I remember the most impressive bull quote: "This is bigger than Jesus"  |
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Only women are allowed to join army, problem solved |
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The US govt has been misleading the citizenry about what the true inflation rate is here by not factoring in food and other prices that continue to soar. For instance, from everything to sugar, ground beef, pork, steak, chicken, milk, soybeans and many other things, there has been 5-15% increases since last years prices which is bad news when wages have been stagnant and the only jobs coming back have been minimum wage, part time and seasonal positions.
Exactly, the newly created money were used to speculate on petroleum, raw material and assets, raised production cost, but did not increase the income of the lower middle class in any meaningful way There is no good solution for technology unemployment in a pure market driven economy: People who have the money will spend in the area that they are most interested, not to generate more jobs. Even we are using gold as currency, that would still happen |
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I think inflation or deflation today has so small affect on economy that they can be ignored comparing with other factors like international trading and currency exchange rate
"Economic growth in Brazil, a major exporter of crude oil, soybeans and iron ore, has been hurt by falling commodity prices. "
After FED stopped QE, USD moved out of raw materials, those commodity export countries got hit. Their income dramatically decreased. Their central banks tried to expand money supply but that just reduced their currency's exchange rate, and make import more expensive, thus the dramatic raise of price of many imported goods. Brazil and Russia are typical example
Today, when all the large economy depends on export/import, and currency exchange rate can jump by 20-30% during a year, a couple percent of inflation/deflation has no significant impact on economy
Only those country that do not run international trade are not affected by external factors, but it is extremely rare now. Even a large country like China have to export labor in exchange for investment (But their currency is not free trade on Forex)
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It's all depends on fiat money's status, in US very unlikely due to super strength of USD. But in some other countries it is not so certain if the government would like to have some bitcoin as foreign currency reserve, if they are able to handle the technical details of bitcoin of course.
It can be used as a tool to overcome the capital control by banks
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I was thinking about this, what if the US Dollar crashes like speculated by many renowned economists around the world?
What will be it's affects on the beloved currency, BTC?
It is possible, but through what process is the question Currency's value comes from demand, when economy goes bad, people desperately want more currency, that's why currency will never crash during a recession, they strengthen instead. FED printed 5x more USD without crashing its value, just because exploded demand for USD after financial crisis So the only possibility that a currency will crash is during hyper inflation. That is also not possible, since banks are holding most of those newly added money supply, they watch inflation carefully and strictly restrict how much money flow into the economy to avoid inflation Another possibility is that people find some other alternative (for example bitcoin), thus give up using USD. That's also not very likely to happen since most of the people's income is received in the form of USD, unless USD is in a state of hyperinflation, they will keep using USD Currently we have a huge bond bubble, if those bond can not be paid back and default, it will crash the bond price, cause large loss for investors, but again, that will trigger a shortage of USD, gives bank more reason to create more USD In a disasters scenario, people will always chase USD, which is the most liquid format of asset, so it is not likely it will crash in any foreseeable future |
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Brazils is having a high interest rate, high inflation and low gdp growth http://www.marketwatch.com/story/why-brazils-currency-is-having-a-real-tough-time-2015-03-27This again proved, inflation and deflation has nothing to do with economy, there are many other factors more important than these small parameters The core difference between bitcoin and fiat money is that you can not create bitcoin without putting in real resources and valuable assets, not inflation or deflation |
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It is the biggest pump and dump in human history, could last for hundreds of years, and when it is pumped up enough high, fiat money will get dumped, that is a fundamental difference
Fiat money is an instrument of governmental control (and in the case of the US dollar it is also an instrument of world domination). Why would any government consciously and intentionally want to substitute the currency they control with something they cannot ultimately control? In China maybe, but as I understand, western governments are very poor, they all have heavy debt and fiat money is the tool that banks control them But who controls banks? Right, a central bank. But the central bank is most certainly controlled by the government. For example, the seven members of the Federal Reserve Board of Governors are appointed by the president of the US and then confirmed by Senate... I guess bankers controls governments, otherwise government could just ask banks to create some money for them to spend, never need to borrow money from banks. Notice that government do not own FED, FED stockholders are regional reserve banks FOMC members consists most of president of federal reserve bankers, with 2-3 scholars |
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About credit expansion
In today's fiat money system, central bank creating money out of nothing, thus indefinitely raise the value of total money supply. So, is it possible to raise the value of bitcoin money supply indefinitely by a similar practice?
Fiat money's value expands through unlimited supply, but bitcoin have limited supply, so the bitcoin's value can only be expanded through unlimited demand
Where is that unlimited demand comes from?
