Sweet video.
http://www.financialsense.com/contributors/ron-hera/fifteen-fundamental-problems-with-fiat-currencies
http://www.financialsense.com/contributors/ron-hera/fifteen-fundamental-problems-with-fiat-currencies
couldn't help myself
Topic: Biggest misconception in Bitcoin (Read 4447 times)
The biggest misconception is that it is currency... it's not.
I have been harping on this for a while now, but here it is from the owner of second largest exchange BTC-china.
"China has been known as a nation of savers, who are always saving for a rainy day,” says Lee. ”Bitcoin is a digital asset, like real estate, gold, or stock. It is just one more option now. With Bitcoin hard-coded to be limited, it’s like a collectible.”"
It isnt currency.
It is a digital collectible.
I have been harping on this for a while now, but here it is from the owner of second largest exchange BTC-china.
"China has been known as a nation of savers, who are always saving for a rainy day,” says Lee. ”Bitcoin is a digital asset, like real estate, gold, or stock. It is just one more option now. With Bitcoin hard-coded to be limited, it’s like a collectible.”"
It isnt currency.
It is a digital collectible.
i agree more on the subject http://www.youtube.com/watch?v=oHg5SJYRHA0
The biggest misconception is that it is currency... it's not.
I have been harping on this for a while now, but here it is from the owner of second largest exchange BTC-china.
"China has been known as a nation of savers, who are always saving for a rainy day,” says Lee. ”Bitcoin is a digital asset, like real estate, gold, or stock. It is just one more option now. With Bitcoin hard-coded to be limited, it’s like a collectible.”"
It isnt currency.
It is a digital collectible.
I have been harping on this for a while now, but here it is from the owner of second largest exchange BTC-china.
"China has been known as a nation of savers, who are always saving for a rainy day,” says Lee. ”Bitcoin is a digital asset, like real estate, gold, or stock. It is just one more option now. With Bitcoin hard-coded to be limited, it’s like a collectible.”"
It isnt currency.
It is a digital collectible.
Its becoming a currency. It's like an infant. What can an infant do when its a couple of years old? Crap on itself. That's about it.
How about when the infant is 20 years old. It can change the world.
You're just butthurt because you wanted the infant Bitcoin to be a way for you to have a currency on your ebay company. And bitcoin crapped on you. Or rather, the people that you used bitcoin with.
So get over it already.
Let's revisit this thread in 10 years.
Dictionary definition of 'currency'
currency
Use Currency in a sentence
cur·ren·cy
[kur-uhn-see, kuhr-] Show IPA
noun, plural cur·ren·cies.
1.
something that is used as a medium of exchange; money.
2.
general acceptance; prevalence; vogue.
3.
a time or period during which something is widely accepted and circulated.
4.
the fact or quality of being widely accepted and circulated from person to person.
5.
circulation, as of coin.
In my mind Bitcoin is fast becomming a fully fledged currency.
Especially with news stories such as:
http://www.coindesk.com/netherlands-food-delivery-network-bitcoin/
and
http://www.coindesk.com/shopify-integrates-bitcoin-payments/
currency
Use Currency in a sentence
cur·ren·cy
[kur-uhn-see, kuhr-] Show IPA
noun, plural cur·ren·cies.
1.
something that is used as a medium of exchange; money.
2.
general acceptance; prevalence; vogue.
3.
a time or period during which something is widely accepted and circulated.
4.
the fact or quality of being widely accepted and circulated from person to person.
5.
circulation, as of coin.
In my mind Bitcoin is fast becomming a fully fledged currency.
Especially with news stories such as:
http://www.coindesk.com/netherlands-food-delivery-network-bitcoin/
and
http://www.coindesk.com/shopify-integrates-bitcoin-payments/
Nintendo games were not a good store of value either, but wait another 100 years and see how much people are willing to pay for a contra game.
Glad I'm hanging onto my VHS tapes.
I love you guys
whynotbothmeme.jpg
Mandatory reading, the best explanation of this I've found on this subtle concept: http://www.reddit.com/r/Bitcoin/comments/1mb27q/bitcoins_vast_overvaluation_appears_caused_by/cc7i6y8
I've read that post, and I think its the best summary of the current situation in bitcoin that there is. Everyone should read it, especially the 'I think bitcoin is overvalued because I can't spend it anywhere' crowd.
Sublime is actually right that thinking of Bitcoin as a currency now is the biggest misconception in Bitcoin. The "collectible" thing and many of his other arguments are silly, but he is spot-on that this is a crucial misconception. I reality, at present, something like 1% of Bitcoin's usefulness is as a currency, maybe 9% is as a way of sending money, and 90% is as a store of value based on the future promise of the other two functions (as well as others, like contracts, stocks, escrow, etc.).
