ttk2
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July 21, 2011, 01:45:15 PM |
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it's on a decline for a few weeks
its up a ridiculous amount since March
Which implies it's horribly unstable as it is now. No, it means its new, its not that new things cant be stable, its just that there is no point of reference with which to define "stable". |
Just in case i do something worthwhile: 12YXLzbi4hfLaUxyPswRbKW92C6h5KsVnX
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"Bitcoin: mining our own business since 2009" -- Pieter Wuille
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kokjo
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Activity: 1050
Merit: 1000
You are WRONG!
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July 21, 2011, 01:51:44 PM |
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If Bitcoin is a currency with deflation property, that means BTC has to be appreciated (which in reality means BTC is a fancy collectible)
Therefore a rational BTC user will hold BTC rather than spend it.
but if no one spend BTC, then what's the point of such a currency?
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who can help me find out the fallacies in this reasoning? thank you!
eazy. if a rational BTC user, thinks that he can gain more by investing his btc into somthing, he will do. example: rational BTC user, comes up with a great idea: a shop! he buys 100 items for 10 BTC. each item has cost him 0.1 BTC then he sells them for 0.11 BTC each, which gives 11 BTC in total. see: a gain of 1 BTC. fast and eazy. |
"The whole problem with the world is that fools and fanatics are always so certain of themselves and wiser people so full of doubts." -Bertrand Russell
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Anonymous
Guest
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July 21, 2011, 02:08:07 PM |
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it's on a decline for a few weeks
its up a ridiculous amount since March
Which implies it's horribly unstable as it is now. No, it means its new, its not that new things cant be stable, its just that there is no point of reference with which to define "stable". If you want it to be a currency then it needs to stawnd as an alternative to other currencies. There cant be a period of "Well it looks like shit NOW, but in the future~" |
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ttk2
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July 21, 2011, 02:17:22 PM |
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it's on a decline for a few weeks
its up a ridiculous amount since March
Which implies it's horribly unstable as it is now. No, it means its new, its not that new things cant be stable, its just that there is no point of reference with which to define "stable". If you want it to be a currency then it needs to stawnd as an alternative to other currencies. There cant be a period of "Well it looks like shit NOW, but in the future~" And what does it look like now? It looks fine, for the first time the exchange rate is stable, its standing just fine. As a medium for trade, the exchange rate does not affect is ease of use. This new found stability may be a short phase or a new trend, but regardless it shows that Bitcoin has the potential to be a stable medium. And that wild price fluctuations are not internet to the system. |
Just in case i do something worthwhile: 12YXLzbi4hfLaUxyPswRbKW92C6h5KsVnX
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Trader Steve
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July 21, 2011, 02:48:53 PM |
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Savings are set aside for future use. Savings eventually have to be spent. You can't eat bitcoin. Bitcoin will be spent when needed.
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Xephan
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July 21, 2011, 02:51:16 PM |
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Savings are set aside for future use. Savings eventually have to be spent. You can't eat bitcoin. Bitcoin will be spent when needed.
Tell that to BitSquirrel  http://bitcoinweekly.com/comics/bitcoin-mascots |
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wormbog
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July 21, 2011, 03:09:39 PM |
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Savings are set aside for future use. Savings eventually have to be spent. You can't eat bitcoin. Bitcoin will be spent when needed.
Sure, people will spend their bitcoins eventually, once they've blown through all their USD. Unless they get another paycheck first. |
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kokjo
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You are WRONG!
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July 21, 2011, 03:13:29 PM |
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Savings are set aside for future use. Savings eventually have to be spent. You can't eat bitcoin. Bitcoin will be spent when needed.
Sure, people will spend their bitcoins eventually, once they've blown through all their USD. Unless they get another paycheck first. when the dollar have fallen, and the paychecks are in BTC. people will spend BTC on food. |
"The whole problem with the world is that fools and fanatics are always so certain of themselves and wiser people so full of doubts." -Bertrand Russell
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foggyb
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July 21, 2011, 03:44:11 PM |
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If you want it to be a currency then it needs to stawnd as an alternative to other currencies. There cant be a period of "Well it looks like shit NOW, but in the future~"
It looks like shit? Then why is it trading for 13:1 against the dollar? |
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becoin
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July 21, 2011, 04:05:36 PM |
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Therefore a rational BTC user will hold BTC rather than spend it. Then this 'rational' user could die of thirst or hunger?! |
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kokjo
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You are WRONG!
