Belgian Bank sends out FUD newsletters concerning Bitcoin - page 2.

BADecker

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Quote from: augustocroppo on January 29, 2014, 12:23:47 PM

Quote from: BADecker on January 29, 2014, 12:15:03 PM

The only thing that backs Bitcoin is the same thing that backs the fiat currencies, stocks and bonds, and anything else. It is the value that people place on it.

Nope, there is a whole legal/financial/governmental/military structure backing fiat currency. There is nothing like that backing BTC. By the way, stocks and bonds do not have exactly the value that people place on it. It is not a financial instrument which value is defined only by speculation.

Actually, it IS the value that people place on all these things. However, it isn't always direct value.

We wouldn't have a military if people didn't place trust in government officials to provide a military. So, indirectly, it is the value that people place on the military.

Now that people can see more and more how the banks and government and the military are NOT doing what they want, the people are turning to Bitcoin to overcome the problems that they see in the system.

It all has to do with the value people place on everything.

Melbustus

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Quote from: augustocroppo on January 29, 2014, 12:23:47 PM

Quote from: BADecker on January 29, 2014, 12:15:03 PM

The only thing that backs Bitcoin is the same thing that backs the fiat currencies, stocks and bonds, and anything else. It is the value that people place on it.

Nope, there is a whole legal/financial/governmental/military structure backing fiat currency. There is nothing like that backing BTC. By the way, stocks and bonds do not have exactly the value that people place on it. It is not a financial instrument which value is defined only by speculation.

Stocks and bonds are "backed" by the dividend/coupon streams they're expected to pay out. Obviously many companies don't pay dividends, choosing instead to invest their profits back into the business at higher ROI than most shareholders could deploy capital, but they're *eventually* expected to produce a cash-stream to shareholders.

But obviously stocks/bonds are not the valid comparison. Non-producing assets like fiat-cash or gold/silver are more apt comparisons to bitcoin. To say that either is "backed" by anything is silly. I see the point about "legal/financial/governmental/military structure" backing dollars, but that's really just a way of defining the infrastructure you're putting your trust in. With bitcoin, that infrastructure is miners, the cryptography, the internet, peer-to-peer protocols, etc. What the upside and downside risks are for each, is totally another issue.

augustocroppo

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Quote from: BADecker on January 29, 2014, 12:15:03 PM

The only thing that backs Bitcoin is the same thing that backs the fiat currencies, stocks and bonds, and anything else. It is the value that people place on it.

Nope, there is a whole legal/financial/governmental/military structure backing fiat currency. There is nothing like that backing BTC. By the way, stocks and bonds do not have exactly the value that people place on it. It is not a financial instrument which value is defined only by speculation.

meanig

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Quote from: runam0k on January 29, 2014, 11:45:00 AM

Quote from: zeetubes on January 29, 2014, 11:25:14 AM

Right, so now the USD is backed by the government, I can redeem it with what exactly? Politicians? It is a meaningless concept and has no bearing on the real "value" of the Usd. Bitcoins' "integrity" is backed by mathematics. The value can vary drastically but one bitcoin will always equal one bitcoin. And that is backed by mathematics.

USD is backed by the full productivity of a multi-trillion dollar economy and its people. Yes, it boils down to a promise by a nation to provide value for the notes it issues, which necessarily requires trust, but that's an entirely different thing from Bitcoin, which isn't backed by anything (meaning if the system breaks there's nothing and no-one to say, "here, take this gold/wood/labour/Coke-a-cola instead").

The USD is backed by 50 million pensioners and 30 million under employed people Undecided

BADecker

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Quote from: Nautica on January 29, 2014, 10:48:43 AM

Quote from: augustocroppo on January 29, 2014, 10:39:20 AM

No, Bitcoin is not "backed" by mathematics. Perhaps you do not know what are you talking about?

You are talking to deaf people. The amount of catchphrases and buzzwords that are considered gospel here is astounding.

