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Forums - Politics Discussion - Bitcoin, and other cryptocurrencies, need havê their own economy.

tcoin to work needs to havê its own economy, with goods priced in bitcoin directly and that wont change with any fluctuation. Until than, bitcoin is just some crazy currency only useful for speculating.



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Thank god we have an own economy for gold, silver, platinum and bronze, with goods priced in those metals. Otherwise, those might just be crazy currencies.



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Faxanadu said:
Thank god we have an own economy for gold, silver, platinum and bronze, with goods priced in those metals. Otherwise, those might just be crazy currencies.

I think it's an out of place comparison. Those metals havê economic value in their selves, actually, they are products often sold for industry and consumer uses. Dollar, euros, reais and any other modern currency are pretty useless in theirselves, they are useful for purchasing things, and they are used for that just because se know if se accept them other people are accepting it too.

 

Bitcoin not even that, no one accepts bitcoin in itself, we value bitcoin directly in the exchange rate for The real world currency se use. Rice costs X euros in france independetment of The exchange rate of euro and dollar. Every bitcoin value is directly attached to how much The item cost with real currency. Its more like bitcoin is a ticket than money.
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invetedlotus123 said:
Faxanadu said:
Thank god we have an own economy for gold, silver, platinum and bronze, with goods priced in those metals. Otherwise, those might just be crazy currencies.

I think it's an out of place comparison. Those metals havê economic value in their selves, actually, they are products often sold for industry and consumer uses. Dollar, euros, reais and any other modern currency are pretty useless in theirselves, they are useful for purchasing things, and they are used for that just because se know if se accept them other people are accepting it too.

 

Bitcoin not even that, no one accepts bitcoin in itself, we value bitcoin directly in the exchange rate for The real world currency se use. Rice costs X euros in france independetment of The exchange rate of euro and dollar. Every bitcoin value is directly attached to how much The item cost with real currency. Its more like bitcoin is a ticket than money.
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But that applies to pretty much all financial products and their derivatives. I still dont see your point.



Any message from Faxanadu is written in good faith but shall neither be binding nor construed as constituting a commitment by Faxanadu except where provided for in a written agreement signed by an authorized representative of Faxanadu. This message is intended for the use of the forum members only.

The views expressed here may be personal and/or offensive and are not necessarily the views of Faxanadu.

That's the ideal, yes, direct use of bitcoins. Many online retailers are accepting them now. But it's not necessary for bitcoins to be useful.

http://www.bitcoinvalues.net/who-accepts-bitcoins-payment-companies-stores-take-bitcoins.html



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Bitcoin needs to have a central bank or monetary authority behind it. Until then it is merely a speculative asset which is more fungible than other speculative assets.



Monster Hunter: pissing me off since 2010.

I remember the days when bitcoin mining could be done with any PC instead of $10,000 custom PCs which that specifically ment for bitcoin mining. My friend had like 300 bitcoins back in the day and he traded all for 1 large Pizza! God, he would have been soo rich right now



                  

PC Specs: CPU: 7800X3D || GPU: Strix 4090 || RAM: 32GB DDR5 6000 || Main SSD: WD 2TB SN850

Mr Khan said:
Bitcoin needs to have a central bank or monetary authority behind it. Until then it is merely a speculative asset which is more fungible than other speculative assets.


Why would Bitcoin need a bank to ruin it?



Prediction for console Lifetime sales:

Wii:100-120 million, PS3:80-110 million, 360:70-100 million

[Prediction Made 11/5/2009]

3DS: 65m, PSV: 22m, Wii U: 18-22m, PS4: 80-120m, X1: 35-55m

I gauruntee the PS5 comes out after only 5-6 years after the launch of the PS4.

[Prediction Made 6/18/2014]

Eddie_Raja said:
Mr Khan said:
Bitcoin needs to have a central bank or monetary authority behind it. Until then it is merely a speculative asset which is more fungible than other speculative assets.


Why would Bitcoin need a bank to ruin it?

An issuing authority is how money becomes money rather than merely an asset. The problems that bitcoin has faced so far has been the problem of insufficient liquidity for the major exchanges. Even aside from all of the fraud going on, Mt. Gox did not have hard currency sufficient to meet demand for all of the bitcoins in circulation. Meanwhile, sovereign central banks have the ability to purchase government securities to balance liquidity demand. When you do not have an issuing authority to settle accounts, or even, god forbid, to convert it into precious metals, then you don't have money, because it is not a perfectly liquid asset.

Granted, money itself can lose these qualities given state failure, but it's much less likely. I'd give more trust to the Greek Central Bank than to Mt. Gox. At least Greece will be there in 20 years.



Monster Hunter: pissing me off since 2010.

Mr Khan said:
Eddie_Raja said:
Mr Khan said:
Bitcoin needs to have a central bank or monetary authority behind it. Until then it is merely a speculative asset which is more fungible than other speculative assets.


Why would Bitcoin need a bank to ruin it?

An issuing authority is how money becomes money rather than merely an asset. The problems that bitcoin has faced so far has been the problem of insufficient liquidity for the major exchanges. Even aside from all of the fraud going on, Mt. Gox did not have hard currency sufficient to meet demand for all of the bitcoins in circulation. Meanwhile, sovereign central banks have the ability to purchase government securities to balance liquidity demand. When you do not have an issuing authority to settle accounts, or even, god forbid, to convert it into precious metals, then you don't have money, because it is not a perfectly liquid asset.

Granted, money itself can lose these qualities given state failure, but it's much less likely. I'd give more trust to the Greek Central Bank than to Mt. Gox. At least Greece will be there in 20 years.


Really?  Because people speculate on the value of currencies all the time.  Look at the Ruble right now.  

Mt. Gox was an exchange morons used as a bank despite constant warnings to not do that.  Yes if you are stupid, you can't be helped.  Look at the current banking crisis we just (Kinda) got out of.



Prediction for console Lifetime sales:

Wii:100-120 million, PS3:80-110 million, 360:70-100 million

[Prediction Made 11/5/2009]

3DS: 65m, PSV: 22m, Wii U: 18-22m, PS4: 80-120m, X1: 35-55m

I gauruntee the PS5 comes out after only 5-6 years after the launch of the PS4.

[Prediction Made 6/18/2014]