But on the other hand no one measures the value of a 100 Dollar note with the paper and the ink that it's composed of. A 100 Dollar note has it's "value" because it's accepted everywhere and I can get "stuff" for it.
That is the real question here: Why do people exchange their stuffs for a 100 Dollar note, which is just some numbers added by FED at will without doing anything? How long do you think this game is going to last? |
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I don't understand why gaming has to use the blockchain, feels like using armored money transport vehicles to transfer casino chips  |
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We need both hype and crash to test the faith and support  |
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Nice prediction OP, now it is your turn to buy  |
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I can not access that link, what happened? |
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Another test of faith |
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Until people feel safe after they have accumulated enough saving, things will not improve, and the stimulus from either FED or Government will just give them enough money to save until they feel safe.
Stimulus does not come from the Fed of government, it comes from the savings of individuals. The prudent are robbed to feed the careless. No, stimulus came out of thin air. If you save in non-currency form, you will not be affected by FED/government |
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The theory I heard is that if you have two currency, people tends to spend the inflation one and keep the deflation one. Since wikileak only accept bitcoin donations, this might not be a good example  |
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So let's examine this scenario: Government prints money, gives to banks, banks lend to people, people buy bubble item of the month, sorry, I mean Bitcoin, bubble bursts, money disappears, bankers get rich, politicians get rich, public gets shafted.
Sorry, how is this any different than SOP?
Why do you think it is a bubble? In order for bubble to burst, one condition must be met: supply >> demand Any other things in the current world can increase supply when demand rises, and typically there is a delay, so when the added supply reaches market at large scale, the market has already fullfil the demand by a higher price, so there comes the crash But for bitcoin, supply is fixed and transparent, demand is just start to rise, it might take 100 years before it bursts, or it might never burst, just absorb all the over produced values into it like a black hole |
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putting money in the bank or in buying Bitcoin does not increase spending in society.
Bitcoin related businesses might be able to hire more people that in turn spend more for their sallary, but any amount of saving or speculating, counter act the intended effect of printing more money.
if Bitcoin some day is considered in general to be the safe and easy alternative way to protect your savings against inflation, the government will have to act on Bitcoin, either by siezeing it or capital tax holdings.
Are you crazy, no government would allow that and be able survive.
I'm sure you will spend more when your coin worth 1 million each Fed is appointed by government, they have huge problem now and maybe bitcoin is their only hope |
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The changes needed to make Bitcoin scale aren't conceptually difficult. The only problem is that for some reason people are opposed to allowing Bitcoin to succeed.
Technically there is no problem, but that is not a technical problem, it is a split at much higher level Just like compare Iphone with Adroid phone, some people like this, some people like that |
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There is no upper limit. People will be very happy sitting on their multi-trillion dollar worth bitcoin account and only spend a satoshi to buy a pizza, since that makes them feel good. Do you ever feel not so good because you had too much money? ---------------------------------------- The amount of currency for circulation can be magnitudes lower than the amount of currency for saving. If someone always spend $3000 each month and get a salary of $3000 at the end of month, the total amount of currency needed to satisfy his transaction will never go above $3000 But if he plan to save money for retirement, then he will have to accumulate at least 3000 x 12 month x 30 years=1.08 million dollar when he reaches 60 years old, that is 360 times more money needed in his saving account than money in circulation. And some people will demand more than that amount Of course bank will say that all these money saved there is just a waste of resource, let's loan out them and generate some return... And this means, 80% of that money get loaned out using FRB But since all the investment carry some risk, sometimes the investment will generate huge loss, and when that hit eventually, non of those saving in banks survived. And banks can only hope that future generation will put their retirement saving into their banking system to be able to pay the previous account owner ... ---------------------------------------- Bitcoin is best suited to avoid this kind of problem, it can hold whatever huge amount of value that is required for long term saving and it can make sure no one will steal these money to use on risky investment. If the citcoin price is always rising steadily, no one dare to loan out bitcoin savings, that will generate a loss for sure And since it is a long term/high value saving account, the amount of transaction will not be too much, so the infrastructure today has enough capacity if it is not abused by rogue applications |
