow the money, when you (govt.) hit their money (bank account) they start yelling and act. A concrete example could be if the govt is forcing the citizen to give their gold to govt. (it happened once in the US) or banks in bankrupt deciding to use people money to recapitalize or absorb a liquidation (they have the right to do this) Title: Re: The problem bitcoin solves Post by: jhongzjhong on June 21, 2019, 11:00:00 PM Bitcoin and blockchain are different things. Blockchain is the technology behind the possibility of bitcoin. As some of the statements here, some are interpreting blockchain and bitcoin as the same. But it is not. Cryptocurrencies could really compete with the central banks and it is not the Paypal and Visa they compete with. But after 100 years, people will become more interested in educating themselves and will have access to education more than what we have today. That is the time that governments could not regulate everything especially when it comes to currency and trades.
Title: Re: The problem bitcoin solves Post by: Lanatsa on June 21, 2019, 11:45:42 PM Bitcoin and blockchain are different things. Blockchain is the technology behind the possibility of bitcoin. As some of the statements here, some are interpreting blockchain and bitcoin as the same. But it is not. Cryptocurrencies could really compete with the central banks and it is not the Paypal and Visa they compete with. But after 100 years, people will become more interested in educating themselves and will have access to education more than what we have today. That is the time that governments could not regulate everything especially when it comes to currency and trades. I seconded on this one where most people do believe blockchain and bitcoin is just the same but if they do tend to understand correctlythen they would tell themselves that they are wrong. About the topic where bitcoin cant really solve economic problems,it do give out benefits in terms of anonymous transaction,p2p transfers and some sort of earning money from it but it would really just still be considered as an alternative. Title: Re: The problem bitcoin solves Post by: tetyulfania on June 22, 2019, 02:17:30 AM When bitcoin raising up maybe all of problem will be solve, but when we are seeing bitcoin on lower price many investor is not happy because have invested money in bitcoin with higher price.
Title: Re: The problem bitcoin solves Post by: stadus on June 22, 2019, 03:02:43 AM When bitcoin raising up maybe all of problem will be solve, but when we are seeing bitcoin on lower price many investor is not happy because have invested money in bitcoin with higher price. We can't assure it will as every investor has bought at a different price, they also don't just bought bitcoin but altcoins as well. So far, altcoins still slowly recover, therefore we might need more increase of bitcoin. Title: Re: The problem bitcoin solves Post by: rez303 on June 22, 2019, 03:36:28 AM Bitcoin and blockchain are different things. Blockchain is the technology behind the possibility of bitcoin. As some of the statements here, some are interpreting blockchain and bitcoin as the same. But it is not. Cryptocurrencies could really compete with the central banks and it is not the Paypal and Visa they compete with. But after 100 years, people will become more interested in educating themselves and will have access to education more than what we have today. That is the time that governments could not regulate everything especially when it comes to currency and trades. Yes. There have been many new people here who only know Bitcoin is an electronic currency and it has very high value. But they do not know what the purpose of creating BTC is and which platform it is backed by.But at the present time, we will only see the value of the BTC increase but their technology is still the same. In the future, when the market has more users, the value of the BTC will decrease much. because they will focus more on technology and I'm not sure that Bitcoin can take on the work of balancing the world economy anymore. Title: Re: The problem bitcoin solves Post by: MadeinCoin on June 22, 2019, 01:00:41 PM When bitcoin raising up maybe all of problem will be solve, but when we are seeing bitcoin on lower price many investor is not happy because have invested money in bitcoin with higher price. Yes if only the person holding the bitcoin might be the problem solved, but not everyone in the world holds bitcoin. I know that bitcoin is able to improve and balance the world economy, but if bitcoin is only held by a few big whales, I think it's useless, it won't solve the problem. Maybe it's lucky for those who already know bitcoin like us, we can make money every month from bitcoin, but what about people who aren't familiar with bitcoin? can bitcoin still be said to solve the problem? Title: Re: The problem bitcoin solves Post by: fiulpro on June 22, 2019, 02:24:48 PM I think it makes our money really ours.
