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picolo
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February 13, 2015, 11:08:05 PM |
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If you want Bitcoin to be a world currency then there should be an exchange rate. What you're saying is similar to saying you want the euro to be isolated and not traded for other currencies. That's not going to happen anytime soon. Bitcoin is a currency without a country so there is no economy built around it. Currently, it's impossible to say what a loaf of bread is worth in bitcoins without exchanging it to a regional currency first.
Therefore you must define the value of a bitcoin. A life standard month income, or even a loaf of bread, fix the price of thos assets to 1 BTC and do the math for the other stuff. Still assets will vary, supply and demand still applies and local differences may still occur. The Euro made paying and prices in Europe more the same, local differences still occur, but they are more on the same level. As the Euro showed in Europe, the BTC might just work worldwide  BTC could work worldwide but bitcoin businesses need to recruit and pay in btc. |
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"Governments are good at cutting off the heads of a centrally
controlled
networks like Napster, but pure P2P networks like Gnutella and Tor seem
to be holding their own." -- Satoshi
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Kazimir
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February 13, 2015, 11:12:24 PM |
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Bitcoin is a currency without a country so there is no economy built around it. Bitcoin's territory is the internet, rather than just a country. I'd say there's quite some economy going around on the internet. |
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Jace
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February 13, 2015, 11:18:55 PM |
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Bitcoin can be doublespent if it is unconfirmed Actually, no, it can't. Not in practical real-life situations. Try it, you'll see. or if one entity holds 51% of the mining power and decides to execute an attack. Extremely, extremely unlikely, and it's very difficult and VERY expensive, and by doing so (IF someone would actually manage to pull this off) they would actually undermine their own business as Bitcoin prices would probably plummet. It's all just theory. And while in theory there's no difference between theory and practice, in practice there is. |
Feel free to send your life savings to 1JhrfA12dBMUhcgh85wYan6HL2uLQdB6z9
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monsanto
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..like bright metal on a sullen ground.
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February 13, 2015, 11:55:29 PM |
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If we have goods priced only in bitcoin and accept no fiat for it (that would be the best, but I see this lacking)
Therein lies the rub.  l If it ever was stable, speculators would leave, but if speculators dump then it wouldn't be stable, so they wouldn't leave, but if it isn't stable, you can't price things in a static bitcoin price, so there can't be wide adoption with people holding, and on and on... |
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Beliathon
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February 14, 2015, 12:00:08 AM |
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But bitcoin is very likely always going to be pegged to fiat. ROFL. Bitcoin makes fiat obsolete, it's just going to take X number of years for earthlings to figure that shit out. |
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Q7 (OP)
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February 14, 2015, 12:50:31 AM |
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If you want Bitcoin to be a world currency then there should be an exchange rate. What you're saying is similar to saying you want the euro to be isolated and not traded for other currencies. That's not going to happen anytime soon. Bitcoin is a currency without a country so there is no economy built around it. Currently, it's impossible to say what a loaf of bread is worth in bitcoins without exchanging it to a regional currency first.
The euro was created because a single currency offers many advantages and benefits over the previous situation where each Member State had its own currency. Not only are fluctuation risks and exchange costs eliminated and the single market strengthened, but the euro also means closer co-operation among Member States for a stable currency and economy to the benefit of us all. Having said that, it doesn't mean that euro needs to be isolated from the rest of the world. Likewise, bitcoin can establish its own niche and exists within its own ecosystem and still traded on the exchange. We substitute country with community/internet/network here. The economy surrounding bitcoin is basically the mining operation. Yeah, we don't have tax, industry to turn raw material into goods, but if you compare the mining concept, its pretty much close to that. If you ask me a question how much a loaf of bread is worth, I should answer 5mtbc (for example) not $1.2 dollar of btc worth. |
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neoneros
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February 15, 2015, 09:26:43 AM |
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If you ask me a question how much a loaf of bread is worth, I should answer 5mtbc (for example) not $1.2 dollar of btc worth.
that is a proces we all need to go throuhg and accept en addapt bitcoin as our daily currency. Same goes for the Euro, in the first years people were all calculating and comparing how much it was in the old currency. Today it is accepted as it is and only on rare occasions would you think back to what the price would be in the old currency, mainly because of inflation it has dropped back to it's old value  |
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ozycash
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February 15, 2015, 08:46:13 PM |
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idiot! every currency is linked to every other currency. 1 btc IS worth 1 btc, but is will never be worth 1usd or 1gpd or 1ruple etc but 1usd is worth 1usd etc, cant you see the stupidity of your comment now?