The only thing that backs Bitcoin is the same thing that backs the fiat currencies, stocks and bonds, and anything else. It is the value that people place on it.

Bitcoin has expanded by virtue of what the people think, in 5 years, so that it is becoming a threat to the fiat currencies, currencies that have been around for as long as hundreds of years. It all has to do with what the people think. And what the people think has to do with what the banks and governments have trained them to think. Now it is starting to backfire on the banks and governments through Bitcoin.

zeetubes

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Quote from: Nautica on January 29, 2014, 12:06:57 PM

Quote from: seafarer124 on January 29, 2014, 12:04:27 PM

If fiat was backed and limited to the supply of gold the world would not be in the mess it is now.

We would also have never had a thing called the industrial revolution.

Holy fuck, given the intellectual depth of your comments so far, I would live to hear the reasoning behind this gem.

Nautica

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Quote from: seafarer124 on January 29, 2014, 12:04:27 PM

If fiat was backed and limited to the supply of gold the world would not be in the mess it is now.

We would also have never had a thing called the industrial revolution.

seafarer124

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If fiat was backed and limited to the supply of gold the world would not be in the mess it is now.

BTC 21,000,000 limit is what will give it strength.

augustocroppo

vip

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Quote from: zeetubes on January 29, 2014, 11:09:09 AM

Why do they call it a crypto currency?

Because "they" are misinformed. It is not really a "cryptographic currency".

augustocroppo

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Quote from: zeetubes on January 29, 2014, 10:58:13 AM

Quote from: augustocroppo on January 29, 2014, 10:39:20 AM

Quote from: zeetubes on January 29, 2014, 10:30:38 AM

Because it is precisely FUD. these banks wildy invested their client's money in worthless derivatives and now they are spouting b.s. because they can't make money out of something. Bitcoins is backed by nothing.... yeah, except mathematics.

No, that is not FUD. That was not published in any specific venue to spread fear, uncertainty and despair. Assuming you are telling the truth, that is just a mail to alert people about the inherent risks of virtual currencies. Moreover, not all banks invest their client's funds in derivatives.

No, Bitcoin is not "backed" by mathematics. Perhaps you do not know what are you talking about?

Right, it was not published in any venue... Er yes it was. Perhaps you don't understand either mathematics or English.

In which venue that was published solely to spread fear, uncertainty and despair? Yes, perhaps I do not understand mathematics or English. So, explain to me, what is the "mathematics" backing Bitcoin?

zeetubes

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Quote from: runam0k on January 29, 2014, 11:45:00 AM

Quote from: zeetubes on January 29, 2014, 11:25:14 AM

Right, so now the USD is backed by the government, I can redeem it with what exactly? Politicians? It is a meaningless concept and has no bearing on the real "value" of the Usd. Bitcoins' "integrity" is backed by mathematics. The value can vary drastically but one bitcoin will always equal one bitcoin. And that is backed by mathematics.

USD is backed by the full productivity of a multi-trillion dollar economy and its people. Yes, it boils down to a promise by a nation to provide value for the notes it issues, which necessarily requires trust, but that's an entirely different thing from Bitcoin, which isn't backed by anything (meaning if the system breaks there's nothing and no-one to say, "here, take this gold/wood/labour/Coke-a-cola instead").

I'm sorry but that is nonsense. Have you heard of Zimbabwe? Weimar?

runam0k

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Touchdown

Quote from: zeetubes on January 29, 2014, 11:25:14 AM

Right, so now the USD is backed by the government, I can redeem it with what exactly? Politicians? It is a meaningless concept and has no bearing on the real "value" of the Usd. Bitcoins' "integrity" is backed by mathematics. The value can vary drastically but one bitcoin will always equal one bitcoin. And that is backed by mathematics.

