Is Bitcoin FATALLY FLAWED?

[jyakulis]

Why are smaller units of currency not viable?

They were viable in 1950 prior to the rampant inflation. They were viable in the early 1900's prior to rampant inflation. I don't get it, all you do is just make smaller and smaller pieces of a dollar vs. more and more dollars. It seems easier to drop a quarter for a quart of milk vs. 15 quarters.

Why is a situation of gradual deflation scary to people. It encourages savings as opposed to consumption. The problem is you can't imagine because you lived in an inflationary world with constant inflation your whole life. Take a trip to imagination land sometime bud.

[Elwar]

All technologies eventually lead to centralization and control from a single source because of economic of scale. Peer to peer protocol is a pipe dream to begin with.

exactly

Name one that did not become centralized due to government interference.

Just one.

All tech starts off with many players and then 3 or so survive and one is the dominant player

Hardware Clones early 80's many players now how many? Not many
OS several players early and windows became the player
Internet Providers many local access companies now a few big companies
Browsers many players now a few
Search Engines many players now a few with google the main one
ebooks many players with now 3 main players and amazon the dominant one


Now none of these tech companies benefited from government rules or interference, in fact MS was hit with a monopoly case

So tech always has many companies and within a short span of time, a few survive and one dominates

Crypto currency is tech, lots of coins now and in a few years one will be dominant and a few will survive

So...a lot of technologies with multiple competitors with some dominating players.

The network affect tends to reward early players in a field but they are not the only ones until the government steps in to create barriers to entry. No natural monopoly can develop on its own.

MtGox was rewarded with first player status due to the network affect. They dominated for some time. Had government stepped in to regulate, they could have reined as the sole exchange for many years.

[jyakulis]

All technologies eventually lead to centralization and control from a single source because of economic of scale. Peer to peer protocol is a pipe dream to begin with.

exactly

Name one that did not become centralized due to government interference.

Just one.

All tech starts off with many players and then 3 or so survive and one is the dominant player

Hardware Clones early 80's many players now how many? Not many
OS several players early and windows became the player
Internet Providers many local access companies now a few big companies
Browsers many players now a few
Search Engines many players now a few with google the main one
ebooks many players with now 3 main players and amazon the dominant one


Now none of these tech companies benefited from government rules or interference, in fact MS was hit with a monopoly case

So tech always has many companies and within a short span of time, a few survive and one dominates

Crypto currency is tech, lots of coins now and in a few years one will be dominant and a few will survive

The network affect tends to reward early players in a field but they are not the only ones until the government steps in to create barriers to entry. No natural monopoly can develop on its own.

MtGox was rewarded with first player status due to the network affect. They dominated for some time. Had government stepped in to regulate, they could have reined as the sole exchange for many years.

The issue is people that seek control tug at peoples heart. They'll be like look at all this fraud and look at all these innocent people hurt. You see now we need to regulate and control it because people can't be trusted. It's really a lack of love and trust in your fellow man that drives people to regulate and control. The funny thing is people that want to regulate and control pretend to do it out of love. What a catch 22.

[Elwar]

I have come to the conclusion that bitcoin is fatally flawed and that is why the value of bitcoin has falled this year so much.

I have come to the conclusion that you are not the sharpest knife in the drawer. And since I AM the sharpest knife in the drawer, I'm probably right.

Bitcoin, being a global currency, has many foreign adopters. A bit of leeway should be given when it comes to language differences. It is obvious that OP is not from an English speaking country.

[CoinDiver]

a. there is no reason for the general public to acquire it
b. there is no easy way for the general public to acquire it
c. it is impossible for most of the world (the poor) to acquire bitcoin since most now have to acquire it from 3rd parties that follow banks rules and the poor is the majority of the world and ignored by western banks
d. it's a toy novel currency for a niche set of western people that refuse to realize most of the world will never use bitcoin nor any bank or credit card
e. the bitcoin network is fatally flawed by how slow transactions are now and it will never be able to handle 100 Million or over 1 Billion transactions a day as a real globally currency unit would need to do
f. 22 Million coins too little to fuel a global economy with 7 billion people, and the high price of a coin will scare aware most of the world.

