It's common, especially amongst the Austrian types on this forum, to use inflation in it's original (monetary only) meaning, while others (typically the Keynesians and monetarists) use it in it's more modern price inflation meaning. If we're using the modern meanings of inflation and deflation, then Bitcoin is very strongly deflationary at the moment. If we use the original terms, then it's strongly inflationary, but demand is increasing even faster than supply.
It happens that any non-monetary "definiton" of inflation fails to be a definition and practically works as either a red herring or strawman in any discussion of economics. Should somebody finally be able to construct a non-monetary definition that actually works as such it may be taken into account (at some point, by someone). As it is, the keynesian pseudo-inflation is pretty much only interesting to politicos. I agree completely. I count myself amongst those "Austrian types."  Eventually, Bitcoin will switch to being properly deflationary, but given that a) it will be a very gradual slope, or at the very least very long plateaus between deflationary events (lost or destroyed private keys) and b) lost and hoarded coins are functionally identical, and unless a private key is known to be lost, it's unwise to treat it as actually gone, I don't see it being a problem. When/if it does become a problem, Bitcoin2 is a simple code fork away. As was pointed out at the beginning of the thread, there is the base currency inflation/deflation, and there is the inflation/deflation due to financial instruments (the M3, etc.). As bitcoins mature, protocol defined inflation will be under 1% within a couple decades, maybe poster above is correct that 1% are lost every year, but I suspect that the total inflation/deflation will swing in larger amounts up and down based on the financial instruments and credit built upon the bitcoin system, totally dwarfing the M1 change, which will be rather small. |
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Better yet, it's a piece of gold. As opposed to a dollar bill, Bitcoin cannot be arbitrarily created.
I always imagine some futuristic type of precious metal that can be teleported anywhere in the world.
It is called unobtanium. I think it like a Teleportable Beer.
I think somebody made a custom currency in Ripple like that? The BER (beer), which is similar to the FAV (favor). |
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Earn BTC by processing transactions. I'm more concerned near term with the consolidation of computational power in the hands of a few asic cartels.
If this has you concerned, there is a simple solution: go build some asics and hand them out for free to bitcoin community members ;P Newb here, I was wondering what would happen to miners when the hard limit is reached? Would they all have to shut down because they wouldn't generate anymore BTC? Who/what would process transactions? I'm pretty sure I've got it at least a little wrong here, if so, please explain  Thanks, -Jet The search box at the top of the page (or using google site search) are your friends, this question has been asked and answered in hundreds of threads already. |
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How do I search for a transaction given a transaction reference? Thanks
There are a couple sites that will let you search, check out blockchain.info and blockexplorer.com |
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It is quite possible, and it will not cause any problems until people try to withdraw more bitcoins than they have on reserve. Then they would have to either purchase more bitcoins or go bankrupt, same as any other bank.
Thanks for answer. As a bitcoin investor i had hoped this was not possible with bitcoins. What do you mean by "bitcoin investor"? If you invested in bitcoins, and they are sitting in your wallet, then nobody else can spend them, so there is no fractional reserve going on. If, however, you are investing using bitcoins, then whoever you are lending them to will be out spending the bitcoins on whatever it is they do to make money, so that is fractional reserve banking, the reserve is whatever percent they hold just in case you want to make a withdrawal. Its not about my bitcoins. They are stored for a long time in my (paper) wallet so nobody is spending THOSE coins. Its about the "other" bitcoins. When more ppl using Ripple to store their bitcoins then negative price manipulation of the price of bitcoin is possible. Well, GatewayX could sell all the bitcoins which the Ripple users have deposited with them, and that would temporarily drive the price down. But if all the Ripple users came and wanted to withdraw their bitcoins, then GatewayX would have to go to the market and buy up that many bitcoins, which would return the price of bitcoins back to where it started. So, yes, manipulation is possible, but only to a limited extent. |
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It is quite possible, and it will not cause any problems until people try to withdraw more bitcoins than they have on reserve. Then they would have to either purchase more bitcoins or go bankrupt, same as any other bank.
Thanks for answer. As a bitcoin investor i had hoped this was not possible with bitcoins. What do you mean by "bitcoin investor"? If you invested in bitcoins, and they are sitting in your wallet, then nobody else can spend them, so there is no fractional reserve going on. If, however, you are investing using bitcoins, then whoever you are lending them to will be out spending the bitcoins on whatever it is they do to make money, so that is fractional reserve banking, the reserve is whatever percent they hold just in case you want to make a withdrawal. |
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I'll never be able to buy bubblegum with Bitcoin ever again. WAAAAAAAAAAAAH
Sure you can, you just have to buy in in bulk orders. |
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There's nothing wrong with a bank, just banks connected to a federal reserve of some sort?
24/7 private vaults for example is a 100% anonymous bank.
Why not develope a BTC vault?
Why would you need a btc bank, you can just hold the btc yourself? What benefit would they add? |
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I have asked this question first on the Ripple discussion form ( https://ripple.com/forum/viewtopic.php?f=1&t=2321&p=6202#p6202 ). But I want your opinion about this matter here. The Ripple makes it possible to store Bitcoins in a wallet. However, the bitcoin STAYS at the gateway where it is stored. So in theory the gateway could spend the bitcoin multible times when transfer it to multible Ripple accounts. At this way the bitcoin price could manipulated. Just like banks lend paper gold multiple times which can be used to rig the markets of G/S up or down. Please convince me I am wrong about this.... You are talking about "Fractional Reserve Banking". Ask your gateway if they practice fractional reserve banking. If you do not trust their answer, you should find a different gateway. It is quite possible, and it will not cause any problems until people try to withdraw more bitcoins than they have on reserve. Then they would have to either purchase more bitcoins or go bankrupt, same as any other bank. |
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However if Bitcoin crashed during this time my GF would be left with nothing and the other person a free house. So it would have to be done at speed- the document would need to be basically prepped and sent within days which would be possible.
