Topic: BTC Vs. USD (Read 3072 times)
I'd keep them on Bitcoin for the fun of it.
"Your total is one really big rock, please pull up to the second window."
What is funny about the Yap stone money is that "contracts" were made which allowed transferring the money from one person to another without physically carrying to "coins". It got quite sophisticated including loans and inheritance, where the stones themselves were rarely moved about. Sort of like how the New York Federal Reserve Bank still has a gold reserve and transfers ownership of the bars from one person to the next based on contracts, but the gold stays in mostly the same place except for occasional physical transfers.
These stones were more effective as real money than you might imagine. Yap stone money also seems to have a lot more in common with Bitcoins than government fiat currency as it clearly was a "proof-of-work" based currency. Anybody could grab a stone to create one of these "coins", and the value of the coin was directly related to the effort made to create that coin. It isn't a perfect analogy to Bitcoins, but pretty close.
Almost any sort of money is preferable to USD right now.
"Your total is one really big rock, please pull up to the second window."
Almost any sort of money is preferable to USD right now.
Poker players use something call a bankroll for managing risk. The amount of money needed to play at a level (called a limit) is called your 'buy-in'. So you might be at NL50 and the buy-in is $50 and the next limit is usually double, so NL100 or $100.
Mathematically the buyin is calculated using the risk-of-ruin formula for blackjack but an accurate rule of thumb is that to play a limit you need 20 buyins MINIMUM.
so if I have $1000+ or $50*20 then I can play NL50. However if I wish to play NL100, then I must win an additional $1000 to move up to NL100 ($2000 bankroll).
It's a way of hedging your risk so that you don't go bankrupt.
Now the question is asking me if I want to bet my ENTIRE bankroll on Bitcoins. That means I'm using a 1-buyin rule. Not smart at all. If you lose then you're bankrupt.
However if you though BTC is going up then you can bet a portion of your bankroll depending on how risky you think it is (somewhat risky = 1/20th of my bankroll, very risk = 1/50th).
Anyone interested more can read here:
http://www.liquidpoker.net/pokerarticle/146441/The_bankroll_management_and_variance_guide
Mathematically the buyin is calculated using the risk-of-ruin formula for blackjack but an accurate rule of thumb is that to play a limit you need 20 buyins MINIMUM.
so if I have $1000+ or $50*20 then I can play NL50. However if I wish to play NL100, then I must win an additional $1000 to move up to NL100 ($2000 bankroll).
It's a way of hedging your risk so that you don't go bankrupt.
Now the question is asking me if I want to bet my ENTIRE bankroll on Bitcoins. That means I'm using a 1-buyin rule. Not smart at all. If you lose then you're bankrupt.
However if you though BTC is going up then you can bet a portion of your bankroll depending on how risky you think it is (somewhat risky = 1/20th of my bankroll, very risk = 1/50th).
Anyone interested more can read here:
http://www.liquidpoker.net/pokerarticle/146441/The_bankroll_management_and_variance_guide
That's all correct. But the exact same applies to the USD. Since the question forced us to abandon BRM anyway this doesn't tell us which way to go.
You are actually more fucked if you have everything in the dollar when it goes because all the people around you who could help you if you were the only one who lost it all are also ruined now.
To be clear, I'm not putting everything in BTC, but I'm not putting it all in the dollar either.
If you only mean savings and I'm free to convert and spend on the same day or something then bitcoin hands down. But this isn't saying much, I'd rather have my savings in almost anything than the USD.
Let's say all your assets were collected and you only had two options: You could either put them in US dollars or Bitcoins forever. You will never able to save it in another currency again. What do you choose?
If I'm poor, I chose USD. Because short term will prevail, since everything will be spent in a few weeks anyway.
If I'm wealthy, I chose BTC. Because in a few years dollars will worth almost nothing.
PS. I voted BTC
USD, here and now. The supermarket doesn't accept bitcoins yet.
Lets see... put it on bitcoins runs the risk of bitcoins disappearing... the whole network, the coins themselves are as safe as the wallet file. On the upside, if the network is kept the coin value is very likely to sky rocket within a few years due to adoption, deflation due to loss and simply because there's a limited max amount for an immense user base still to come. 1 $0.22 coin may buy you that boat one day 
Put it in USD... you can collect interests, but chances are interests will always be lower than inflation, and inflation will tend to rise as more money is thrown at the inflation problem... And there is the chance of the whole system collapsing onto itself, more because of the attempted fixes than of the generalized crisis and whatnot. On the upside.. hmmm, I got nothing here.
Put it in USD... you can collect interests, but chances are interests will always be lower than inflation, and inflation will tend to rise as more money is thrown at the inflation problem... And there is the chance of the whole system collapsing onto itself, more because of the attempted fixes than of the generalized crisis and whatnot. On the upside.. hmmm, I got nothing here.
Bitcoin, of course!
Let's say all your assets were collected and you only had two options: You could either put them in US dollars or Bitcoins forever. You will never able to save it in another currency again. What do you choose?
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