Mandatory reading, the best explanation of this I've found on this subtle concept: http://www.reddit.com/r/Bitcoin/comments/1mb27q/bitcoins_vast_overvaluation_appears_caused_by/cc7i6y8
Without a precise understanding of this it is really hard to understand why Bitcoin is so highly valued today. It's Gold 2.0 and the ultimate investment because of ultimate future promise not yet realized today for reasons that are only temporary. That Bitcoin should be judged on its present-day utility as a currency is truly the most widespread misconception in Bitcoin, and it's a pivotal one to get right.
Mandatory reading, the best explanation of this I've found on this subtle concept: http://www.reddit.com/r/Bitcoin/comments/1mb27q/bitcoins_vast_overvaluation_appears_caused_by/cc7i6y8
Without a precise understanding of this it is really hard to understand why Bitcoin is so highly valued today. It's Gold 2.0 and the ultimate investment because of ultimate future promise not yet realized today for reasons that are only temporary. That Bitcoin should be judged on its present-day utility as a currency is truly the most widespread misconception in Bitcoin, and it's a pivotal one to get right.
Nintendo games were not a good store of value either, but wait another 100 years and see how much people are willing to pay for a contra game.
Glad I'm hanging onto my VHS tapes.
Bitcoin: store of value. 
Yes store of value and medium of exchange just like a baseball card.
Except more durable, more fungible, more divisible, more easily transportable, harder to counterfeit...
Stop calling it currency 
What's it matter, anyway?
Because if you can realize that bitcoin is not currency because it is not a UNIT then you can realize that the US dollar is not currency because it is not a UNIT.
That is what Ron Paul is really asking Ben when he asks can you define a dollar for me. He is really asking what is the UNIT called a dollar equal to?
Okay Einstein, why don't you enlighten us and give us an example of something that is a currency?
bytes, kilowatts, the dollar in 1970,oil, metals they can all be currency. Because they all can be mediums of exchange, stores of value, and a UNIT of account.
Bytes and kilowatts aren't scarce. The dollar in 1970 was just a piece of paper that was supposedly backed by gold. Of course Nixon let the world know in 1971 that the backing of paper with gold can be undone with the simple stroke of a pen. Oil is a consumable commodity. Precious metals are the only form of sound money the world has had before Bitcoin, but now the bankers have scammed the people into using their paper and managed to hoard most of the gold for themselves. That rules out everything on your list. Please try again.
Hi sublime
This unit thing is dragging on a bit, eh? I think I've figured out where your confusion lies.
You assert that Bitcoin is not a unit. Have a look at one definition of a unit, and it seems that you are correct:
http://en.wikipedia.org/wiki/Units_of_measurement
Units of measurement are used to measure physical things which are 'objectively real'. Therefore Bitcoin is not a unit of measurement.
It is, however, a unit of account:
http://en.wikipedia.org/wiki/Unit_of_account
Units of account are used to measure monetary value, e.g. the amount of wealth/value stored in $1000.
Value is an abstract and subjective concept which doesn't exist physically. You seem to be confusing units of measurement with units of account. Some things may fit both definitions, for example an ounce of gold: as a unit of measurement, a 1oz gold coin represents the amount of mass which people have agreed upon to be equal to 1oz. It also has value (an abstract/subjective quantity) and can be used to represent 'the amount of value contained in 1oz of gold'. Value is not physical/objectively real and is therefore subject to change as dictated by the market.
Does this help at all?
EDIT:
Also see here:
http://en.wikipedia.org/wiki/Currency
So by the general/colloquial use of the term 'currency', Bitcoin fits the definition as it is (or can be) used as a medium of exchange.
This unit thing is dragging on a bit, eh? I think I've figured out where your confusion lies.
You assert that Bitcoin is not a unit. Have a look at one definition of a unit, and it seems that you are correct:
http://en.wikipedia.org/wiki/Units_of_measurement
Units of measurement are used to measure physical things which are 'objectively real'. Therefore Bitcoin is not a unit of measurement.
It is, however, a unit of account:
http://en.wikipedia.org/wiki/Unit_of_account
Units of account are used to measure monetary value, e.g. the amount of wealth/value stored in $1000.
Value is an abstract and subjective concept which doesn't exist physically. You seem to be confusing units of measurement with units of account. Some things may fit both definitions, for example an ounce of gold: as a unit of measurement, a 1oz gold coin represents the amount of mass which people have agreed upon to be equal to 1oz. It also has value (an abstract/subjective quantity) and can be used to represent 'the amount of value contained in 1oz of gold'. Value is not physical/objectively real and is therefore subject to change as dictated by the market.
Does this help at all?
EDIT:
Also see here:
http://en.wikipedia.org/wiki/Currency
Quote
A much more general use of the word currency is anything that is used in any circumstances, as a medium of exchange
So by the general/colloquial use of the term 'currency', Bitcoin fits the definition as it is (or can be) used as a medium of exchange.
It's not a currency in the same way that email is not mail and html is not text.
