Bitcoin - yes or no and why
- Thread starter Apoplectic_Objurgator
- Start date
Sincere question. Explain to me how printing money helps Bitcoin.
I’ve tried to wrap my head around this but I’m evidently not intelligent enough to get it.
I’ve tried to wrap my head around this but I’m evidently not intelligent enough to get it.
my understanding is that the number of bitcoins are limited while the govt can continue to generate money out of thin air. this eventually leads to out of control inflation. there seems to be a run on bitcoin from institutions as a hedge against inflation. in the past, they went in to gold but lately gold has been flat and cryptos are rocketing.
Limited by who? The people who invented it out of thin air won’t invent anymore? Serious question. What prevents them from making more?
The band for my wedding accepted bitcoin as payment. I'm in a big city, but there are a few places that allow it. Not any restaurants or chain stores, as far as I know, though.
I'm not an expert on this stuff, but I've made a little money in it, so I've done some reading. There's always the potential for an alternate currency, whether it's crypto or traditional, and there are several types of crypto currencies and there have been forks of the original bitcoin. A big thing that makes crypto different is that it takes longer and longer to mine new bitcoins, so the quantity is effectively limited. It's like tying a currency to a standard, and because of its structure, the government can't swoop in and say, "We owe 10,000 bitcoins. Better double the amount in circulation real quick," which would effectively cut the value in half.
thats an argument against it.
ive been on the fence but have started taking a position after seeing an NFL player wanted to be paid in BTC. also PayPal and SQ are now enabling cryptos. with this debt mounting there's only one way out and that is inflation
https://bitcoin.org/en/faq#mining
You have to mine new bitcoins to create them, which is limited by computing power. You can invent new cryptocurrencies, but they're different from each other. The same way CSA money or Monopoly money or Euros are different from dollars.
You have to mine new bitcoins to create them, which is limited by computing power. You can invent new cryptocurrencies, but they're different from each other. The same way CSA money or Monopoly money or Euros are different from dollars.
Here’s my main concern/question from a transaction stand point.
If a band quotes me $1000 30 days from now. It’s gonna be $1000 regardless of inflation or deflation (barring something crazy).
But, if I invest $1000 into Bitcoin, who knows where it will be in 30 days. Could be worth $1500 or could be worth $500.
If a band quotes me $1000 30 days from now. It’s gonna be $1000 regardless of inflation or deflation (barring something crazy).
But, if I invest $1000 into Bitcoin, who knows where it will be in 30 days. Could be worth $1500 or could be worth $500.
An nfl player asking to be paid in Bitcoin doesn’t make me feel better abt it.
Most nfl players aren’t real good with money.
Most nfl players aren’t real good with money.
That’s all Greek to me, but sounds like propaganda from Bitcoin to make it sound legitimate. Where did the first Bitcoin come from, who made it, and what prevents them from doing it again outside of their “formula” that allows for controlled increase of new bitcoins?
https://bitcoin.org/bitcoin.pdf
May still be Greek, but here's the white paper that explains a lot of that
May still be Greek, but here's the white paper that explains a lot of that
Bitcoins are not locked down as far as the number of bitcoins possible, the difference is that you have to data mine to produce new bitcoins, which requires specialized hardware and a pretty good amount of energy/computing power. It is similar to gold in that respect. I believe the amount of effort it takes to produce a bitcoin is one of the driving forces behind the current cost of the bitcoin, that and people just holding them.
But PayPal is dollar for dollar.
I put on $20. I get out $20.
Bitcoin isn’t.
I could put in $20 and get out $5000 or $1.
I put on $20. I get out $20.
Bitcoin isn’t.
I could put in $20 and get out $5000 or $1.
but that doesn't guarantee that what you want to buy is still going to be $20. things aren't priced in btc...yet so it's still early.
hot off the presses today from yahoo:
NEW YORK (Reuters) - The dollar was on track for its worst yearly loss since 2017 on Thursday as expectations of additional fiscal stimulus and loose Federal Reserve monetary policies lead investors to shun the currency and project further weakness in 2021.
An improving economic outlook as COVID-19 vaccines are rolled out and unprecedented fiscal and monetary stimulus has dimmed the allure of the greenback.
The U.S. currency is also suffering from rising fiscal and current account deficits that show no signs of slowing down.
"I expect the dollar to depreciate further over the next few years as the Fed keeps rates at zero whilst maintaining its bloated balance sheet," Kevin Boscher, chief investment officer at asset manager Ravenscroft, told clients.
"The magnitude of the twin-deficits dwarfs any other major economy," he said.
That is a loaded question, but I’ll try to explain it as I know it. Bitcoin is basically a math game. To use a Bitcoin you must find solve a problem to receive a block. Each block has a hash(unique string of characters) associated with it. If you guess the hash for an unsolved block you can claim it and get the bitcoins associated with it. Blocks have coins associated with them that you awarded. The amount of coins associated with finding a block are halved every 210,000 blocks found.
