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Author Topic: Gold collapsing. Bitcoin UP.  (Read 1957373 times)
Adrian-x
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October 30, 2014, 11:19:13 PM
 #15021

People have been proposing this because they are economically ignorant.

There is no such thing as intrinsic value. Currencies only have value if people use them, so there is no way for Bitcoin to have behave as a store of value in the long term except as a direct consequence of its use as a medium of exchange.

Before you start talking about gold - no, it won't work that way.

Prior to central banks, gold behaved as a store of value because it was used as a medium of exchange.

After central banks, gold behaved as a store of value because of taxation.

Bitcoin could never survive as a high-fee settlement currency because high fees would arise due to block size rationing, not because transactions should naturally cost that much for technical reasons. Bitcoin would lose out to a competing currency with less/no rationing that would be less expensive to use for settlements.

High transaction rates on the main chain are the only way for Bitcoin to survive. Yes, getting there is a difficult technical problem to solve. Deal with it.

Just quoting this because it distills my understanding further, with a cupped hands and raised voice in bold.  thanks,

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tvbcof
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October 30, 2014, 11:26:36 PM
 #15022


well said, the problem isn't technical its adoption of the idea or cryptocurrency, everything flows from faith in Bitcoin.

Exactly.  That is why I don't want to see Bitcoin balloon to the point where it is impractical for smaller players to be full peers.  Preferably individuals if possible.  More than that, I want to see core Bitcoin be small enough so that it could use non-corporate communications channels if the solution is attacked by that sector which I see as a high probability event in the case of the next economic crisis.

Even the threat of eventually just saying 'fuck it' with respect to pruning and making a simplistic tweak to just expand the transaction rate (block size) has been enough to make me that much more inclined to sell out, and I did a fair amount of that at the beginning of the year.  Even if Bitcoin can be pretty big riding on the backs of the large corporate players it's just not a very interesting solution to me at that point.

Sidechains, or seeing some real progress toward them before it's to late, has been most inspiring to me indeed and has reinvigorated my hopes for Bitcoin.

The race now seems to be between the Bitcoin Foundation guys trying to get Gavin's exponential growth in place and the blockstream guys trying to save Bitcoin to be something similar to what it was advertised to be when I first took a position.


Adrian-x
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October 30, 2014, 11:29:39 PM
 #15023


Bitcoin block rewards shrink as we know, but soon like 6 years it would be feasible to consider the transaction fee making up a significant part of the block reward. moving those fees to a SC would degrade Bitcoin.  

Miners mine both chains. They profit no matter where the transactions take place.
[/quote]

I mine, i used to MM NameCoin, i dropped it because it wasn't worth the effort and the 2% pool fee i sacrificed on by BTC. nameCoin's fate could happen to Bitcoin, also 14 years form now we may choose to drop bitcoin altogether because its not needed anymore, it worked as a seed for the SC's.    

edit:
I agree 100% with your comments on transparency and anonymity but I take problem with your "value leaking" theory. There is no value leaking, it is an essentially an ecosystem sharing value in a synergic manner.

mining must also go through a market evolution, it must stop growing as some point. locking in to PoW MM for ever is not evolution it is manipulation, who knows the bitcoin killer may use proof of Bandwidth or proof of Block Archiving. if you do that with a SC I think Bitcoin would become obsolete as the value will leak into the SC as fast as rewards diminish. 


Thank me in Bits 12MwnzxtprG2mHm3rKdgi7NmJKCypsMMQw
brg444
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October 30, 2014, 11:36:27 PM
 #15024

Bitcoin block rewards shrink as we know, but soon like 6 years it would be feasible to consider the transaction fee making up a significant part of the block reward. moving those fees to a SC would degrade Bitcoin.  

Miners mine both chains. They profit no matter where the transactions take place.

I mine, i used to MM NameCoin, i dropped it because it wasn't worth the effort and the 2% pool fee i sacrificed on by BTC. nameCoin's fate could happen to Bitcoin, also 14 years form now we may choose to drop bitcoin altogether because its not needed anymore, it worked as a seed for the SC's.    

I'm sorry but this is a very, very shaky parallel to make.

If Bitcoin is not needed it is only because a better store of value will have appeared. If it is so then let it be, but I don't find it likely since Bitcoin has worked exceptionnaly well so far, benefits from a considerable network effect and has very sound fundamentals.