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July 21, 2011, 04:07:43 PM |
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Therefore a rational BTC user will hold BTC rather than spend it. Then this 'rational' user couldwill die of thirst or hunger?! fixed. |
"The whole problem with the world is that fools and fanatics are always so certain of themselves and wiser people so full of doubts." -Bertrand Russell
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becoin
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July 21, 2011, 04:33:05 PM |
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fixed. Yeah, thanks. I'm often amused how brain-washed people are. They just can't imagine a world without monetary inflation. Bitcoins will encourage you to spend money if you really need a product or a service. This is in contrast to fiat money where you're forced to spend because inflation is decreasing the value of your savings every day. However, this 'forceful' spending leads to consumer-centric societies that transform our planet in a garbage depo. Please understand. Monetary inflation is just another tax ordinary people have to pay. A tax which size or % is not defined in any law. It is arbitrarily defined by your government to pay for their own private interests using your money! |
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SgtSpike
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July 21, 2011, 04:44:13 PM |
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Honestly though, a currency where the value neither deflates nor inflates would be the best sort of currency.
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becoin
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July 21, 2011, 04:50:35 PM |
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Honestly though, a currency where the value neither deflates nor inflates would be the best sort of currency.
Bitcoin is such a currency. |
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SgtSpike
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July 21, 2011, 04:56:30 PM |
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Honestly though, a currency where the value neither deflates nor inflates would be the best sort of currency.
Bitcoin is such a currency. Erm, no. Bitcoin is a deflationary currency. |
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becoin
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July 21, 2011, 05:00:58 PM |
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Honestly though, a currency where the value neither deflates nor inflates would be the best sort of currency.
Bitcoin is such a currency. Erm, no. Bitcoin is a deflationary currency. Wrong. Lack of inflation is not equal to deflation! |
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dannickherpderp
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July 21, 2011, 06:01:42 PM |
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Now you have a currency that increases in value slowly over time. Sooner or later you will have something that is more valuable at that instant than the currency stuffed under your mattress, such as groceries or health insurance or a new plasma TV. You trade for something you believe to satisfy your needs. Nothing is different except which way the value of the currency is changing.
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MoonShadow
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July 21, 2011, 06:10:43 PM |
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Bitcoin isn't deflationary yet and won't be for decades at least. Technically, it won't be until 2133, when the block reward drops to zero; but in practice it may turn deflationary at some point in the middle if the loss of bitcoin addresses exceeds the creation of new coins. Presently, Bitcoin is still inflating at over 40% APR (decending) and will not drop below the common 'target' inflation rate of 2% APR until about 2020. So regardless of where one lands on the 'deflationary spiral' debate, it has no bearing on why Bitcoin should or should not be used in our lifetimes. Our grandchildren might have a real reason to have this debate around 2050 or so. The 2030 date that so many articles throw around is just crap.
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"The powers of financial capitalism had another far-reaching aim, nothing less than to create a world system of financial control in private hands able to dominate the political system of each country and the economy of the world as a whole. This system was to be controlled in a feudalist fashion by the central banks of the world acting in concert, by secret agreements arrived at in frequent meetings and conferences. The apex of the systems was to be the Bank for International Settlements in Basel, Switzerland, a private bank owned and controlled by the world's central banks which were themselves private corporations. Each central bank...sought to dominate its government by its ability to control Treasury loans, to manipulate foreign exchanges, to influence the level of economic activity in the country, and to influence cooperative politicians by subsequent economic rewards in the business world."
- Carroll Quigley, CFR member, mentor to Bill Clinton, from 'Tragedy And Hope'
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becoin
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July 21, 2011, 07:12:53 PM |
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Now you have a currency that increases in value slowly over time. Any arguments to support this statement? it may turn deflationary at some point in the middle if the loss of bitcoin addresses exceeds the creation of new coins. To avoid this just don't lose your bitcoins! Simple as that. What happens now if you literally burn a 100 dollar bill? Is there someone that would mercifully compensate you? |
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Zncon
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July 21, 2011, 07:15:15 PM |
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Now you have a currency that increases in value slowly over time. Any arguments to support this statement? it may turn deflationary at some point in the middle if the loss of bitcoin addresses exceeds the creation of new coins. To avoid this just don't lose your bitcoins! Simple as that. What happens now if you literally burn a 100 dollar bill? Is there someone that would mercifully compensate you? Burning US money is harder then you might think. |
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