We are not bound to the government and other big companies for you know deciding decisions which should actually been ours. Let me tell you something , once I invested like 2000$ in a bank , my grandma did that for me though for my college and it took like 10-20 years for it to double in amount , my parents kept adding money and also interest started piling up . We were expecting some amount of money from there but guess what ? The bank closes down one day , the owner runs away with the money of the people , the owner was jailed and never heard of again, he kept making promises how he will return money but at the end the bank died and we only got 2000$ that is half the price we should have been given. This is what happens with banks and all , never with Bitcoin but . Bitcoins never betrayed me . Government does a lot of time. Title: Re: The problem bitcoin solves Post by: pishite on June 22, 2019, 06:34:34 PM Personally, I think Bitcoin is a good way to invest, since only in it you can save your money from devaluation. But there is a nuance here, you need to buy it not at the very top, but at that moment while it is at the bottom. Thereby you receive not small percent in real currency.
Title: Re: The problem bitcoin solves Post by: semobo on June 22, 2019, 08:59:26 PM The investors will need to be stand in all type of situation then only he can make some changes in his future otherwise if he afraid of the problems and get out from that will not make any change in our life and in the Bitcoin value
Title: Re: The problem bitcoin solves Post by: hatshepsut93 on June 22, 2019, 10:16:45 PM Bitcoin doesn't solve the problem of inflation, because it's not used as much as fiat currency is used, and even with Lightning Network it doesn't have the technical capability to replace fiat. The real problem solved by Bitcoin is how to move money on the Internet without any intermediaries - this was not possible before Bitcoin, Bitcoin is the first decentralized digital currency. So, Bitcoin is not only an alternative to fiat money, but also to fiat payment systems, which is why it has value. In fact, even if Bitcoin was inflationary, it would still be valuable and keep growing, just not as much as it is now.
Title: Re: The problem bitcoin solves Post by: elda34b on June 23, 2019, 02:20:21 AM Seems like some people just read the thread title and not the content and purpose of the thread.
When bitcoin raising up maybe all of problem will be solve, but when we are seeing bitcoin on lower price many investor is not happy because have invested money in bitcoin with higher price. It does not matter how much a bitcoin is worth if it can't fix the problem of centralized/controlled money, which leads to hyperinflation and so on. That problem is complex, and while we can remove or limit the ability of the government to control the supply of the money with Bitcoin, it can't solve the corruption and greed that lies beneath all of those crappy decisions. Centralized money could be okay as long as the government is a good person, but the problem is, nobody knows exactly about it. You can't see what's inside people hearts. Title: Re: The problem bitcoin solves Post by: josephdd1 on June 23, 2019, 01:18:39 PM While Bitcoin and other cryptocurrencies can help people living in struggling economies, for now, cryptos with their volatility are still not so useful as speaking of business. Imagine, that you are an owner of eg. shipyard (or any other business where you are basing your business activities on long term contracts, which usually are not amendable). You sign contracts for building ships for like 2-3 years in advance. And even regular fiat currency exchange rates can bring the company to the edge of bankruptcy. Until we get over the volatility, we cannot say the problem is fully solved. But still, a partial solution is much better than having no alternative at all. The irony is that for Bitcoin or any crypto to be stable, it needs the support from the government and the fiats of the world. The very thing 'bitcoin' was supposed to replace. Shame. But soon with regulated inivestment products like etfs and contract futures, the volatility in the market would reduce down by a lot Title: Re: The problem bitcoin solves Post by: FanEagle on July 04, 2019, 07:59:41 AM I think the end clearly states what needs to be said about the comparison. Sometimes we fight among ourselves on what should be done for adoption and what should be done for lower fees and all that but we forget the fact that the enemy is fiat and compared to fiat even this bitcoin without any changes is much better.
The whole idea of bitcoin was to create a decentralized currency which is more than enough to be better than any national currency out there including euro/dollar/yuan because even with that type of strong backing they are still showing us how weak the currencies are and how vulnerable people can be when banks and governments work together to make sure rich gets richer while poor stays poor. With bitcoin if rich wants to be richer they need to make poor richer as well. Title: Re: The problem bitcoin solves Post by: RealMalatesta on July 05, 2019, 06:12:58 AM Bitcoin become more profitable investment at the future and always could solve many problem with payment transaction, you can use bitcoin for sending payment around all of the country. This bitcoin feature of being able to send payment across the world without any form of restriction and large fee is the major thing that makes me crazy about bitcoin, this has really help me, my family and my friends to run business smoothly.This is even much more important to me than the investment part of it because with my ability to send payment anywhere, I have been able to expand my business around the world which has given me more than I think I can earn from bitcoin in a year, although this reward part of it is an additional benefits because this has also enable some of my income from my other investment doubled and sometimes, when making payment, I don’t end up using my capital to make payments for the products I do purchase, I mostly use the profit I get from the reward. Title: Re: The problem bitcoin solves Post by: AjithBtc on July 05, 2019, 10:02:04 AM Bitcoin solves most of the financial and investment related issues get sought as it is perfectly decentralized and runs without any kind of manipulation relative to the needs. Also the transparency through it lets the network function without flaws. In specific it'll get you the financial freedom which is now under the hands of banks.
