Why I'm here

[Koffie]

I've invested a small amount (25 euros) in bitcoins about a month ago, with the purpose of holding on to it for a year or so.

I'd love to see bitcoin (or a similar technology) become the main currency, but I have no idea on how a decentralized, deflationary currency would change the world economy. I have this vague dream that it will end pointless consumerism.

But nobody knows how it will go. The economy is so complex that claiming it to be completely random is probably closer to the truth than claiming to have found a pattern. People always make up stories for what happened in the past, but most of the time things were just coincidence.

So I guess we'll just have to wait and see...

Equanimity!

[phoenixsilverbird]

We all wish we'd invested 50 thousand dollars in BTC when it first started, we'd all be millionaires by now.

[cryptic4000]

You will need time to understand this stuff.. maybe 2 to 3 months

[guybrushthreepwood]

I've invested a small amount (25 euros) in bitcoins about a month ago, with the purpose of holding on to it for a year or so.

I'd love to see bitcoin (or a similar technology) become the main currency, but I have no idea on how a decentralized, deflationary currency would change the world economy. I have this vague dream that it will end pointless consumerism.

But nobody knows how it will go. The economy is so complex that claiming it to be completely random is probably closer to the truth than claiming to have found a pattern. People always make up stories for what happened in the past, but most of the time things were just coincidence.

So I guess we'll just have to wait and see...

Equanimity!

It might put an end to the the banking industry eventually and hopefully, but how would it end consumerism?

[DannyHamilton]

It might put an end to the the banking industry eventually and hopefully,
- snip -

Highly unlikely.

[ddfs11]

You will need time to understand this stuff..

[guybrushthreepwood]

It might put an end to the the banking industry eventually and hopefully,
- snip -

Highly unlikely.

True, but it's not impossible (and I'm trying to be an optimist here). I'm sure it can put a lot of pressure on it at least.

[Koffie]

It might put an end to the the banking industry eventually and hopefully, but how would it end consumerism?

A deflationary currency tends to rise in value over time, so people would postpone their spendings. People automatically become richer over time if they don't spend, which makes perfect sense, because technology advancements should bring better life conditions to everyone, over time. If they spend, they lose (because all physical goods break down over time).  People would just buy the stuff they really need (like food, electricity and housing). It will also encourage manufacturers to produce higher quality stuff that lasts. Today, stuff is engineered to break after a given period of time, because sales would drop when the market is saturated with stuff that lasts forever. With a deflationary currency, a manufacturer will not go bankrupt when sales suddenly drop: If a manufacturer once had good sales and earned a bunch of money, so they can just hold on to their money, because it automatically rises in value. People could be fired without a problem: They already earned money in the past, and don't go poor, because not only have they got a bunch of money that rises in value, they also have bought stuff that won't break down so quickly, so there is no need to buy it again. People would automatically prefer higher quality goods as well, because spending money equals losing money, and having just spent some amount of money, you don't want to spend again for as long as possible.

An inflationary currency (USD, EUR, ...) drops in value over time, encouraging people not to postpone their spendings. Holding on to money equals getting poor. The only way to become richer is by investing in things that quickly render profit (because if it takes too long the returns will be worth less). Durability is sacrificed by design. Manufacturers produce flashy looking stuff that is supposed to break, because if sales drop, they eventually go bankrupt. People need to have a job, because not only does their money drop in value, the stuff they bought constantly breaks, so they constantly need an income to replace stuff with new stuff.

[Koffie]

It might put an end to the the banking industry eventually and hopefully,
- snip -

Highly unlikely.

I also think that the biggest threat to bitcoin is competition from a cheaper and faster service: A commercial (or government-backed) service can be centralized and therefore much more efficient. We can only hope for the competition to screw up: A commercial service would require customer support, have legal issues, ... but especially: dictatorship over the entire system, so probably, like most with dictatorships, a commercial system will dramatically lag behind.

So there is hope: Consider cars and trains: Having a car is like "being your own train", just like bitcoin is "being your own bank". For some reason, cars have won. (Even though I prefer the efficiency of trains)

[guybrushthreepwood]

It might put an end to the the banking industry eventually and hopefully,
- snip -

Highly unlikely.

I also think that the biggest threat to bitcoin is competition from a cheaper and faster service: A commercial (or government-backed) service can be centralized and therefore much more efficient. We can only hope for the competition to screw up: A commercial service would require customer support, have legal issues, ... but especially: dictatorship over the entire system, so probably, like most with dictatorships, a commercial system will dramatically lag behind.

