It doesn't have to be willing. It may be forced.
There are some governments which have adopted the US dollar as their currency, to encourage investors to come in. Bitcoin can play a similar role.
I know USD is accepted in other countries, but which countries are you referring to where the government adopted the US dollar? see here http://en.wikipedia.org/wiki/Currency_substitutionsometimes some countries use parallel currencies or substitute their native currency for their economy Yes, that is what I was talking about. Ecuador is one famous example. If people/investors lose faith in the ability of the government to manage monetary policy, adopting a foreign currency may be a way to encourage investors to come in. |
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In my opinion there has to be much bigger circulation, if everyone just holds the coins how could their value go up?  Miners have bills to pay. So bitcoins will be sold at least to cover that. |
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If you can borrow at close to 0% rate to do whatever, wouldn't you do the same?
When it is payback time, companies will discover that it is not easy. If there is a stock market meltdown, issuing equity won't be easy. Stockholders won't like companies cutting dividends either. If the rate is low, there is no reason to pay back. Dividend is always slightly higher than interest rate for a stable company, less equity out there means less dividend to pay. That is true. Cost of equity is higher than cost of debt. As long as you have stable operations, you can chug along. The problem comes when there is a disruption in the market and you are unable to refinance your debt. |
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The sharing economy is just going to continue to grow, and governments will be challenged to understand and manage its implications while embracing its benefits. However, governments will be at a significant disadvantage if they wait too long and newer technologies and markets will have already been developed that do not follow traditional models. Think of the following: Uber is the world’s largest taxi service and owns no cars. Airbnb provides lodging yet does not own real estate.
How will local governments adapt to these new ways of doing business that are disrupting traditional business models? All we know now is that governments are a long way from even contemplating and accepting this new reality.
No government going to willingly give up its sovereign power to issue money. It doesn't have to be willing. It may be forced. There are some governments which have adopted the US dollar as their currency, to encourage investors to come in. Bitcoin can play a similar role. |
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If you can borrow at close to 0% rate to do whatever, wouldn't you do the same?
When it is payback time, companies will discover that it is not easy. If there is a stock market meltdown, issuing equity won't be easy. Stockholders won't like companies cutting dividends either. |
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It will take one or two small counties hopping on board after their native currencies fail.
Counties or countries?  Liberland is already on board. We might have others hopping on pretty soon. |
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they simply don't have enough funds to invest, and because of this they can't raise a good infrastructure for bitcoin
For Bitcoin to succeed, all you need is people with access to the internet. The rest of the fancy infrastructure is optional. As long as you have people willing to transact with Bitcoin, it has a very good chance to succeed. |
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Pachinko (パチンコ?) is a type of mechanical game originating in Japan and is used as both a form of recreational arcade game and much more frequently as a gambling device, filling a Japanese gambling niche comparable to that of the slot machine in Western gaming. A pachinko machine resembles a vertical pinball machine, but has no flippers and uses a large number of small balls. The player fires balls into the machine, which then cascade down through a dense forest of pins. If the balls go into certain locations, they may be captured and sequences of events may be triggered that result in more balls being released.[1] The object of the game is to capture as many balls as possible. These balls can then be exchanged for prizes. Pachinko machines were originally strictly mechanical, but modern ones have incorporated extensive electronics, becoming similar to video slot machines.
Pachinko parlors are widespread in Japan, and they usually also feature a number of slot machines (called pachislo or pachislots); hence, these venues operate and look similar to casinos. Modern pachinko machines are highly customizable, keeping enthusiasts continuously entertained.
Gambling for cash is illegal in Japan. Pachinko balls won from games cannot be exchanged directly for money in the parlor. The balls are exchanged for tokens or prizes, which can be exchanged for cash at a place nominally separate from the parlor.
Maybe we could use the same idea in BTC. Doable? http://en.wikipedia.org/wiki/PachinkoThis thought has already occurred to some governments.  You can play with you bitcoins, but you can’t pay with themhttp://rt.com/business/187440-bitcoin-ban-russia-cryptocurrency/ |
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I'm not sure if the government is afraid that bitcoin will take over fiat. You will still need to pay taxes in fiat, which will be a portion of every transaction - sale/income/expense. Fiat will have a place in the economy because it's what people trust, regardless of its fundamental flaws.
