Good observation that bitcoin can not be taken by force easily, this will dramatically reduce the motivation for robbery, just like Rothschild family successfully virtualized their assets thus become immune to physical threat from greedy monarchs: You can kill a banker but you can not get his wealth
As to gold, it was a widely accepted payment medium internationally. It gives the owner power to request goods/services from other people all over the world, peacefully, so it will give the owner great amount of freedom. It is the desire for freedom make gold valuable
However, nowadays gold has quit the circulation in most of the countries, so it is no longer a widely accepted payment medium. I think its price is artificially maintained by the central banks and large holders, a large dump of gold might crash its price to single digits. In a situation of world wide fiat money collapse, countries might select to accept payment in petroleum/electricity/raw material instead of gold since gold is really of no use in a crisis
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In old times you save money to make a large investment, nowadays you just borrow money to invest
The problem is that there are really not a lot to invest nowadays, most of the things that you can think of has already been made by large enterprises, the other rare demands (for example a special shaped vase that only a few likes) are just impossible to ROI
So everyone ends up buying those things with limited supply, like land gold or bitcoin, while banks keep adding money supply to maintain the inflation to make sure that people will not hold cash. Practically no one can really own land, and gold is not very portable, so bitcoin is the perfect target for ownership
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Governments basically can borrow unlimited money from banks so they might not be interested in bitcoin which disabled that feature. However they are not directly involved in monetary policy, so they might accept bitcoin as an extra source of income
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This is a very bad publicity, it equals to: "ISIS, come and use bitcoin!" ![Shocked](https://bitcointalk.org/Smileys/default/shocked.gif) I guess the blockchain analysis and black listing will become more and more popular, like Mike Hearn said, unfortunately ![Undecided](https://bitcointalk.org/Smileys/default/undecided.gif)
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Holding or spending 10 bitcoins have no real difference, they all make 10 bitcoins not available for others (either in your long term storage or in circulation caused by your spending), but holding have significant long term impact to supply (holding 10 bitcoins for 1 year will make the available bitcoin reduce by 10 bitcoins for 1 year, while spending 10 bitcoins would only make it disappear for a while when it is waiting confirmation, unless you spend 10 bitcoins every hour)
This loop:
Why do you hold bitcoin? - because it will become more valuable Why would it become more valuable? - because I hold it
The biggest demand for bitcoin is buy and hold, e.g. long term saving due to its anti-inflation nature, and this demand will automatically reduce the supply, indirectly strengthen the value storage ability of bitcoin, a positive feedback
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No serious players so far, mostly speculators and manipulators. If there are more people who understand why bitcoin is much more superior than fiat money, then situation will be totally different, but it takes lots of effort for anyone to understand that, maybe decades or never
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It will not be used by everyone, mostly welcomed by a specific group of people with enough IT skill, or even machines. Will play a big role in international trading due to its worldwide reach instantly
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Long term wise it can only go up due to more and more fiat money printing worldwide, those who predict long term appreciation against fiat money have always been 100% correct. But on short term it is like gambling
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I guess they will wait for the block to be full first and see if a fee market will develop by itself, it is a test for the tolerance of the end user, I guess there are still plenty of room to maneuver before many people start to complain. Anyway, people never complained when their banks are closed during weekends
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Nothing beats your memory... but if that fails, use a piece of paper with a formula only you would understand. Store the formula in a vault and only retrieve it, if you forgot it. I never use the same password for every site, but I use a combination of this formula to create a unique password for every service. It has worked for me for many years now, and I never forget the formula. I will never trust ANY online password manager or creator.... Put the trust in your own hands... not in the unknown. This I do not trust any software to do the password management since they all can be hacked some day. A unique pattern that only I knows will be used to construct a long password The most important is that the password should resist reverse-engineering, means even if some hacker get one of your password, he could not identify the pattern used to construct it, thus your other account will not be compromised. A portable hash tool will be very handy, it does not have connectivity, just hash
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Monetary inflation rate measure the money supply increase, but it does not measure the real money in circulation, so it is useless
For example, FED increased the money supply by 500% since 2008 during various QE program, but the real money in circulation barely increased, so there was no significant inflation
Even in a limited total supply money like bitcoin, if Satoshi decided to spend his one million coins, there will be immediately strong inflation in the market to drag the coin value down
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Maybe one day human would also have a way to create gold out of water and air (they are all electrons and neutrons/protons anyway). From this point of view, a man-made limitation that is followed by all the participants can provide much better security than a nature limitation which might be broken by technology advancement Do you really think that when it becomes possible to create gold out of water and thin air as cheap as dirt, gold will lose its appeal and shine? Regarding man imposed limits, they will stand only so long as all the participants are forced to follow them. Up till now laws of nature seem to have worked much better and more reliable, lol... John Law would undoubtedly and unreservedly agree with me The beauty of bitcoin is that it is a protocol that is followed by its participants voluntarily, not forced on anyone, so anyone who don't like reward halving would have total freedom to fork their bitcoin with unlimited supply and see how it works. As I said, this attempt has been tried even at the first reward halving, just search the forum post that made that fork and see for yourself how it went
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In bitcoin, those authorities are back, now they are mathematics and network. People have no problem to trust the authoritative of mathematics (law of nature), but they might not trust the network because it is prone to human manipulation. So it is essential the protocol is followed by all the network participants and even its users
You forget that mathematics is applied by human beings altogether. While it can be faultless and perfect (unless proven otherwise, of course), humans are not. I would most certainly agree with you if you could somehow remove the human element from this sequence... The weakest link in the chain Maybe one day human would also have a way to create gold out of water and air (they are all electrons and neutrons/protons anyway). From this point of view, a man-made limitation that is followed by all the participants can provide much better security than a nature limitation which might be broken by technology advancement
