Bitcoin philosophy

[coalguru]

I'm just thinking.

If we spend money to produce electricity - then spend this electricity to produce crypto coins - then finally spend this coins to get money back - it looks like there can not be real profit in such spiral. It can not be more value in the end of chain, because every link just takes part of initial value as commissions / fees by the way. That philosophy is a clear bubble.

If we can think that crypto coins are the service to be alternative to centralized money of states - OK, such philosophy show the reason of profits during mining process. That can be the only explanation of crypto' growing value.

It looks like all people are really in need to be free from state; owned fiscal systems. But that approach is also risky - without states and taxes world will not survive as is.

So - there must be any connection of crypto' value to some fixed asset (gold?) and some way to tax turnaround of crypto in favor of people, then bitcoin can act as a service for decentralization of money - what it really is.

If the value wildly fluctuate, due to multiple reasons including forks, technology or mining - that is even more bubble, then in first electrical philosophy.

Are we all just gambling with bubbles here?

[7jaka7]

What do you mean there can be no profit in such spiral?

I think purpose of BTC is not to replace FIAT money but to be a safe, decentralized, private form of asset.

Most people are doing fine with money system we have now. But imagine some people who doesn't have access to bank. They completely depend on their government. Their savings from whole life can become worthless in matter of days. And they can't do nothing about it... until Bitcoin. But for now FIAT money is still indispensable. So cryptocurrenies are just another form of asset.

What do you mean by connection? Cryptos are not backed up by anything physical only by their security. HAHA taxing in favor of people... Cryptos are first form of money which is not controlled by anyone. Only by math. I don't even know how would this make it more decentralized???

We are still in early stages of blockchains, so there is a lot of room for improvements. And of course price wildly fluctuate if the market is still so small.

''An economic bubble or asset bubble (sometimes also referred to as a speculative bubble, a market bubble, a price bubble, a financial bubble, a speculative mania, or a balloon) is trade in an asset at a price or price range that strongly exceeds the asset's intrinsic value.'' source: https://en.wikipedia.org/wiki/Economic_bubble
So yes we are gambling with bubbles, crypto currencies will be overvalued due to ''stupid'' money (people which are investing when they see big increase of price in news, but of course that is the WORST time to buy). But in the end they will still be worth a lot.

[coalguru]

- Value bubble

Why not to limit the volume of crypto as fixed and connected strictly to some valuable asset? Then we will get decentralized and widely accepted replacement of FIAT money, but no bubble.

- Taxes

The civilization can not live without taxes. If we want crypto to be the money (asset) of the future, taxation must be embedded into it properties. That is easy to implement. Then we can guarantee that education, medicine, army, civil services, governments will be financed in digital future without FIAT money. We must make part of people interested in production of electricity for those who are interested in crypto mining. Otherwise all humans will starve mining cryptos.

- Privat properties

As I understood, bitcoin is already quite good traceable in some occasions - to track some criminals. OK, looks like that is not so bad - we are not talking about crypto of future as criminal instrument. So, crypto must be open enough to track crime transactions - to make it valuable asset of future. That is also easy to implement.


It looks now, that a lot of involved people are more interested in making bubbles ( inventing absent value from zero ) just to scam other innocent people, then to develop really reliable, safe and stable decentralized digital currency of the future.