Yes, as long as you need to pay taxes in fiat, there will always be a need for fiat. But think of a country with a huge trade deficit. If Bitcoin becomes an established international currency, they will be happy to accept bitcoins which can then be used to bridge this deficit. If dollars are welcome in places like Argentina, bitcoin will also find a place. |
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Bitcoin is a global currency. Total market cap is in the low billions of USD. How are you going to tie up enough bitcoins for YEARS to allow a significant number of people to retire on? Not going to happen, even if people were stupid enough to want to do something like you suggested. No offense.
Total market cap is in the low billions of USD now. You do not know how much they will be worth in 20 years. |
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I've said it many times. Not London, nor Scandinavia. Argentina's very promising for BTC. Just like every country where the government, and local currency, aren't trustworthy.
Argentina s currency is strong now. The current strength of the currency does not matter. It is not freely convertible and its banks are mandated to exchange foreign currency at rates fixed by the government. Argentina is fertile ground for Bitcoin to grow and succeed. |
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So you mean that dont give them any information so that they didn't know you and you won't pay taxes in future? but how we will do that if all of bitcoin exchanger have your information, because you wont get your money if you dont show any valid ID and you information is must.
You get bitcoins by selling goods / services. You use bitcoins to buy goods/services. Once Bitcoin becomes prevalent, you won't need to go to exchanges to buy/sell bitcoins. You don't have to really share any information. |
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because its growth currently stalled
Growth is not measured by price alone (which is also rising, by the way). You will have to take into account bitcoin adoption (so many retailers accepting bitcoins these days) and increase in interest, particularly from the VC community. |
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Banks are a useless invention. There is no reason to exist anymore. Politicians can do better job and the most important: Politicians are elected.
The fundamental job of a bank is to give credit. Politicians can't do that. Why would you think banks don't have a reason to exist anymore? |
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Average guy: 1% of his portfolio
IT guy: 5%
IT and finance aware guy: 10-20%
Bitcoiners: At least 50%
Gamblers: 100%
Right now Average Guy: What is Bitcoin? If you are planning to hold it till retirement (assuming you are not knocking on the doorsteps of retirement), then 1% is a sizable amount, considering the riskiness of Bitcoin. |
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In times of distress it is smart to hold on to the real economic theories, those that logically works.
At the dotcom bubble, lots of people were ready to invent new ones, like: A business doesn't need to have a profit, in fact it doesn't even have to sell anything, stock rises anyway. It is impossible to compute a multiple because of the zero, value is infinite! It's magic, it has to be the Internet, the rules of economy have changed!
One disclaimer there is you should not try to straitjacket all the rules of the traditional economy to the bitcoin economy. There are still a lot of people who claim that Bitcoin will fail because it does not have any 'intrinsic value'. |
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Sounds like a terrible idea unless you diversify.
This is not a terrible idea because everyone in this world need retirement fund so they can live happily and one more thing that I can add is bitcoin always make a new variation and people nowadays are start to use it as a new kind of payment in this era of technology Assuming everyone needs a retirement fund to be happy (which is something I disagree with), wouldn't it be a terrible idea to only have Bitcoin in that said fund? What if all my savings are exclusively BTC (i.e no diversification) and they turn out to be worthless in 10, 20 or 40 years, how am I suppose to live happily? then you put 50% only and be happy anyway, no one said tu put everything you have in bticoin but bitcoin still looks to have more chance to grow than dying, so even 66%-75% would be a good bet If you have 20+ years left to retire, even a couple of bitcoins put away may be enough. If you lose, you don't lose much. |
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Everything we do now in fiat form, would be used same way as crypto form.
Yup. It is only a matter of time before you have banks and fractional reserves. Shouldn't be too different from the time everything was benchmarked to gold. |
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deflation is when a currency have greater purchasing power(it could be because the price of goods as dropped)
It could be? What are the other reasons for a currency to have greater purchasing power? |
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I doubt Greece will default, that would bring the entire country to an immediate halt, which is not the most practical decision
The option to start on a clean slate might be tempting. They may decide that quick death is preferable to death by a thousand cuts. |
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