J603
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August 22, 2013, 05:34:15 PM |
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The downfall of fiat is the downfall of bitcoin. Currently bitcoins are not popular enough as a currency to replace fiat. They have very few legitimate uses as a currency, and their value is tied to fiat. If the fiat currencies lose value then bitcoin will follow.
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Carlton Banks
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August 22, 2013, 08:33:02 PM |
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The downfall of fiat is the downfall of bitcoin. Currently bitcoins are not popular enough as a currency to replace fiat. They have very few legitimate uses as a currency, and their value is tied to fiat. If the fiat currencies lose value then bitcoin will follow.
All wrong The fiat currencies are losing value to Bitcoin as it is, and the value of Bitcoin is not "tied" to fiat, it floats freely. This equates to saying that the fiat currencies have value tied to each other, which is closer to the genuine truth (the currency markets are heavily manipulated a la LIBOR). Bitcoin's legitimate uses outnumber the illegitimate ones, it just gets more attention for the illegitimate uses via media ignorance and smearing. I'd have to put your opinions squarely in that camp: ignorant or hostile (or both, you choose)
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Vires in numeris
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cr1776
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August 22, 2013, 08:37:33 PM |
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+1 You beat me to it. (Carlton - say hello to your cousin from the hood ) All wrong
The fiat currencies are losing value to Bitcoin as it is, and the value of Bitcoin is not "tied" to fiat, it floats freely. This equates to saying that the fiat currencies have value tied to each other, which is closer to the genuine truth (the currency markets are heavily manipulated a la LIBOR). Bitcoin's legitimate uses outnumber the illegitimate ones, it just gets more attention for the illegitimate uses via media ignorance and smearing. I'd have to put your opinions squarely in that camp: ignorant or hostile (or both, you choose)
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AKCoins
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August 27, 2013, 11:09:52 PM |
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Political and economic uncertainty can be a positive factor with regard to the price of Bitcoin. Bitcoin can become desirable when a number of macroeconomic indicators go south. For example, if a government's fiat currency becomes unstable as a result of political issues or economic uncertainty, a more stable alternative may be Bitcoin. Although many people believe that Bitcoin is very volatile for a currency (and it has been in the past), it may prove to be a suitable alternative compared to certain local currencies. Right now, the Indian rupee is being decimated. Since the beginning of the year, the rupee has declined over 17% against the dollar. Conversely, Bitcoin has gone up over 920% in USD terms (based on the increase from around $13 USD in Jan to $120 today). So in India, where the currency is getting hammered, Bitcoin may continue to serve as a good store of value. Keep in mind, converting all your local currency into Bitcoin is a terrible idea. I will not get into further detail as this topic has been exhausted on other threads. Investing or converting local fiat into Bitcoin only makes sense as part of a larger overall strategy. For example, if you have plenty of funds in your local currency available, you may be inclined to put a portion of your excess reserves into something like Bitcoin. Again, a small piece of the puzzle.
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hayek
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August 28, 2013, 01:11:45 PM |
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Yes, world fiat currency is a sinking ship.
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Wekkel
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yes
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August 28, 2013, 07:27:00 PM |
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My bet is that we will first see deflation again after which the world's Central Banks open the floodgates and currency starts to lose value in increased doses. That short period of deflation is not necessarily a good period for Bitcoin. If the S&P500 goes down hard together with other paper, cash will be king and in higher demand, especially USD. Higher demand of USD could mean lower Bitcoin prices.
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Carlton Banks
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August 28, 2013, 07:52:31 PM |
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My bet is that we will first see deflation again after which the world's Central Banks open the floodgates and currency starts to lose value in increased doses. That short period of deflation is not necessarily a good period for Bitcoin. If the S&P500 goes down hard together with other paper, cash will be king and in higher demand, especially USD. I've thought through similar scenarios, and characterize it as a certain proportion of people will cling to fiat ever harder the more it comes under pressure, particularly in the "successful" Western world where there are no cultural reference points for currency collapse at the moment. It's going to be like a religious acolyte watching their god or prophet dying in front of their eyes, in slow motion.
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Vires in numeris
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xxjs
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August 28, 2013, 11:46:33 PM |
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My bet is that we will first see deflation again after which the world's Central Banks open the floodgates and currency starts to lose value in increased doses. That short period of deflation is not necessarily a good period for Bitcoin. If the S&P500 goes down hard together with other paper, cash will be king and in higher demand, especially USD. Higher demand of USD could mean lower Bitcoin prices.
This is excactly what I think too. Well said.
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sublime5447
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August 29, 2013, 02:08:46 AM |
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Bunch of retards posting here. Bitcoin isnt tied to fiat currency value and floats freely---what a load of bullshit. It would do you all some good to look at the history of the great depression. In a deflationary environment all asset prices fall as dollars become more scarce. Bitcoin will not fair well in a deflationary collapse at least quantitatively. Your bitcoins will be valued at a lower rate but may have more purchasing power. In other words your coins might be valued at 50 usd, but 50 usd might buy 150 usd worth of goods at pre-collapses pricing. It is very difficult to say how things will play out. The world has never seen a deflation event on a global scale. Do yourself a favor and watch this then read this guys books. http://www.youtube.com/watch?v=iquemUNNYY8
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Swordsoffreedom
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August 29, 2013, 09:23:56 AM |
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Deflation kicks in slowly were still inflating for a couple decades
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viboracecata
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September 03, 2013, 08:56:09 AM |
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Not good for bitcoin at current stage.
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BitChick
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September 04, 2013, 03:09:32 AM |
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Bunch of retards posting here. Bitcoin isnt tied to fiat currency value and floats freely---what a load of bullshit. It would do you all some good to look at the history of the great depression. In a deflationary environment all asset prices fall as dollars become more scarce. Bitcoin will not fair well in a deflationary collapse at least quantitatively. Your bitcoins will be valued at a lower rate but may have more purchasing power. In other words your coins might be valued at 50 usd, but 50 usd might buy 150 usd worth of goods at pre-collapses pricing. It is very difficult to say how things will play out. The world has never seen a deflation event on a global scale. Do yourself a favor and watch this then read this guys books. http://www.youtube.com/watch?v=iquemUNNYY8 I get what you are saying, and was thinking similar thoughts. However, if the purchase power of BTC increases doesn't that in itself, make BTC more powerful or useful? I would think so. Regardless, to be "wealthy" during the great depression was not fun I am sure. Having to see so many people suffer is never good. I hope that we can escape that kind of suffering. We will see though.
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1BitcHiCK1iRa6YVY6qDqC6M594RBYLNPo
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