Bitcoin is Based on People's Faith - page 2.

ladydark

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Quote from: iamTom123 on June 26, 2017, 03:38:38 AM

I was researching and reading a certain Whitepaper from a good token project and this statement really struck my thinking:

"With no government or “anchor” backing up cryptocurrencies, the only foundation that cryptocurrencies have is people’s faith in their value. In other words, solely the market mechanism determines the price of cryptocurrencies. At my time of writing, that faith is worth is over $2000 per Bitcoin and this doesn’t spur from the Bitcoin’s intrinsic value, but from what it allow users to do."

In this case, what will happen when that same trust from Bitcoin holders can be diminished or for heaven's sake be gone...would that be the end of Bitcoin?

This also lead me to the question: is Bitcoin really a store of value or more of a medium where our trust is plastered on?

I hope that the faith would not go down $2000 and would only increase since we could see more countries like Australia,India coming forward to legalize bitcoin following japan.Also,more new companies starting to accept bitcoin payments and mass adoption of bitcoin taking place all over the world.This would definitely increase the demand for bitcoin and hence the price.

poiseulle

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Quote from: LouVandetta on June 26, 2017, 04:47:18 AM

Quote from: iamTom123 on June 26, 2017, 03:38:38 AM

I was researching and reading a certain Whitepaper from a good token project and this statement really struck my thinking:

"With no government or “anchor” backing up cryptocurrencies, the only foundation that cryptocurrencies have is people’s faith in their value. In other words, solely the market mechanism determines the price of cryptocurrencies. At my time of writing, that faith is worth is over $2000 per Bitcoin and this doesn’t spur from the Bitcoin’s intrinsic value, but from what it allow users to do."

In this case, what will happen when that same trust from Bitcoin holders can be diminished or for heaven's sake be gone...would that be the end of Bitcoin?

This also lead me to the question: is Bitcoin really a store of value or more of a medium where our trust is plastered on?

I believe that's true.

We all have faith in bitcoin that eventho the price may go down, but at a certain time it will rise up again.
And this thing keep repeating, again and again.

At some point, we might lose hope in bitcoin. And thought soon or later bitcoin will come to an end.

For now, it is more of a exciting game than serious value storage.That makes it very interesting

dillpicklechips

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Quote from: iamTom123 on June 26, 2017, 03:38:38 AM

I was researching and reading a certain Whitepaper from a good token project and this statement really struck my thinking:

"With no government or “anchor” backing up cryptocurrencies, the only foundation that cryptocurrencies have is people’s faith in their value. In other words, solely the market mechanism determines the price of cryptocurrencies. At my time of writing, that faith is worth is over $2000 per Bitcoin and this doesn’t spur from the Bitcoin’s intrinsic value, but from what it allow users to do."

In this case, what will happen when that same trust from Bitcoin holders can be diminished or for heaven's sake be gone...would that be the end of Bitcoin?

This also lead me to the question: is Bitcoin really a store of value or more of a medium where our trust is plastered on?

The answer: both.

Bitcoin is a store of value and its lifeline depends on the trust of its users. With no central banks, the price of Bitcoin depends on the people hence with no demand then it will die. If there is a high price then the demand is also high also and not just the demand but the thing is that when people use Bitcoin or invest to Bitcoin it is because they trust it because if not then you will not use it in the first place.

And yes. When the trust be diminish or even worse be gone, that would be the end of Bitcoin.

dunfida

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Quote from: iamTom123 on June 26, 2017, 03:38:38 AM

I was researching and reading a certain Whitepaper from a good token project and this statement really struck my thinking:

"With no government or “anchor” backing up cryptocurrencies, the only foundation that cryptocurrencies have is people’s faith in their value. In other words, solely the market mechanism determines the price of cryptocurrencies. At my time of writing, that faith is worth is over $2000 per Bitcoin and this doesn’t spur from the Bitcoin’s intrinsic value, but from what it allow users to do."

