Why Bitcoin Is Going to Succeed: The Reason Nobody Is Talking About

[jdbtracker]

Join us, comrades!

Joseph Stalin would roll in his grave if he saw Bitcoin,

  It is the free market, That asserts the right of the individual to control their own destiny and that of their community(The Economy); to be entitled to the fruits of their labours, to defend their right to live by casting their ballot every time they purchase the goods and services that they want, the way they want it, when they want it.  

Bitcoin is a assertion of these principals in a way that has not been seen, but it does this with this realization.

That it is of greater benefit for the individual to be open and share their knowledge and efforts to the greater community accelerating the pace of innovation, increasing over all efficiency, pooling mental, physical, technical resources together for the good of one and all. The fact that this movement is happening is proof that people understand this... they are getting access to resources they would otherwise not get... it is logical and yet somehow the general market has fought this idea for decades...why?

Bitcoin Asserts the right of individuals to collaborate collectively to incorporate for the collective benefit, there by asserting an individuals right to make a living.

Bitcoin is the Free Market 2.0, the system itself is designed so you cannot use money you do not have, your money cannot be taken from you, the right to spend your money where you want to with no direct restrictions, money is created to offset the money lost only, At it's appex Bitcoin will not have inflation,  300 years of market principles built right into the design so you cannot tamper with what works.

Bitcoin does away with the inflation tax, I'm sure a lot of governments are not happy with this right now, It's affecting their operations.

but there is a lot of missinformation circulating, I just read this article... see if you can spot the missinformation

http://theweek.com/article/index/242753/want-to-make-money-off-bitcoin-mining-hint-dont-mine


The miners are the foundation of the network, this seems to me to be a circumvention to reduce the integrity of the networks over all hashing power there for bringing the system within attackers reach or merely causing large pools to inadvertently reach the 50% threshold.  I believe the miners are what is causing the market to grow, if they set the price for their labours it means the market can even out properly regardless of hardware costs or efficiency, they set the bottom price, without the miners Bitcoin cannot scale, it cannot stabilize.

[abbyd]

You, as well as millions of others, obviously do not know what technology means.

The term "technology" means a production process. For instance a technology for baking bread. From the way the ingredients are mixed, to the conditions of baking to packaging, etc.

What you mean is technics. You cannot build technology. Fact is that 90% of the people are illiterate and do not realize what they're saying half the time.

Who cares? We all understood what he meant. Words exist to convey meaning in the context they are used. This isn't an academic paper, why be a dick about it?
Changing the word "technology" to "technics" in his post would not have changed the point he made at all. Besides I've never heard anyone refer to their microwave as technic. Common usage.

Yeah let's not overreact to misuse of the word "technology"?  I edited my post to make it more clear.
I refuse to use the word "technics", but maybe someday I can still become literate like the zombie-guy...

Back on topic - of course I agree that money has increased the velocity of trade over the past 1,000 years or so,
and the increasingly global movement of money will only exaggerate such effects. Bitcoin has the potential to do
exactly this. In theory, accelerating trade should distribute goods and services more efficiently (especially if the
transaction costs are lower), resulting in higher quality of life? 

However, if bitcoin moves in the direction Wall Street wants it to (speculative instrument, derivatives, etc.), it won't
create any tangible gain for society.

<logging off to go buy some alpaca socks>

[jdbtracker]

What if Bitcoin goes far beyond that? What if Bitcoin is an architectural foundation for an evolutionary step in the internet?  What if we have just made a fountain of value in the middle of the digital dessert? Ready to nurture any project that uses it as it's foundation?   No one has ever been paid for doing something like this directly; No one has thought of the bigger picture The many can become one.

Sure, it's possible. However, I do think people overestimate the ability of money to change the world... it's really about hearts and minds.

Also remember that real wealth can only be extracted from nature by labor. All technology is built on the backs of children mining metals in Africa...

You, as well as millions of others, obviously do not know what technology means.

The term "technology" means a production process. For instance a technology for baking bread. From the way the ingredients are mixed, to the conditions of baking to packaging, etc.

What you mean is technics. You cannot build technology. Fact is that 90% of the people are illiterate and do not realize what they're saying half the time.

Yo are very right, it is the hearts and minds of the people that will perfect Bitcoin, and their is plenty of labour to be extracted from the network, did you know that the world wide market for online transactions is 2.7 trillion? Now imagine Bitcoins technique of distributed p2p labour, the miners labours to safely transfer that money to anywhere in the world... now how do you spread that 2.7 trillion dollars/year? you pay fees, payable to all the miners in the network. Don't you see? the misinformation that is being distributed in the world? Bitcoin is a more frugal choice than all the competition, it is more efficient, more secure, faster(for international transfers)  we gotta get our money! Are people willing to work for 2.7 trillion dollars by believing in the p2p wealth distribution model?


well Teodore you are right, Bitcoin is a Technique for transferring economic value built on Encryption technology

[jdbtracker]

You, as well as millions of others, obviously do not know what technology means.

