Bitcoin Forum
May 09, 2024, 07:23:33 AM *
News: Latest Bitcoin Core release: 27.0 [Torrent]
 
   Home   Help Search Login Register More  
Pages: « 1 [2]  All
  Print  
Author Topic: A question on Attrition of BitCoins ???  (Read 3295 times)
kiba
Legendary
*
Offline Offline

Activity: 980
Merit: 1014


View Profile
March 02, 2011, 04:19:10 AM
 #21

Yea, I get it. But IRL there is a lag. And that Lag causes problems. There will be a certain number of things sold at one value before people get around to repricing the products, their will be an affect.

Just like the minimum wage joke:  They raise the wage, so product price will raise overtime to eat the increased cost, and then everyone is back to the same position. The time between those two positions there is an affect on the economy.

Tell everybody they will make 50 bucks and hour; they love you. But then the cost of products go up to counter the inflated wages.

The losers are people with contracts that don't cover changes in CPI (Consumer Price Increases).  Like mortgage and car loans. It will help the consumer but kill the business.  All the Big Boy contracts put in the CPI clause.  The "little guy" mortgage and car loans are covered in surprising ways. A little secret. Yea, the amount you pay on your loan will stay the same, but I bet you a 100 BitCoins that the insurance on those loans go up. Guess what, You are forced to carry insurance on Cars, and Houses until you own them.  The Big Boys are good at hiding the details.

Have you see a loan market in bitcoin? Not really.

Well, I was one of the first to be loaned with bitcoin once to go shorting. I shorted once, then I try to short again..but I gave up and paid all my debt(with a positive inflation rate!)

Anyway, if the loan market is really small or non-existent, than loans aren't really a problem in the bitcoin economy.

1715239413
Hero Member
*
Offline Offline

Posts: 1715239413

View Profile Personal Message (Offline)

Ignore
1715239413
Reply with quote  #2

1715239413
Report to moderator
1715239413
Hero Member
*
Offline Offline

Posts: 1715239413

View Profile Personal Message (Offline)

Ignore
1715239413
Reply with quote  #2

1715239413
Report to moderator
Bitcoin mining is now a specialized and very risky industry, just like gold mining. Amateur miners are unlikely to make much money, and may even lose money. Bitcoin is much more than just mining, though!
Advertised sites are not endorsed by the Bitcoin Forum. They may be unsafe, untrustworthy, or illegal in your jurisdiction.
1715239413
Hero Member
*
Offline Offline

Posts: 1715239413

View Profile Personal Message (Offline)

Ignore
1715239413
Reply with quote  #2

1715239413
Report to moderator
1715239413
Hero Member
*
Offline Offline

Posts: 1715239413

View Profile Personal Message (Offline)

Ignore
1715239413
Reply with quote  #2

1715239413
Report to moderator
1715239413
Hero Member
*
Offline Offline

Posts: 1715239413

View Profile Personal Message (Offline)

Ignore
1715239413
Reply with quote  #2

1715239413
Report to moderator
The Script
Sr. Member
****
Offline Offline

Activity: 336
Merit: 250


View Profile
March 08, 2011, 02:42:40 AM
 #22

What the OP is talking about here would likely take hundreds of years to happen.  BitCoins aren't going to leach out of the system that fast.  Besides, if BitCoins succeed I bet it will only be 5 or 10 years before someone else starts another digital currency akin to BitCoins.  It is likely that if Crypto Currency takes off you will have several different ones competing with each other and so the whole world won't have to exclusively use BitCoins. 

Adding another decimal place to the RIGHT of the zero isn't inflation.  1 BTC will still be 1 BTC, you simply will be able to use smaller portions of it in your transactions.

If the Federal Reserve suddenly started minting 1/10th penny coins the US dollar wouldn't suddenly inflate.  Of course in the case of the US dollar no one would use them because a penny is already a very small amount which is only used when exact change is required.

Am I wrong?

TiagoTiago
Hero Member
*****
Offline Offline

Activity: 616
Merit: 500


Firstbits.com/1fg4i :)


View Profile
March 08, 2011, 03:16:29 AM
 #23

Isn't this just psychological? If the client tomorrow started fully working with all the 8 decimal places, would that hurt the Bitcoin economy in any way? I wouldn't expect things to be any different when a nineth or more places get added...

(I dont always get new reply notifications, pls send a pm when you think it has happened)

Wanna gimme some BTC/BCH for any or no reason? 1FmvtS66LFh6ycrXDwKRQTexGJw4UWiqDX Smiley

The more you believe in Bitcoin, and the more you show you do to other people, the faster the real value will soar!

Do you like mmmBananas?!
eMansipater
Sr. Member
****
Offline Offline

Activity: 294
Merit: 273



View Profile WWW
March 08, 2011, 03:29:59 AM
 #24

A topic like this seems to appear once or twice every week.
Yes, I've been thinking I should try and write out a very careful response to this and a couple other common ones that we could sticky.

If you found my post helpful, feel free to send a small tip to 1QGukeKbBQbXHtV6LgkQa977LJ3YHXXW8B
Visit the BitCoin Q&A Site to ask questions or share knowledge.
0.009 BTC too confusing?  Use mBTC instead!  Details at www.em-bit.org or visit the project thread to help make Bitcoin prices more human-friendly.
asdf
Hero Member
*****
Offline Offline

Activity: 527
Merit: 500


View Profile
March 08, 2011, 03:31:17 AM
 #25

Bitcoins are infinitely divisible. The protocol currently supports 8 decimal places and can easily extended to support as many as needed.

This has been discussed thoroughly before in the forums.
TiagoTiago
Hero Member
*****
Offline Offline

Activity: 616
Merit: 500


Firstbits.com/1fg4i :)


View Profile
March 08, 2011, 03:49:03 AM
 #26

Perhaps a thread on the matter should be stickyfied....

(I dont always get new reply notifications, pls send a pm when you think it has happened)

Wanna gimme some BTC/BCH for any or no reason? 1FmvtS66LFh6ycrXDwKRQTexGJw4UWiqDX Smiley

The more you believe in Bitcoin, and the more you show you do to other people, the faster the real value will soar!

Do you like mmmBananas?!
Pages: « 1 [2]  All
  Print  
 
Jump to:  

Powered by MySQL Powered by PHP Powered by SMF 1.1.19 | SMF © 2006-2009, Simple Machines Valid XHTML 1.0! Valid CSS!