In this case, what will happen when that same trust from Bitcoin holders can be diminished or for heaven's sake be gone...would that be the end of Bitcoin?

This also lead me to the question: is Bitcoin really a store of value or more of a medium where our trust is plastered on?

The asnwer to your question i quiet simple: If bitcoin would loss its users and the interest on using it would be gone then expect its would really die up and you have some point that its based on peoples faith since government cant possibly do it which means it really relies on its users when it comes on its value. Thinking off on this thing will really stressed you out and better to go with the flow while bitcoin is still hot.

aesma

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Quote from: deisik on June 27, 2017, 10:40:32 PM

Quote from: cellard on June 27, 2017, 10:18:27 AM

Quote from: deisik on June 27, 2017, 10:08:51 AM

Quote from: jorneyflair on June 27, 2017, 01:51:33 AM

Currently though, bitcoin is more trustworthy than any fiat currencies. Government intervention makes fiat currencies extremely untrustworthy. It basically means that governments are able to inflate the monetary supply whenever possible. Now, consider this: Would you rather trust a central entity, or trust the code that bitcoin network runs on? I'd probably trust the code that bitcoin runs on

This is hardly so (if not to say outright impossible)

Personally, you may of course think exactly that way (though I doubt that you would be quite honest). If we talk about major currencies like the US dollar, Swiss frank, Euro, British pound, there is very slim chance that the governments of these countries and unions go insane all of a sudden and choose to ditch their money. On the other hand, this is what Bitcoin miners (Jihan Wu and minions) may be looking for. Given that, I can't really see how Bitcoin can be more trustworthy that the currencies I mentioned. Let's remain realists

There is a certainty in knowing that if you own X amount of BTC, you will ALWAYS own X amount of BTC, given that you are holding them properly (in other words, holding your own private keys, well secured setup to not get them stolen and so on)

Now, you can't say the same with fiat currencies. You own Y amount of fiat in your bank, who is to say there isn't a bailout? or your country becoming a mess like Venezuela in the future?

With BTC, you know you always own the amount you own. No other currency can give you that peace of mind. And this is precisely why it will be increasingly more valuable

I'm curious if you understand that absolutely the same can be said with respect to fiat money

Indeed, the US may become a mess like Venezuela one day in some distant future, but the chances of Bitcoin kicking the bucket are a lot higher than that, let's remain realists here. Further, if "you are holding them properly" (say, under the mattress), your monies will always remain Y amount of dollars, euro, etc. And I don't think that the coming chain split (or possible chain split) is anywhere close to giving you peace of mind. In short, your post is completely detached from reality

On the other hand that change in BTC is difficult to implement, precisely because there needs to be consensus. Plenty of fiat currencies have been devalued on the decision of one man alone.

rickadone

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Quote from: ASHLIUSZ on June 26, 2017, 04:50:24 AM

There is nothing to deny. The growth happened just because of the faith that people had over it. Apart from this the innovation is something that has never made an evolution in the economic sector. Here the technology itself got implemented on various sectors just because of the effective functioning. This is also the reason why people have faith on it and upcoming days no fall will happen as more users have been continuously making faith on it.

Yes, it is accurate that the invention of this currency has change economic sector and in near future this currency will be the backbone of every day life. The countries development will be judge by the use of bitcoin in domestic market and in think Brazil is on top because they have already started accepting bitcoin in their local shops. It is said that there are more than dozen shops who are accepting bitcoin from the customers for shopping.

deisik

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Quote from: cellard on June 27, 2017, 10:18:27 AM

Quote from: deisik on June 27, 2017, 10:08:51 AM

Quote from: jorneyflair on June 27, 2017, 01:51:33 AM

Currently though, bitcoin is more trustworthy than any fiat currencies. Government intervention makes fiat currencies extremely untrustworthy. It basically means that governments are able to inflate the monetary supply whenever possible. Now, consider this: Would you rather trust a central entity, or trust the code that bitcoin network runs on? I'd probably trust the code that bitcoin runs on