In my country when withdrawing beyond certain limit in hard cash it is supposed to pay 2% as tax. At times we cannot use our funds on our need, only when bank wishes we can use our funds. These issues weren't there with bitcoin. Title: Re: The problem bitcoin solves Post by: MonsterV on July 05, 2019, 01:02:31 PM The problem that is overcome by bitcoin is that transactions without intermediaries are usually called the p2p system. Long before Bitcoin was launched, everyone transacted and sent money to use bank intermediaries, etc. When bitcoin was launched, this became a new innovation because everyone can send and transact without intermediaries, transparency and privacy. Not even controlled by any party, I think Bitcoin has overcome our problem with Fiat.
With a limited amount, bitcoin can also be a new investment area besides gold. Even bitcoin is relatively more profitable in investment because of its high volatility and increasing years. Title: Re: The problem bitcoin solves Post by: bitbunnny on July 05, 2019, 01:08:23 PM I think that Bitcoin helped a lot to stop the dominance of banks like only relevant source of financial services. It also showed that there is decentralized alternative that could offer more simple possibilities.
For some Bitcoin helped to solve financial issues as an additional income or to make investment portfolio without necessary big starting capital. Also it improves transparent in transactions without third parties and opened the possibilities for new concept of businesses based on cryptocurrencies. Title: Re: The problem bitcoin solves Post by: Wallflower28 on July 05, 2019, 01:29:37 PM The problem that is overcome by bitcoin is that transactions without intermediaries are usually called the p2p system. Long before Bitcoin was launched, everyone transacted and sent money to use bank intermediaries, etc. When bitcoin was launched, this became a new innovation because everyone can send and transact without intermediaries, transparency and privacy. Not even controlled by any party, I think Bitcoin has overcome our problem with Fiat. Bitcoin just not resolve dealing with transactions using peer-to-peer system. We are using bitcoin because it is the most efficient way to buy goods and send money along international borders. In addition, it is made also as a key to be profitable. Many investors are putting their capital in bitcoin because they know that holding it for long term will make a big result that might change to their lives. That is why I say that bitcoin is life changer.With a limited amount, bitcoin can also be a new investment area besides gold. Even bitcoin is relatively more profitable in investment because of its high volatility and increasing years. Title: Re: The problem bitcoin solves Post by: BitHodler on July 06, 2019, 12:05:07 AM I think that Bitcoin helped a lot to stop the dominance of banks like only relevant source of financial services. For some people maybe, but the majority is still valuing their fiat currencies in their bank account more than the paper value of the coins they think to own but are stored on an exchange for who knows how long.The fact is still that spot exchanges depend on banks for fiat deposits and withdrawals, and abide by all the terms the banks comes up with in order to not lose them as banking partner. Banks are still the main leaders in the game, and that by far. People here get excited the moment the price pumps, why? Because they can sell their coins to fiat to withdraw it to their bank account-- this for people is profit. Title: Re: The problem bitcoin solves Post by: davis196 on July 06, 2019, 05:28:01 AM Paul Krugman is a lousy economist.He is no authority to me. ;D
However,he is kinda right about the fiat currency being backed by guns.Every fiat currency in the world is backed by it's government and weak governments(like in Venezuela) have weak currencies. Bitcoin is a currency that doesn't need the support of any government,which makes it stronger in some cases and vulnerable in other. Title: Re: The problem bitcoin solves Post by: deisik on July 06, 2019, 06:18:49 AM Many have talked about the importance of skepticism and peer review to maintain good standards in society. The question could be raised of whether Paul Krugman's stance: "fiat money retains value as it is backed by guns" is verifiable by history. Certainly many are aware of venezuela and other nations issues with inflation and overprinting of fiat currency. However most seem not to comprehend the negative consequences of these principles until they have first hand, real life, experience with them. That learning curve could blind many to the intrinsic value of crypto currencies. Its possible bitcoin is still undervalued This is not an intrinsic value of cryptocurrencies (and Bitcoin specifically) It is what can be loosely called their extrinsic value (based on analogy) attached to them via external factors. More specifically, it seems like you mean that those principles established by Paul Krugman may have devastating consequences (which I fully agree with). However, that doesn't make cryptocurrencies more valuable on their own. It may make them more valuable in general (which I also