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141  Economy / Economics / Re: How does inflation start on: March 06, 2014, 02:55:41 PM
... Price inflation is an economic illusion, and one not discussed by professionals in the field. 

Interesting.  I must bear this in mind next time i hear discussion about pay awards or pension increases being aligned to inflation metrics, or the Bank of England setting policy to target inflation, or whether government budgets are being reduced or increased in real or monetary terms.

I should have clarified.  I meant that price inflation is not discussed, as anything other than a side effect, by professionals in the field of economics.  You speak of professionals in the field of governance.  In other words, professional liars.  You should be more careful about whom you listen to.
142  Economy / Economics / Re: How does inflation start on: March 05, 2014, 11:44:59 PM
The OP didn't actually set the context at all.  He asks "i really didnt EVER heart why and how inflation occurs, starts".  His suggested reason implies he means monetary inflation, but then why ask the question?  So he must mean how does price inflation start, that's the context i read in his suggestion

You're just reaching.  In any economic sense, monetary inflation is the topic of discussion.  Price inflation is an economic illusion, and one not discussed by professionals in the field.  Also, he did explicitly ask about how it starts, not the results.  Again, the cause is always and everywhere due to expansion of the monetary base.  Price inflation cannot cause itself. 
143  Economy / Economics / Re: How does inflation start on: March 05, 2014, 10:31:13 PM
While his explaination is flawed, his understanding of what inflation actually is may not be.  A rise in the general price index is a symptom of inflation.  The cause of inflation, and therefore what inflation actually is, is the expansion of the monetary base in excess of the economic/population/general growth rate.  Take your pick.

Think post above yours covers the important difference between two types that's been ignored thus far, but normally when people say "inflation" they mean price inflation.  Assuming this, then any reference or definition will say inflation is an increase in prices.  Further, monetary inflation does not necessarily lead to inflation, as you put yourself if the relative demand is in balance.  cf Japan engaged in quantitative easing and and printing money for two decades with no inflation to deflation.

Considering the OP was asking for an economic explaination of inflation; the minor fact that most laymen think of price inflation when the word "inflation" is mentioned is entirely irrelevant.  The OP set the context.  Try and keep up, okay?  We won't be stopping the bus if you fall off again.
144  Economy / Economics / Re: How does inflation start on: March 05, 2014, 10:09:48 PM
...When you give this cheque as a payment to one person, cheque for 100$, you still have this money on your account until this person go to bank with this cheque and this person have this cheque for 100$ in her/his hand. So you both have 100$ dollars (total 200$) made of only one part of 100$. This person can even pay with the same cheque to any one who would accept it.

And this way we have 100% inflation on 100$ until that person monetize this cheque.

This is *not* inflation.  Inflation is measured in prices rising, not increasing the money supply.  Where has this basic misunderstanding come from to be so widespread?

While his explaination is flawed, his understanding of what inflation actually is may not be.  A rise in the general price index is a symptom of inflation.  The cause of inflation, and therefore what inflation actually is, is the expansion of the monetary base in excess of the economic/population/general growth rate.  Take your pick.
145  Other / Politics & Society / Re: Penny Arcade explains bitcoin.... on: March 05, 2014, 07:02:37 PM
 Tongue
146  Other / Politics & Society / Re: Penny Arcade explains bitcoin.... on: March 05, 2014, 04:22:15 AM
Really?  No comments at all?
147  Other / Politics & Society / Re: US health care mandate (Obamacare) on: March 04, 2014, 09:51:48 PM
Yes they'll try to shift the blame to insurance companies.  I actually doubt that will work because of the huge buildup on Obamacare. 

The ACA has a clause that prohibits the insurance companies from pointing out the root causes of problems.  They can be fined for even posting complaints on facebook, and they cant' even complain about that clause.