"I believe this will be the ultimate fate of Bitcoin, to be the "high-powered money" that serves as a reserve currency for banks that issue their own digital cash." Hal Finney, Dec. 2010
brg444
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October 30, 2014, 11:39:23 PM
 #15025


mining must also go through a market evolution, it must stop growing as some point. locking in to PoW MM for ever is not evolution it is manipulation, who knows the bitcoin killer may use proof of Bandwidth or proof of Block Archiving. if you do that with a SC I think Bitcoin would become obsolete as the value will leak into the SC as fast as rewards diminish. 


so essentially your concern is now that Bitcoin gets replaced because a better technology came along  Huh


"I believe this will be the ultimate fate of Bitcoin, to be the "high-powered money" that serves as a reserve currency for banks that issue their own digital cash." Hal Finney, Dec. 2010
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October 30, 2014, 11:43:23 PM
 #15026

Nothing can replace bitcoin.
Bitcoin for life  Wink

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brg444
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October 30, 2014, 11:49:42 PM
 #15027

Nothing can replace bitcoin.
Bitcoin for life  Wink

who knows. before 2009 no one thought we could replace gold as a store of value.

"I believe this will be the ultimate fate of Bitcoin, to be the "high-powered money" that serves as a reserve currency for banks that issue their own digital cash." Hal Finney, Dec. 2010
Adrian-x
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October 30, 2014, 11:50:21 PM
 #15028

Bitcoin block rewards shrink as we know, but soon like 6 years it would be feasible to consider the transaction fee making up a significant part of the block reward. moving those fees to a SC would degrade Bitcoin.  

Miners mine both chains. They profit no matter where the transactions take place.

I mine, i used to MM NameCoin, i dropped it because it wasn't worth the effort and the 2% pool fee i sacrificed on by BTC. nameCoin's fate could happen to Bitcoin, also 14 years form now we may choose to drop bitcoin altogether because its not needed anymore, it worked as a seed for the SC's.    

I'm sorry but this is a very, very shaky parallel to make.

If Bitcoin is not needed it is only because a better store of value will have appeared. If it is so then let it be, but I don't find it likely since Bitcoin has worked exceptionnaly well so far, benefits from a considerable network effect and has very sound fundamentals.

I'm going to quote Justus again  Smiley
Currencies only have value if people use them, so there is no way for Bitcoin to have / behave as a store of value in the long term except as a direct consequence of its use as a medium of exchange.
.... Bitcoin would lose out to a competing currency with less/no rationing that would be less expensive to use for settlements.
High transaction rates on the main chain are the only way for Bitcoin to survive.

Metcalfe's law was my way of thinking about it, I'm happy for something better to come along, i believe bitcoin is a better store of value because the the economic energy maintaining the ledger stays in the ecosystem. as soon as bitcoins move into a SC the SC benefits with no downside risk, the locked scBTC has no value as the value is in the SC tokens. if it goes bad just get a computer to refund your BTC, if it succeeds then the value is gone for good it resided in the SC, theoretically you can convert it back but why?  it seems to me the more SC grow the less valuable BTC becomes.  

Thank me in Bits 12MwnzxtprG2mHm3rKdgi7NmJKCypsMMQw
Adrian-x
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October 31, 2014, 12:00:08 AM
 #15029


mining must also go through a market evolution, it must stop growing as some point. locking in to PoW MM for ever is not evolution it is manipulation, who knows the bitcoin killer may use proof of Bandwidth or proof of Block Archiving. if you do that with a SC I think Bitcoin would become obsolete as the value will leak into the SC as fast as rewards diminish. 


so essentially your concern is now that Bitcoin gets replaced because a better technology came along  Huh


its not better technology that will replace bitcoin its better propaganda and consumer confidence keepers, some improvment i can see implemented in SC adjusting the fixed supply to a constant 3% economic growth stimulates (because economists think moderate monetary growth is good)  increasing the tx fees, we need more miners for security, and teh proponents saying you the people, listen up, we have embraced bitcoin's blockchain technology its been improved and is safe for consumer adoption, were moving our national currency into the blockchain.

and in the blink of an eye Bitcoins tiny billion dollar market cap is absorbed and assimilated and usurped. Replaced  not by better tech but by confidence spinning.

