Topic: Federal reserve banker calls bitcoin small potato! (Read 3134 times)

"Targeting 2% depreciation in the purchasing power of our currency"

He couldn't even say this without laughing.  What a joke!!

*Also, what's the deal with the "coke sniffles" that kick in around 1:35 of the second video?! :p

Think of it like a small kiddie pool—there just isn't much liquidity.
Whenever a large player makes a move it sloshes noticeably across the pool. As the marketcap/size grows so will the liquidity pool which will cause the volatility to go down.

Regarding volatility I like what Andreas says—Bitcoin's marketcap is currently around 5.5bil. This is at best a small nation.

The value of the US dollar is the value of the US economy as that is what it is "backed" by.

eventually the us citizens will be holding a worthless currency due to all the federal reserves printing .

If you missed the thread about getting local merchants on board, definitely check it out

https://bitcointalksearch.org/topic/get-merchants-in-your-town-on-board-with-bitcoin-616864

This is great and they're giving out the mag for free since clearly they've made their money/profits on the advertising within. I love this and am officially on board championing and suggesting it to everyone - get a few copies and take them around to local merchants. The more they know, the faster they get on board too.

...back to regularly scheduled thread topic

Have you guys seen this one yet? It's a great one to add to your bitvids collection to share. It's one of the clearest, most concise, neutral explanations without the inevitable information overload that comes with a lot of explanations.

https://www.youtube.com/watch?v=isXPnNPlwE0

I've been reading these forums for about a month now and copying links, snippets, great posts, one liners - all to make up my own little bitcoin info guide which will help me be able to explain things better, faster, more concise than the long winded thing that makes their eyes explode...but one thing I can say about this forum and the comments is that the overall sentiment seems to be that we all bend over backwards to educate and inform the masses and who cares what the FED thinks, fuck those guys, let 'em fall. 

There are a few who think it's a good idea to also educate the lawmakers and while I don't disagree with that, since it'll make mass adoption go smoothly, I can't help find myself in the other category with most people who'd just as soon watch every corrupt politician and greedy banker and ever FED member go from wealthy elite to impoverished and on the street overnight...getting what they deserve.

just went to KFC and had some chicken and potato French fries...so nice...wish KFC accepted bitcoins...

Certainly, The intrinsic value of USD is what the market indicates due to the utility and value it provides as an ecosystem. The value of anything is 0 outside of such ecosystem and environment.  What remains to be seen is if Bitcoin has a greater value than USD for the greater population. So far Bitcoin has a great track record but has plenty of areas for improvement. 

So, the intrinsic value of USD can not be 0, since the intrinsic value of BTC is >0 and the intrinsic value of BTC in different fields is a Multiplier of the USD-value. 0*10 is still Zero.

Money has great inherent value because it communicates ideas and assets more efficiently than a barter system which is an inherently very useful tool for mankind. Goldbugs will often praise gold as having "inherent value" because you can melt it down and create gold fillings and use it in semiconductors if needed but what they fail to clarify is that this value represents only a couple hundred for its utility and most of it is perceived value because its history and rarity.

bitcoin just like a dollar bill has no intrinsic value in a vacuum. What gives USD value is the trust of billions of people, acceptance of millions of merchants, store of value, its scarcity, its divisibility, security, frictionless utility, stability, and its fungibility.

What gives Bitcoin value is many of the same principles of fiat-
1) Fungibility - Bitcoin is equal to Fiat, better than gold
2) Divisibility - Much better than fiat and gold
3) Scarcity - Much better than Fiat and gold (One could find a new gold mine here or on an asteroid)
4) Trust of userbase - Fiat and Gold are much better than Bitcoin here
5) frictionless utility - Bitcoin is better than Fiat , and much better than gold
6) Security - Bitcoin is better than Fiat for technical people, worse for luddites (for now) and better than gold
7) Merchant acceptance - Bitcoin is far better than gold , and worse than USD fiat worldwide, but better than many other smaller fiat currencies worldwide at the moment.
08) stability - gold is slightly better than bitcoin , USD/Euro Fiat is much more stable than bitcoin
09) Store of value - Too early to tell, but Bitcoin thus far has been a better much better investment than  gold and the USD. I.E... USD has lost 99.9997% n value against Bitcoin in the last 5 years and 98.9% in te last 2 years.

I hope one day the Fed becomes a small potato and this guy a small fry 

Please describe the intrinsic value of Bitcoin.

Some might say, that the bible hold great value for humankind others might disagree

It might be a small potatoe currently, but I bet there's going to be a time when he regrets that comparison.

One potato two potato three potato, four, five potato six potato seven potato more.

Yes the St. Louis Fed has been aggressively covering Bitcoin on Youtube..

http://bitcoinmagazine.com/13165/federal-reserves-bitcoin-policy-begins-take-shape/

and remember as the old saying goes...never put shoe polish on a baked potato(e)

https://www.youtube.com/watch?v=ZuYblxnGKb0
Second Video Inaccuracies :

1)  Slow Processing of 10 min - This is false, payments are received in half a second and confirmed in 7-60 min. As compared to ACH 3-5 days, and credit cards 60 day confirmations (If there can be a chargeback the original "confirmation" really wasn't confirmed now was it?)

2) Do you trust Satoshi N. isn't out there with a switch where he can double the amount bitcoins? This is impossible and shows a fundamental misunderstanding of open source software. This can only be true if you call the community "satoshi" metaphorically.

3) Its intrinsic value is 0 - Bitcoin is intrinsically useful because it holds great value for humankind.

4) He suggests that Bitcoin can be easily replicated discounting the first mover advantage as not being important. Not only is he wrong concerning the network effect he s also not considering the billions of dollars poured into hardware like Asics, Point of sale devices , hardware wallets , ect... This stuff can't be so easily changed. I.E.... we were supposed to be switched over to IPv6 by 2012 with many years of preparation(32 years preparation) for this switchover; as of last month we have are seeing around 3% accessing sites with IPv6 despite billions of dollars invested.

5) Blaming fed for bank stealing across the street ignores the fact that both are actively stealing.

Ok, I watched the first video..... looks like those cowards are holding comments for review... so much for honest feedback.

Some issues with "Bitcoin and Beyond, David Andolfatto, St. Louis Fed"

https://www.youtube.com/watch?v=Kkm70CER8R0

The graph comparing fiat starts at 1990 when they begin to juke the way inflation is calculated. - the core CPI excluding Food and energy, PCE excluding food and energy, or the PPI excluding food and energy all leave out food in fuel. Food has averaged a 3-4% increase in inflation yearly, Regular Gasoline around 5% average inflation , Heating fuel 10-11% rise per year in inflation. I would think these are somewhat important commodities that humans need to live don't you?

They focus on the time periods where the dollar looks most favorable compared to both the gold and bitcoin charts.
Why won't they show that the dollar lost 98.9% against Bitcoin in the last 2 years and 99.9997% to bitcoin in the last 5?

just let them drown in their ignorance 

honestly, i know our currency system is fucked up and bound to failure.. but i'm not even aiming for us to replace fiat with bitcoin. it's likely not going to happen, as fiat paper has an important psychological factor in it that bitcoin can't beat. i'd just like to see bitcoin improve on the remittance and hyperinflationary issues of the world.

if bitcoin took over currency as the main means of trade, it would mean that everybody would know how to use it.. even old people who are luddites.