Topic: Help me understand... - page 2. (Read 3586 times)

It seems quite natural, but it is exactly this kind of thought makes billions of people become slaves of banks

When there is no fiat money, when you make 10 times more milk, your real income increase by 10 fold. But if there is fiat money, when you make 10 times more milk, you need 10 times more USD to keep the price of them stable, and those USD will be created by banks out of nothing. So the more you produce, the more banks can buy from you with nothing, added productivity all belongs to banks, simply because people want price stability

It is amazing that people prefer to be a slave instead of doing some simple exchange rate calculation  

^We must kill it before it lays eggs

Bitcoin is still in its infancy stage. Give it some time.

You seem to greatly underestimate the importance of stability. Money is the life force of human civilization, it's like nourishing blood flowing through the entire system, holding everything together. Without stability money doesn't work. If you were to magically replace all the money in the world with Bitcoin, in its current form, the whole system would come crashing down in an instant.

Go to a grocery store.
Get price for 1 gallon of milk, in USD.
Return a week later, find 1 gallon of milk costs the same.
That's stability.  I'm OK with that.

Now try that with BTC, and you'll learn that (other than the fact the bodega next door doesn't know BTC from DMT) the price changes every ten minutes.  Or, at least, that's how long BitPay price was good for, last time I checked.
That's not stability. That's Bitcoin.

Over slavery  

Sooner or later, people will realize that price stability is only a belief, it has never been realized. Look at all the world currency wildly swing against each other, it is only a best-effort control by central banks, and Swiss central bank just gave up the control and make it swing 40% in a couple of hours

But again, comparing to money creation, inflation or deflation or stability are all minor issues, it is the money creation bring the slavery to mankind, not inflation

People don't like change.

These statements sounds more like a political campaign  

Here is a better one: "The fiat monetary system is a scam. That system is our enemy. But when you're inside, you look around, what do you see? Businessmen, teachers, lawyers, carpenters. The very minds of the people we are trying to save. But until we do, these people are still a part of that system and that makes them our enemy. You have to understand, most of these people are not ready to be unplugged. And many of them are so inured, so hopelessly dependent on the system, that they will fight to protect it"

Value is all relative, stability is an illusion. A good example that price stability has nothing to do with productivity is bitcoin, merchants accept bitcoin payment and pricing can change a lot during a day or a week, but no one feel uncomfortable, they will always find a way to hedge this risk. People are not that stupid that without fiat money they will go back to stone age, no, without fiat money they will feel much better  

In fact, a stable price makes all the added productivity goes to money creators. If you make 1000 times more goods, banks will just create 1000 times more money to buy your goods, to make their price stable, how can this total slavery scheme last without being caught eventually

Growth has nothing to do with money supply, it is a result of technology advance, most of the modern technologies that widely used today have been developed long before the FED established

i wrote hacking in quotes because i don't believe they got hacked in the first place. They can say whoopsie we got hacked, while they can freely walk away with your bitcoins.
Clear ownership and backing with their personally property would make them think about their security better, and also stop robbing themselves.
That doesnt mean they will be target of criminals, if that was to be true, none of the global firms would exist.
Hope that clears it up a bit.

cheers

I'm new to BTC and already can I say I LOVE IT.
I buy 3 BTC a few weeks ago and now I sold 2 BTC some minutes ago,
My profit is 37 dollars.

No it has yet to realize it's true potential. Unlike central banks which can basically control the supply of money in the market and in certain way still able to influence the price to stabilize it. Bitcoin doesn't have that mechanism in place. The volatility still remains a problem but to imply that it is the main driver that will lead to complete failure is not justified in any way. And that will change.

What is the purpose of price stability?

Value is based on supply and demand, the demand does not change much, but the supply has increased so much during latest decades, so everything's value should went down dramatically. However daily consumption's price in fiat is relatively stable, means the value of fiat money also went down together with those goods

If use gold as absolute value indicator, then most of the thing's value (including fiat money) went down dramatically during latest 40 years. This suits economy theory much better, since the supply has increased a lot while demand almost unchanged

I think the demand for price stability is more of a psychological one, it does not have any real meaning economic wise: I want the bread that I bought yesterday still cost the same today, since that bread does not look different today.  I have no idea how much more of this kind of bread has been produced today, and I have no idea how much more fiat money has been produced today, but I just want that bread price to be the same as yesterday! 

im asking myself the very same question.

hacking" of the exchanges will stop once the owners back their bussines with their own personal funds. transparent ownership and bussinesses would stop all this.

What does this sentence actually mean? Does that mean every business present should reveal their owners and tell to the world that their business are backed by their own personal funds? Would that create some exception for them not to be target by criminals?

When most anti-BTCeanie BTCabies people ... to me it just shows how much growth etc., etc.


That's 'coz there was an initial need for banks.  No need for Bitcoin.



Unlike fiat, Bitcoin has no mechanisms for dealing with fraud.  BTC transactions are irreversible, and the currency is [half-ass] anonymous, which lends itself perfectly to scamming/theft.

so you are saying that if a hacker knows who he is robbing, he wont do it?

Bad pr really scares the average joe into getting bitcoins. Of course, as long as there is money involved, there will be scammers, launderers and thieves trying to get into the scene and get some money. Bitcoin is also considered as money, so yeah, thieves, scammers, and launderers wouldn't be out in the scene as they will try and try to get some money out of people.

The potential is indeed a great one. True that bitcoin has a long way to go. But the price really affects the integration of merchants. The fluctuation in price scares away merchants because of its instability. Sure though, there might be some relevant growth if the adoption rate increased, but we have a long way to go. When the price sees stability, sooner or later the adoption rate will followed.

I share your views, many see the immediate downfall, I see the potential.

I am happy to obtain and hold onto my BTC whilst trying to introduce others to the market.

I see the negativity everyday on here, I simply remember my ethics and belief in BTC

♥♥Bitcoin♥♥

Well, bitcoin is not going to coexist with Fiat, it will be there to pick up the pieces when fiat self destructs or at least the majority of people acknowledge the fact that Fiat is dying. Fiat without gold backing is not money. Bitcoin is already money due to limited supply and competes with Fiat and will likely win in the long run.