Thank me in Bits 12MwnzxtprG2mHm3rKdgi7NmJKCypsMMQw
tvbcof
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October 31, 2014, 12:12:04 AM
 #15030


I'm going to quote Justus again  Smiley
Currencies only have value if people use them, so there is no way for Bitcoin to have / behave as a store of value in the long term except as a direct consequence of its use as a medium of exchange.
...

Using a properly implemented sidechain IS using Bitcoin.


brg444
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October 31, 2014, 12:16:32 AM
 #15031

I'm going to quote Justus again  Smiley
Currencies only have value if people use them, so there is no way for Bitcoin to have / behave as a store of value in the long term except as a direct consequence of its use as a medium of exchange.
.... Bitcoin would lose out to a competing currency with less/no rationing that would be less expensive to use for settlements.
High transaction rates on the main chain are the only way for Bitcoin to survive.

Metcalfe's law was my way of thinking about it, I'm happy for something better to come along, i believe bitcoin is a better store of value because the the economic energy maintaining the ledger stays in the ecosystem. as soon as bitcoins move into a SC the SC benefits with no downside risk, the locked scBTC has no value as the value is in the SC tokens. if it goes bad just get a computer to refund your BTC, if it succeeds then the value is gone for good it resided in the SC, theoretically you can convert it back but why?  it seems to me the more SC grow the less valuable BTC becomes.  

I don't see how his quote helps you much.

The SC, to me, is part of the ecosystem, unless it issues a different token on its own chain.

I take objections with the kind of statements that suggest it "could go bad". A sidechain using a 1:1 peg of BTC as its unit cannot go bad from my point of view because they are UTILITY chains. Either they execute their purpose as designed or they don't. Only suckers will want to speculate with these type of chains.

I think we all agree that Bitcoin is good enough right now and actually pretty close to being perfect as is. As I have mentionned above, its only shortcomings are in its transportive properties : confirmation times and inability to provide private transactions natively. This leads me to believe these two aspects are likely the only ones that who will lead to the creation of utility sidechains that are used as subsets of Bitcoin-money. In all honesty, is there anything more we need from Bitcoin, as a mean of exchange, than faster confirmation time and a privacy option? I don't think so.

Thousands of other sidechains will be created for different purposes but none will be competing with Bitcoin for its position as crypto-money. Some might try, but will realise they will be better off applying their competing idea to an actual altcoin.

Back to my two utility sidechains : these will never take over Bitcoin as they are effectively serving only a certain application or subset of money. Considering these two applications are using a BTC-peg as their transacting unit they are, barring some technicalities, a part of the Bitcoin network and closely tied to the native bitcoin unit, so much in fact that their 1:1 value will always gravitate toward each others and this correlation will become narrower as arbitrage comes into effect and time allows the technology to mature.


"I believe this will be the ultimate fate of Bitcoin, to be the "high-powered money" that serves as a reserve currency for banks that issue their own digital cash." Hal Finney, Dec. 2010
brg444
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October 31, 2014, 12:21:07 AM
 #15032

its not better technology that will replace bitcoin its better propaganda and consumer confidence keepers, some improvment i can see implemented in SC adjusting the fixed supply to a constant 3% economic growth stimulates (because economists think moderate monetary growth is good)  increasing the tx fees, we need more miners for security, and teh proponents saying you the people, listen up, we have embraced bitcoin's blockchain technology its been improved and is safe for consumer adoption, were moving our national currency into the blockchain.

and in the blink of an eye Bitcoins tiny billion dollar market cap is absorbed and assimilated and usurped. Replaced  not by better tech but by confidence spinning.

 Cheesy Cheesy Cheesy

my man, I have to say you almost had me. I, for one second, had the impression I was conversing with a smart fellow. You should be ashamed of such deception.

your argument is GOVcoin, with inflationary features and corporate sponsors will kill Bitcoin?

well my friend, this is the beauty of cryptocurrency. the democracy of money, where people vote with their $ (or BTC) and may the best man win.

let them have their attempt at GOVcoin and the free market will decide who the winner is.

I, for one, will have no part in it but I wish them luck. they will need lots of it.

"I believe this will be the ultimate fate of Bitcoin, to be the "high-powered money" that serves as a reserve currency for banks that issue their own digital cash." Hal Finney, Dec. 2010
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October 31, 2014, 12:23:52 AM
 #15033


I'm going to quote Justus again  Smiley
Currencies only have value if people use them, so there is no way for Bitcoin to have / behave as a store of value in the long term except as a direct consequence of its use as a medium of exchange.
...