The term "technology" means a production process. For instance a technology for baking bread. From the way the ingredients are mixed, to the conditions of baking to packaging, etc.

What you mean is technics. You cannot build technology. Fact is that 90% of the people are illiterate and do not realize what they're saying half the time.

Who cares? We all understood what he meant. Words exist to convey meaning in the context they are used. This isn't an academic paper, why be a dick about it?
Changing the word "technology" to "technics" in his post would not have changed the point he made at all. Besides I've never heard anyone refer to their microwave as technic. Common usage.

Yeah let's not overreact to misuse of the word "technology"?  I edited my post to make it more clear.
I refuse to use the word "technics", but maybe someday I can still become literate like the zombie-guy...

Back on topic - of course I agree that money has increased the velocity of trade over the past 1,000 years or so,
and the increasingly global movement of money will only exaggerate such effects. Bitcoin has the potential to do
exactly this. In theory, accelerating trade should distribute goods and services more efficiently (especially if the
transaction costs are lower), resulting in higher quality of life? 



well brother? what are you willing to do for that higher quality of life? Are you going to let wall streets dirty methods infect bitcoin?

However, if bitcoin moves in the direction Wall Street wants it to (speculative instrument, derivatives, etc.), it won't
create any tangible gain for society.

<logging off to go buy some alpaca socks>

[bobdude17]

I don't think Wallstreet is really aware of Bitcoin's existence yet. I wonder what their take on it would even be.

[bobdude17]

Also check out this great presentation by a Google engineer on Bitcoin applications that can be implemented right now. That's what I'm talking about as far the workforce overcoming hurdles.

[Nikolaj06]

Also check out this great presentation by a Google engineer on Bitcoin applications that can be implemented right now. That's what I'm talking about as far the workforce overcoming hurdles.

Link?

[bobdude17]

Shit my bad, up way too late.

http://www.youtube.com/watch?v=mD4L7xDNCmA

[abbyd]

well brother? what are you willing to do for that higher quality of life? Are you going to let wall streets dirty methods infect bitcoin?

The only way I see to do this is to make bitcoin speculation unprofitable. That would consist of creating a stable bitcoin economy.
That seems possible. Hopefully people won't be stupid enough to buy Wall Street's speculative instruments, but from the looks of posts in this forum....

[jdbtracker]

I know! Everyone is trying the get rich quick scheme, but maybe it's a good thing.  
yes I know it's really a bad thing... but the reason they are doing this is cause they think that by pumping up the price and then dumping it they get rich and laugh all the way to the bank. The idiots!! They're still thinking of it like the inflationary fiat currencies! they don't realize Bitcoin scales all the way to 21 million USD/BTC!!

There must be a better way, we have to figure bitcoins nature as soon as possible, and tell these people what they are doing is wrong.

but just to balance it out... at what point in the Bitcoin economy would the inflationary characteristics begin to rear their ugly head? I'm thinking along the lines that at one point the usd may of had the same characteristics of bitcoins when it was being adopted. We would have to do some historical research into the beginnings of currencies and barter exchanges to find out at what point bitcoin will begin acting like a inflationary currency.

Would that point be reached when all people are on Bitcoin and Litecoin? and if so what would control the value of Bitcoins? would it be rock solid stable as soon as people stopped converting their bitcoins to fiat?    !

[abbyd]

I know! Everyone is trying the get rich quick scheme, but maybe it's a good thing. 
yes I know it's really a bad thing... but the reason they are doing this is cause they think that by pumping up the price and then dumping it they get rich and laugh all the way to the bank. The idiots!! They're still thinking of it like the inflationary fiat currencies! they don't realize Bitcoin scales all the way to 21 million USD/BTC!!

There must be a better way, we have to figure bitcoins nature as soon as possible, and tell these people what they are doing is wrong.

I believe it will take time, but it can be done. The get-rich-quick types will depart once the bitcoin valuation stabilizes.
If the dumazzes are capable of seeing derivatives for the scams that they are (or they just lose all of their money),
they won't effect the valuation much.

[Spendulus]

....
Simple law of nature - everything could fail. Nothing is certain.

The common currencies are not 100% although there are 3 levels of backup for them.

The whole deal with human societies right now is a house of cards. It's all in our heads and does not really exist.