If bitcoin can be mortgaged and get loan, then it is possible to raise the value indefinitely due to limited supply and unlimited demand (By credit expansion)
Example:
Take $300 million loan to buy 1 million bitcoin, coin price doubled to $600
Mortgage the coins and get $600 million loan, buy another 1 million bitcoins, price rise to $1200
Mortgage the coins and get $1.2 billion loan, buy another 1 million bitcoins, price double again to $2400
Mortgage coins and get $2.4 billion loan, price rise to $4800
etc...
After a while all the coins in existence will be bought out, so the price would rise exponentially to compensate the liquidity problem, that high price give mortgage even more value to finance much larger loans, so the exchange rate will rise even quicker and easily reach 100x in a couple of years
The only question is: Would bitcoin qualify as an asset to get more loans from banks? Or, if I'm holding certain amount of twin's ETF, can that asset be used as collateral to acquire bank loans?
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Money must have universal acceptance, at least in a country. From this perspective, bitcoin is not even universal accepted on internet, not even mention the physical world, so it still have lots of catch up to do
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I think merchants are happy to accept any currency, so long as there is a suitable number of customers offering to pay with it. Most will just see the dollars being deposited to their accounts though, and they won't stop to ask "what makes money money?".
Really, until their suppliers also accept bitcoin, there isn't any incentive or reason for companies to hold Bitcoin, unless they really believe in its promise. Most just see it as a means to transact though, nothing more, nothing less.
Exactly, for merchants the motivation might just come from that it is easy to adopt (Just download an app then it is good to go) and bring them more customer. They converted every bitcoin to USD in each transaction, just discover later that bitcoin rise by 10x, then they will regret and start to ask questions |
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Preparing for the incoming fiat crash is one possibility, but I doubt if they really read the biggest scam in the history of mankindMost of the companies more or less had met some limitation from banks, so bitcoin give them an alternative But none of the companies actually hold the bitcoin, and are using bitpay to sell them on receipt. And if preparing for the fiat crash was the reason, then they would rather just buy it directly with their fiat in hand. True, I think most of them just use bitcoin as a marketing strategy, draw some bitcoiners as customer and get some media exposure In fact, some of them indeed hold their bitcoin, see the bitpay report. Even they do not hold any bitcoin at all, the practice of accepting bitcoin payment alone could greatly widen their view and they might start to ask the question: "what makes money money?" Then they will dig further into the rabbit hole And I have analyzed in An easy way to make bitcoin worth millions of dollars, more merchant adoption will give bitcoiners possibility to greatly raise the bitcoin's value, which is also a good marketing potential for bitcoin |
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Own jetpack won't work at extreme height, too cold and no oxigen, but the whole plane might be possible to first eject slowdown parachute at tail then lots of parachute/airbag around the body, thus ATC can override with an emergency brake and shutdown the engine
I think you're underestimating how much parachute you'd need to slow down a jetliner traveling at 600 mph. And a parachute to slow down an entire plane, assuming this was physically and mechanically feasible, would ostensibly be deployed from the cockpit, which makes this a solution that wouldn't have worked in this case, since the co-pilot locked out everyone who didn't want to crash the plane. When you are taking a car driving course, your instructor can always step on break and stop the car. Air Traffic Control can not do this to an airplane because of safety concern, but if the plane can be safely parachuted, the control of plane can be overridden by ATC, the pilots will have no control over the plane when ATC take over In fact if ATC can override, parachute is not needed, it can just autopilot the airplane to land on any nearby airport. You only need to code a specific emergency landing sequence in the airplane computer and trigger that sequence when something is wrong. But parachuting is easier than autopilot since it could also solve other problems like computer/engine/gear failure etc... The amount of engineering this would require relative to its utility keeps this from being a worthwhile endeavor. (In my opinion.) Maybe not, since the increased safety in air plane will draw more customers. A big obstacle for many people to take airplane is this psychological barrier that there is no parachute on commercial airliners, once you entered the cabin, you can only pray to god, quite scaring. High speed train will gain more support if airline's safety is not improving |
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Own jetpack won't work at extreme height, too cold and no oxigen, but the whole plane might be possible to first eject slowdown parachute at tail then lots of parachute/airbag around the body, thus ATC can override with an emergency brake and shutdown the engine