These are all very short sighted, bordering on ignorant.

a. Businesses have a reason to prefer it over alternative methods. This means in one way or another, it is cheaper for a business to accept bitcoin over other forms of payment. They have already begun to offer bitcoin only discounts for products. Many places offer cash/check/wire discounts. Bitcoin will very soon be accepted similarly, but is much easier than any of the above for the consumer.

b. It is 100x easier to acquire than 2 year ago. This trend continues.

c. There will be future forms of physical currency backed in some fashion or another by bitcoin. This is bitcoin for the masses.

d. This point shows you have some other motive.

e. Transactions are instant. Confirmations are a little slower. Still faster than anything else, and does not rely on the whim of a central party.

f. This is simply ignorant.

[VistaSharpie]

The premise behind point A is pretty dumb.  How is Bitcoin any harder to get than the US Dollar?

[tss]

now this douche is double posting to his own content?

WHERE IS THE BAN HAMMER?

[bigcrypto]

there are many wrong statemens in your post

[RodeoX]

...
I have come to the conclusion that bitcoin is fatally flawed and that is why the value of bitcoin has falled this year so much.
...

Hello 2011. I don't have time to walk you through the answers to all your questions. But rest assured they have been asked and answered a billion times. The fatal flaws you point out are in no way flaws of bitcoin.

[commandrix]

I don't think Bitcoin is fatally flawed so much as it's not making use of the latest technology available to cryptocurrencies and that could hold it back. If it falls, the concepts that Bitcoin is based on will still be out there and can be used in the future. I've had some luck with ignoring the exchanges and just earning Bitcoin with my writing. And you're ignoring the fact that a Bitcoin can be divided down to 0.00000001 BTC (a "Satoshi"), so in reality, the number of possible units is high enough to be useful.

[slaveforanunnak1]

So after reading the greatest document on global currency I ever read yesterday,

https://bitcointalk.org/index.php?topic=879726.0

I have come to the conclusion that bitcoin is fatally flawed and that is why the value of bitcoin has falled this year so much.

These are major flaws I see

a. there is no reason for the general public to acquire it
b. there is no easy way for the general public to acquire it
c. it is impossible for most of the world (the poor) to acquire bitcoin since most now have to acquire it from 3rd parties that follow banks rules and the poor is the majority of the world and ignored by western banks
d. it's a toy novel currency for a niche set of western people that refuse to realize most of the world will never use bitcoin nor any bank or credit card
e. the bitcoin network is fatally flawed by how slow transactions are now and it will never be able to handle 100 Million or over 1 Billion transactions a day as a real globally currency unit would need to do
f. 22 Million coins too little to fuel a global economy with 7 billion people, and the high price of a coin will scare aware most of the world.

Granted bitcoin had some really good ideas like the public ledger and blockchain, however, this is why bitcoin will fail, at a certain point transaction demands would cripple the ledger and blockchain as it is designed now. A minor amount of transactions now makes the network SLOOOOWWWWWWW.

Imagine 1000 or 10,000 times more daily volume, the nodes would be crushed.

All fiat systems suck, if you were around any length of time you know how cheap things were years ago, so all fiat sucks.

The limited coin idea to btc was great, but 22 million is far too little to supply 7 billion people.

Like I said the more I read this manifesto the more I think it fixes the flaws of bitcoin.

https://bitcointalk.org/index.php?topic=879726.0

GO DO YOUR RESEARCH!!! before just yapping out of your ass because you sound like an idiot to people that know WTF is actually going on.

People far far far smarter than you built this, you don't think that they thought about the 22 (21 actually) million limit? Do you know that it is dividable to 8 dec places right?

FFS just go away. .

[Lauda]

This is your own flawed opinion thus this post is invalid.
In no way is Bitcoin flawed from the things that you mentioned. The only way that Bitcoin could be flawed is due to some problem in the technology behind it (note: there currently is none).

[leopard2]

Why are smaller units of currency not viable?

They were viable in 1950 prior to the rampant inflation. They were viable in the early 1900's prior to rampant inflation. I don't get it, all you do is just make smaller and smaller pieces of a dollar vs. more and more dollars. It seems easier to drop a quarter for a quart of milk vs. 15 quarters.

Why is a situation of gradual deflation scary to people. It encourages savings as opposed to consumption. The problem is you can't imagine because you lived in an inflationary world with constant inflation your whole life. Take a trip to imagination land sometime bud.

there is nothing wrong with deflation at all, this is just the bullshit the fiat money masters try to teach us slaves!!!!!!!!1

only in a world of immortals, deflation would be a problem but we are not immortal, so to delay spending due to deflation makes no sense at all

traffic lights are unnecessary because cars are not invisible and deflation is not an issue because people are mortal. all that rubbish is just for people control. 

