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Author Topic: Curiosity versus currency  (Read 2793 times)
FreeMoney
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July 13, 2011, 08:05:31 AM
 #21

If what good traders do, like a capacitor (understood, btw, I know about analog integration), is smooth out the price...then why is an arbitrary number of dollars per chicken, the cost of gasoline, the "value" of your mortgage supposed to double every ten years?  Who is gaming the game?

New dollars coming in dilute the value. This is why Bitcoin is capped at a known amount and no one has a special place, unlike the dollar and it's lords.

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FreeMoney
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July 13, 2011, 08:11:12 AM
 #22

Also "smooth out" is not the same as "hold exactly still". Things in the real world change and prices reflect that. The better and more quickly they reflect that the better plans we can all make.

In terms of Bitcoin price, if Bitcoin is ultimately going to be the main money in the world then signaling this as quickly as possible lets people rationally start building the infrastructure that will be needed. If it is going to fail and be worthless knowing that in advance would save lots of effort and resources. Whoever can tell us the truth (or be most accurate) will get paid, people who mislead with wrong predictions pay that bill in money lost from trading.

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July 14, 2011, 03:30:58 AM
 #23

I am so accustomed to seeing the "main money" in the world belonging to, and ultimately being destroyed by empires, it is taking me some time to imagine in detail that which attracts me most to this new toy.  If it becomes a widely accepted currency, the government will freak out and try hunting down the "source".  Of course, there isn't one, by definition...but they will try none the less.
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July 14, 2011, 07:47:44 AM
 #24

I have services to offer.  I'm not convinced that offering them for BC will enamour me to my clients.

For your existing clients, probably not.  Will accepting bitcoins attract new clients?  Again, probably not, but this is the right question to ask.

For me, trading a few bitcoins back and forth makes me part of the drama while I wait for the bitcoin economy to mature to the point where there is something that I want to do that is more conveniently done with bitcoins.
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July 20, 2011, 11:31:40 PM
 #25

Ronwan, you give me hope.  But bear in mind my sense of time.  If the government shall be cast down as a Golden Calf, then why do the commoners need to starve by the machinations of the financially clever?  How is that an improvement?

The government has to be "cast down" so that the commoners DON'T starve.  Not all people are skilled and can provide this market function at a profit.  Thus the don't help AND they loose money. They eventually go away.  Most people need to use bitcoins not speculate in them.

As far as starvation, as I said, successful grain speculators KEEP people from starving.  That was my point.  Voluntarism is the best way to maximize the commoners standard of living in my view.

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July 23, 2011, 08:26:32 PM
 #26

Could you explain in detail how speculators in grain prevent people from starving?  I am NOT arguing, I actually do not understand this and would like to hear it explained.  I have a very rough idea that increased price of grain is good for speculators and bad for hungry people, but I am well aware that my models are over-simplified at this point.  If you would, please continue.
bitrick
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July 24, 2011, 01:12:35 AM
 #27

In its most simplest form:

The crops all come in at the same time. The farmers need money to pay their loans back - they can't wait. So they sell. All at once. The price plummets, the supermarkets get great prices, but the farmers go broke and starve. Enter the speculator. He has extra money, he knows the price will likely rise in the near future. He buys the wheat and warehouses it. The price rises, he sells and makes money. With money to be made, the speculators compete for the wheat at harvest and eventually the price does not plummet at harvest anymore.
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July 24, 2011, 01:35:38 AM
 #28

BBanzai: You are a master with words. Smiley Do you think the bitcoin exchanges are any different from other financial markets, in theory? Isn't the goal the same everywhere, to do successful trades? Smiley

"You are a master with words." +1

I, for one, love BBanzai's writing style. He has a way with drawing me into his infectious hypothesis(or plural: ses).

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August 02, 2011, 04:40:18 AM
 #29

Hypothesis?  And here I thought that I was asking questions.  As you like.  I understand a little better now how speculators make farmers more successful, its the consumer side that I do not have a clear picture of.  Competition lowers prices, consumers are people that can not produce themselves what they purchase.  Theoretically they produce an excess of things that farmers do not or cannot and so trade is indeed fair.  But I have seen a disconnect in this model in the real world.  The consumer class does not produce much that the productive class seems to value.  And so they find themselves impoverished by clever-clever people and haven't the slightest idea what happened.
BBanzai
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August 02, 2011, 05:00:00 AM
 #30

Ronwan, I was hoping to hear your reply.
ronwan
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January 10, 2012, 07:44:45 AM
 #31

Ronwan, I was hoping to hear your reply.

Sorry folks, got busy and off the forum for a while.

As was stated by others, speculators buy "and Store" crops to make money in the future. In this way consumers are helped because when we go to buy bread there is not a shortage just before harvest. It is available year round and the speculators flatten out the price bumps between harvests.  How this helps farmers was explained but I hope you can see that as consumers, our current needs as well as our future needs are taken care of by speculators who are happy to store and sell food to us year round.

Not as good as gold, BETTER.
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January 11, 2012, 01:21:16 AM
 #32

I have never been a gambler, or traded words for indemnity.  I have earned my keep by solving specific puzzles that my clients could not.  The idea of arguing one's way into a paycheck is offensive to me.  Studying Bitcoins is well within my demeign. 

Out of interest, what's your day job?

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