As miners increase it is harder to find blocks as you are basically just guessing until you find the hash associated with a block. There are massive mining server farms all over the world and especially in China where they can be powered cheaply with coal. That said mining isn’t realistic for individuals because of all these server farms dedicated to finding a hash. Normal people can really just buy Bitcoin with cash now.
I've been telling people to buy since it was $2 a coin. I know a guy that got in at .60 cents. There are a lot of young people in their 20s and 30s that have already made 6 figures with $100 investments. That includes etherium as well.
Bitcoin is a bit chaotic right now, but it's a currency. You can put $20 in a stock and get $1 out or $5000. You can buy $20 of Euros, and if you convert back later, you'll get a different amount in dollars than you put in. You're right, though, that bitcoin is acting more chaotically than most stocks and currencies.
The first question you should ask when someone says, "How much is $1 worth?" is "When?". This is one of the most fundamental concepts of money. $1 in 1900 is hugely different than $1 in 2020. If you pay someone $100 today and they pay you back $100 a month from now, you're taking a loss. When you're getting $500 in Venmo and letting it sit for a few weeks, you're taking a loss. Even a few day delay in transferring money to your bank account allows them to have more cash on hand for investing, etc.
The first question you should ask when someone says, "How much is $1 worth?" is "When?". This is one of the most fundamental concepts of money. $1 in 1900 is hugely different than $1 in 2020. If you pay someone $100 today and they pay you back $100 a month from now, you're taking a loss. When you're getting $500 in Venmo and letting it sit for a few weeks, you're taking a loss. Even a few day delay in transferring money to your bank account allows them to have more cash on hand for investing, etc.
In general, I dont follow NFL players in how they are paid, invest, or spend.
Their lives are a 180 from mine in almost every way.
Here is an Explain it like I’m 5 that I’ve used a couple of times to get the gist behind it all.
https://medium.com/free-code-camp/explain-bitcoin-like-im-five-73b4257ac833
On paper, its a really crazy way to conceptualize currency. People need to guess it to create it, and then it increases in value because others want it due to them wanting it so others cant have it.
There is no inherent value to bitcoin- it is the same as anything else- its worth what we decide its worth. It may skyrocket in value like you claim, or it may steadily rise. Hell, it may drop. Who the 17 knows.
If people lose interest or faith in it as a currency, then once its mined itll be worth as much as beanie babies from the 90s(its an easy comparison, even if it isnt an exact comparison).
I tried to get in back in 2013-2014 when it was at $600. Long story, but I completed the preliminary part, but it was too much of a pain in the *** to complete the transaction, and I was a broke *** student, so I ended up passing. Made a few thousand later on, but nothing crazy. There's a Jackson psychologist, though, who got in early with his son but got screwed out of over $100 million. It was a bit like the wild west early on with the coins, storing, etc
in theory, the difference is that politicians can't manipulate it to buy votes by giving away printed money to pay for student loan debt, UBI, or straight up cash
Sure, politicians cant manipulate it to buy votes thru endless money streams. That doesnt make it a good currency though. Currently, its too unstable to be a good currency. Its simple an investment vehicle right now- you are betting/gambling on it being worth mroe than before.
Investments arent currency.
In 4 years, bitcoin has gone from being worth $900usd up to $20,000usd a year later, down to $3,500usd a year later, up to $7,300usd a year later, and now $28,000usd. Thats a wild 17ing ride and is not a viable currency for most of us for what should be an obvious reason. Its a fun game to play as an investment though, I guess.
View attachment 19104
This. And after the explanation of math and blocks, it sounds even more ridiculous to me.
So some nerd solves a riddle, receive an imaginary prize, and people invest money in it. Did I get it right?
So some nerd solves a riddle, receive an imaginary prize, and people invest money in it. Did I get it right?
But if I put $20 in stock that is valued correctly (which I can research and see) and it drops, I buy more. Bc it’s gonna go back up.
But how do I value Bitcoin?
But how do I value Bitcoin?
Bitcoin is not currency. It is like electronic gold. There is a finite amount which makes it a store of value against the falling dollar which is falling due to government supply. Bitcoin can't be manipulated by governments like the dollar, or other currencies, or even gold. How can gold be manipulated?? The US or another country that has a lot of gold sells it to pay their deficit. If/When the US dollar loses reserve status, then the US may very well be forced to sell gold which would tank the price.
There is a reason Square, Paypal, Met Life ($500M), Gugenheim ($1B) are all investing in Bitcoin.
There is a reason Square, Paypal, Met Life ($500M), Gugenheim ($1B) are all investing in Bitcoin.
It’s only worth something because people value it. You can trade it for goods, services or even other currency. Same as the American Dollar or the euro. The paper a 100 bill is made of isn’t worth much at all. The numbers in your bank account are just digits in a computer, but you can trade it for something. That is what makes it valuable. Nothing more nothing less.
If tomorrow everyone stops accepting Bitcoin as payment, then it is worthless.
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