Using a properly implemented sidechain IS using Bitcoin.



+1

"I believe this will be the ultimate fate of Bitcoin, to be the "high-powered money" that serves as a reserve currency for banks that issue their own digital cash." Hal Finney, Dec. 2010
nanobrain
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October 31, 2014, 12:45:02 AM
 #15034

its not better technology that will replace bitcoin its better propaganda and consumer confidence keepers, some improvment i can see implemented in SC adjusting the fixed supply to a constant 3% economic growth stimulates (because economists think moderate monetary growth is good)  increasing the tx fees, we need more miners for security, and teh proponents saying you the people, listen up, we have embraced bitcoin's blockchain technology its been improved and is safe for consumer adoption, were moving our national currency into the blockchain.

and in the blink of an eye Bitcoins tiny billion dollar market cap is absorbed and assimilated and usurped. Replaced  not by better tech but by confidence spinning.

snip....cultist droning...snip

Yeah, yeah..."come the revolution".

Always a day awaaay.

nothing to see here
Adrian-x
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October 31, 2014, 12:45:46 AM
 #15035


I'm going to quote Justus again  Smiley
Currencies only have value if people use them, so there is no way for Bitcoin to have / behave as a store of value in the long term except as a direct consequence of its use as a medium of exchange.
...

Using a properly implemented sidechain IS using Bitcoin.



+1
I still need to understand how, to me it looks like using ones Bitcoin as collateral while one uses a SC's utility.

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cypherdoc
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October 31, 2014, 12:48:56 AM
 #15036


I'm going to quote Justus again  Smiley
Currencies only have value if people use them, so there is no way for Bitcoin to have / behave as a store of value in the long term except as a direct consequence of its use as a medium of exchange.
...

Using a properly implemented sidechain IS using Bitcoin.



+1

you sure are one desperate dude.
brg444
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October 31, 2014, 12:53:40 AM
 #15037

I still need to understand how, to me it looks like using ones Bitcoin as collateral while one uses a SC's utility.

well technically this is what it is. but being that the peg is 1:1 and that they are utility chains that are application specific, their value will mirror BTC's. this does not make them fungible : as others have pointed out and as is properly explained in Konrad Graf's paper, various cost, risks and uncertainties will initially create a likely discount of the BTCpeg (if it were to be traded on the open market, for example). in all likelyhood though, market maturity, infrastructure reinforcement and arbitrage should help narrow that gap significantly in the long term.


"I believe this will be the ultimate fate of Bitcoin, to be the "high-powered money" that serves as a reserve currency for banks that issue their own digital cash." Hal Finney, Dec. 2010
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October 31, 2014, 12:56:03 AM
 #15038

you sure are one desperate dude.


 Huh

As much as I like to argue irrational conspiracy theories such as yours it is only right that I recognize those that are more reasonable in their use of logic and refrain from posting FUD

"I believe this will be the ultimate fate of Bitcoin, to be the "high-powered money" that serves as a reserve currency for banks that issue their own digital cash." Hal Finney, Dec. 2010
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October 31, 2014, 12:57:23 AM
 #15039

Using a properly implemented sidechain IS using Bitcoin.
+1

you sure are one desperate dude.

You sure are one scared dude.  Why would that be???


Adrian-x
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October 31, 2014, 12:57:48 AM
 #15040


 Cheesy Cheesy Cheesy

my man, I have to say you almost had me. I, for one second, had the impression I was conversing with a smart fellow. You should be ashamed of such deception.

your argument is GOVcoin, with inflationary features and corporate sponsors will kill Bitcoin?

well my friend, this is the beauty of cryptocurrency. the democracy of money, where people vote with their $ (or BTC) and may the best man win.

let them have their attempt at GOVcoin and the free market will decide who the winner is.

I, for one, will have no part in it but I wish them luck. they will need lots of it.

I only half joke, but seriously SC are the technical manifestation of "the blckchain the ledger is separate from Bitcoin the currency."

Who can predict how this ends and what SC will manifest.
If money is memory then the ledger is the money.

Thank me in Bits 12MwnzxtprG2mHm3rKdgi7NmJKCypsMMQw
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