agree with), due to deficiencies of fiat currencies ("help yourself to guns and ammo") but that wouldn't be Bitcoin's intrinsic value, no way Title: Re: The problem bitcoin solves Post by: gwdf1 on July 06, 2019, 01:20:53 PM The problem that is overcome by bitcoin is that transactions without intermediaries are usually called the p2p system. Long before Bitcoin was launched, everyone transacted and sent money to use bank intermediaries, etc. When bitcoin was launched, this became a new innovation because everyone can send and transact without intermediaries, transparency and privacy. Not even controlled by any party, I think Bitcoin has overcome our problem with Fiat. With a limited amount, bitcoin can also be a new investment area besides gold. Even bitcoin is relatively more profitable in investment because of its high volatility and increasing years. This is true. For me, Bitcoin is one of the best methods to transfer money and use it in other countries. It is very convenient when you travel somewhere: simply have your BTC in a wallet and stay safe. Title: Re: The problem bitcoin solves Post by: beerlover on July 07, 2019, 02:53:58 PM I think that feeling of "freedom" from all the banks is the most important one. Ever since I know myself I hated banks, I try to never work with them but it is very difficult to achieve. I once even got a bitcoin debit card but there was some problems so I never managed to use it, I still have the card but unfortunately I can't use it.
Anyway for people like me to have the freedom to do whatever they want with the money they have without banks getting in the way is the most important part, I know banks are doing legal stuff but they are doing it in a manner that they are basically showing off their power. For example, let's say you are overdue 50 dollars, not a big amount but still that is a debt to bank and are they right about calling you and asking you to pay? Sure, that is their job and they have to do it, they have all the rights to do it, but when you call someone 6 times to pay 50 bucks to the banks and call his family for it then it becomes something very fishy and immoral even though they have all the right to do it. Title: Re: The problem bitcoin solves Post by: justdimin on July 08, 2019, 07:21:35 AM There is a big difference between using bitcoin as a payment globally and using bitcoin as investment. First of all the global payment thing is awesome but it is becoming worse and worse, the blocks are more heavy, the transactions cost more and the times are getting worse as well.
We are at an age where you can send money to your friend in a second via digital banking right now and we are here talking about how it is awesome for bitcoin to send a 30 dollar to someone in another country in 6 hours with 5 bucks transaction fee. So that used to be the best thing about bitcoin because it was less than 30 minutes and cost only few cents, nowadays the investment part is getting more attention because just recently we have moved %200+ upwards in the past 3-4 months, that is why the problem bitcoin solves changes all the time. Title: Re: The problem bitcoin solves Post by: NathanJB on July 08, 2019, 09:54:16 AM We are at an age where you can send money to your friend in a second via digital banking right now and we are here talking about how it is awesome for bitcoin to send a 30 dollar to someone in another country in 6 hours with 5 bucks transaction fee. So that used to be the best thing about bitcoin because it was less than 30 minutes and cost only few cents, nowadays the investment part is getting more attention because just recently we have moved %200+ upwards in the past 3-4 months, that is why the problem bitcoin solves changes all the time. In other words, the other players are catching up. Bitcoin came out ahead but then the banks have something up their sleeves as well. Well, what they don't have is the capacity to increase value. Fiat is always depreciating. Bitcoin is not. That is the best offer Bitcoin can give right now. And hopefully, the Lightning Network will solve problems about confirmation time and fees. Title: Re: The problem bitcoin solves Post by: Naida_BR on July 08, 2019, 03:14:00 PM Bitcoin is a big help to solves the financial problem from many people who are unemployed or no regular work, through bitcoin they can earn huge of profit and maybe bitcoin can change your lifestyle in the future and it can help to boost the economy in every country. I wouldn't agree more. And on top of that, it solves inequality patterns that exist among the people that live in poverty and those who don't. It provides a gateway for people especially who live in the African continent and struggle to find ways of adding a small income to their pockets. Title: Re: The problem bitcoin solves Post by: Kakmakr on July 09, 2019, 07:06:49 AM I think Satoshi's vision for this technology was to provide for a alternative payment option, when these oppressive governments force reserve currencies on it's citizens. No government can stop Bitcoin use, because it is a decentralized technology and every citizen of a country must have a choice to use other currencies, if their reserve currency fails them.
