Bitcoin Forum
December 03, 2016, 05:49:28 PM *
News: To be able to use the next phase of the beta forum software, please ensure that your email address is correct/functional.
 
   Home   Help Search Donate Login Register  
Pages: [1]
  Print  
Author Topic: Why Limit Total BTC?  (Read 2312 times)
felix_
Newbie
*
Offline Offline

Activity: 5


View Profile
May 17, 2011, 03:23:06 PM
 #1

I don't understand why the supply of BTC has been engineered to approach a set value at a set (varying) rate. Surely you'd want the number of BTC in circulation to rise and fall in response to value changes in order to stabilize the currency. The current system is likely to lead to massive deflation, which will only serve to enrich the early adopters at the expense of latecomers. Its a classic pyramid selling scheme.

Can anyone help me understand the thinking behind the 21M limit?

Cheers
felix
Advertised sites are not endorsed by the Bitcoin Forum. They may be unsafe, untrustworthy, or illegal in your jurisdiction. Advertise here.
1480787368
Hero Member
*
Offline Offline

Posts: 1480787368

View Profile Personal Message (Offline)

Ignore
1480787368
Reply with quote  #2

1480787368
Report to moderator
1480787368
Hero Member
*
Offline Offline

Posts: 1480787368

View Profile Personal Message (Offline)

Ignore
1480787368
Reply with quote  #2

1480787368
Report to moderator
silversurfer
Member
**
Offline Offline

Activity: 103



View Profile
May 17, 2011, 03:25:43 PM
 #2

Who will write the algorithm for changing the supply of BTC in response to some arbitrary value changes?  I like how the supply of currency is totally predictable.

That which is falling should also be pushed.
felix_
Newbie
*
Offline Offline

Activity: 5


View Profile
May 17, 2011, 03:36:08 PM
 #3

So the supply limit is a technical limitation of the algorithm and the massive deflation, pyramid scheme, etc is just something users will have to put up with?
kiba
Legendary
*
Offline Offline

Activity: 980


View Profile
May 17, 2011, 03:36:20 PM
 #4

I don't understand why the supply of BTC has been engineered to approach a set value at a set (varying) rate. Surely you'd want the number of BTC in circulation to rise and fall in response to value changes in order to stabilize the currency. The current system is likely to lead to massive deflation, which will only serve to enrich the early adopters at the expense of latecomers. Its a classic pyramid selling scheme.

It just mean that early adopters have higher purchasing power. Latecomers can save too and earn from the deflationary economy.

kiba
Legendary
*
Offline Offline

Activity: 980


View Profile
May 17, 2011, 03:36:48 PM
 #5

So the supply limit is a technical limitation of the algorithm and the massive deflation, pyramid scheme, etc is just something users will have to put up with?

The pyramid scheme have nothing to do with a deflationary economy.

barbarousrelic
Hero Member
*****
Offline Offline

Activity: 675


View Profile
May 17, 2011, 03:38:06 PM
 #6

Microsoft stock is designed to go up in value. Early adopters were greatly enriched at the expense of late adopters. Is Microsoft (or any successful stock-issuing business) a pyramid scheme?  

"Increasing value" is not a sufficient requirement to classify anything as a pyramid scam or Ponzi scheme.

Do not waste your time debating whether Bitcoin can work. It does work.

"Early adopters will profit" is not a sufficient condition to classify something as a pyramid or Ponzi scheme. If it was, Apple and Microsoft stock are Ponzi schemes.

There is no such thing as "market manipulation." There is only buying and selling.
caveden
Legendary
*
Offline Offline

Activity: 1106



View Profile
May 17, 2011, 03:41:46 PM
 #7

Monetary stability (which normally implies in price deflation) is good for the economy.

And besides that, who would want bitcoins if they inflate constantly? If you have the choice of storing your wealth in something that is constantly created or in something which offer is stable, which would you prefer?

18rZYyWcafwD86xvLrfuxWG5xEMMWUtVkL
felix_
Newbie
*
Offline Offline

Activity: 5


View Profile
May 17, 2011, 04:01:18 PM
 #8

It just annoys me that when I buy my first 1000GBP of bitcoins, I'm buying what probably cost the seller a few dollars several months ago. That's 1000GBP of real money they've got from me and in return for what? Basically nothing. Certainly nothing of any inherent value (unlike stock which produces dividends).
caveden
Legendary
*
Offline Offline

Activity: 1106



View Profile
May 17, 2011, 04:03:30 PM
 #9

Nothing has inherent value. Value is subjective, it's an opinion people have on stuff, not an inherent attribute of stuff themselves.

