Bitcoin's dependence on state backed currencies is its undoing

[revans]

It's no small irony that a community so disparaging of existing currencies (particularly the USD) have made an idol of something which absolutely depends on them. From miners selling their coins to cover costs, to the ridiculous conceit  which sees people buy Bitcoins with dollars and then pay for goods via BitPay to a merchant who is then paid in dollars.

Bitcoin has an identity crisis; it's the post fiat currency which is entirely dependent on fiat currency. It seems people are beginning to realise that their digital magic beans aren't going to usher in the brave new world they had hoped for.

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[shirkan]

I poop into the toilet since I am 2 years old. Most of the time it works just fine, why should I stop doing it now?

Old habits die hard, my friend

[brokedummy]

At least with bitcoin we know the inflation schedule. With fiat currencies we don't know how many trillions more they will print and give to their cronies.

[revans]

I poop into the toilet since I am 2 years old. Most of the time it works just fine, why should I stop doing it now?

Old habits die hard, my friend

Would it be indelicate of me to inquire as to what happens when it does not work fine?

[shirkan]

I poop into the toilet since I am 2 years old. Most of the time it works just fine, why should I stop doing it now?

Old habits die hard, my friend

Would it be indelicate of me to inquire as to what happens when it does not work fine?

in the forums it might be reffered to as a "flash dump"

[EuroTrash]

[shirkan]

that's what I am talking about!

[the joint]

It's no small irony that a community so disparaging of existing currencies (particularly the USD) have made an idol of something which absolutely depends on them. From miners selling their coins to cover costs, to the ridiculous conceit  which sees people buy Bitcoins with dollars and then pay for goods via BitPay to a merchant who is then paid in dollars.

Bitcoin has an identity crisis; it's the post fiat currency which is entirely dependent on fiat currency. It seems people are beginning to realise that their digital magic beans aren't going to usher in the brave new world they had hoped for.

Thinking realistically, I'm not sure what you expect.

This is one of many "chicken-and-egg" problems that BTC faces, and we've seen progress with respect to virtually all of them.  Other chicken-and-egg problems included the very first documented transaction (i.e. two pizzas for 10,000 BTC). merchant adoption prior to a solid user base, etc.  The chicken-and-egg problem you're describing is how to establish consensus of value of a distributed currency, and for that we need something to compare its value to (e.g. fiat currency).

You state, "It seems people are beginning to realize that their digital magic beans aren't going to usher in the blah blah blah."  I would say, "It seems some people haven't seriously considered the logistics of building a market around a new type of currency."

I think that if humanity had the wisdom to figure out how to build an economy for a decentralized currency without pegging it to fiat, we would have the wisdom to construct a functioning economy in the total absence of money, and we wouldn't need BTC.  The general idea behind BTC is to create a currency that essentially forces people to be fair and play nice.  Or, phrased another way, the idea is create a currency that prevents corruption and manipulation and/or makes such attempts transparent.

[revans]

It's no small irony that a community so disparaging of existing currencies (particularly the USD) have made an idol of something which absolutely depends on them. From miners selling their coins to cover costs, to the ridiculous conceit  which sees people buy Bitcoins with dollars and then pay for goods via BitPay to a merchant who is then paid in dollars.

Bitcoin has an identity crisis; it's the post fiat currency which is entirely dependent on fiat currency. It seems people are beginning to realise that their digital magic beans aren't going to usher in the brave new world they had hoped for.

Thinking realistically, I'm not sure what you expect.

This is one of many "chicken-and-egg" problems that BTC faces, and we've seen progress with respect to virtually all of them.  Other chicken-and-egg problems included the very first documented transaction (i.e. two pizzas for 10,000 BTC). merchant adoption prior to a solid user base, etc.  The chicken-and-egg problem you're describing is how to establish consensus of value of a distributed currency, and for that we need something to compare its value to (e.g. fiat currency).

You state, "It seems people are beginning to realize that their digital magic beans aren't going to usher in the blah blah blah."  I would say, "It seems some people haven't seriously considered the logistics of building a market around a new type of currency."

I think that if humanity had the wisdom to figure out how to build an economy for a decentralized currency without pegging it to fiat, we would have the wisdom to construct a functioning economy in the total absence of money, and we wouldn't need BTC.  The general idea behind BTC is to create a currency that essentially forces people to be fair and play nice.  Or, phrased another way, the idea is create a currency that prevents corruption and manipulation and/or makes such attempts transparent.

Not doing so well on the preventing corruption front is it.

[sgbett]

This is transition, it will take years and all the while speculation will grind thus market up and down like a horror show (imho)

[the joint]

It's no small irony that a community so disparaging of existing currencies (particularly the USD) have made an idol of something which absolutely depends on them. From miners selling their coins to cover costs, to the ridiculous conceit  which sees people buy Bitcoins with dollars and then pay for goods via BitPay to a merchant who is then paid in dollars.

