Topic: Bitcoin is no hedge against inflation - i unadopted it. - page 2. (Read 5823 times)

Do you really think so? 



We need it to be independent of banks.

I don't think most people is ready for it though.

This is a very immature argument, however it is not even true. You really do not have control when you need to move your bowels this is something that is handled by your body that you do not have control over (even with laxatives). It would also be very difficult to transfer your fecal matter to others, and it could easily be seized the same way that any other physical item can be seized. No one else would likely assign any value to your fecal matter while people to assign value to bitcoin

I think a lot of people don't really understand inflation because of how interwoven it is with modern society.

Small amounts (2 - 3%) of inflation are actively promoted by central banks for one reason: to promote spending.  If you stick your money (let's say US Dollars, but the principle will work with any fiat currency), in a bank and leave it there for a year, you'll be pretty much guaranteed to be able to buy less at the end of the year than you could at the beginning.  Maybe not a huge amount less, but multiply that over the course of 5 - 10 years and it makes a huge difference.

Economists don't like deflation, and this is precisely why.  Deflation (and deflationary currencies like bitcoin) promote saving.  How many bitcoiners have a stash of bitcoins that they're holding for when they're worth more?  I'd bet most people on this site do, and if they don't, they'd like to most of the time.  The long term trend for bitcoin is for the fiat value to increase in value.  Yes, it's gone down a fair amount over the past year, but compare how the current price now to the price in August of 2013.   

I'll save you looking it up - the price then was around $90.  Still think the current $380 price looks bad?  It all depends on how long term your vantage point is.  If you're here to make a quick buck, well, you picked the wrong time to invest.  If you're here for the long haul, enjoy the rollercoaster ride of bitcoin and ignore the price for the next several months.  Check back in a year or two and I'll be the price will be back up again.

My bet on why the price keeps going down: people are spending their bitcoins, and merchants (understandably) aren't wanting to hold them and carry exchange rate risk, so they're immediately cashing out.  There aren't enough people buying bitcoins to replace the downward price pressure of these merchants cashing out, so these purchases mean that the price is going down.  So here's my advice.  Want to help keep the price from dropping any further?  Any time you buy something in bitcoins, buy an equal amount of bitcoins right after you buy whatever it is you're looking at.  That'll counteract the downward price pressure from the merchant most likely immediately cashing out the bitcoin sale.

These days, if you do that, you'll be getting your new batch of bitcoins on sale because for now, well, the price keeps dropping.  It's truly a free market currency, unlike most currencies, there's no army or government behind bitcoin saying "This bitcoin is backed by the full force of x government" - rather, it's backed by the full faith and credit of us - everyone who invests in bitcoins, everyone who spends bitcoins, and everyone who buys bitcoins. 

Bear in mind that I'm saying this as someone who bought bitcoins a couple months ago when the price was around $650.  It's not fun watching the price plummet, but I'm sure as hell not cashing out now.  If it drops to $100, I may regret this decision, but I'd be surprised if it goes down that far.

Its not nonsense shitcoin and my dumps have a lot in common.. point is that it's an asset not a currency and that it is a shitty asset. I would much rather grains or oil to bitcoin.

Sucks people think that way.. Just use it as a currency!

Inflation will cause your purchasing power to decline. The same 10 buck that can get you tons of grocery 10 years ago has shrunk. So do you see the same to bitcoin? Put that under wider perspective by comparing against 5 years ago.

Bitcoin is never a hedge for inflation.
What you want to be is to become an early adopter and be rich when its value increases

I have complete control over the dump I took earlier today, no one is gonna seize it without my permission and I can transfer it to whom ever I want and there is a limited supply, guaranteed to less than 21 million in circulation, It is a deflationary dump and you are an idiot if you cant see the value in my dumps. I dont know what to tell you if you dont see the value in investing in my bowel movements, I can even make a digital representation of my dumps each day. My dumps have POS mining (proof of shit) It proves work was done in the production of each of my dumps. I add or remove laxatives to keep them produced at a steady rate. Invest in my digital collectible dumps if you dont you hate free markets! 

High inflation can be factored in. Unexpected/unknown inflation is a problem.

You could try and play it that way, but you'd also be trying to time the market, which imo is too risky if you were a very early adopter.