House of cards?  Given structures are, yes.  But the human has built in compulsive striving to build, to design and create, and to organize things.  Many a huge city has been flattened in war, then rebuilt better within a decade.

This reality does exist.  Any given structure is of course, temporal.

[rpietila]

OP is a thought out piece of text. I would instruct the poster to create a new self-moderated thread with the same OP, to make the discussion a more sensible read. I advocate that the OP deletes unworthy stuff as soon as he sees it, and compresses the thread to max 2-8 pages every 24 hours, like I have done with my diary.

[Zangelbert Bingledack]

Dammit! How did I miss the best thread on the whole forum?! I'm PISSED!!

--

Anyway, this is a great insight in the OP: Bitcoin is the only (or at the least by far the greatest) open-source project where there is a direct incentive to contribute. Someone implied the Winkelvii twins are too rich to care. No no, that misses the whole thrust: when Bitcoin makes them 10 or 100 times richer than they already are, and there's "trouble in paradise" in the Bitcoin ecosystem, as owners of 1% of all bitcoins in existence they are going to want to try to fix it. Whatever kind of rich they are now, they are going to a whole new level, and then a whole new level beyond that if only certain problems would be solved. They are going to care. Not to mention, this is their chance to deliver the sweetest FU to Zuckerberg.

Also, someone wondered how Satoshi was so smart to think of all this. Well that's the great thing about the market. Satoshi understood economics enough to know that setting up a system where the incentives are right will automatically result in the system building itself, scaling just on time, maintaining exponential growth by ways that no one can anticipate because millions of minds are all working on it together and separately. Bitcoin is the market, harnessed. Harnessed more effectively than it's ever been.

Others commented about all the "speculation." Well short-term speculation may be bad, but just because someone is "in it to win it" as a long-term holder in this digital gold rush is not a bad thing; in fact it's a very good thing, a wholly necessary thing. The more strong-hand Bitcoin believers we have - people who understand the revolution-upon-a-revolution that is taking place - the better, because they drive the price higher and only sell small amounts as needed, creating a net deflation, which results in more stability as the price rises and it is harder to push the market around or do a pump-and-dump. So "speculation is the enemy of speculation"...read: long-term speculation solves all the problems now being attributed to short-term speculation.

Finally, Bitcoin is just the beginning. As amazing as the changes we are seeing now and will see in the future thanks to Bitcoin adoption, the things that are built on top of it will be even more revolutionary. It's like the Internet² or even Internet^Internet. Whereas the Internet enabled a zillion more things having to do with easy transfer of information, including Bitcoin, Bitcoin itself will in turn enable a zillion more things having to do with easy transfer of value/claim (smart property, insurance, many other things no one can yet imagine...then many many more things on top of those).

"Anyone who knows what this really means is awestruck, gobsmacked at how everything is about to fundamentally change." -Irdial, in his outstanding article Thinking Correctly about Bitcoin

[Stampbit]

cryptocurrencies will most likely succeed, though bitcoins design lends it to massive volatility and cumbersome user adoption requirements, so eventually it will succumb to a competitor.

[Spendulus]

While I am inspired by your enthusiasm, I think that you are assuming people like the Winklevii twins actually believe in BTC. Even if they claimed to, i still wouldn't know it for a fact. Their economic profile points towards them merely attempting to hoard and turn a huge profit. Even if they did(and others), what does this mean?

Like you, I also believe that the rich nerds of the world, (i.e. silicon valley money and talent) are who is going to truly catapult BTC into the mainstream. ....

I disagree, I tend to think that one or two or three more financial crises like the recent Cyprus boondoogle, paralleled with a rise in volume of trading and price of bitcoin, would firmly establish it as a safe haven.

That's far more powerful than the elite of the nerds.

Ask a simple question:  Can hyperinflation occur in a country if the bitcoin option is available?  If the answer is no, then you have evidence of a major change in outcomes for countries and people under severe financial stress with imminent collapse.

[Wekkel]

I am deliberately giving this a bump. Its originally dated April 2013 and much has happened already (dont forget the Doge  ).
A great read of Tucker from the same period will get the bright minds started again: http://lfb.org/blog/what-if-this-is-happening/

For thoughts about the future, a great summary on emergent networks here: http://greatestinstruments.net/the-rise-of-emergent-networks-part-2-of-2/

A 4 years old idea that is still mind blowing.

[bitrider]

Hey - thanks for bumping this. Missed it back in May. A great read, and some very cool links... and yes...still continually mind blowing years later. 

I am so grateful to be on this journey.

[dc0ded]

I like you broda... 

Excellent thoughts.

[watuba]

This is such a brilliant, concise description of what sets btc apart from other up-and-coming things we've seen.  Thanks for the bump!