Bitcoin has an identity crisis; it's the post fiat currency which is entirely dependent on fiat currency. It seems people are beginning to realise that their digital magic beans aren't going to usher in the brave new world they had hoped for.

Thinking realistically, I'm not sure what you expect.

This is one of many "chicken-and-egg" problems that BTC faces, and we've seen progress with respect to virtually all of them.  Other chicken-and-egg problems included the very first documented transaction (i.e. two pizzas for 10,000 BTC). merchant adoption prior to a solid user base, etc.  The chicken-and-egg problem you're describing is how to establish consensus of value of a distributed currency, and for that we need something to compare its value to (e.g. fiat currency).

You state, "It seems people are beginning to realize that their digital magic beans aren't going to usher in the blah blah blah."  I would say, "It seems some people haven't seriously considered the logistics of building a market around a new type of currency."

I think that if humanity had the wisdom to figure out how to build an economy for a decentralized currency without pegging it to fiat, we would have the wisdom to construct a functioning economy in the total absence of money, and we wouldn't need BTC.  The general idea behind BTC is to create a currency that essentially forces people to be fair and play nice.  Or, phrased another way, the idea is create a currency that prevents corruption and manipulation and/or makes such attempts transparent.

Not doing so well on the preventing corruption front is it.

I disagree.  The corrupt will always explore the boundaries of principle to find any holes in the fence, but if there are fewer holes then the corrupt have no choice but to play by the rules.

For example, I don't see anyone inflating BTC all willy-nilly.  Do you?

[HarmonLi]

Just like we went down now, we may rise to the moon within a very small time frame. A very sharp movement, just like the Swiss Franc did now... It's very interesting to see stuff like that happen in the FIAT world, as well... That's new to me

[B.A.S.]

It's no small irony that a community so disparaging of existing currencies (particularly the USD) have made an idol of something which absolutely depends on them. From miners selling their coins to cover costs, to the ridiculous conceit  which sees people buy Bitcoins with dollars and then pay for goods via BitPay to a merchant who is then paid in dollars.

Bitcoin has an identity crisis; it's the post fiat currency which is entirely dependent on fiat currency. It seems people are beginning to realise that their digital magic beans aren't going to usher in the brave new world they had hoped for.

Give it time my friend. Give it time. All will be well in years to come.

[leopard2]

haha I like you

....and this is NOT a bitcoin chart; EUR scamcoin lost 30% against CHF scamcoin. All scamcoins will approach inner value sooner or later.

[HarmonLi]

Interestingly they just seemed to have achieved parity! This makes it easier for people to transfer their EUR to a Swiss bank account when they're evading taxes 

[poncho32]

haha I like you

....and this is NOT a bitcoin chart; EUR scamcoin lost 30% against CHF scamcoin. All scamcoins will approach inner value sooner or later.

At this rate tourists will be paying 100 euros for three ice creams.

[revans]

It's no small irony that a community so disparaging of existing currencies (particularly the USD) have made an idol of something which absolutely depends on them. From miners selling their coins to cover costs, to the ridiculous conceit  which sees people buy Bitcoins with dollars and then pay for goods via BitPay to a merchant who is then paid in dollars.

Bitcoin has an identity crisis; it's the post fiat currency which is entirely dependent on fiat currency. It seems people are beginning to realise that their digital magic beans aren't going to usher in the brave new world they had hoped for.

Thinking realistically, I'm not sure what you expect.

This is one of many "chicken-and-egg" problems that BTC faces, and we've seen progress with respect to virtually all of them.  Other chicken-and-egg problems included the very first documented transaction (i.e. two pizzas for 10,000 BTC). merchant adoption prior to a solid user base, etc.  The chicken-and-egg problem you're describing is how to establish consensus of value of a distributed currency, and for that we need something to compare its value to (e.g. fiat currency).

You state, "It seems people are beginning to realize that their digital magic beans aren't going to usher in the blah blah blah."  I would say, "It seems some people haven't seriously considered the logistics of building a market around a new type of currency."

I think that if humanity had the wisdom to figure out how to build an economy for a decentralized currency without pegging it to fiat, we would have the wisdom to construct a functioning economy in the total absence of money, and we wouldn't need BTC.  The general idea behind BTC is to create a currency that essentially forces people to be fair and play nice.  Or, phrased another way, the idea is create a currency that prevents corruption and manipulation and/or makes such attempts transparent.

Not doing so well on the preventing corruption front is it.

I disagree.  The corrupt will always explore the boundaries of principle to find any holes in the fence, but if there are fewer holes then the corrupt have no choice but to play by the rules.

For example, I don't see anyone inflating BTC all willy-nilly.  Do you?

Yup

https://en.bitcoin.it/wiki/CVE-2010-5139