The economic model behind Bitcoin is flawed

[onemorexmr]

Alright so here's the thing with the maximum value of Bitcoin that I've been mulling over;

Say we reach a point where each Satoshi is worth $10, why would we not simple end up buying more things in bulk? If a pack of gum costs $1 or $2 now, why not buy 5/10 of them? Chances are you'll use more in the future, and it just prevents you from having to run out to get more. Would this not also encourage higher-quality products since it would be borderline impossible to purchase anything for <$10?

IF we ever reach the point that one satoshi equals 10$ we would simply add more decimal places.
so it would still be possible to spend 1cent

[Yakamoto]

Alright so here's the thing with the maximum value of Bitcoin that I've been mulling over;

Say we reach a point where each Satoshi is worth $10, why would we not simple end up buying more things in bulk? If a pack of gum costs $1 or $2 now, why not buy 5/10 of them? Chances are you'll use more in the future, and it just prevents you from having to run out to get more. Would this not also encourage higher-quality products since it would be borderline impossible to purchase anything for <$10?

IF we ever reach the point that one satoshi equals 10$ we would simply add more decimal places.
so it would still be possible to spend 1cent

That's what I was thinking, but I'm not a genius when to comes to the Bitcoin protocol, so I wasn't sure how best to interpret what adding more decimal places would do, e.i. Would it be a hard fork for the blockchain, etc.

I'm not sure why we would want to add a decimal place of $0.01, however. Most things we buy are either nearly rounded to a dollar, or are half of a dollar. What would we buy where $0.01 is a necessary denomination of currency?

[onemorexmr]

Alright so here's the thing with the maximum value of Bitcoin that I've been mulling over;

Say we reach a point where each Satoshi is worth $10, why would we not simple end up buying more things in bulk? If a pack of gum costs $1 or $2 now, why not buy 5/10 of them? Chances are you'll use more in the future, and it just prevents you from having to run out to get more. Would this not also encourage higher-quality products since it would be borderline impossible to purchase anything for <$10?

IF we ever reach the point that one satoshi equals 10$ we would simply add more decimal places.
so it would still be possible to spend 1cent

That's what I was thinking, but I'm not a genius when to comes to the Bitcoin protocol, so I wasn't sure how best to interpret what adding more decimal places would do, e.i. Would it be a hard fork for the blockchain, etc.

I'm not sure why we would want to add a decimal place of $0.01, however. Most things we buy are either nearly rounded to a dollar, or are half of a dollar. What would we buy where $0.01 is a necessary denomination of currency?

yes, adding decimal places is a hard fork.

IMHO a currency should provide more decimal places than needed because of price swings. an hardfork isn't an easy thing to do and needs some planning. so i'd say doing it early and not very often is the right thing to do.

[USB-S]

even if bitcoin wasn't hard capped to 21mil it would still be better than the current fiat system, because you could predict the supply of money. However a deflationary currency is far superior to a inflationary currency.

The only flaw that I see in this system is the early adopters, get the cheap coins at the expense of latter adopters.

[catch.me.if.you.can]

The problem with this system is not only the early adopters but the slow circulation of money. Silvio Gesell stated, in his book "The NATURAL ECONOMIC ORDER" http://www.geokey.de/literatur/doc/neo.pdf that slow circulation of money is the principal cause of the faltering economy. Only Keynes and Silvio Gesell solved this problem.

[deisik]

The problem with this system is not only the early adopters but the slow circulation of money. Silvio Gesell stated, in his book "The NATURAL ECONOMIC ORDER" http://www.geokey.de/literatur/doc/neo.pdf that slow circulation of money is the principal cause of the faltering economy. Only Keynes and Silvio Gesell solved this problem.

Could you please give a concise version of his idea as you see (understand) it. Not that I disagree with you (him), but I have my own conception in respect to money circulation

[mattjack]

I think the op has a point here. Bitcoin DOES encourage hoarding and we know that a healthy economy requires money to be spent.

[Amph]

I think the op has a point here. Bitcoin DOES encourage hoarding and we know that a healthy economy requires money to be spent.

it encourage it until a certain point, and it's good this way, because you limit the inflation, then when the target is reached, for many they will begin to use bitcoin

i can not see anything wrong about this, unless you think that thhey will hold indefinitely, certainly i don't believe that the current inflated system is the answer, and a deflazionary-inflazionary system is hard to get

[XinXan]

Alright so here's the thing with the maximum value of Bitcoin that I've been mulling over;

Say we reach a point where each Satoshi is worth $10, why would we not simple end up buying more things in bulk? If a pack of gum costs $1 or $2 now, why not buy 5/10 of them? Chances are you'll use more in the future, and it just prevents you from having to run out to get more. Would this not also encourage higher-quality products since it would be borderline impossible to purchase anything for <$10?