[slaveforanunnak1]

Why are smaller units of currency not viable?

They were viable in 1950 prior to the rampant inflation. They were viable in the early 1900's prior to rampant inflation. I don't get it, all you do is just make smaller and smaller pieces of a dollar vs. more and more dollars. It seems easier to drop a quarter for a quart of milk vs. 15 quarters.

Why is a situation of gradual deflation scary to people. It encourages savings as opposed to consumption. The problem is you can't imagine because you lived in an inflationary world with constant inflation your whole life. Take a trip to imagination land sometime bud.

there is nothing wrong with deflation at all, this is just the bullshit the fiat money masters try to teach us slaves!!!!!!!!1

only in a world of immortals, deflation would be a problem but we are not immortal, so to delay spending due to deflation makes no sense at all

traffic lights are unnecessary because cars are not invisible and deflation is not an issue because people are mortal. all that rubbish is just for people control. 

THIS!

Deflation is bad if your economy has no output, but deflationary currency is whole other thing!
losing weight to stay in shape is good, but, losing weight due to ammonia and diarrhea is NOT!

[jonald_fyookball]

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[bitcoinmining]

Nobody knew about smart phones when companies have produced them, now you can see even poor families have smart phones to use social media or other applications. Using smart phone is like an expression for them, it's something new to the world and people love new things. Bitcoin is something like iPhone and I believe it's bigger than that, it's more like internet's invention and it will spread huge like internet in 10 years...

[Willisius]

Welcome to Bitcoin!

Oh wait...not a n00b. You should know the answers to all of your questions by now.

Your conclusions are fatally flawed.

Trolls are going to troll.

The problem with his "argument" is that they are not arguments they are baseless conclusions.

I would accept the fact that bitcoin may have some flaw that will prevent it's success but in order to get me to believe as such you need to present well though out facts and arguments

[jdkbbc]

Whao! Crazyness comes in different flavors.

[panju1]

f. 22 Million coins too little to fuel a global economy with 7 billion people, and the high price of a coin will scare aware most of the world.

The smallest unit of Bitcoin is a satoshi. One bitcoin is equal to a hundred million satoshis. So I guess bitcoins can easily fuel the global economy, even if the world's population doubles.

[Bubbsandbubbs3]

So after reading the greatest document on global currency I ever read yesterday,

https://bitcointalk.org/index.php?topic=879726.0

I have come to the conclusion that bitcoin is fatally flawed and that is why the value of bitcoin has falled this year so much.

These are major flaws I see

a. there is no reason for the general public to acquire it
b. there is no easy way for the general public to acquire it
c. it is impossible for most of the world (the poor) to acquire bitcoin since most now have to acquire it from 3rd parties that follow banks rules and the poor is the majority of the world and ignored by western banks
d. it's a toy novel currency for a niche set of western people that refuse to realize most of the world will never use bitcoin nor any bank or credit card
e. the bitcoin network is fatally flawed by how slow transactions are now and it will never be able to handle 100 Million or over 1 Billion transactions a day as a real globally currency unit would need to do
f. 22 Million coins too little to fuel a global economy with 7 billion people, and the high price of a coin will scare aware most of the world.

Granted bitcoin had some really good ideas like the public ledger and blockchain, however, this is why bitcoin will fail, at a certain point transaction demands would cripple the ledger and blockchain as it is designed now. A minor amount of transactions now makes the network SLOOOOWWWWWWW.

Imagine 1000 or 10,000 times more daily volume, the nodes would be crushed.

All fiat systems suck, if you were around any length of time you know how cheap things were years ago, so all fiat sucks.

The limited coin idea to btc was great, but 22 million is far too little to supply 7 billion people.

Like I said the more I read this manifesto the more I think it fixes the flaws of bitcoin.

https://bitcointalk.org/index.php?topic=879726.0

These points are all null and void.
Reason to get it? Because it is decentralized and prevents inflation.
Ease to get it? Of course! Trade money for it!
Can poor people get it? Heck yeah! Have you seen how easily you can get free Bitcoin these days? You get paid to play games on a few websites, such as FreeBTCminer.
For D, what an assumption.
Quickness of transactions? It's faster or as fast as a check!
High price? You can trade for a fraction of a Bitcoin, and in the 1800s, 2 dollars were worth about as much as a Bitcoin!

None of these points are valid.