148  Other / Politics & Society / Penny Arcade explains bitcoin.... on: March 03, 2014, 07:48:55 PM
http://www.penny-arcade.com/comic

I think they actually did a fair job.
149  Economy / Economics / Re: How does inflation start on: March 02, 2014, 03:55:04 AM
Inflation isn't really connected to money. If you buy bread each day, and normally you have to pay 5 apples for a loaf, but gradually over a year you have now to pay 6 apples per loaf. Now the value of the apples compared to loafs have inflated(depreciated) and the value of one loaf compared to the apples has deflated(appreciated).

Inflation, by definition, refers to money. Of course you can generalize the term, but that wouldn't be useful.

Yes i know that. I just wanted to make sure that people understand that it is about the change in price, or more specifically the relation of one medium (money) to a product (basket of products).

Curiously, none of the posts mentioned the elephant in the room of Inflation:  Velocity.


I did, just not by name.  What do you think velocity measures?
150  Bitcoin / Bitcoin Discussion / Re: BREAKING NEWS: Multiple Exchanges Affected - Possible Global Shutdown on: February 28, 2014, 07:36:47 PM
And while I'm on the subject ... sometime in the next few months, the wallet of some major site will be hacked and a bunch of people are going to lose all of their bitcoins. You heard it here first.

Sounds like complete FUD to me.

It is not FUD. It is reality. I am stating the obvious. People that allow others to hold their bitcoins for them are generally newbies that are simply unaware of the risk.

It literally is FUD. You're basing this and the timeframe on absolutly nothing.

Sorry. I can't resist.

Told you so!


Lucky guess.
Not really.

Since about 2010 or so a major site has been hacked and a bunch of people lose all their bitcoins every few months.

It doesn't take a lot of luck to predict that what happened consistently for the last three years is going to keep happening absence some fundamental change in the way these sites are operated.

I mean that is was lucky that he called it so close, not that he called it at all.  It's easy to make predictions if you don't have a time frame.  He did.  That's the part that was lucky.
151  Bitcoin / Bitcoin Discussion / Re: BREAKING NEWS: Multiple Exchanges Affected - Possible Global Shutdown on: February 28, 2014, 07:26:03 PM
And while I'm on the subject ... sometime in the next few months, the wallet of some major site will be hacked and a bunch of people are going to lose all of their bitcoins. You heard it here first.

Sounds like complete FUD to me.

It is not FUD. It is reality. I am stating the obvious. People that allow others to hold their bitcoins for them are generally newbies that are simply unaware of the risk.

It literally is FUD. You're basing this and the timeframe on absolutly nothing.

Sorry. I can't resist.

Told you so!


Lucky guess.
152  Bitcoin / Bitcoin Discussion / Re: I'm Kevin, here's my side. on: February 28, 2014, 07:16:05 PM
There is speculation that Satoshi may have just set this early miner up as a background "dumb process" to keep the network going in those early days and didn't bother to even track or keep any of the coins. After all, it had no value at that time and who could have predicted it.

This part isn't true.  It was his baby, he kept the coins.  In fact, I remember an event wherein someone on the forum offered Satoshi $50 per btc for as many of the genesis block coins as he was willing to sell.  The response was along the lines of, 'No thanks, those are for my son.'

Furthermore, there was some speculation as to whether or not Satoshi could actually spend the genesis block coins.  The view being that, since the genesis block is actually unique, some clients might choke on the attempt to deal with verification of such a transaction; and that it wasn't worth the risk of a blockchain fork.  Since those early blocks still have never moved, it's also possible that those early keys have been lost or that Satoshi is dead.

EDIT: at the time, the market price for a single bitcoin was about a nickel.
153  Bitcoin / Bitcoin Discussion / Re: "Failure to Understand Bitcoin Could Cost Investors Billions" (Bitcoin's flaws) on: February 28, 2014, 02:15:22 AM

I'm missing something.  Why is it wise to trade out for new coins?

Because in theory only new minted coins can't have been stolen in the past.