According to this chart transaction volume is increasing. https://blockchain.info/charts/n-transactions-excluding-popular?showDataPoints=false×pan=&show_header=true&daysAverageString=7&scale=0&address=

Shouldn't you also be considering that the total BTC will only ever be 21 Million? What I mean is that with such a tiny total supply any inflation should be more than offset. It's just simple math that it doesn't take much adoption to move the price up significantly. I'm not arguing that the price has been going down lately, but nothing moves up in a straight line. Why would you expect different?

Sorry, but the fact is that you don't know what inflation is. However, you are free to invest in anything you want.

Bitcoin unadopted you    Only those with above average intelligence and patience will be the ones to benefit from Bitcoin at the moment.  Your gains from Bitcoin will be limited to saving wire fees using Circle once Bitcoin becomes mainstream and you have no option than to use Bitcoin again, or look silly paying extortionate fees.

Just saw this 

Certainly, I can do all sorts of things with Bitcoin that I cannot do with any other asset or currency. Other alts may be able to replicate some of the features of bitcoin but not do so securely, or as conveniently.

What good is a PoS or DPoS coin if no one uses it or accepts it. It is important to me to be able to make purchases and pay employees in Bitcoin.

You sound like a broken record and conveniently fail to respond to many of the answers given.
Let me guess, this post was an indirect way to pump an alt with less inflation than Bitcoin, right?

We heard the message, we are all doomed, please migrate over to your alt forum or at least pump your shitcoin here:

https://bitcointalk.org/index.php?board=67.0

Bitcoin functions as a digital collectible not currency.

So bitcoin is an asset not a currency. But what kind of asset is it? Can you eat it? live under it? drink it? can bitcoin keep you warm at night? how does it compare to other asset classes? and is there any compelling reason to collect a digital collectible? 

i think bitcoins logic is flawed. The 10% inflation keep dragging it down.
People around here say: 'we need the inflation to support network and stuff'.
Sure, but if miners would mine less coins the price would be higher and the mining would bring them about the same money if not more.
I think bitcoin adoption is choked off by falling prices and inflation.

If it wouldn't inflate this heavy, prices would be higher, bearmarket would be shorter, upside would be higher, adoption would be faster, miners would make the same money, network would still be secured with the same hashpower.

Does that makes sense?

I think the high inflation and clumsy rewarddecrease is total bullshit and flawed logic.
You don't support adoption with high inflation, quite the opposite. You kill adoption with high inflation. The miners gain nothing from it.

Lower inflation would mean higher prices, better charts, more investement (who wants to buy into a decline?), higher adoption, higher prices.
Bitcoin is in a death-spiral due to its inflation. The logic is flawed.


what difference does it make for the miner if he mines 25 coins for 200$ or 12.5 coins for 400$ or more ?

That inflation is too high. There is no need to discuss it. That's a fact.

The high inflation doesn't serve its purpose, it just scares investors away.

There is absolutely no need to devalue the coins for this long time at this heavy rate.
Low prices don't serve networksecurity either.

IOUs are not real money, they are just numbers in bank's database, just like your btc holdings in an exchange. When you withdraw bitcoin to your wallet, they will get a bank run if they don't have enough real bitcoin

Banks are quickly pushing out full-electronic money in order to avoid the bank run totally (Withdraw from bank X will always land in bank Y, and bank X just borrow it back from bank Y to face more withdraw pressure), but with bitcoin they can not do it, means much less risk in the whole financial system

OP, money supply has nothing to do with inflation

Take QE for example, since 2008 the base money supply has increased by more than 400%, while the annual inflation rate is less than 5%. Why? Because majority of those newly created money are sitting in bank's pocket, being not in circulation, they won't create any inflation

This is the same for bitcoin, although the annual money supply increase by 10%, most of the coins are hoarded, so those 4000 coins per day won't create any significant sell pressure on market, maximum couple of hundred coins per day were added daily on the market

Bitcoin's exchange rate has been falling for almost a year, but that is from a overshoot high due to extremely illiquid market condition, it's real valuation is closely related to its cost, which is about $300 to $400 per coin, it is still falling, that means the capital are still flowing into mining business instead of exchange. Until the profit of mining further dropped, this trend will continue, but very soon many miners will be just exchange electricity for coins

Value is decided by supply and demand together, as long as there is demand for it, the value can be decided by the supply divided by demand

The statement "currency does not have value" is a lie from the banks to force people to believe their valueless currency can be used to trade. But this trick works and most of the people fall for it