IF we ever reach the point that one satoshi equals 10$ we would simply add more decimal places.
so it would still be possible to spend 1cent

Let's be honest, that's pretty much impossible. In the future if bitcoin becomes a currency that everyone uses I'm sure people won't compare bitcoin to dollars anymore, like we do with euros. When I go to the shop I'm not comparing euros with dollars like, hey this is 5 euros, before I spend them, let me see how many dollars that is.

[1aguar]

In the fiat system, the early adopters get the high interest rates at the expense of later adopters.

[catch.me.if.you.can]

The problem with this system is not only the early adopters but the slow circulation of money. Silvio Gesell stated, in his book "The NATURAL ECONOMIC ORDER" http://www.geokey.de/literatur/doc/neo.pdf that slow circulation of money is the principal cause of the faltering economy. Only Keynes and Silvio Gesell solved this problem.

Could you please give a concise version of his idea as you see (understand) it. Not that I disagree with you (him), but I have my own conception in respect to money circulation

I told you, Keynesianism and Freigeld are the best systems.

https://en.wikipedia.org/wiki/Freigeld

[deisik]

The problem with this system is not only the early adopters but the slow circulation of money. Silvio Gesell stated, in his book "The NATURAL ECONOMIC ORDER" http://www.geokey.de/literatur/doc/neo.pdf that slow circulation of money is the principal cause of the faltering economy. Only Keynes and Silvio Gesell solved this problem.

Could you please give a concise version of his idea as you see (understand) it. Not that I disagree with you (him), but I have my own conception in respect to money circulation

I told you, Keynesianism and Freigeld are the best systems.

https://en.wikipedia.org/wiki/Freigeld

Lol, if you can't explain an idea or concept in a few words, you don't understand it yourself. Saying that something is best doesn't cut it, sorry

[catch.me.if.you.can]

The problem with this system is not only the early adopters but the slow circulation of money. Silvio Gesell stated, in his book "The NATURAL ECONOMIC ORDER" http://www.geokey.de/literatur/doc/neo.pdf that slow circulation of money is the principal cause of the faltering economy. Only Keynes and Silvio Gesell solved this problem.

Could you please give a concise version of his idea as you see (understand) it. Not that I disagree with you (him), but I have my own conception in respect to money circulation

I told you, Keynesianism and Freigeld are the best systems.

https://en.wikipedia.org/wiki/Freigeld

Lol, if you can't explain an idea or concept in a few words, you don't understand it yourself. Saying that something is best doesn't cut it, sorry

Read the link to understand the concept.

[deisik]

Read the link to understand the concept.

If you refer to the Wiki article, I read it long ago. I want to hear your understanding of this concept, how you see it. Look, at first you make mention of it here (as the best monetary system out there), no problem, and then you decline from explaining why it is so?

What are your arguments supporting your claims really?

[Sir_lagsalot]

It isn't flawed. If bitcoin becomes add widely used as you say, then the demand will go up, along with bitcoin's price
 Maybe a satoshi might be worth 5 cents in a few months time!

[cancerbola]

It isn't flawed. If bitcoin becomes add widely used as you say, then the demand will go up, along with bitcoin's price
 Maybe a satoshi might be worth 5 cents in a few months time!

^^ If that happens, that means a whole bitcoin would be worth 5*100 million / 100 = 5 million dollars?
Ok... how much would a loaf of bread cost if that happens?    And how much would Bill Gates earn in a second?

But I agree with you on the demand of bitcoin and the correlation of that to it's price. Tho I'll be modest (and also stick to reality) and say it will hit 500 USD soon, especially with the halving comming.

[criptix]

Read the link to understand the concept.

If you refer to the Wiki article, I read it long ago, I want to hear your understanding of this concept, how you see it. Look, at first you make mention of it here (as the best monetary system out there), no problem, and then you decline from explaining why it is so?

What are your arguments supporting your claims really?

You are a idiotic hypocrite. You did the same shit as the guy who you blame. (Page 2)

[deisik]

Read the link to understand the concept.

If you refer to the Wiki article, I read it long ago, I want to hear your understanding of this concept, how you see it. Look, at first you make mention of it here (as the best monetary system out there), no problem, and then you decline from explaining why it is so?

What are your arguments supporting your claims really?

You are a idiotic hypocrite. You did the same shit as the guy who you blame. (Page 2)

Go away clown

[criptix]

Read the link to understand the concept.

If you refer to the Wiki article, I read it long ago, I want to hear your understanding of this concept, how you see it. Look, at first you make mention of it here (as the best monetary system out there), no problem, and then you decline from explaining why it is so?

What are your arguments supporting your claims really?

You are a idiotic hypocrite. You did the same shit as the guy who you blame. (Page 2)

Go away clown

Im much impressed. Maybe care to explain me your wikipedia economics with your own words?

[catch.me.if.you.can]

Negative interest rate system is superior to bitcoin system.