From pure speculation's perspective, this is a good chance to reduce exposure  Mark: current price 30.22 @20:38 GMT |
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Gold rush in cyberspace...
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In old time, people without enough mathematics training had a hard time to do complex float point calculation, that's the reason previous currency seldom went below 2 decimal place
Now everyone have learned mathematics, I think they can handle 3 decimal places without a calculator, but beyond 4 is still not very convenient, mBTC is the next step when BTC reached parity with one ounce gold
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"George Osborne has warned there will be no let up in his plans to reduce the deficit"
Well that's a good thing isn't it? We are high in debt, at least they are sticking to plans to get us out of it.
Our credit rating has been reduced a little? Not massive news, we are among many other large countries in the same boat.
Most of people (even some of the high officer) believe that they should work hard to payback the loan, and this created all the problems today, since saving in Pound's form is bank's debt, if you pay back the loan, there will be less money in circulation, means even heavier recession and bank failure A much better alternative is to save in non-Pound form, like house/gold/bitcoin, as long as money get spent quickly, the situation is under control |
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You have a big misunderstanding of how the US monetary system works.
Option B won't happen because the Fed isn't some independently operated private bank, it is a private bank run by the federal government. A stupid distinction from a public central bank, but a necessary one due to the constitution. Option C is what already happens on a regular basis.
Politicians do not need to do diddly squat about addressing the national debt. The more they spend the more resources of the economy are diverted towards the government's interest. Whether or not people are willing to put up with what the government thinks is the best way to shape society is a political problem, not a monetary one.
You can be sure that the government and the fed will do what it takes to keep the money system running smoothly--so this sky is falling shit is getting silly. The CNN article you linked aptly points out that all this is is a PR problem, there is no danger of anything relevant happening.
It's not a ponzi scheme, it's a monetary scheme, but thanks for reminding us about Pirate because that would have been obscure otherwise.
Totally agreed, C is happening and it won't create inflation since the money has already been spent, new money just improved the account outlook. But unless they write off some of that government debt (through which way?), the system is still in danger because of higher and higher interest And there are still problems from outside that can not be identified easily, a large part of the US debt is owned by foreigners |
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The fun of this thread is soon to be terminated by some boring looking asic boxes  |
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I foresee that in the coming years of hyperinflation (FED has produced 3x times of money in a very short time, they will pour out soon), there will be more merchants claim that "we only accept bitcoin"  |
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Anyway, as long as this community is here, it won't
If this community is what gives value to bitcoin, what happens if it fails? The time is getting short for a valid explanation to be brought to light on this. I think it needs to be an open source solution. This community stands for the spiritual support that believe in the bitcoin's long term success And this spiritual support will not disappear as long as there are people who do not believe in today's debt based monetary system/infinite growth and do not want their financial freedom to be controlled by FED |
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Pretty awesome!
It works exactly as western union without all those hassles of filling the form, paying high fee etc...
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So many text here  Even some aspects of bitcoin are quite a bit over my head, ripple is just too complex for me to understand |
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A good rough answer to that question would at least be what has historically happened to other currencies that have become worthless.
Even though they might have used the "worthless" cash for keeping the stove lit in Weimar Germany, the cash still had value > 0. Zimbabwe 100 trillion dollar notes trade for more today on eBay than when they were too "worthless" to be used any longer as currency in Zimbabwe. That's what I worried, bitcoin does not have any forms of such utility, if the exchange rate drops to 0, then it become like any other dead cryptocurrencies Anyway, as long as this community is here, it won't |
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100 @ 4.1
Is this for real?  |
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100@0.43 (if that 900@0.5 did not count)
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No, because the price crash will lead to a difficulty drop, which if the situation keeps going will lead to more and more coins pouring out of my magic money machine hardware. Cheap coins = great time to (re)enter the mining business!  -MarkM- Why don't you direct your hashing power towards LTC now? I still remember the day that I0coin went online, I hashed out several blocks during the first couple of minutes, and after a day I have hundreds of coins. And then ... less and less people care about it, less and less people know about it, I don't know if the network is still there  |
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Great, although I feel the solution is still quite complex, off-chain transaction is definitely the right direction, it maintains the highest trust because of integrity of bitcoin protocol, provide unlimited scalability and network resource saving, and provide needed transparency at retail level (charge back/dispute)
Actually I doubt that people are really going to use bitcoin to do daily spending, fiat money serve the purpose quite well, no need to duplicate that effort. Bitcoin just need more and better exchanges at each country: Daily tranactions - fiat, long term saving - bitcoin
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OP:
Bitcoin is a money system with some very desirable features that allows for some points called bitcoins to be transferred to anyone, anywhere in the world anytime with practically no chance of fraud via chargebacks, currency debasement or having your bitcoins get blocked or frozen and this doesn't stop being true if these points have no value, so to answer your OP question: The same thing thing as you can do with it now.