They can use guns to force people to use their reserve currencies, but people still use illegal Black markets to bypass these restrictions. Bitcoin is also border-less, so people would move their wealth in Bitcoin, if they are forced or exploited in their own country. ;) Title: Re: The problem bitcoin solves Post by: el kaka22 on July 09, 2019, 08:28:59 AM I just realized that bitcoin is not actually solving a problem, it is actually giving you an option for something that already exists, you actually do not have a "problem" but a hard way of doing something and bitcoin shows an easier way of doing it.
I know people want to talk about money and I can understand that, for example dollar will lose its value because of inflation and everything will be more expensive in the future but your salary will be higher as well, making 100k a year would be insane in 1920 for example, that would yield you like 50 houses a year or something, but today it is like an okay earning depending on where you live in USA. However, what I believe is the true purpose is always the transactions and sending/receiving money with bitcoin actually makes things just "easier" , it is not solving the a problem because you can still do it without bitcoin anyway, it is just making it simpler. Title: Re: The problem bitcoin solves Post by: atjiat on July 09, 2019, 05:41:53 PM Bitcoin is a big help to solves the financial problem from many people who are unemployed or no regular work, through bitcoin they can earn huge of profit and maybe bitcoin can change your lifestyle in the future and it can help to boost the economy in every country. I wouldn't agree more. And on top of that, it solves inequality patterns that exist among the people that live in poverty and those who don't. It provides a gateway for people especially who live in the African continent and struggle to find ways of adding a small income to their pockets. Title: Re: The problem bitcoin solves Post by: serjent05 on July 09, 2019, 07:54:24 PM Bitcoin just not resolve dealing with transactions using peer-to-peer system. We are using bitcoin because it is the most efficient way to buy goods and send money along international borders. In addition, it is made also as a key to be profitable. Many investors are putting their capital in bitcoin because they know that holding it for long term will make a big result that might change to their lives. That is why I say that bitcoin is life changer. I don't know if we have the same standard on Bitcoin being the most efficient way.. the high volatility of Bitcoin stated otherwise, the long confirmation period for it to be accepted by the payment platform is another thing especially when we accidentally set our tx fee to substandard. It will sit from days to weeks of being unconfirmed. I think there are lots of improvement needed by Bitcoin to help solve the problem stated by OP in a large scale. Though, it is somehow life changer because those who are able to take advantage of the new start-ups booming around this cryptocurrency will definitely get a huge profit but alas, it is not open to all masses because only a certain qualified individual can be able to do it. Title: Re: The problem bitcoin solves Post by: davinchi on July 10, 2019, 05:56:56 AM There is a big difference between using bitcoin as a payment globally and using bitcoin as investment. First of all the global payment thing is awesome but it is becoming worse and worse, the blocks are more heavy, the transactions cost more and the times are getting worse as well. I get your point clearly and I understand the feeling when you see what the transaction in bitcoin is turning to as regards fee, but that should not be issue for us that much, because we have many alternatives that we could use to send money for payment and also to our loved ones without much fees. We are at an age where you can send money to your friend in a second via digital banking right now and we are here talking about how it is awesome for bitcoin to send a 30 dollar to someone in another country in 6 hours with 5 bucks transaction fee. So that used to be the best thing about bitcoin because it was less than 30 minutes and cost only few cents, nowadays the investment part is getting more attention because just recently we have moved %200+ upwards in the past 3-4 months, that is why the problem bitcoin solves changes all the time. It is not uncommon for bitcoin to really get high in transaction fee, most especially now that the value in becoming very high, and there is more traffic on the network, so we should expect this at this period, at least when bitcoin was still down, it was not like this, and I don’t think this is how it will remain forever. This high cost is just a matter of time, and we have other coins that can serve same purpose like Ethereum and others. There are still so many problems bitcoin solves that is just more than the