Want to get your friends into Bitcoin? Show them this!

[bbeagle]

An example that i remember from school was:
"If you go to a bank to get a loan of 500 000 to buy an house, the bank did not to have these 500 000. Its enough that the bank got the house as leverege, so the bank can create the money for the leverge as called "bank money"."

Wow. You're so wrong.

If you go to a bank to get a loan of 500 000 to buy a house, the bank needs to give 500 000 of REAL MONEY to whomever you are buying the house from. I'll try to simplify this. The bank gets this from deposits at the bank. Say 10 people come in and deposit 100 000 each. The bank has 1 000 000. The bank gives the seller of the house 500 000, in exchange for the buyer to pay the bank back over 30 years. The bank owns 500 000 in cash and a 500 000 asset. So, if all 10 people who deposited 100 000 come back for their money, they can't get it - the bank only has half that - 50 000 for each person. This is where people say a bank doesn't hold all the money people deposit, so if there is a run on the bank, they can't pay out immediately.

The banks determine how much cash they need on hand so that normal deposits / withdrawals can take place. This might be as low as 1% - they only need $10 000 on hand. So they use the other $490 000 to invest in stocks/bonds, etc. When the bank is TOO risky with it's investments, it loses the capital (part of the $990 000 it invested / lent out), then it CAN'T pay back depositors immediately (and if they ask for all their money back, the bank becomes insolvent).

But the bank doesn't just create 'bank money' out of thin air. The government creates money out of thin air (by selling bonds) but not banks. The bank might say '$1 000 000 in deposits' but actually only have $10 000 in their cash ledger. But adding up all the other assets / investments, the bank should have MORE than $1 000 000, which is where they generate their profits.

Banks which 'cheat' have their CEOs and upper management steal/take/embezzel money from the original $1 000 000, similar to what Mt. Gox might have done.

[bountygiver]

After watching the video, I can conclude that this is insufficient to convenience an average joe to use bitcoin
You still need to explain the details of bitcoins to them and counter all the FUD the media has been making

But this video is a good comeback against "I rather believe in USD because it is backed by the government" and "its a Ponzi scheme"

[keithers]

I used to recommend buying bitcoins to friends and relatives when bitcoin was in the 25 to 100 USD range, but at current prices I don't bother anymore.

That's one more of a reason to tell them:
I TOLD YOU SO!!!!
You can still get in before it goes over $1000 again

Yes, although prices in the $600 are probably cheap in comparison to what we will see in a few years from now, it is still too high of an entry point for a lot of first time investors.   They may be better off getting their feet wet with LTC first...and maybe a couple BTC if they can afford.

[S4VV4S]

I used to recommend buying bitcoins to friends and relatives when bitcoin was in the 25 to 100 USD range, but at current prices I don't bother anymore.

That's one more of a reason to tell them:
I TOLD YOU SO!!!!
You can still get in before it goes over $1000 again

Yes, although prices in the $600 are probably cheap in comparison to what we will see in a few years from now, it is still too high of an entry point for a lot of first time investors.   They may be better off getting their feet wet with LTC first...and maybe a couple BTC if they can afford.

Would you rather buy a dummy Rolex or a real one?

[S4VV4S]

After watching the video, I can conclude that this is insufficient to convenience an average joe to use bitcoin
You still need to explain the details of bitcoins to them and counter all the FUD the media has been making

But this video is a good comeback against "I rather believe in USD because it is backed by the government" and "its a Ponzi scheme"

This video is to show that Bitcoin is more trustworthy than fiat currency, period.

[bountygiver]

I used to recommend buying bitcoins to friends and relatives when bitcoin was in the 25 to 100 USD range, but at current prices I don't bother anymore.

That's one more of a reason to tell them:
I TOLD YOU SO!!!!
You can still get in before it goes over $1000 again

Yes, although prices in the $600 are probably cheap in comparison to what we will see in a few years from now, it is still too high of an entry point for a lot of first time investors.   They may be better off getting their feet wet with LTC first...and maybe a couple BTC if they can afford.

too high of an entry point? Just buy less BTC.
At $600 a piece we can now mainly trade with mBTC, when it gets higher we might trade with nano BTC.
The current price is not what matters, it's all about if it will rise or fall.

[dre_2ooo]

That will still go over the heads of many Americans...  Sadly.

[God]

I saw this video before and I just enjoyed watching it again. I went to school in the 80'ies and somehow I got the impression that banks lend out only the money that people deposit into their savings account. I don't know if this was something I just assumed because it would be the logical thing, or if they actually told us this in school. Any of you guys remember?

[~Coinseeker~]

I saw this and the whole series quite some time ago.  Now, I get why Bitcoin having a limit to the amount that can be created is ideal over a currency that can be printed at will.  Here's what I still don't get:

How does Bitcoin help everyone else who doesn't have Bitcoin?  How is Bitcoin supposed to replace fiat, if everyone can't get it and in order to get it, they have to buy it with fiat? 

[bountygiver]

I saw this and the whole series quite some time ago.  Now, I get why Bitcoin having a limit to the amount that can be created is ideal over a currency that can be printed at will.  Here's what I still don't get:

How does Bitcoin help everyone else who doesn't have Bitcoin?  How is Bitcoin supposed to replace fiat, if everyone can't get it and in order to get it, they have to buy it with fiat? 

this is a problem if we ever want to move to a new currency.
Unless we all decide to donate our coins to the public for the sake of market liquidity, which will increases the rest of our coins value ALOT. But then there's the free rider problem, where some people will keep their coins instead just to get even bigger slice of wealth, and this is totally uncontrollable for such decentralized currency.