I think you're underestimating how much parachute you'd need to slow down a jetliner traveling at 600 mph. And a parachute to slow down an entire plane, assuming this was physically and mechanically feasible, would ostensibly be deployed from the cockpit, which makes this a solution that wouldn't have worked in this case, since the co-pilot locked out everyone who didn't want to crash the plane. When you are taking a car driving course, your instructor can always step on break and stop the car. Air Traffic Control can not do this to an airplane because of safety concern, but if the plane can be safely parachuted, the control of plane can be overridden by ATC, the pilots will have no control over the plane when ATC take over In fact if ATC can override, parachute is not needed, it can just autopilot the airplane to land on any nearby airport. You only need to code a specific emergency landing sequence in the airplane computer and trigger that sequence when something is wrong. But parachuting is easier than autopilot since it could also solve other problems like computer/engine/gear failure etc... Would the autopilot be able to land everywhere? Someone said above that it worked on large airports but airports can be different and with different sizes, etc. And maybe it could cause problems for the airport if they weren't ready. And if you can send information to the plane to do that, or to say it can't land there, can't there be the risk of it being used to hijack the plane? : / That's why parachuting is a better practice, hijack the plane just make it parachuted (Those pilots will be crazy after being parachuted forcefully ) |
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I always thought it was incredible how someone changed the mind of the masses to use this flimsy piece of paper, that holds no true use to its name to being the most dominant trade item in the world. Think about it, You literally can't do anything to money except destroy it and trade it, and it has no use beyond what we make it. Same goes with bitcoin though, they are not actually worth anything to our survival, but they have this invisible worth and we all kind of just accept it.
What people really care is not the money, but the things that the given money can buy. You can have some other kind of securities like bond, stock or option, but you can not bring any of these securities to a restaurant and order a pizza. The universal acceptance in commercial is the key for money. Since fiat paper is guaranteed by law to settle debt throughout the whole country, it automatically become the best form of money domestically In fact, if something is universally accepted in commercial, it will automatically become some sort of money to clear the debt between different entities, even without government/central bank backing An example is restaurant/supermarket coupon, often used as a replacement for fiat money in a small area. These coupons have a valid period, before they expires, they must be used to redeem the product/service from the issuer. And they become useless if the issuer went down . For fiat money, they are valid until the government went down, obviously much longer than those coupons, but still not as long as bitcoin or gold |
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If Bob is not profit oriented, he can max out his production thus maximize the social wealth, but he won't have enough motivation to do so, since redistributing his products to Alice is more like a donation. Money is that motivation: If Bob can exchange all his production into money, he has some motivation to produce more, since money will store value and delay his consumption until a later time. Unfortunately, since Alice have little access to money, Bob can not make money by himself alone
Robinson Crusoe fallacy. If they are only 2 people or even a hundred people. They are going to collaborate not compete if they want to survive We are talking about high productivity here, with the help of technology, Bob does not need to cooperate with Alice, but he need Alice to buy his products with money, this is a strange but prevail culture on this planet Two people's island is just a metaphor, it involves the basic elements in today's society: Production, exchange and consumption. In such a society, each one must find his customer to sell his products/services, a model of two person is enough to represent the whole society |
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Electrum portable works extremely well on an aegis secure key
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The problem is, if you want to capture the sharp flash crash and buy lots of coins at a bargain price, you must have an order there with enough fiat money backing, so I usually leave some of my fiat money there, not too much bitcoins
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Own jetpack won't work at extreme height, too cold and no oxigen, but the whole plane might be possible to first eject slowdown parachute at tail then lots of parachute/airbag around the body, thus ATC can override with an emergency brake and shutdown the engine
I think you're underestimating how much parachute you'd need to slow down a jetliner traveling at 600 mph. And a parachute to slow down an entire plane, assuming this was physically and mechanically feasible, would ostensibly be deployed from the cockpit, which makes this a solution that wouldn't have worked in this case, since the co-pilot locked out everyone who didn't want to crash the plane. When you are taking a car driving course, your instructor can always step on break and stop the car. Air Traffic Control can not do this to an airplane because of safety concern, but if the plane can be safely parachuted, the control of plane can be overridden by ATC, the pilots will have no control over the plane when ATC take over In fact if ATC can override, parachute is not needed, it can just autopilot the airplane to land on any nearby airport. You only need to code a specific emergency landing sequence in the airplane computer and trigger that sequence when something is wrong. But parachuting is easier than autopilot since it could also solve other problems like computer/engine/gear failure etc... |
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Own jetpack won't work at extreme height, too cold and no oxigen, but the whole plane might be possible to first eject slowdown parachute at tail then lots of parachute/airbag around the body, thus ATC can override with an emergency brake and shutdown the engine
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