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turtlehurricane (OP)
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May 15, 2014, 02:11:36 AM
Last edit: September 27, 2015, 12:41:03 PM by turtlehurricane |
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"You Asked For Change, We Gave You Coins" -- casascius
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TERA
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May 15, 2014, 02:21:52 AM |
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In saying "retains value". you cannot simply look at one side of supply vs. demand - you have to look at both. Bitcoin retains value because both the supply is limited and because it is growing in demand. However, if the demand were to ever shrink at some point, it would not retain value.
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lyth0s
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World Class Cryptonaire
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May 15, 2014, 02:29:12 AM |
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I think the point is that it retains value better than the USD for the first 1/2 of the equation, being that it is not printed (infinite supply). The USD also needs demand in order to retain value. If no one wants the USD in exchange for their goods/services, it also becomes worthless.
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TERA
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May 15, 2014, 06:29:59 AM |
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Yes I understand you believe that Bitcoin's demand is going up. However, you must include that in the list of TWO reasons why Bitcoin retains value, and you cannot just mention the supply side. |
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trace666
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May 15, 2014, 06:36:44 AM |
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since we are mining large numbers of bitcoin every day, for the next few years, bitcoin supply will increase faster than USD supply. only later is what you say true.
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trace666
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May 15, 2014, 10:32:40 AM
Last edit: May 16, 2014, 07:29:11 AM by trace666 |
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since we are mining large numbers of bitcoin every day, for the next few years, bitcoin supply will increase faster than USD supply. only later is what you say true.
Did you see the charts? USD supply is increasing MUCH faster than Bitcoin supply. So this statement is false. For bitcoin, I found the following growth rates at at https://en.bitcoin.it/wiki/Controlled_supply| Year | BTC Supply
Growth Rate | USD M2 Supply
Growth Rate | USD M3 Supply
Growth Rate | 2007 | n/a | 12% | 10% | 2008 | n/a | 8% | 15% | 2009 | infinite | 5% | 10% | 2010 | 100% | -3% | -3% | 2011 | 50% | 7% | -2% | 2012 | 33% | 5% | 4% | 2013 | 13% | ? | 5% | 2014 | 11% | ? | 4% | 2015 | 10% | ? | ?% |
Source for USD M2 Money supply growth figures is the World Bank, http://data.worldbank.org/indicator/FM.LBL.MQMY.ZGSource for USD M3 Money supply growth figures is Shadow Government Statistics, American Business Analytics & Research LLC, M3 ShadowStats chart at http://www.shadowstats.com/alternate_data/money-supply-charts |
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Raystonn
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May 16, 2014, 01:21:21 AM |
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What you want is M3, not M2. The Federal Reserve ceased publication of M3 on March 23, 2006. Love the transparency...
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trace666
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May 16, 2014, 07:30:32 AM |
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What you want is M3, not M2. The Federal Reserve ceased publication of M3 on March 23, 2006. Love the transparency...
Updated my post above again with M3 statistics from Shadow Government Statistics, American Business Analytics & Research LLC, M3 ShadowStats chart at http://www.shadowstats.com/alternate_data/money-supply-chartsI am still not convinced that the USD money supply increases faster than the BTC money supply. Obviously, this will change in the far future, when most BTC have been mined. |
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