USD is backed by the full productivity of a multi-trillion dollar economy and its people. Yes, it boils down to a promise by a nation to provide value for the notes it issues, which necessarily requires trust, but that's an entirely different thing from Bitcoin, which isn't backed by anything (meaning if the system breaks there's nothing and no-one to say, "here, take this gold/wood/labour/Coke-a-cola instead").

p2pbucks

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Evolution is the only way to survive

Dont waste time on conservative bankers Grin

zeetubes

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Quote from: ?? on ??

Quote from: zeetubes on January 29, 2014, 11:09:09 AM

Why do they call it a crypto currency?

When you say a currency is backed by something else, it means you can redeem it for whatever that is. For example, the USD used to be backed by gold. Now, if Bitcoin is backed by mathematics, does that mean you can redeem Bitcoin for mathematics? Perhaps it is you that do not understand English or general monetary definitions?

Right, so now the USD is backed by the government, I can redeem it with what exactly? Politicians? It is a meaningless concept and has no bearing on the real "value" of the Usd. Bitcoins' "integrity" is backed by mathematics. The value can vary drastically but one bitcoin will always equal one bitcoin. And that is backed by mathematics.

zeetubes

sr. member

Activity: 371

Merit: 250

No, Bitcoin is not "backed" by mathematics. Perhaps you do not know what are you talking about?

Why do they call it a crypto currency?

zeetubes

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Activity: 371

Merit: 250

Quote from: augustocroppo on January 29, 2014, 10:39:20 AM

Quote from: zeetubes on January 29, 2014, 10:30:38 AM

Because it is precisely FUD. these banks wildy invested their client's money in worthless derivatives and now they are spouting b.s. because they can't make money out of something. Bitcoins is backed by nothing.... yeah, except mathematics.

No, that is not FUD. That was not published in any specific venue to spread fear, uncertainty and despair. Assuming you are telling the truth, that is just a mail to alert people about the inherent risks of virtual currencies. Moreover, not all banks invest their client's funds in derivatives.

No, Bitcoin is not "backed" by mathematics. Perhaps you do not know what are you talking about?

Right, it was not published in any venue... Er yes it was. Perhaps you don't understand either mathematics or English.

Nautica

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Activity: 59

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Quote from: augustocroppo on January 29, 2014, 10:39:20 AM

No, Bitcoin is not "backed" by mathematics. Perhaps you do not know what are you talking about?

You are talking to deaf people. The amount of catchphrases and buzzwords that are considered gospel here is astounding.

augustocroppo

vip

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Quote from: Nautica on January 29, 2014, 10:48:43 AM

Quote from: augustocroppo on January 29, 2014, 10:39:20 AM

No, Bitcoin is not "backed" by mathematics. Perhaps you do not know what are you talking about?

You are talking to deaf people. The amount of catchphrases and buzzwords that are considered gospel here is astounding.

Sometimes I feel I speaking with bricks in a wall. That remind me of Pink Floyd.

augustocroppo

vip

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Quote from: Kikkerdril on January 29, 2014, 10:31:04 AM

English version:
https://multimediafiles.kbcgroup.eu/ng/published/KBC/PDF/Bitcoins_EN.pdf

Thank you. I advise everyone which is still learning about Bitcoin to read carefully the above document.

Be aware of risks when dealing with BTC.

augustocroppo

vip

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Merit: 503

Quote from: zeetubes on January 29, 2014, 10:30:38 AM

Because it is precisely FUD. these banks wildy invested their client's money in worthless derivatives and now they are spouting b.s. because they can't make money out of something. Bitcoins is backed by nothing.... yeah, except mathematics.

No, that is not FUD. That was not published in any specific venue to spread fear, uncertainty and despair. Assuming you are telling the truth, that is just a mail to alert people about the inherent risks of virtual currencies. Moreover, not all banks invest their client's funds in derivatives.

No, Bitcoin is not "backed" by mathematics. Perhaps you do not know what are you talking about?

Topic: Belgian Bank sends out FUD newsletters concerning Bitcoin - page 2. (Read 3142 times)