This is hardly so (if not to say outright impossible)

Personally, you may of course think exactly that way (though I doubt that you would be quite honest). If we talk about major currencies like the US dollar, Swiss frank, Euro, British pound, there is very slim chance that the governments of these countries and unions go insane all of a sudden and choose to ditch their money. On the other hand, this is what Bitcoin miners (Jihan Wu and minions) may be looking for. Given that, I can't really see how Bitcoin can be more trustworthy that the currencies I mentioned. Let's remain realists

There is a certainty in knowing that if you own X amount of BTC, you will ALWAYS own X amount of BTC, given that you are holding them properly (in other words, holding your own private keys, well secured setup to not get them stolen and so on)

Now, you can't say the same with fiat currencies. You own Y amount of fiat in your bank, who is to say there isn't a bailout? or your country becoming a mess like Venezuela in the future?

With BTC, you know you always own the amount you own. No other currency can give you that peace of mind. And this is precisely why it will be increasingly more valuable

I'm curious if you understand that absolutely the same can be said with respect to fiat money

Indeed, the US may become a mess like Venezuela one day in some distant future, but the chances of Bitcoin kicking the bucket are a lot higher than that, let's remain realists here. Further, if "you are holding them properly" (say, under the mattress), your monies will always remain Y amount of dollars, euro, etc. And I don't think that the coming chain split (or possible chain split) is anywhere close to giving you peace of mind. In short, your post is completely detached from reality

cellard

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Quote from: deisik on June 27, 2017, 10:08:51 AM

Quote from: jorneyflair on June 27, 2017, 01:51:33 AM

Currently though, bitcoin is more trustworthy than any fiat currencies. Government intervention makes fiat currencies extremely untrustworthy. It basically means that governments are able to inflate the monetary supply whenever possible. Now, consider this: Would you rather trust a central entity, or trust the code that bitcoin network runs on? I'd probably trust the code that bitcoin runs on

This is hardly so (if not to say outright impossible)

Personally, you may of course think exactly that way (though I doubt that you would be quite honest). If we talk about major currencies like the US dollar, Swiss frank, Euro, British pound, there is very slim chance that the governments of these countries and unions go insane all of a sudden and choose to ditch their money. On the other hand, this is what Bitcoin miners (Jihan Wu and minions) may be looking for. Given that, I can't really see how Bitcoin can be more trustworthy that the currencies I mentioned. Let's remain realists

There is a certainty in knowing that if you own X amount of BTC, you will ALWAYS own X amount of BTC, given that you are holding them properly (in other words, holding your own private keys, well secured setup to not get them stolen and so on)

Now, you can't say the same with fiat currencies. You own Y amount of fiat in your bank, who is to say there isn't a bailout? or your country becoming a mess like Venezuela in the future?

With BTC, you know you always own the amount you own. No other currency can give you that peace of mind. And this is precisely why it will be increasingly more valuable.

deisik

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Quote from: jorneyflair on June 27, 2017, 01:51:33 AM

Currently though, bitcoin is more trustworthy than any fiat currencies. Government intervention makes fiat currencies extremely untrustworthy. It basically means that governments are able to inflate the monetary supply whenever possible. Now, consider this: Would you rather trust a central entity, or trust the code that bitcoin network runs on? I'd probably trust the code that bitcoin runs on

This is hardly so (if not to say outright impossible)

Personally, you may of course think exactly that way (though I doubt that you would be quite honest). If we talk about major currencies like the US dollar, Swiss frank, Euro, British pound, there is very slim chance that the governments of these countries and unions go insane all of a sudden and choose to ditch their money. On the other hand, this is what Bitcoin miners (Jihan Wu and minions) may be looking for. Given that, I can't really see how Bitcoin can be more trustworthy that the currencies I mentioned. Let's remain realists

DevilSlayer

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Quote from: Himanshu111 on June 26, 2017, 08:24:40 PM

I think you are absolutely correct, faith is one of the main reasons on which price of Bitcoin is decided. More people who believe in Bitcoin increase the demand of Bitcoin which leads to high prices and if people start to loose faith in it, price can fall and it can loose its value.

Yeah the value of the bitcoin is indicate by the faith by the people. The people who willing invest their money to the bitcoin and enter to the world of crypto. The demand and the supply is the reason why the value of the bitcoin is changing.

aesma

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Quote from: iamTom123 on June 26, 2017, 03:38:38 AM

I was researching and reading a certain Whitepaper from a good token project and this statement really struck my thinking:

"With no government or “anchor” backing up cryptocurrencies, the only foundation that cryptocurrencies have is people’s faith in their value. In other words, solely the market mechanism determines the price of cryptocurrencies. At my time of writing, that faith is worth is over $2000 per Bitcoin and this doesn’t spur from the Bitcoin’s intrinsic value, but from what it allow users to do."

In this case, what will happen when that same trust from Bitcoin holders can be diminished or for heaven's sake be gone...would that be the end of Bitcoin?

This also lead me to the question: is Bitcoin really a store of value or more of a medium where our trust is plastered on?

It's a good question. I tend to agree that Bitcoin's value is based on faith. Faith in what you can do with it, faith that it's a disruptive technology, etc. If you think about it it's not that different from Google or Facebook. These companies provide a service, but is their current price really justified ?

olubams

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Quote from: iamTom123 on June 26, 2017, 03:38:38 AM

I was researching and reading a certain Whitepaper from a good token project and this statement really struck my thinking:

"With no government or “anchor” backing up cryptocurrencies, the only foundation that cryptocurrencies have is people’s faith in their value. In other words, solely the market mechanism determines the price of cryptocurrencies. At my time of writing, that faith is worth is over $2000 per Bitcoin and this doesn’t spur from the Bitcoin’s intrinsic value, but from what it allow users to do."

In this case, what will happen when that same trust from Bitcoin holders can be diminished or for heaven's sake be gone...would that be the end of Bitcoin?

This also lead me to the question: is Bitcoin really a store of value or more of a medium where our trust is plastered on?

Obviously that's what will happen in my opinion because the reason why bitcoin is still holding forth is the faith people have in it and that faith keeps increasing day by day through various people and organizations coming to share in that faith. The same faith is what those people predicting the end of bitcoin are equally banking on that since bitcoin is not backed by gold or reserves or government, the faith will not hold for long then everything will come crashing. Let's keep the faith alive and continue spreading such as well.

jorneyflair

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Quote from: iamTom123 on June 26, 2017, 03:38:38 AM

I was researching and reading a certain Whitepaper from a good token project and this statement really struck my thinking:

"With no government or “anchor” backing up cryptocurrencies, the only foundation that cryptocurrencies have is people’s faith in their value. In other words, solely the market mechanism determines the price of cryptocurrencies. At my time of writing, that faith is worth is over $2000 per Bitcoin and this doesn’t spur from the Bitcoin’s intrinsic value, but from what it allow users to do."

In this case, what will happen when that same trust from Bitcoin holders can be diminished or for heaven's sake be gone...would that be the end of Bitcoin?

This also lead me to the question: is Bitcoin really a store of value or more of a medium where our trust is plastered on?

If people lose faith in bitcoin, then obviously they are going to dump their coins. This will definitely be extremely bad for bitcoin, as when people dump their coins, they drive the price down.

Currently though, bitcoin is more trustworthy than any fiat currencies. Government intervention makes fiat currencies extremely untrustworthy. It basically means that governments are able to inflate the monetary supply whenever possible. Now, consider this: Would you rather trust a central entity, or trust the code that bitcoin network runs on? I'd probably trust the code that bitcoin runs on.

