it is not a good move to use fiat money to buy bitcoin and then spend the bitcoin as it will turn out to be more expensive and ineffective
Why? simply because you lose more if you spend those bitcoins because they rise in value, unlike fiat which is inflationary. If say today you bought a laptop for 1 btc @450. Tomorrow the price of btc goes up 10% to 495 and the vendor adjusted the btc price accordingly to 0.9 btc. You lose out 0.1 btc, if only you just waited the next day to buy that same laptop but at 0.9btc. Spending btcs will always be a loss because it's deflationary. So you should exchange your fiat when you get your paycheck to Zimbabwe dollars, lose several percent in value each day. That way when you buy a laptop for 3 trillion Zimbabwe dollars, tomorrow that laptop costs 4 trillion Zimbabwe dollars you gain 1 trillion Zimbabwe dollars for buying the laptop a day early. That way spending Zimbabwe dollars is always a gain because it is inflationary...right? Or consider last year. On average the price went up by 1% per day. If you convert your $2000 paycheck to bitcoins on Friday and buy a laptop 5 days later the value of your bitcoins have gained 5% or $100 that you would not have gained if you had kept your money in fiat. Sure, every year will not be the same rise of 1% but a rise over time none the less. So...why would you -not- convert your fiat to bitcoins? Yes, if a currency has an inflationary rate as high as zimbabwean dollar, you should spend whatever you have the soonest. I would convert all my fiat to bitcoins if the whole world readily accepts bitcoins and nothing else. But since it's not, the world is still running on an inflationary system that is fiat instead of deflationary system that is Bitcoin. I prefer a deflationary system, where money you have now is worth more later than money you have now worth less later, but, not everyone can get used to a deflationary monetary system. |
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Why exactly would it be bad to use fiat to buy Bitcoin? Everything has a cost associated and Bitcoin is the same - your pegging a fiat value against it. I wouldn't suggest mining - it needs a reasonable amount of technical knowledge which a layman lacks and it requires capital. Your argument that Bitcoin is deflationary is not necessarily true, if it was we would be continually trending upwards at a small rate rather than sharp spikes and falls.
Bitcoin is fundamentally deflationary by design. Something that is limited in supply with an increasing demand, is deflationary. The spikes and fall do not change that equation, it's just the markets playing, the human factor, not because of its design. |
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Say for example, your daily job pay you fiat on monthly basis, so you got the fiat money to spend,
it is not a good move to use fiat money to buy bitcoin and then spend the bitcoin as it will turn out to be more expensive and ineffective
the only thing i can think of is that you mine bitcoin and then spend the bitcoin you mine, however, this turn out to be ineffective as well due to the fact that difficulty have increased, and you can only mine less and less bitcoin per month
the other way is that you are the early adopter where you got more than 10000 bitcoin to spend , so you just spend it like normal fiat money
however
the 99.99% of population is not the early adopter and I can see no reason why anyone would spend bitcoin , anyone please think of a good idea how can we solve this
the way around it is to change our mindset. Accept the fact that what you're paying for in btc today would be worth more in the future. So you will form the habit to hold off buying things and spending in btcs as long as possible until you absolutely need to. So we won't spend excessively on a whim. Bitcoin is basically anti-consumerism. |
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it is not a good move to use fiat money to buy bitcoin and then spend the bitcoin as it will turn out to be more expensive and ineffective
Why? simply because you lose more if you spend those bitcoins because they rise in value, unlike fiat which is inflationary. If say today you bought a laptop for 1 btc @450. Tomorrow the price of btc goes up 10% to 495 and the vendor adjusted the btc price accordingly to 0.9 btc. You lose out 0.1 btc, if only you just waited the next day to buy that same laptop but at 0.9btc. Spending btcs will always be a loss because it's deflationary. |
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Something is only worth as much as everyone agrees it's worth as much. I can declare that my $1 monopoly money is worth USD1000, but, would the rest of the world pay USD1000 for my $1 monopoly dollar?
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All the junk coins will be gone and a few will remain.
Ummyes, all shitcoins will be gone, ofcourse. But there will be a new thing called PRIVATE e-currency. Opposed to public, as all are now. Will be used for big familys, companys and smaller ethnic groups living in another ethnic groups country. what good would private e-currency is it's decoupled from the rest of the world? it's like i gave monopoly money to all my family members, its value is worthless to the rest of the world |
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Would it still be profitable if bitcoin goes down to $1 a bitcoin?
Yes cause everybody in the world would shut down their mining rig. After the difficulty adjusted the difficulty would be 0. So instants mine. This is what makes Bitcoin so insanely revolutionary. It is self-regulating backed by maths, the language of the universe. |
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If you have free electricity, you already have a big incentive to try out mining to see if it's for you. Contrary to what most will say, you will eventually get back your investment but it takes time. Mining isn't for instant gratification. For me, I mine because I like seeing my btcs accumulating day by day. I'd vow that I wouldn't pay fiat to get btcs, but I relented when it hit the sub-400 level, that's just too good to pass. But after I bought, I'm left with a sense of 'ok, what now'. Having had both experiences, I decided I prefer mining than buying. Plus, mining takes out the agonizing wait for price to rise, and the despair when price falls. IMO, mining now is better than buying, because you'll never see the volatility of last year again because Bitcoin is stabilizing. Those who buy now thinking in a month's time prices will double, they're sitting on empty hopes, and if you're weak hand you won't last and you'll lose out and start criticising Bitcoin, like one forumer here who gave up because she bought high and sold low.