As for tvbcof's theory that AML, KYC exchange sourced coins are more amenable to the authorities than self-mined coins, as far as I can see there is nothing tainted about mining your own coins for as long as you declare and can document the activity to the authorities, e.g. on your tax return when you create a taxable event.


Ah, I see.

Quote

I don't see how purchasing on an exchange stops the law from trying to obtain the stolen coins for the victim. As I covered in detail at the link above (dig to find my quotes of the Mt.Gox Terms of Service), an exchange is not a bank and your coin ownership was not transferred to the exchange when you deposited them.

So sorry I have to strongly disagree with you on that point. Sorry to give you bad news and cause you to have a headache. Better you face reality now and trade now for self-mined coins. Thus you would need a cpu-only coin probably.


I've never made the claim that courts won't attempt to recover stolen value.  I also know, for a fact, that my own coins have never touched any exchange since at least October of 2010.

Quote
You can clearly see the feature set for a new altcoin will drive its adoption in spades.


It might, actually, but that won't be because of some inherent flaw of bitcoin or it's protocol.  Bad image isssues are more difficult to argue against.
154  Bitcoin / Bitcoin Discussion / Re: "Failure to Understand Bitcoin Could Cost Investors Billions" (Bitcoin's flaws) on: February 28, 2014, 01:53:11 AM
...
Agreed on getting one's taxes in order. And trading all your Bitcoin for newly mined coins is probably another good precaution.
...

Another agreement vis-a-vis taxes.  I've been suggesting this for a while, and of course I personally am dotting all my 'i's and crossing all my 't's.  Beyond that, I think it might be advisable to be prepared to declare and document one's BTC holdings.  Do these simple things (while holding one's nose) and one might walk away quite well off.  A bit disappointed perhaps, but tempered with the thought that Bitcoin is mostly an important early proof-of-concept and has already achieved way more than it could have.

I think that if one can document buying BTC from an exchange that will be sufficient to un-taint them.  This because if coins that were legally acquired in this manner were tainted it would be to obvious to early how useless the solution is.

I, for one, am not about to go swapping out my holdings, which are deep in the blockchain, for newly mined BTC.  It could well be that miners who don't 'register', 'certify', get a 'bitcoin license', or whatever, and play along with the tainting protocol and transaction discrimination will have their own mined coins tainted from the start anyway.



I'm missing something.  Why is it wise to trade out for new coins?
155  Economy / Economics / Re: How does inflation start on: February 28, 2014, 01:49:22 AM
Inflation occurs because of expansion of the monetary base relative to it's demand.  What's really happening is that economic growth increases the demand for money/currency, and central banks respond by over-producing.  A cynical person might call that and excuse for bad behavior.  But the central bank expansion is only part of the picture, the other part is the increase in credit issuance.  Fractional Reserve banking permits banks to increase the monetary base temporarily by the creation of new loans without significant reserves.  Said another way, banks no longer need to have deposits in order to make loans, so the interest that the debtor is paying is "new money".  This creates the pressure to create more currency, because the dollars to cover that interest doesn't yet exist.  This is the currency demand that the central bank will eventually use to justify over-production of currency.  However, not all such currency demand is artificial; some occurs due to very natural causes of a growing population and/or economy.  It's impossible to separate the real from the false.  Since this is an ongoing process, inflation is as well; but there can still be short term deflationary events whenever the economy isn't strong enough to support the credit creation, and thus such new loan originations decline.  Therefore, declining credit can also temporarily contradict central bank expansion.
156  Bitcoin / Bitcoin Discussion / Re: "Failure to Understand Bitcoin Could Cost Investors Billions" (Bitcoin's flaws) on: February 28, 2014, 01:36:36 AM
Too easy.  Lips sealed

Really these Bitcoin developers suck (not in technical ability but in terms of knowing which features and third party apps to create). It is like taking candy from a baby to compete with them.

