Topic: Bitcoin is only a means to get money into alts. Bitcoin fails. (Read 1846 times)

Money supply expansion does not necessarily create inflation. Japan has been printing Yen hand over fast for decades. Despite that, their economy has been deflationary.

Bitcoin, similarly, has been mining new coins since 2009 but the overall trend has been massively deflationary. 1 BTC in 2014 has far more buying power than 1 BTC in 2010.

The US federal reserve has also been printing money hand over fist since 2008. Despite that, the purchasing power of the dollar has remained relatively static by some measures and has grown much stronger by others. Case in point - a dollar today buys more oil, gold, and silver than it did in July 2008.

What a dumbass. OP, you can't learn about monetary policy by reading one copy of Money Magazine that you stole from a Starbucks.

You obviously don't know what inflation is so please read this: Inflation is a continuing increase in the price of everything in an economy over a period of time. When the price of stuff increases, each dollar or whatever currency buys smaller amounts of the same stuff.

OP, is a Keynesian when it comes to economics. 
OP, the dollar is divisible by 100, cents.
Bitcoin is divisible by 100,000,000, satoshi.
There is no shortage of money supply.  There never will be.
And your idea of inflation is, well, pretty weird.

Ripple is essentially controlled by a central authority and has many of the same risks as using services like paypal only that you also have exchange rate risks as well.

The reason that you need to first buy bitcoin in order to buy altcoins is that the altcoins have no real value and no real use except speculation

Bitcoin's price has held up quite well in spite of the block reward being large (in percentage terms)
When the block reward halves in 2016, inflation is going to be even lower. So I see no case for exaggerated inflation (as you call it) causing the failure of Bitcoin.

What you fail to mention is the fact that there is a very good reason why people need to buy bitcon in order to buy altcoins. There is simply not enough demand for altcoins for exchanges to support USD/shitcoin trading, as well as the fact that many more people are interested in trading bitcoin directly then trading any individual shitcoin

oooh fun  Thanks OP for a few minutes of entertainment.

Lets see, what can I say that others haven't pointed out...
Hmm...ok, how about this:


1. Merchant adoption:  

Pretty weak argument based on circular logic.  How are the altcoins going to
become dominant and get better adoption if the perception that
Bitcoin is superior rests on its superior adoption?

2. Hashrate "can drop fast" is a speculative (counterfactual) fallacy.  
There's no reason to assume or think that it will.  It may decrease
slightly if Bitcoin price continues to slide, but it won't "drop fast".  Even
a full order of magnitude decrease is much more secure than
any altcoin.

I would suspect so.
Then again I also suspect the OP is another Sol Adoni troll acounts.

DON'T FEED THE TROLL!!!!!

So this post is about ripple? 
You are not trying to prove alts are the future, you want newbies to buy the ripples you are dumping

Gold is a rock painted in yellow color.
This Rock have no futur, too ...

  and it crash in value !

Unobtanium is a pure SHA256 PoW mature coin.  14 months old and 192,773 of a possible total of 250,000 have been minted.  currently at a price of $2.16 per UNO and only 15 new UNO produced per day by mining with another halving coming this spring.  the final 50k will be mined over the course of 300 years.

this is not a pump and dump.  this is a grass-roots digital asset.

get in while you still can.

While Bitcoin is a great way to get money into other crypto startups, i.e. an investment vehicle, that is not all it is.   It can be hard to see it becoming a major world currency when it's taking a hit, but it could survive yet.  I'm undecided.  Might as well park funds in a stable crypto like bitUSD while the crash happens, unless you think the crash has happened and it's buying time.

Centralized system? I'd rather use fiat then. 

So humor us wise Muuuuuurrrrrrrrricaaaaaaaa, what altcoin should we get our money into besides Bitcoin?

Ripple?  NXT?  Darkcoin?  Monero?

Which crypto do you expertly advise us to invest our money:

lol. ALL THIS SHIT is dying. Better buy some ripple because that doesn't inflate with over 10% a year and eventually is the future of crypto because bitcoin can't hold the drink.

There are so many topics about bitcoin being dead and alts are the way to go, and these topics are mainly written by newbies. I interpret them as signals of a dying alt coin environment and alt coin developers are struggling with their pump and dump schemes, they have to sign up as newbies and spread FUD with unconvincing arguments.

so another bitcoin is dead thread  

No currency can exist without being created.  Therefore, until all the units are in circulation, ALL crypto currencies will have a supply inflation.

Bitcoin supply inflation rate is quite small at the moment, and will continue to shrink VERY fast over the next few years.  Eventually the average number of bitcoins permanently lost each day will exceed the number that come into existence. At that time, the supply will become deflationary.


You need to work on your math a bit.  You are clearly struggling with it.

Exactly a year ago, there were a total of 12,136,675 BTC (not 10 million)
Now there are a total of 13,614,125 BTC (not 15 million)

That's an annual inflation rate of a bit over 12%.

A year from now there will be approximately 14,928,125 BTC

That's an annual inflation rate of 9.7%

In the middle of the year 2016, the block subsidy will be cut in half and the inflation rate will drop to less than 4%, and will continue to drop after that.


No.  Again your math is horrible.

Even if you were correct with your 10 million and 15 million numbers (which you aren't), the same "market cap" would only result in 33% less price for a single coin. As it is, with only a 9.7% supply inflation rate, it would only result in 8.85% less price for a single coin.

Of course all of that assumes the same "market cap".  There is no reason that the "market cap" needs to stay the same. Bitcoin with the same (or higher) price per coin will simply have a higher "market cap".


No it isn't.  See above.


How would a coin come into existence without coming into existence?  Any alt will have to have inflation in order to exist.


Incorrect.  Supply deflation does not require people to pour cash into it.  It only requires that less bitcoins be created than are lost.


It is definitly NOT a "digital token" since there is no "token" in bitcoin.  It is simply a ledger maintaining a list of requirements necessary to re-assign requirements to someone else. As to whether or not it is a "currency", that will depend on what each individual considers to be requirements for being a currency.



Since "inflationary" means increase in available supply, and "deflationary" means decrease in available supply, I don't think it is possible to be both at the same time.  That would defy simple logic.


No.  It really doesn't.


Plonk!

if OP thinks other altcoins are less "inflationary" then he might not understand how things work. altcoins have no practical use at this point, it's just a game of pump and dump. if you're not a big hitter and you don't have the insider info, then you're just a schmuck playing a game of roulette.

you obviously have no idea what you talk about.
Last year was 10 million coins
next year will be 15 million coins

This means bitcoin with the same marketcap has nex year 50% less price for a single coin.

example:
1 billion cap for 10 million coins makes 1 coin 100$
1 billion cap vor 15 million coins makes 1 coin 66,6$

- that's the kind of decline in purchase power you are looking at (aka inflation)


can't talk about alts here. If there is no better one then it needs to be launched but there are good coins already - all kinds of them. POW of course. Merged mined or not doesn't matter.
Low inflation alt just needs to be pumped and then it's: byby bitcoin.

Bitcoin is now inflationary. Deflationary later on (10years or more down the road if it manages to survive) but also only if people continue pouring cash into it.
Maybe it's not even a "currency" but just a digital token?
Where is the line to be drawn between an inflationary coin and a deflationary one? Can it be both at the same time?
Needs new topic.
I was talking about the inflation aspect. Deflation is a pipedream you dream