Right now most people don't even realize that the basic "currency" function is just a small subset of things that Bitcoin can do. Once distributed contracts take off, things are going to get really interesting. There is nothing even remotely comparable in existence right now. No currency, no commodity, no collectible.
The biggest misconception in Bitcoin is that is fits into some historical asset class. The truth is that is has created a whole new asset class of its own.
This. It is both everything and nothing at the same time. Thats why it will change the world! Right now most people don't even realize that the basic "currency" function is just a small subset of things that Bitcoin can do. Once distributed contracts take off, things are going to get really interesting. There is nothing even remotely comparable in existence right now. No currency, no commodity, no collectible.
The biggest misconception in Bitcoin is that is fits into some historical asset class. The truth is that is has created a whole new asset class of its own.
bitcoin is the honey badger of money
It is computer data and as such, should not be considered currency and/or a means to build wealth/prosperity.
Funny to see how people STILL don't realize that your precious U.S. Dollars are just as digital. This is 2013, there is hardly any paper / coin money left (less than 1%). Virtually ALL dollars are only numbers in your bank's computer.
Quote
It is being used to fool us into going cashless.
By whom, exactly? By the way, Bitcoin is cash. Digital cash.
Quote
What will you do if they turn your power and/or chip off ?
They won't, cause that would immediately kill all regular bank&money transactions, online banking, credit cards, paypal, western union traffic, stock markets, everything.Seriously, wake up. We live in the information age. Every currency and form of payment is digital these days.
I am awake. lol I never implied that the status quo is or was any different. That plug can and will be pulled just as easily. eg. austerity measures, bank bailouts, sanctions, ect..
Who ? The ruling elite .. http://youtu.be/aZYB_IOqeOE
Bitcoin: store of value.
Yes store of value and medium of exchange just like a baseball card.
Except more durable, more fungible, more divisible, more easily transportable, harder to counterfeit...
Stop calling it currency
What's it matter, anyway?
Because if you can realize that bitcoin is not currency because it is not a UNIT then you can realize that the US dollar is not currency because it is not a UNIT.
That is what Ron Paul is really asking Ben when he asks can you define a dollar for me. He is really asking what is the UNIT called a dollar equal to?
Okay Einstein, why don't you enlighten us and give us an example of something that is a currency?
bytes, kilowatts, the dollar in 1970,oil, metals they can all be currency. Because they all can be mediums of exchange, stores of value, and a UNIT of account.
It is computer data and as such, should not be considered currency and/or a means to build wealth/prosperity.
Funny to see how people STILL don't realize that your precious U.S. Dollars are just as digital. This is 2013, there is hardly any paper / coin money left (less than 1%). Virtually ALL dollars are only numbers in your bank's computer.
Quote
It is being used to fool us into going cashless.
By whom, exactly? By the way, Bitcoin is cash. Digital cash.
Quote
What will you do if they turn your power and/or chip off ?
They won't, cause that would immediately kill all regular bank&money transactions, online banking, credit cards, paypal, western union traffic, stock markets, everything.Seriously, wake up. We live in the information age. Every currency and form of payment is digital these days.
It is computer data and as such, should not be considered currency and/or a means to build wealth/prosperity.
It is being used to fool us into going cashless.
What will you do if they turn your power and/or chip off ?
It is being used to fool us into going cashless.
What will you do if they turn your power and/or chip off ?
What happens to your dollars when we run out of trees? Seems about as likely.
Because if you can realize that bitcoin is not currency because it is not a UNIT then you can realize that the US dollar is not currency because it is not a UNIT.
So what IS a currency, then, you think? (Just an example will do)Dont get me wrong. The protocol is a great tech innovation, and will no doubt influence the world going forward.
But it wont destroy banks or replace government issued fiat.
Sure. Just like email didn't replace postal services.But it wont destroy banks or replace government issued fiat.
Obviously they will still exist in 5-10 years. But they'll play a much smaller (only marginal) role.
The biggest misconception is that it is currency... it's not.
I have been harping on this for a while now, but here it is from the owner of second largest exchange BTC-china.
"China has been known as a nation of savers, who are always saving for a rainy day,” says Lee. ”Bitcoin is a digital asset, like real estate, gold, or stock. It is just one more option now. With Bitcoin hard-coded to be limited, it’s like a collectible.”"
It isnt currency.
It is a digital collectible.
I have been harping on this for a while now, but here it is from the owner of second largest exchange BTC-china.
"China has been known as a nation of savers, who are always saving for a rainy day,” says Lee. ”Bitcoin is a digital asset, like real estate, gold, or stock. It is just one more option now. With Bitcoin hard-coded to be limited, it’s like a collectible.”"
It isnt currency.
It is a digital collectible.
My point Sublime is who cares if it's "currency" or not, if it does the job which people want it to do, then who cares what it is.
Jump to: