BITCON... WHY its totally FLAWED
- Thread starter 1for1
- Start date
People get so hung up on this backed by nothing thing.
I don't actually think it is a valid concept. Money, fundamentally, is information. It says how much purchasing power you currently have. Paper or gold or digital bits are just the medium on which this is recorded. Now if you have a case where more of these can be created at will, ie paper controlled by government, then the purchasing power can be reduced by fiat.
Gold and Bitcoin are both restricted by the amount in existence. With Bitcoin it is cryptographic and the mining is the coins slowly being "discovered". Bitcoin is actually more precise in this way than Gold is.
Can other digital currencies compete? Sure. Just like obviously there can be competitors to Gold. Gold is not the be all and end all. Some people will want to use it and some won't. Just like with digital currencies. When it comes to "moneyness" it is all down to utility and value imo. Cash and Bitcoin have superior utility than Gold. Bitcoin and Gold have superior value to cash due to their limited supply.
The evolution of money
Gold -> Cash -> Digital
which broadly follows the evolution of the world from the Bronze Age to the Industrial Age to the Information Age.
I don't actually think it is a valid concept. Money, fundamentally, is information. It says how much purchasing power you currently have. Paper or gold or digital bits are just the medium on which this is recorded. Now if you have a case where more of these can be created at will, ie paper controlled by government, then the purchasing power can be reduced by fiat.
Gold and Bitcoin are both restricted by the amount in existence. With Bitcoin it is cryptographic and the mining is the coins slowly being "discovered". Bitcoin is actually more precise in this way than Gold is.
Can other digital currencies compete? Sure. Just like obviously there can be competitors to Gold. Gold is not the be all and end all. Some people will want to use it and some won't. Just like with digital currencies. When it comes to "moneyness" it is all down to utility and value imo. Cash and Bitcoin have superior utility than Gold. Bitcoin and Gold have superior value to cash due to their limited supply.
The evolution of money
Gold -> Cash -> Digital
which broadly follows the evolution of the world from the Bronze Age to the Industrial Age to the Information Age.
Dynoman
Active Member
Look for a major Govt. backed attack on Bitcoin shortly. All the negative publicity around centers on its covert use, links to Drugs, illegal Arms sales & money laundering etc. It's a great concept, whether it survives is another matter. Do you think the US will allow their dollar to be eroded as a standard global trade unit? I don't think so.
1for1
Well-Known Member
Dynoman said:
This is what I'm saying about the price spike, unlike silver and gold.. What can the ppt do to take down the price of bitcoin.. I agree with you they won't like the way bitcoin is spiking and showing up fiat.. Other than a complete attempted attack on the system.. They have no other solution.. No futures.. Printing fiat and buying it up will only increase its price..
Classic.. I can see that we could all lose everything on bitcoin so I don't want to go in hard on it.. But gosh I hope it can stand strong against a govt or private bank assault ...
Fingers crossed..
1for1
G
Guest
Guest
Dynoman said:
They won't have a choice when the world stops using it, what are they gonna do.... Go to war with Russia, China and the rest of the world? I think not.
mmissinglink
Active Member
BitCoin is a ponzi scheme and unless you got in at the very beginning or have a massive computer bank which runs on really cheap electricity it is too risky an investment. I would never spend time in this all digital casino and I can never feel sorry for people who lose money it it.
To me, Bitcoin is just one more step forward to a cashless society.
Which is what the banksters want, and is the reason why they didn't crush it yet.
maybe they are behind it?
What would you do if you were in their shoes?
Which is what the banksters want, and is the reason why they didn't crush it yet.
maybe they are behind it?
What would you do if you were in their shoes?
Dynoman
Active Member
salty lemon said:
US ditched the gold standard in the seventies when European countries started to accumulate large quantities hence the value of the currency would rise proportionally & destabilize the power of the dollar. So they dropped the standard & went to a trade backed currency. So that was fine when the US was a net exporter but the trading deficit has eroded the dollar to break point. So war seems to be the logical solution the great leveller we will see.
Dynoman
Active Member
I imagine there must quite a few early mining Nerds salivating in their unkept beards right now. When they reach Paper Millionaire status & start selling off the 6M or so bitcoins they basically got without competing it will be interesting to see what impact that has on bitcoin value.
pro$pector
New Member
Dynoman said:
Judging by the BTC forums, you'll find many early miners sold on the last spike to $30, which caused the huge crash back to $3 (check the charts with volumes for proof of that).
6 million BTC is a bit over the top as well, considering only a tad over 11 million exist.
Last time BTC went on a huge run, it hit $30 and got smashed back to $3 in a short time-span. The fact that this hasn't happened on this run would either indicate individuals don't hold huge quantities anymore, or that there is huge buying demand.
Maybe you should check out the Mt Gox market depth, the sellers aren't exactly piling in ready to sell - theres more to this years rise than most realise.
willrocks said:
Correct Mt.Gox got hacked and I think it was down for 6 days.
With prices at these levels I don't even know if all the people that ordered their ASICS get them around the same time and dump the coins they mined back on the exchange right away to get their money back will make the price come down because they will only need a days mining or so at the current price to pay for them.
If we all keep holding the price can only go up
I hope.pro$pector
New Member
willrocks said:
Didn't someone hack Mt Gox, and set the exchange price to 1c for a brief time which cause huge buying/selling.
Pretty sure it was fixed up fairly quickly though, and transactions reversed.
pro$pector
New Member
Noppy said:
Aren't these ASIC mining machines about $30K each? You're saying you can mine enough coins in a day to pay for that...how is that possible...not enough blocks would be available to mine each day...
I don't really understand the mining side in depth.
1for1
Well-Known Member
Regardless of how many miners OR having more high powered Gpus .. The same amount of bitcoins still get mined.. It just becomes more competitive.. Ie supply stays constant.
Nothing we can do will increase aggregate supply.. Just individuals can get more bitcoin compared to others
As you should know if your chiming in.. The code has a built in diminishing returns function.. It reduces the supply per day in increments down to eventual zero
I actually worry when the supply dries up as it may create scarcity which is bad during an innovation period where abundance creates a more universal pickup
1for1
Nothing we can do will increase aggregate supply.. Just individuals can get more bitcoin compared to others
As you should know if your chiming in.. The code has a built in diminishing returns function.. It reduces the supply per day in increments down to eventual zero
I actually worry when the supply dries up as it may create scarcity which is bad during an innovation period where abundance creates a more universal pickup
1for1
pro$pector
New Member
...I was under the impression that even if I threw 4x high end GPU's in my rig, I'd still struggle to mine 1/2 a BTC per 24 hours...am I wrong?