[hensi]

ill show it to my frnds :v

[~Coinseeker~]

I saw this and the whole series quite some time ago.  Now, I get why Bitcoin having a limit to the amount that can be created is ideal over a currency that can be printed at will.  Here's what I still don't get:

How does Bitcoin help everyone else who doesn't have Bitcoin?  How is Bitcoin supposed to replace fiat, if everyone can't get it and in order to get it, they have to buy it with fiat?  

this is a problem if we ever want to move to a new currency.
Unless we all decide to donate our coins to the public for the sake of market liquidity, which will increases the rest of our coins value ALOT. But then there's the free rider problem, where some people will keep their coins instead just to get even bigger slice of wealth, and this is totally uncontrollable for such decentralized currency.

Yup...well I ask because the thread title says, "show them this" and I don't see how that makes a full case for Bitcoin, aside from avoiding fiat that can be created from thin air.  In addition to my previous questions, Bitcoin also doesn't prevent fractional reserve banking, which is our biggest problem. So, I'm just looking for resolve on this because it's the one thing in the year I've been at this, that I can't reconcile. I send this video to someone and make the case for Bitcoin how?  How do I explain how Bitcoin solves all the issues presented?  Does Bitcoin actually solve them and if so, how?

[jadehorse]

Nice! I'll put this link in my facebook to encourage my friends!

[S4VV4S]

I saw this and the whole series quite some time ago.  Now, I get why Bitcoin having a limit to the amount that can be created is ideal over a currency that can be printed at will.  Here's what I still don't get:

How does Bitcoin help everyone else who doesn't have Bitcoin?  How is Bitcoin supposed to replace fiat, if everyone can't get it and in order to get it, they have to buy it with fiat?  

this is a problem if we ever want to move to a new currency.
Unless we all decide to donate our coins to the public for the sake of market liquidity, which will increases the rest of our coins value ALOT. But then there's the free rider problem, where some people will keep their coins instead just to get even bigger slice of wealth, and this is totally uncontrollable for such decentralized currency.

Yup...well I ask because the thread title says, "show them this" and I don't see how that makes a full case for Bitcoin, aside from avoiding fiat that can be created from thin air.  In addition to my previous questions, Bitcoin also doesn't prevent fractional reserve banking, which is our biggest problem. So, I'm just looking for resolve on this because it's the one thing in the year I've been at this, that I can't reconcile. I send this video to someone and make the case for Bitcoin how?  How do I explain how Bitcoin solves all the issues presented?  Does Bitcoin actually solve them and if so, how?

You have a very strong point.
Showing your friends this will make them understand the flaws of fiat currency, but it doesn't make any mention of BTC or how BTC does not carry those flaws.

Please allow me some time as I am at work now.
When I get home I will gather whatever useful info I can find so you can send it together with this video

[DiamondDust]

Really interesting info, thanks for sharing this to us.

[~Coinseeker~]

You have a very strong point.
Showing your friends this will make them understand the flaws of fiat currency, but it doesn't make any mention of BTC or how BTC does not carry those flaws.

Please allow me some time as I am at work now.
When I get home I will gather whatever useful info I can find so you can send it together with this video

Thanks, I'll be looking forward to it. 

[S4VV4S]

You have a very strong point.
Showing your friends this will make them understand the flaws of fiat currency, but it doesn't make any mention of BTC or how BTC does not carry those flaws.

Please allow me some time as I am at work now.
When I get home I will gather whatever useful info I can find so you can send it together with this video

Thanks, I'll be looking forward to it. 

OK, start with this: http://www.youtube.com/watch?v=V-3haBibXWc

Many thanks to CoinLearn for his post: https://bitcointalk.org/index.php?topic=512096.0

I will add more as we go.

If you have something to add please do so.
Thank you

[~Coinseeker~]

OK, start with this: http://www.youtube.com/watch?v=V-3haBibXWc

Many thanks to CoinLearn for his post: https://bitcointalk.org/index.php?topic=512096.0

I will add more as we go.

If you have something to add please do so.
Thank you

Thanks for the video.  This however is nothing more than a Bitcoin promotional video.  Good for those purposes but this does nothing to answer the questions as to how Bitcoin solves the issues and challenges addressed in the original video you posted.  I think that it's good for people to see how the system works but why buy Bitcoin, if it doesn't solve the issues of that system?  That's the question I would ask, if you sent me the original video as an attempt to get me into Bitcoin.  This promo video would still leave me without answers.

[bitcasino]

Tons of videos like that on the web, conspiracy video, nothing more. Everything is wrong.

[S4VV4S]

OK, start with this: http://www.youtube.com/watch?v=V-3haBibXWc

Many thanks to CoinLearn for his post: https://bitcointalk.org/index.php?topic=512096.0

I will add more as we go.

If you have something to add please do so.
Thank you

Thanks for the video.  This however is nothing more than a Bitcoin promotional video.  Good for those purposes but this does nothing to answer the questions as to how Bitcoin solves the issues and challenges addressed in the original video you posted.  I think that it's good for people to see how the system works but why buy Bitcoin, if it doesn't solve the issues of that system?  That's the question I would ask, if you sent me the original video as an attempt to get me into Bitcoin.  This promo video would still leave me without answers.

OK, I have finished work, but to be honest I am a bit tired to gather all the info BUT...
BTC is created by miners just like GOLD, so it doesn't just appear out of nowhere,
BTC is not centralized and not one government or entity can claim that they own BTC,
BTC can not be double spent and it cannot be given with blank promises (cheques, etc).

There is much more that I want to add, but to be honest bro, right now I am so tired that I just want to browse the forums for a bit and maybe even play a game of Pilotta or Belotte for most.

Don't get me wrong, you do have a point and I MUST provide the right answers but right now I can't be bothered.

I will get to it ASAP.
I promise.
But it is not going to be tonight....