Federal reserve banker calls bitcoin small potato! - page 3.

RockHound

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Quote from: franky1 on May 17, 2014, 12:26:09 PM

bitcoin is small fry. but so is gold. hense why they couldnt continue to back the dollar with gold...

but lets put some context to how small bitcoin is at the moment, by using golds statistics

1 ounce of gold=$1292
1 tonne of gold= $45,574,008(35274 ounces)
171,000 tonnes of gold in the world = $7,793,155,368,000

gold has a $7.79 trillion cap and that is not good enough for the Fed.. bitcoin is $6bill = under 0.1% of gold's cap

We need Bitcoin's price to get to $371102.64/BTC to beat Au current marketcap - easy! Wink

brian_23452

sr. member

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Quote from: BldSwtTrs on May 17, 2014, 11:00:38 AM

Basically he says USD is better because with USD you're losing your purchasing power at a predictable rate. Lol.

What a fucking joke. What a fucking moron.

But that IS the primary benefit of USD. Stability is the single most desirable attribute for a currency to have.

odolvlobo

legendary

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Well, I disagree with most of you. This guy seems very knowledgeable about Bitcoin compared to most economists, and he seems pro-Bitcoin, even with what he considers to be its shortcomings.

He said:

Bitcoin is a stroke of genius.
It is small potatoes ... but the exciting thing is its potential for growth.
Mt. Gox's failure is not a failure of Bitcoin.
Bitcoin will force traditional institutions to adapt or die.

He brings up some good points:

1. Transactions are slow because of the requirement for decentralized consensus.
2. Fixed supply restricts management of the economy. (which to me may be one of its best features).
3. The value is volatile.

I don't think any of these issues are critical or insurmountable but they remain issues, and there is no reason not to bring them up.

If you want to see the entire presentation, go here: https://www.youtube.com/watch?v=pNcsPXirK8o&list=PLKcwEC4jDwiPtDy8pGoO8M1hYpBsBeT9w

shawshankinmate37927

hero member

Activity: 854

Merit: 1000

Bitcoin: The People's Bailout

He fails to explain that Bitcoin is a "bottom-up" solution and not a "top-down" solution. As bitcoin adoption expands the volatility in purchasing power (not necessarily price) will dampen. Purchasing power volatility is a small price to pay for being an early adopter of sound, honest money.

He also avoids the issue of how the new money is distributed when the money supply is expanded. Distributing the new money to the existing holders of the currency in proportion to their current holdings would be the fair and honest thing to do. This would allow for purchasing power stability that he claims is so important. Instead, large amounts of the new money are given to the bankers or handed over to the politicians and their cronies. These lowlifes are now able to buy the products and services that the productive members of society should be able to buy at lower prices.

Just a pathetic salesman trying to defend his racket.

hamza171

sr. member

Activity: 249

Merit: 250

BS! Bitcoins is safe ,it's been around for years now and nothing will change my mind about it and even if it went down i'll go down with it

CoinRocka

sr. member

Activity: 249

Merit: 250

Have you ever been hit with a potato gun?

franky1

legendary

Activity: 4410

Merit: 4766

bitcoin is small fry. but so is gold. hense why they couldnt continue to back the dollar with gold...

but lets put some context to how small bitcoin is at the moment, by using golds statistics

1 ounce of gold=$1292
1 tonne of gold= $45,574,008(35274 ounces)
171,000 tonnes of gold in the world = $7,793,155,368,000

gold has a $7.79 trillion cap and that is not good enough for the Fed.. bitcoin is $6bill = under 0.1% of gold's cap

bl4kjaguar

hero member

Activity: 546

Merit: 500

Quote from: cuddaloreappu on May 17, 2014, 11:28:30 AM

Quote from: bl4kjaguar on May 17, 2014, 11:18:06 AM

Quote from: cuddaloreappu on May 17, 2014, 11:09:23 AM

He also explains the federal reserve is not to be blamed for printing money in excess, a local bank in your street is responsible for this.

He is lying because the big beneficiaries of the Fed are foreign banks.

"It’s the risk-free banking version of the hot money. And the $2.6 trillion in excess reserves that economists are expecting to flow into the US economy sooner or later to really stir things up? Half of it is that hot money."

Quote

Ah, the Fed has an excuse for that too: it’s of course – “an additional tool for the conduct of monetary policy."

From where that 2.6$ trillion godzilla money will flow into US?

From the excess reserves on deposit at the Fed.

cuddaloreappu

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Activity: 756

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Quote from: bl4kjaguar on May 17, 2014, 11:18:06 AM

Quote from: cuddaloreappu on May 17, 2014, 11:09:23 AM

He also explains the federal reserve is not to be blamed for printing money in excess, a local bank in your street is responsible for this.

He is lying because the big beneficiaries of the Fed are foreign banks.

"It’s the risk-free banking version of the hot money. And the $2.6 trillion in excess reserves that economists are expecting to flow into the US economy sooner or later to really stir things up? Half of it is that hot money."

Quote

Ah, the Fed has an excuse for that too: it’s of course – “an additional tool for the conduct of monetary policy."

From where that 2.6$ trillion godzilla money will flow into US?

bl4kjaguar

hero member

Activity: 546

Merit: 500

Quote from: cuddaloreappu on May 17, 2014, 11:09:23 AM

He also explains the federal reserve is not to be blamed for printing money in excess, a local bank in your street is responsible for this.

He is lying because the big beneficiaries of the Fed are foreign banks.

"It’s the risk-free banking version of the hot money. And the $2.6 trillion in excess reserves that economists are expecting to flow into the US economy sooner or later to really stir things up? Half of it is that hot money."

Quote

Ah, the Fed has an excuse for that too: it’s of course – “an additional tool for the conduct of monetary policy."

cuddaloreappu

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Activity: 756

Merit: 502

He also explains the federal reserve is not to be blamed for printing money in excess, a local bank in your street is responsible for this.

Bit_Happy

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Merit: 1040

A Great Time to Start Something!

small potato!?
BTC is the biggest potato plant ever created, and our "huge potatoes" will grow up to crush the Fed.

I don't want to lose wealth at a predictable rate, no thanks.

wachtwoord

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Merit: 1125

Quote from: BldSwtTrs on May 17, 2014, 11:00:38 AM

Basically he says USD is better because with USD your losing your purchasing power at a predictable rate.

What a fucking joke. What a fucking moron.

Hahaha, he's a salesman trying to sell garbage. He's probably very good at it too!

BldSwtTrs

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Activity: 861

Merit: 1010

Basically he says USD is better because with USD you're losing your purchasing power at a predictable rate. Lol.

What a fucking joke. What a fucking moron.

cuddaloreappu

hero member

Activity: 756

Merit: 502

St. Louis Fed Economist David Andolfatto briefly explains some of the benefits and drawbacks to virtual currency.

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

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

Topic: Federal reserve banker calls bitcoin small potato! - page 3. (Read 3134 times)