payment part of it too. Title: Re: The problem bitcoin solves Post by: deisik on July 10, 2019, 07:16:34 AM We are at an age where you can send money to your friend in a second via digital banking right now and we are here talking about how it is awesome for bitcoin to send a 30 dollar to someone in another country in 6 hours with 5 bucks transaction fee. So that used to be the best thing about bitcoin because it was less than 30 minutes and cost only few cents, nowadays the investment part is getting more attention because just recently we have moved %200+ upwards in the past 3-4 months, that is why the problem bitcoin solves changes all the time Altcoins are solving this problem I mean moving wealth around in a cheap and fast way without having to deal with banks. With that said though, to solve a problem we should have a problem in the first place, right? But sending wealth with Bitcoin was hardly a problem on a large scale, though I definitely understand the frustration of having to pay exuberant fees and wait for hours till your TX gets confirmed. Another question is whether altcoins are suitable for moving big wealth, but that's exactly where Bitcoin fees and transaction times become mostly irrelevant. In other words, if you are sending 1M dollar worth of Bitcoin, you can typically wait and you can pay (actually, if you pay, you don't have to wait) Title: Re: The problem bitcoin solves Post by: pokeronlinestatus on July 12, 2019, 09:48:24 AM Bitcoin is not really solving any of those problems as you have mentioned. I only think the problems that cryptocurrency can solve is transaction; making transactions cheap and fast. That’s the only thing I know for now and nothing else. And for those saying it’s helping struggling economies, lolzzz… I just laugh when I see people post such comments. I live in one of these countries with bad economy and bitcoin Is helping. So stop saying what you don’t know. Bitcoin is even expensive here and most people can’t afford to invest in it, cause it’s too much. If you’re going to say Bitcoin is helping bad economies, then you should be ready to state how it does that.
Title: Re: The problem bitcoin solves Post by: BitHodler on July 12, 2019, 11:25:10 AM In other words, if you are sending 1M dollar worth of Bitcoin, you can typically wait and you can pay (actually, if you pay, you don't have to wait) People moving values of that order will pay up for the fees without a problem, and we're seeing that already-- multi million dollar transactions are sent with fees ridiculously higher than the recommended fee.It makes sense as well because when you're about to settle a transaction with someone, you don't want to be a cheapskate by including a low fee while a dump would wipe out like $100k of your transaction value in minutes. It's better to 'lose' $10-$15 in fees and have your transaction included in a timely manner than to lose a lot of value due to a dump because you were trying to save a few bucks. Title: Re: The problem bitcoin solves Post by: deisik on July 12, 2019, 09:12:36 PM In other words, if you are sending 1M dollar worth of Bitcoin, you can typically wait and you can pay (actually, if you pay, you don't have to wait) People moving values of that order will pay up for the fees without a problem, and we're seeing that already-- multi million dollar transactions are sent with fees ridiculously higher than the recommended fee.It makes sense as well because when you're about to settle a transaction with someone, you don't want to be a cheapskate by including a low fee while a dump would wipe out like $100k of your transaction value in minutes. It's better to 'lose' $10-$15 in fees and have your transaction included in a timely manner than to lose a lot of value due to a dump because you were trying to save a few bucks That's the whole point Bitcoin has become an asset which only rich and superrich can have (think the Berkshire Hathaway stock of Warren Buffett fame here). An interesting development is that Lightning Network is not going to help in any meaningful degree simply because deep pockets obviously don't mind paying an extra couple of bucks if they need to, while the rest of the the pack should look elsewhere (read, in altcoins). To sum it up, Bitcoin is not for the regular 8/17 folks anymore. But you can buy Bitcoin Cash if you want some bitcoins ("Bitcoin for the masses") Title: Re: The problem bitcoin solves Post by: darewaller on July 16, 2019, 06:03:39 PM I believe bitcoin can solve everyone's problems, even for rich people as well, there are tons of altcoins as well as bitcoin so that idea of "only 21 million limited" is bull shit these days, if bitcoin gets too big then ethereum will follow and litecoin too so when there is 50 trillion worth of 50 coins that doesn't make it limited at all and then rich people and poor alike can use crypto currencies all globally to connect to each other.