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The FED only know one way to stimulate the economy and that is to pour dollars on everything like gasoline. The M2 has "only" expanded 60% or so in the last three years. Why? The FED can't directly change the amount of money in circulation. It can only create conditions where banks increase debt which produces more money. However banks have found this great loophole. They borrow money from the FED for essentially 0% dump it into Tbonds for 2% to 3% and collect a nearly risk free return. Still 60% M2 inflation in three years is pretty huge. You may be wondering if the number of dollars has increased by 60%+ why haven't prices almost doubled. Well velocity has fallen off a cliff.  Thanks for sharing this chart. I think the decrease in money velocity is the real problem behind the scene, it seems after 2000 the total consumption is decreasing most of the time, and this just showed that economy can not grow forever But why the velocity is down is much more difficult to analyze. I think it is largely due to money concentration caued by technology advance and globalization/ and less and less future demand |
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About our ASIC
Our currently unnamed bitcoin mining chip taped out last October; we (ab)used spare estate on our 28nm SOI MLM test wafers we were running at ST Microelectronics. Several successful wafer test runs have been conducted since, and as a result, we currently have a limited number of functional chips that can be supplied for testing and validation. We are about to sign a deal that allows us to produce these chips in volume. Packaged chips are expected to start arriving in volume in June of this year.
I don't really understand this paragraph. What kind of functionality can those chips provide? If it is a bitcoin mining chip as you said, you should have started some mining operation on the network since last October? |
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Just hope that they do all the function test thoroughly, returning a buggy product after several weeks of running will be even more terrible from an end user's point of view
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This is very natural due to the clear uptrend of price development. Soon those merchants who are willing to accept bitcoin will find out that they barely even receive an order with bitcoin payment
And this is anticipated long time ago. Soon bitcoin will become a new currency traded at worlds largest currency trading platform, and the real delivery will become less and less
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If you really believe in bitcoin in long term, you should also buy some mining equipment. If the price fall, difficulty fall, you get more coin by your mining rig, if price rise, you have earnings from the coins bought
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Just read some interesting literatures about gold rush in california. During the first 5 years after gold discovery, some 300,000 people moved into this area to mine gold and on average each person digged out some gold that worth around 70,000 USD in today's price
Based on general economic theory, extra money supply will create inflation, but the California gold rush just proved how wrong that theory is. The prosperity of west coast were largely driven by the discovery of those gold and the increased purchasing power of these area, and the inflation rate during those years are almost zero based on US statistic data
This again proved that inflation has no direct relation to money supply, as long as those money are honest and debt free. It is only those fiat money generated out of thin air could create hyper inflation, since people have little trust in those money
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People always talk about how each bitcoin will worth after each one on the planet will own 1 of them, this is short sighted view in my opinion
Even everyone on the planet already get their hand on bitcoin, it is still early phase of the adoption. The well known limited supply nature make bitcoin a perfect target for saving without worrying about the lose of its value, it is more like a permanent promise about the trustworthiness, and it is backed by mathematics and network (more or less today's prevailing religion)
And the demand for saving is huge, because now we know that government can not hold their promise for repayment of pension due to various problems in the economy/financial crisis etc...
I foresee there will be a huge trend of private pension saving, and bitcoin definitely will become a very important part in that portfolio
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Isn't it a bit over the top to call USD the authoritative price? The exchange is in Japan, and it is entirely plausible that someday the market of another currency becomes even larger than that of USD, it's better to trade USD as yet another currency. Besides, it may be even more useful to display the last price in all currencies-a user may trade in many different currencies.
The US American user base of bitcoin is very large, I'd guess if you go by trade volume a majority of bitcoin users are US Americans. Something like 90% of my customers are US Americans. I'm not from the states myself, but using the USD exchange rate as the key value indicator of bitcoin seems logical to me. I guess this is partly related to the gold rush at 1849, strong culture and history support. Around 300,000 people went to california and they averagely mined 40 ounce gold per person in the first 5 years  At that time, a small team could mine millions worth of today's USD in a several months' period |
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