Not if you buy miners with BTC. Only if you buy miners with Fiat, is the mining strategy better. If you buy miners with BTC at this "low price" you're throwing Bitcoins away that you'll never mine back. With that logic, it is better to buy bitcoin directly than to buy miners which won't give you as much bitcoin.  The mind buys, the heart mines  |
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I think we should coin the term 'Veronica' in a trading sense.
Veronica as a noun: someone who buys at a peak and sells the bottom
Veronica as a verb: doing a Veronica is the act of buying at a peak and selling the bottom
+1000!!! |
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The problem with doge is, it doesn't take itself seriously enough to be a commercial crypto. It could easily be replaced with another altcoin in the 'doesn't take itself too seriously' category. Litecoin will always be the 'silver' to Bitcoin, so it can't also replace Bitcoin. Bitcoin is the 'be all and end all'
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weak hands is what causing the price to stay down, but it's a good thing for those waiting for price to go down to get in
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If you have free electricity, you already have a big incentive to try out mining to see if it's for you. Contrary to what most will say, you will eventually get back your investment but it takes time. Mining isn't for instant gratification. For me, I mine because I like seeing my btcs accumulating day by day. I'd vow that I wouldn't pay fiat to get btcs, but I relented when it hit the sub-400 level, that's just too good to pass. But after I bought, I'm left with a sense of 'ok, what now'. Having had both experiences, I decided I prefer mining than buying. Plus, mining takes out the agonizing wait for price to rise, and the despair when price falls. IMO, mining now is better than buying, because you'll never see the volatility of last year again because Bitcoin is stabilizing. Those who buy now thinking in a month's time prices will double, they're sitting on empty hopes, and if you're weak hand you won't last and you'll lose out and start criticising Bitcoin, like one forumer here who gave up because she bought high and sold low.
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I'm actually quite happy with the way it is now. no more crazy swings. slowly but surely increasing in price at a more mature pace. I don't think I'd be comfortable if prices were 500 today, 1000 the next few weeks, then down to 300 in few months.
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I think the one who's emotional is you. You cannot fight the law of the universe which is mathematics and it is mathematically impossible what you opening up a whole new thread just to say. Let me guess...missed the boat? bought a falling knife? lost your coins on exchanges? hmm?
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You know, this guys almost certainly has to sell an ever increasing amount of the Bitcoins
he mines each month. He obviously has a huge power bill, and I'll just bet the electric
company wants dollars, NOT Bitcoins. Besides mining fewer Bitcoins each month due to
the increasing difficulty, his mining operation depreciates at a furious rate compared
to almost any other "industrial" operations since his mining hardware becomes less and
less valuable each month. While the scale is impressive, the economics aren't really any
different for him compared to a guys with a single Antminer. He just has more to lose.
Exactly. Unlike traditional business where perhaps scale can offset expenses, there's no such thing in the business of bitcoin mining because it's mathematically bound to be proportionate (the more hashpower you throw at it, the more difficulty increase, negating the extra hashpower after a while). Whether you are mining with 1 S1 or 10000 S1 your ROI rate remains pretty much the same. The only winning strategy for a miner is to be the first one fastest out there, and only for about 10 days. |
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Congratulations, I haven't bought anything with bitcoin other than miners but somehow buying miners doesn't quite have the same feeling as buying something else that is directly or indirectly related to bitcoin i think. I have this personal principle of not spending bitcoins other than on things that can net me back bitcoins, like miners, gambling sites, tradebots etc. But I would love to at least try purchasing a cup of joe as they say from a btc-accepting brick-and-mortar.
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This helps, until someone can figure out how to automatically reboot when it stops hashing, this is the only workaround I think. Would rebooting affects anything as oppose to keeping it constantly hashing for extended periods of time? Like if I mine with a pool that disconnection might reset my share count or anything like that?
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Too many. If you're a Cypriot you will look at Bitcoin as a godsend, when Cyprus banks simply took depositors money for themselves. If you're a foreign worker you will look at Bitcoin as the cheapest fastest way to remit your money back home. If you're an illegal immigrant you will look at Bitcoin as the best way of storing your money without the need for identification. Of if you so fancy, Bitcoin can be used to start a new country/nation. No one can authoritatively say what is Bitcoin for.
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What if I lose my 2FA phone, or it just stops to work?
If you can get acess to your account by others means, you are still vulnerable.
If you can't, you are adding another risk while decreasing other.
yeah, its quite ironic that to make something more secure you need to secure something else that is statistically more vulnerable to loss and theft. |
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sigh that's what happen when people don't really understand what Bitcoin is....your government declare something is unlawful and you're scared shitless. Not drawing parallels but like South Korea, the adherence and obedience to authority sometimes blind you of logic.
"If a law is unjust, a man is not only right to disobey it, he is obligated to do so." - Thomas Jefferson
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