You are having an auction in bitcoin, if bitcoins crash to 1$ today, would you still honor the auction and sell the house to the highest bidder (curretly 35 btc)? |
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Subject does not make sense. "Slow and steady wins the race" What race? Where is the finish line?
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Didn't a big dump just happened a few days ago?
My guess is that there are not enough bitcoins around to crash their price much more, given the demand, unless a better cryptocoin becomes popular or some weak spot is found.
There are always enough coins to crash the market, because coins can be resold. 1 - Coins sold on market, price goes down a bit 2 - Price stays steady, goes down a bit, some people get bored or panic 3 - People who bought coins in 1 panic and sell their coins repeat until all the bids are taken or people withdraw their bids so they don't get stuck with a dropping asset, and voila, the price goes down to nothing, even though there were 45 million bitcoins worth of bids. |
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The bigger the purchase, the more important it is to use escrow.
You said we could check with the lawyer about the title of the property, but that would require you to give us the name of the owner and the address of the property. How do we know that the owner is actually your girlfriend? Maybe she could sign some sort of document saying you are her designated sales representative?
Why isn't the address in the original description?
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i opened http://thrucoin.com recently. still some way to go on improving it, but it's available for use now. lol. "The Amount to Send must be at least 1 BTC." are you serious? 1 BTC seems like a reasonable minimum ... in January. That should probably get updated. If the person running it is not paying enough attention to update things like that, then you probably do not want to use their service. |
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I think that bitcoin is too unstable, and if this trend continues, it'll never reach a value of even $1000 per coin.
Really agree. I think that BTC don't will be strong stable never (or not in the nexts 5-10 years). But maybe we will see this price caused for the reduced number of bitcoins compared to population. I also agree, just imagine how many people would sell their bitcoins when they hit $1000 or $500 even. People fear the instability and want to cash out and hedge their losses generally. The bitcoin would have to crush fiat to truly climb. 6 months ago people would have been saying the same thing about getting to 100 USD. But the people who sell have to be selling to somebody, so for every person who sold at 100 because they thought the price was going too high, there is somebody who bought at 100 because they think the price could go higher still and/or they think 100 is a good price. |
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If anyone needs escrow person to person for btc, ripplex xrp, or USD I will help. I won't charge you but accept tips. PM with your amounts.
Not to be rude, but who are you and why would anybody trust you more than any other random guy on the internet? |
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If gox loses the 75m lawsuite they will go bankrupt and btc will crash.
They're only making $250k a day profit..
Everybody withdraw your money from gox just in case. It is easiest to move bitcoins to another exchange. Buy some bitcoins to get your money out before everybody else starts buying and the price skyrockets! |
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Eh, possible. It will resolve around Child Porn and Drugs. But drugs and other illegal things can be bought with USD so it's just bad attempts at getting something to look bad.
Did you reply in the wrong thread? It is usually a good idea to quote what you are responding to. |
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We already have one US exchangers no one seems to be using - campbx.com (1% volume of gox).
Problem is who knows when it will pull a "bitfloor" or ZhouTonged when it gains popularity, I would put money at a company that has VC support (coinbase, coinlab). They are less likely to have their bank account banned for playing exchange as a teenager, or get hacked due to lack of technical expertise. Agreed. For me a legitimate exchange must be insured or bonded and be licensed as a money transmitter. FinCen has already stated that exchanges are going to need this. Any new startups that think they can avoid such regulation are not going to survive. It sucks to see guys who deserve credit get none. CampBX.com is one of the only exchanges to never be hacked, as far as I know. They made security part of their image from day 1. They seem to be the epitome of responsibility and honesty. They have been around now for what well over a year? Without a single incident. As for regulation the FinCEN guidance is taking the entire Bitcoin community a while to digest, at least those based out of the US. Other than Gox and Intersango (which hardly exists anymore) I believe they are the oldest exchange that's still around. I started trading there in July of 2011. I've never used campbx before, but after reading this thread I decided to give it a try, so I moved some money off MtGox and onto CampBX, let's see how it goes. |
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So now two of the board members are suing, the development team is censoring the press list and so many more acts against bitcoin. I think it is time that the foundation folds, it is literally imploding on it's self.
I personality think they can rebuild it wouldn't be easy but could be done. First order of business, cut out the development team the foundation can't work with a team of people who are power hungry. In the coming years, maybe even months I see more isolation from the development team and the community.
Second, they have to do a huge reorganization of the board structure. Gavin should hold no powers, Peter and Mark need there powers (not there membership) taken away. I think one of the biggest problems with the foundation is two many of the higher members, also own successful businesses leaving very little time for the foundation. While certain bitcoin businesses should be clearly represented in the foundation, they shouldn't hold a similar level of power. They should be included on high priority votes.
They really need to get their act together...
Are you donating money to this foundation? If not, then why do you care? If you do not think they are doing enough to help bitcoins, there is nothing stopping you from making your own group who will build up bitcoins. |
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