Internet managed to make the world smaller, I can speak with people from all over the world and I can read stuff people put online anywhere in the world, bitcoin and crypto is solving that financially, bringing people together financially is the next step towards making us a union of humans instead of each nations, with enough interest towards bitcoin and alts we can finally reach that. Title: Re: The problem bitcoin solves Post by: MinMan on July 19, 2019, 03:41:38 AM I believe bitcoin can solve everyone's problems, even for rich people as well, there are tons of altcoins as well as bitcoin so that idea of "only 21 million limited" is bull shit these days, if bitcoin gets too big then ethereum will follow and litecoin too so when there is 50 trillion worth of 50 coins that doesn't make it limited at all and then rich people and poor alike can use crypto currencies all globally to connect to each other. Bitcoin may give that stability, it depends on your profession and if you can do it remotely. For example, a coder living in Nigeria and very good at his job can only earn so much in Nigeria, he can't make thousands of dollars a month because nobody can afford to pay him that much. Still, if he is good at his job and finds a remote work and works for bitcoin as well globally than he can write codes for an american company and make thousands of dollars per month, an american company paying like 2 thousand dollars per month to their coder will find it cheap because good coders in USA is usually 5k or more monthly whereas Nigerian will be feeling rich with just 2 thousand. That is bad for the Americans but good in the global sense of what bitcoin is bringing to the table.Internet managed to make the world smaller, I can speak with people from all over the world and I can read stuff people put online anywhere in the world, bitcoin and crypto is solving that financially, bringing people together financially is the next step towards making us a union of humans instead of each nations, with enough interest towards bitcoin and alts we can finally reach that. Title: Re: The problem bitcoin solves Post by: Apaxy on July 19, 2019, 07:08:26 PM If we are talking about a limited amount of cryptocurrency, then problems can be solved only with the help of the price of Bitcoin. if the price of Bitcoin is increased higher than $ 20,000, and it is possible to even give a few hundred thousand dollars, then Bitcoin may be enough for everyone.
Title: Re: The problem bitcoin solves Post by: BennyK on July 19, 2019, 09:14:51 PM Bitcoin solves many financial problems especially those related to financial transactions. Bitcoin grants its users the power to own control over their financial lives via its decentralized platform where there is no third party interruption in transactions. This facilitate fast and secured transactions.
Title: Re: The problem bitcoin solves Post by: Naida_BR on July 20, 2019, 03:47:05 PM Bitcoin solves many financial problems especially those related to financial transactions. Bitcoin grants its users the power to own control over their financial lives via its decentralized platform where there is no third party interruption in transactions. This facilitate fast and secured transactions. Bitcoin is not the best solution to be used in financial services. In this industry we need a reduced response time and bitcoin blockchain is very slow to do that. Having said that, if we need to solve problems in the financial industry we need a faster chain that will execute transactions faster than the currenct state of bitcoin chain. Title: Re: The problem bitcoin solves Post by: whyrqa-1 on July 20, 2019, 03:58:45 PM Bitcoin solves many financial problems especially those related to financial transactions. Bitcoin grants its users the power to own control over their financial lives via its decentralized platform where there is no third party interruption in transactions. This facilitate fast and secured transactions. Bitcoin is not the best solution to be used in financial services. In this industry we need a reduced response time and bitcoin blockchain is very slow to do that. Having said that, if we need to solve problems in the financial industry we need a faster chain that will execute transactions faster than the currenct state of bitcoin chain. Title: Re: The problem bitcoin solves Post by: Ranly123 on July 20, 2019, 04:12:45 PM Bitcoin solves many financial problems especially those related to financial transactions. Bitcoin grants its users the power to own control over their financial lives via its decentralized platform where there is no third party interruption in transactions. This facilitate fast and secured transactions. Bitcoin is not the best solution to be used in financial services. In this industry we need a reduced response time and bitcoin blockchain is very slow to do that. Having said that, if we need to solve problems in the financial industry we need a faster chain that will execute transactions faster than the currenct state of bitcoin chain. And what other chain to be used aside from Bitcoin? Maybe not now that we can have as faster response time on our transactions than bitcoin, but alteast some individuals believed in Bitcoin financial help. |