So there is hope: Consider cars and trains: Having a car is like "being your own train", just like bitcoin is "being your own bank". For some reason, cars have won. (Even though I prefer the efficiency of trains)

But why would people choose to use a commercial of government-backed crypto? People who would use it are missing the point of it all together.

[jimmy123]

 

[desired_username]

A commercial (or government-backed) service can be centralized and therefore much more efficient.

I think the contrary. Look at the current system, it's ridiculously flawed and inefficient. Building a centralized payment system is expensive, prone to failures, attacks and corruption.

On a global scale decentralization is the only way to go. This shows just how amazing the concept of bitcoin is. Basically in 5 years it proved to be a stable, resilient always on system which is transparent on all levels.

People often forget the most important advancements bitcoin brought to the table...

[oggy932]

I think the biggest threat to bitcoin is an outright ban by all the major governments. The Chinese have started with a ban on deposits and although the US decided not to ban bitcoin they might do a U-turn in the future. Just the US joining China would probably finish it off and if the EU joined too that would be the end of bitcoin.

[guybrushthreepwood]

I think the biggest threat to bitcoin is an outright ban by all the major governments. The Chinese have started with a ban on deposits and although the US decided not to ban bitcoin they might do a U-turn in the future. Just the US joining China would probably finish it off and if the EU joined too that would be the end of bitcoin.

How would they ban Bitcoin without banning the internet? They might be heavy restrictions but I don't think they could ever ban it fully.

[phoenixsilverbird]

I think the biggest threat to bitcoin is an outright ban by all the major governments. The Chinese have started with a ban on deposits and although the US decided not to ban bitcoin they might do a U-turn in the future. Just the US joining China would probably finish it off and if the EU joined too that would be the end of bitcoin.

How would they ban Bitcoin without banning the internet? They might be heavy restrictions but I don't think they could ever ban it fully.

They can't ban bitcoin like they can't ban any crime, but they can make it illegal and impose penalties for its users.

[guybrushthreepwood]

I think the biggest threat to bitcoin is an outright ban by all the major governments. The Chinese have started with a ban on deposits and although the US decided not to ban bitcoin they might do a U-turn in the future. Just the US joining China would probably finish it off and if the EU joined too that would be the end of bitcoin.

How would they ban Bitcoin without banning the internet? They might be heavy restrictions but I don't think they could ever ban it fully.

They can't ban bitcoin like they can't ban any crime, but they can make it illegal and impose penalties for its users.

Under what law could they ban it under exactly?

[Koffie]

It might put an end to the the banking industry eventually and hopefully,
- snip -

Highly unlikely.

I also think that the biggest threat to bitcoin is competition from a cheaper and faster service: A commercial (or government-backed) service can be centralized and therefore much more efficient. We can only hope for the competition to screw up: A commercial service would require customer support, have legal issues, ... but especially: dictatorship over the entire system, so probably, like most with dictatorships, a commercial system will dramatically lag behind.

So there is hope: Consider cars and trains: Having a car is like "being your own train", just like bitcoin is "being your own bank". For some reason, cars have won. (Even though I prefer the efficiency of trains)

But why would people choose to use a commercial of government-backed crypto? People who would use it are missing the point of it all together.

As long as individualistic thinking perseveres, people will just pick what's most beneficial for themselves at the moment, no matter how it relates to others or society.

I have the following theory that a deflationary currency might put an end to individualistic thinking:
Economists deem deflationary currencies as detremental to society, because they refuse to give up their assumption that individualism is the nature of human beings. This is wrong. Individualistic thinking is a product of the constant fear/pressure/stress resulting from the use of inflationary currencies. They think a deflationary currency will destroy the economy, and they think the economy, the way it is right now (yielding increasing inefficiency in all aspects of society), is a necessary evil.

A commercial (or government-backed) service can be centralized and therefore much more efficient.

I think the contrary. Look at the current system, it's ridiculously flawed and inefficient. Building a centralized payment system is expensive, prone to failures, attacks and corruption.

On a global scale decentralization is the only way to go. This shows just how amazing the concept of bitcoin is. Basically in 5 years it proved to be a stable, resilient always on system which is transparent on all levels.

People often forget the most important advancements bitcoin brought to the table...

Theoretically, a centralized system can be more efficient if it were never under attack, but I think that you are correct, that in practice, decentralization is the way to go.

PS: Am I allowed to post in the other threads now?

[Enticed87]

Cryptocurrency FTW !

[guybrushthreepwood]

PS: Am I allowed to post in the other threads now?

Yes, you should be. Give it a try.