If there are many true believers like you then this is out of question, but I doubt how many Let's change the question: If by some reason the supply of bitcoin were doubled every several year, do you still buy bitcoin when the price crashed? |
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Since currency only exists to represent symbolically and allow the exchange of real values, any successful currency system should be able to ensure that there is always exactly as much currency as is needed to represent the existing real values on the market, no more, no less (so no inflation and no deflation if possible). Bitcoin has no mechanism for this and is in fact worse than fiat currency in this respect - at least with fiat currency you have some central authority that intervenes now and then to adapt the money supply to the size of the "real economy", but with Bitcoin no such intervention is even possible.
An obviously better system would be a system based on the notion of "self-issued credit", where every producer of goods and services is also the issuer of a specific type of coin with which said goods and services can be bought. Then on the whole there will always be a ratio of coin-to-product that stays very close to 1:1 and any inflation or deflation will only affect a specific producer who happened to make mistakes in calculating how much of their own specific type of coin to issue considering how much product they're offering. The only digital system I know so far that has this feature is Paul Grignon's "Digital Coin".
Interesting thought I think it is not very practical, since the value of products changes over time, some products have to be consumed quickly, some products degrade very fast, so it means you have to constantly destroy your digital coin with each consumed product, otherwise there will be more and more coins out there without corresponding products And, a successful currency system should only ensure that the price of currency stays stable. There are lots of real wealth do not have corresponding currency, because they do not participate in exchange during normal time. When financial crisis hit, many people have to sell assets to get money, and that's one of the reason the demand for currency suddenly doubled or tripled |
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What you can do with a bitcoin if the USD exchange price dropped to 0 The question suffers from circular logic. In reality, the only way exchange rate would drop to 0 is if you suddenly couldn't do anything with Bitcoin. Furthermore, you don't have to ask "what if...?". The price already was zero before the first trade occurred. People were sending coins back-and-forth just for the heck of it, as coins had no value - because you couldn't do anything useful with them. We've come a long way since then. By the way, remember "bitcoin faucet"? Somebody was just giving coins away for free, for a long time. That means those coins had zero value - they were given away for free. And yet, at least some of the recipients did find a use for them. I'm thinking about a possible scenario where bitcoin were hit by either a severe internal split or an external regulation, where the trust crisis hit it hard and everyone is trying to dump their coin, like what happened with mtgox hack If bitcoin get mainstream adoption and such an event happened, if there are no fundamental support or exchange rate support, people's faith about cryptocurrency in general will diminish and bitcoin will remain as a computer geek's game in cyberspace |
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So basically as more and more miners, or stake holders, or interested parties, or Bitcoin Reserve Funds, or Bitcoin Foundations, or whatever, keep more and more quantity of more and more variety of other currencies in stock, poised to buy bitcoins with any time bitcoin's exchange rate with respect to that currency drops, well, then you are playing the Minister of Finance game, or the Royal Exchequer game, or whoever it is in each nation that tries to keep that nation's currency's exchange rates from dropping to zero.
(At what price would YOU snap up any bitcoins you saw going cheap? Would the amount of USD you'd find yourself willing and able to dig up to snap them up with differ for different actual numerical values of the term "cheap"? If so In what way?)
To directly answer your question: what I could do would be "increase the USD exchange price".
It has already been done: bitcoins already had a 0 USD exchange price way back when.
-MarkM-
Very nice call, if we could connect 2 million people that is willing to buy 10 coin at $10 each, then each btc will worth at least $10, similar to the effect of a central bank intervention So far it is volunteered and non-organized, if we could get support from enough people, make it a mutual agreement, then btc's downside risk will be firmly fixed Most of the usages of bitcoin I can think of rely on its exchange price, so protect the exchange price should be part of the responsibility of btc community |
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What can you do with your fiat when the government calls a "bank holliday" and devalues your money to 0 ?
You can pay tax with that money at least |
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