Bitcoin is like digital gold, there is a limited supply of it and it's immutable. As more people start using bitcoin, the more trustworthy bitcoin becomes. You're right, bitcoin relies on faith. But unlike fiat currencies, bitcoin community's faith in bitcoin grows as time goes on.

magneto

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Every single currency is built on trust. Fiat currency especially.

If everyone knew about how fiat currency is completely rubbish and that the government has basically control over anything that you do with the currency, then everyone will dump their cash for a store of value such as gold and silver, or even bitcoin.

The thing about decentrlized store of nvalues such as gold, silver and bitcoin is that you don't actually need to trust anyone with your wealth. You holdy our own private keys, and the government cannot influence inflation rates in bitcoin. It's all preset in the bitcoin code beforehand. Obviously, if people don't believe in bitcoin anymore(such as a fork going wrong), then bitcoin's going to drop in value, probably dramatically as well. But this isn't just applicable to bitcoin, it is applicable to any market based currencies. Either way, i don’t think that bitcoin will experience this sort of thing anytime soon. It is still very early stages, and mass adoption has not even happened.

Mandoy

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Aurox

Quote from: iamTom123 on June 26, 2017, 03:38:38 AM

I was researching and reading a certain Whitepaper from a good token project and this statement really struck my thinking:

"With no government or “anchor” backing up cryptocurrencies, the only foundation that cryptocurrencies have is people’s faith in their value. In other words, solely the market mechanism determines the price of cryptocurrencies. At my time of writing, that faith is worth is over $2000 per Bitcoin and this doesn’t spur from the Bitcoin’s intrinsic value, but from what it allow users to do."

In this case, what will happen when that same trust from Bitcoin holders can be diminished or for heaven's sake be gone...would that be the end of Bitcoin?

This also lead me to the question: is Bitcoin really a store of value or more of a medium where our trust is plastered on?

Well it is really true that bitcoin is based on peoples faith and trust. Even traditional currency was also based on that. If people does not trust a certain currency it may be cryptocurrency or fiat cash then they will not accept it and it will lose its value. What give value to a certain currency is the faith and trust of people patronizing it. If people accepts a certain currency it becomes valuable. It is the people who placed a value to any kind of currency and even to a commodity. Thus it is important for any currency to have the peoples faith, trust and support otherwise they will just become normal numbers or an ordinary paper with numbers. If you look back at the history of each currency you will discover and realize that a certain currency did become a currency out of peoples choice, acceptance and support.

DOGE12321

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Sometimes it is good to have no owner or "government", controlling our every move. This is why Bitcoin has been successful so far. Bitcoin's future, however, does depend on the community and faith. We depend on our developers and miners to keep the cryptocurrency moving. If any one of these groups decides to leave Bitcoin, then the entire Bitcoin project would be dead. Bitcoin can be still considered as an asset, investment and a currency too. That is what makes Bitcoin unique. I think Bitcoin fits both categories. It is, both, a store of value and a medium where our trust is plastered on. These two aspects of Bitcoin complement each other and furthers the development of Bitcoin.

Doms

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Technology is what's behind our modern advances today. For bitcoin to prosper, the technology and development must keep in step with each other. Of course faith in a certain crypto currency plays a big role, because once the actual users lose faith in it, it would eventually lose any sort of value it possesses. But also, human greed and fear play a role in the rise and fall of bitcoin, so it is more complicated than we think it is.

Himanshu111

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I think you are absolutely correct, faith is one of the main reasons on which price of Bitcoin is decided. More people who believe in Bitcoin increase the demand of Bitcoin which leads to high prices and if people start to loose faith in it, price can fall and it can loose its value.

fortunecrypto

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I think it's faith and technology people are amazed on it's technology, finally, they've found something that's new in their eyes and can save them a lot of fee and from getting their account disable and limited just like what Paypal and Payza are doing to their clients.

Drnice

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Bitcoin can be a store of value or a place where the hope of making money and life becomes easy.
If it is not destroyed it will be a place where man's trust is plastered but only if the good mind of those who developed it will let it go on...

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