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R2D221
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February 15, 2015, 08:49:45 PM |
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idiot! every currency is linked to every other currency. 1 btc IS worth 1 btc, but is will never be worth 1usd or 1gpd or 1ruple etc but 1usd is worth 1usd etc, cant you see the stupidity of your comment now?
You obviously didn't understand the point of the original post. |
An economy based on endless growth is unsustainable.
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AgentofCoin
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February 15, 2015, 09:29:45 PM |
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Let's face it..As long as we continue to benchmark bitcoin against fiat, we can never reach that stage to independently claim "1 bitcoin is equal to 1 bitcoin" and that is no matter how hard you tried to convince people. Mainly this is what I feel is lacking and what I envision for bitcoin to become a currency of its own.
1 EURO is 1 EURO because it is inflationary. (In theory, Currency is stable, Product prices fluctuates). 1 BTC will never be 1 BTC because it is deflationary. (In theory, Products are stable, Currency price fluctuates). (Products can never be stable, since supply and demand for those products fluctuates). But, 1 BTC will one day equal 1 BTC, when 1 BTC has been permanently fixed in price. This can only happen when: (1) BTC is the World Currency. (Gold, Oil, Fiat, and Etc all valued in BTC). Or (2) BTC is permanently fixed to an inflationary currency. (Ex. EURO/USD/CNY). So, to attain Satoshi Nakamotos original goal, we either use bitcoin as is, or we have to supersede all other fiat. IMO, I consider BTC as a commodity, like Gold, even though it was intended as a currency. |
I support a decentralized & unregulatable ledger first, with safe scaling over time.
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Possum577
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February 15, 2015, 10:11:47 PM |
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How do you know the purchasing power of 1 BTC if we don't compare it to anything else?
How do you knwo if you can buy 1 hamburger or 1 mansion with it?
the purchasing power is measured something like this. In 2015.... 900 btc to buy a house In 2020.... given the same economic condition, only needs 700 btc to purchase same house on the same location That means higher purchasing power for 1 unit of bitcoin why do you need fiat? Isn't that what bitcoin existence is all about? As long as the age old system is there, we'll forever be bound by fiat Yep, this is correct. The purchasing power of the dollar isn't measured first against other currencies, but against a "basket of common goods". That's how the US determines it's inflation rate each year. Purchasing power of bitcoin doesn't need to be in relation to fiat, in fact if it were it wouldn't indicate how much goods or services you could purchase with bitcoin, but rather how much of the fiat currency you could buy with bitcoin. And if both bitcoin and the fiat are declining purchasing power is disappearing but you wouldn't know it by the conversion rate. |
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zimmah
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February 15, 2015, 10:27:41 PM |
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bitcoin will need to have an economy of it's own, which will take a while to form, it will probably not happen this decade.
it will help if complete countries accept bitcoin as a currency, or if commodities like gold/oil are priced in bitcoin with prices that are independent of the dollar/bitcoin ratio.
and it also helps if there are some services or shops exclusively priced in bitcoin.
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neoneros
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February 20, 2015, 08:31:49 PM |
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bitcoin will need to have an economy of it's own, which will take a while to form, it will probably not happen this decade.
it will help if complete countries accept bitcoin as a currency, or if commodities like gold/oil are priced in bitcoin with prices that are independent of the dollar/bitcoin ratio.
and it also helps if there are some services or shops exclusively priced in bitcoin.
Bitcoin provides a way to look at currencies at a whole different level, if it serves an economy it would be a world wide one. As a commodity it works as a whole in itself, being it's own commodity to determine it's own value, that is te mining limit. |
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