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Once must understand that halving is an essential part of the Bitcoin protocol, aimed at approximating the natural increase in scarcity, observed in other money systems, like gold (as opposed to currencies, like dollar, which can be printed ad infinitum) The problem is that Bitcoin itself is not natural. As I have said elsewhere (and been attacked by assclowns of all stripes and denominations, lol), Bitcoin, in this aspect, is no different than any other fiat money out there (or currency, if you please), my point being that mimicking scarcity (or any other quality) of its counterparts such as gold doesn't endow it with the resilience and robustness due to their inherent value (entrenched deep in the minds and nature of people)... Beauty is in the eye of the beholder None of the money is natural, even gold has to be coined into unique form and weight to circulate as money. People usually do not accept gold bars/nuggets because they can not tell the purity without professional equipment. Then the trust falls on the quality of those gold coins and the issuance of those coins, so they are usually made by authorities (gold smith centuries ago then later coinage organization). That's the key to money's value: An authority that people can trust Using gold as money is an effect not a cause of gold's appeal to people. Bitcoin, like other fiat monies, doesn't have this attractiveness through its own existence per se, i.e. beyond the function of being money. In fact, its very existence is a result of conscious effort... That was my point (natural vs artificial) Gold is also an attempt to abstract value. During early Egypt time, gold was only used for decoration, the money at that time was grain. The move from grain to gold is one step further in the process of abstracting value. Gold have many good properties to act as a value abstraction, but eventually it becomes limited by its weight, now bitcoin is much better in this regards The color and feeling of gold is irrelevant, there are other metals with better physical properties, for example platinum, but they never worked as money due to they are similar to alt-coin, too late into the new standard
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Once must understand that halving is an essential part of the Bitcoin protocol, aimed at approximating the natural increase in scarcity, observed in other money systems, like gold (as opposed to currencies, like dollar, which can be printed ad infinitum) The problem is that Bitcoin itself is not natural. As I have said elsewhere (and been attacked by assclowns of all stripes and denominations, lol), Bitcoin, in this aspect, is no different than any other fiat money out there (or currency, if you please), my point being that mimicking scarcity (or any other quality) of its counterparts such as gold doesn't endow it with the resilience and robustness due to their inherent value (entrenched deep in the minds and nature of people)... Beauty is in the eye of the beholder None of the money is natural, even gold has to be coined into unique form and weight to circulate as money. People usually do not accept gold bars/nuggets because they can not tell the purity without professional equipment. Then the trust falls on the quality of those gold coins and the issuance of those coins, so they are usually made by authorities (gold smith centuries ago then later coinage organization). That's the key to money's value: An authority that people can trust But later on in France, these authorities became untruthful and start to dilute the gold in the coins, and John Law even came up with the idea of fiat money that is backed by shares (Mississippi bubble), thus sank the credit worthiness of fiat money, and failed. But since then fiat money started to be backed by some complex securities that is totally out of understanding of average Joe, and became a supply/demand game In bitcoin, those authorities are back, now they are mathematics and network. People have no problem to trust the authoritative of mathematics (law of nature), but they might not trust the network because it is prone to human manipulation. So it is essential the protocol is followed by all the network participants and even its users For any type of money, even it has endless supply, the scarcity can still be observed by the end user, so scarcity of bitcoin does not really affect end users, but it indeed give speculators a long term positive prospect
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That's a new and interesting number. /sarcasm
Please stop trying to pump. You're not going to succeed. We all know the limitations on bitcoins. If you have nothing new to add, don't say it.
It's not about pumping, it's about reminding the obvious, which sometimes it's a very good thing to do, because people tend to forget. 1 million, 7.3 billion people and growing. There will not be 1 BTC for everyone. I don't think what this means is fully understood yet. [img/img] This should tell anyone with a brain to buy and hold for 10 years. Total number of bitcoins: 21,000,000 Total number of Princess Diana BTCeanie BTCabies: 100 7.3 billion people and growing The choice is clear ![Cool](https://bitcointalk.org/Smileys/default/cool.gif) As long as fiat money QE continues, everythings price will go up, even for the beanie babies which have much less acceptance and usage than bitcoin
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I have never seen people make advertisement for any kind of money Money's value comes from people's willingness to use it to exchange other things. Most of the people today trust government issued money because they either don't understand how fiat money works or they feel secure when some large entity is "orally backing" it Some people who understand how fiat money works would select other types of currency like gold or bitcoin. But to understand how modern fiat money works is not an easy task, I don't think any average Joe would reach this level of understanding without years of research and thinking Majority of the people join bitcoin community to make a quick buck, but to get rich quick is also a promise of bitcoin (in a worldwide QE environment), so they can learn about how fiat money works when they are making quick profit ![Cool](https://bitcointalk.org/Smileys/default/cool.gif)
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Any product when you are not in your domestic country
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"Swish" mobile payment solution in Sweden is already approaching 40% usage, it is zero fee and instant confirmation, this makes bitcoin transaction pale in comparison, the only benefit left for bitcoin is anonymous (mobile payments need full name id verification)
As banks closing the loop, fiat money never goes out of the banking system, thus there will never be a liquidity problem or bank run, and no one knows how much money is there so that banks can print as much as possible. But bitcoin price will just rise and rise after each QE, and become an indicator for fiat money supply
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I don't have a bad impression of law enforcement. I guess federal agents are much more experienced than Gavin security wise, they have sophisticated models to handle unknown threat, no need to educate them, they will get the essential of bitcoin pretty quick
But what those organization need to get educated is monetary knowledge. Once they fully understand that modern fiat money is a Ponzi scam, they will consider bitcoin more positively: comparing with the large scale scam of fiat money which is counted in trillions, bitcoin's illicit usage is nothing
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