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1  Economy / Economics / Is bitcoin actually protecting fiat money? on: March 21, 2018, 08:43:43 AM
The biggest threat to fiat money is inflation. Inflation can be cured by injecting wealth into the economy and by that rising enough belief to keep the system afloat. This can be done for instance by occupying foreign countries and by that opening up new markets to the companies that are essential to the economy. Or this can be done by loose regulations with the derivatives markets, that will create wealth out of thin air and high hopes.

Can it be that pumping of the crypto markets is just another financial shenanigan created to keep the old system afloat?
They are creating new wealth out of nothing with cryptos, just like with derivatives. The made up wealth that is created, is actually backing the value of fiat. This would make sense why regulators seem so blind on goxdollars and tether.
2  Economy / Speculation / Would bitcoin survive with more efficient mining? on: March 14, 2018, 02:30:49 PM
When speculating on the future of bitcoin, then one must try to block out the noise and concentrate on the simple facts.
Important facts are that bitcoin mining costs around 7 billion dollars a year and that bitcoin has 5 million users the most.
That means that if no new speculators enter, then every active bitcoin user must pay over 1000$ per year just to sustain the network. And remember, the 5 million active user count is also a very optimistic count, so the cost is more like 2000$ per user annually. Do you think that users would actually do that? use their own money just to sustain bitcoin value and mining? I think not. That is why the inefficient and costly bitcoin mining will turn this project into a de facto pyramid scheme. If only new money entering can sustain the project, then things are what they are.

There have been some ideas to switch from PoW mining and I think that it should get more praise from the speculators. If bitcoin would switch to a more cheaper and efficient solution, then speculators are the ones who gain the most. Speculator markets are currently the ones who are paying insane prices for miners to solve a problem that could be solved a lot cheaper. If that would make bitcoin mining costs cheaper from 7 billion to 1 billion, then it would mean 6 billion more will stay circulating in the speculator market and wont be paid for electricity and hardware.
Cheaper mining will help bitcoin sustain itself, even if the flow of new money will weaken. The markets would be a lot more profitable and it wouldn't start to turn into a pyramid scheme.

Remember, the goal should be to get maximum utility from minimum costs, not the opposite. Don't be blind with satoshis religious dogmas.
3  Economy / Speculation / Will you..? on: March 09, 2018, 08:10:28 AM
When the crypto market collapses and loses most of it's value, then will you probably:

a) Blame bankers, the government, bears and idiots who can't understand bitcoin.

b) Blame yourself for investing blindly into something that was out of your competence.

c) Deny that anything has happened at all. Close yourself off in a small room and create your own reality with it's own set of rules.

d) Other:___________
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