Agreed on getting one's taxes in order. And trading all your Bitcoin for newly mined coins is probably another good precaution.

Well, I hope your confidence isn't unfounded.  I look forward to seeing what coin you come up with and what kind of traction it receives.

Honestly, so am I.
157  Bitcoin / Bitcoin Discussion / Re: "Failure to Understand Bitcoin Could Cost Investors Billions" (Bitcoin's flaws) on: February 28, 2014, 01:35:16 AM
Quote

The Winklevi are trying very hard to convince the feds that Bitcoin is as controlable as they wish it to be, and that they can help them do it.

Regardless, the winklevii lawyers have, by law, stated facts about the bitcoin rules and protocol which include the FACT that the board controls every aspect of the protocol INCLUDING the hard cap.  If fact this is written as a potential RISK to the future of the ETF and not a benefit as it lends uncertainty.

Unless you really think the Winklevoss twins and their lawyers just made that up and the SEC and their team of lawyers are just too stupid to see it.  Let's get real here - the Bitcoin protocol and all its clones were designed from the ground up to be taken over and controlled by banks, govts and Multinationals.

They stated things they claim are facts.  That doesn't change the reality of the matter at all.  Yes, I really think the Winklevi lawyers made that up and that the SEC & their own lawyers are too stupid to see it.  They very much want to believe that Bitcoin can be regulated.  They know nothing of merit about cryptography, programming, decentralization or (for that matter) even economics.  They are lawyers; nothing more, nothing less.  If the Winklevi can make up convincing bullshit, let them.  It might work or it might not.  I don't care.  Unlike the both of you, I actually DO understand cryptography, economics and the Bitcoin protocol.
158  Bitcoin / Bitcoin Discussion / Re: "Failure to Understand Bitcoin Could Cost Investors Billions" (Bitcoin's flaws) on: February 28, 2014, 01:27:50 AM

LOL!  Ya, one would have to be a world-class simp to believe that TBF writes Gavin's checks and have no influence on what he does.  Moonshadow may very well be 'patient zero' here.


Count me as one of those world class simps.  Gavin doesn't have any more influence than we give him.  Just ask MtGOX, who chose to ignore Gavin's rational pleas to fix the mallibility bug in 2011.  As that inicident should point out; even when it's a good idea, and the fix is available, no one must comply.

For good for for bad, Gavin does not control Bitcoin.  He can only make recommendations, and he must justify those recommendations.  Granted, he has more sway with the base than you or I, but if he's not convincing changes don't occur.  Even if he's willing to make those changes himself.
159  Bitcoin / Bitcoin Discussion / Re: "Failure to Understand Bitcoin Could Cost Investors Billions" (Bitcoin's flaws) on: February 28, 2014, 01:22:47 AM


How can the masses be so clueless?

The Bitcoin Foundation board controls and regulates Bitcoin, every little aspect of the protocol, even the hardcap which is a joke to call hard or permanent cause it's nothing more than the carrot in this entire scheme.

No, they don't.  They have almost as much say in the protocol as you do.


Ahahaaaa.  This is what I mean by totally clueless.


You haven't read the SEC filing from the Winklevoss ETF application, have you?

I have and that's exactly the case and it is printed in black and white in the application for the ETF.  But you have to actually think for yourself and do research to understand anything not being spoon-fed to you by the mainstream media.  

The Winklevi are trying very hard to convince the feds that Bitcoin is as controlable as they wish it to be, and that they can help them do it.
160  Bitcoin / Bitcoin Discussion / Re: "Failure to Understand Bitcoin Could Cost Investors Billions" (Bitcoin's flaws) on: February 28, 2014, 12:17:15 AM


How can the masses be so clueless?

The Bitcoin Foundation board controls and regulates Bitcoin, every little aspect of the protocol, even the hardcap which is a joke to call hard or permanent cause it's nothing more than the carrot in this entire scheme.

No, they don't.  They have almost as much say in the protocol as you do.
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