And if you think BTC have no value, why would you buy them? Keep your pounds in such case...

18rZYyWcafwD86xvLrfuxWG5xEMMWUtVkL
barbarousrelic
Hero Member
*****
Offline Offline

Activity: 675


View Profile
May 17, 2011, 04:03:53 PM
 #10

Many stocks pay no dividends.

Do not waste your time debating whether Bitcoin can work. It does work.

"Early adopters will profit" is not a sufficient condition to classify something as a pyramid or Ponzi scheme. If it was, Apple and Microsoft stock are Ponzi schemes.

There is no such thing as "market manipulation." There is only buying and selling.
Blitz­
Donator
Legendary
*
Offline Offline

Activity: 1596


"Cut Your Loose"


View Profile
May 17, 2011, 04:06:16 PM
 #11

So the supply limit is a technical limitation of the algorithm and the massive deflation, pyramid scheme, etc is just something users will have to put up with?
Yes, the same as gold, Google stocks etc. are pyramid schemes. You’re on top of the pyramid btw. Grin

"Bitcoin had been transformed from an anarachistic challenge to the financial status quo, to the crypto spawn of Satan, fuelled by cut-throat greed and delusions of avarice." - MatTheCat
"these people don't seem to want to stop till Bitcoin is completely destroyed and left like an old cum rag in the corner of the room." - ShroomsKit
myrkul
Hero Member
*****
Offline Offline

Activity: 532


FIAT LIBERTAS RVAT CAELVM


View Profile WWW
May 17, 2011, 04:08:46 PM
 #12

It just annoys me that when I buy my first 1000GBP of bitcoins, I'm buying what probably cost the seller a few dollars several months ago. That's 1000GBP of real money they've got from me and in return for what? Basically nothing. Certainly nothing of any inherent value (unlike stock which produces dividends).

Then do what I did: Bootstrap your way in by providing services or products in exchange for Bitcoins. Save said Bitcoins until the value raises.

BTC1MYRkuLv4XPBa6bGnYAronz55grPAGcxja
Need Dispute resolution? Public Key ID: 0x11D341CF
No person has the right to initiate force, threat of force, or fraud against another person or their property. VIM VI REPELLERE LICET
Ian Maxwell
Full Member
***
Offline Offline

Activity: 140



View Profile WWW
May 17, 2011, 04:34:20 PM
 #13

It just annoys me that when I buy my first 1000GBP of bitcoins, I'm buying what probably cost the seller a few dollars several months ago. That's 1000GBP of real money they've got from me and in return for what? Basically nothing. Certainly nothing of any inherent value (unlike stock which produces dividends).

I agree that the scenario you've outlined is basically what's happening. Why does it annoy you?

If you think bitcoins are too expensive now, don't buy them. But refusing to buy them because the seller will profit too much is just spiteful.

Ian Maxwell
PGP key | WoT rating
tomcollins
Full Member
***
Offline Offline

Activity: 182


View Profile
May 17, 2011, 04:48:13 PM
 #14

It just annoys me that when I buy my first 1000GBP of bitcoins, I'm buying what probably cost the seller a few dollars several months ago. That's 1000GBP of real money they've got from me and in return for what? Basically nothing. Certainly nothing of any inherent value (unlike stock which produces dividends).


Oh noes, someone else makes money!
tomcollins
Full Member
***
Offline Offline

Activity: 182


View Profile
May 17, 2011, 04:49:00 PM
 #15

It just annoys me that when I buy my first 1000GBP of bitcoins, I'm buying what probably cost the seller a few dollars several months ago. That's 1000GBP of real money they've got from me and in return for what? Basically nothing. Certainly nothing of any inherent value (unlike stock which produces dividends).

I agree that the scenario you've outlined is basically what's happening. Why does it annoy you?

If you think bitcoins are too expensive now, don't buy them. But refusing to buy them because the seller will profit too much is just spiteful.

According to a lot of people on the forum, being spiteful is good.  I think early adopters should sell me Bitcoins at $1/each since otherwise would be anti-social.
Pages: [1]
  Print  
 
Jump to:  

Sponsored by , a Bitcoin-accepting VPN.
Powered by MySQL Powered by PHP Powered by SMF 1.1.19 | SMF © 2006-2009, Simple Machines Valid XHTML 1.0! Valid CSS!