Topic: I'm going to warn you guys one last time. - page 4. (Read 14545 times)

controlling the money supply is just a nice way of saying the banks get to print money and loan it with interest, it is not a useful property, it is a fraud and theft.
deflation is not good? do you like paying high prices? technology improves productivity all the time why is it bad that prices come down, would you be happy if cellphones still cost the same as a car?

Bitcoin's monetary inflation rate is higher than USD's but the amount of goods and services sold for bitcoin grows much faster than the inflation rate and so purchasing power increases.
you are ignoring the fact that the mining reward is halved every 4 years, even if bitcoin doubles its value every 4 years the miners still get the same purchasing power (because they get less bitcoins)

Another chunk of terrible logic.
Yes, the dollar buys less than it did in 1913.
To compensate for that, the average income has risen from $740 per year.
Things I have to explain...

@Melbustus:
You're talking about an improvement on gold, not fiat.  Controlling the money supply is a useful property of fiat, a tool not available with Bitcoin.
TL;DR:  Deflation is not "a good thing."  See http://en.wikipedia.org/wiki/Deflation

At this point, Bitcoin's inflation rate is way higher than USD--that's what mined coin is.  Bitcoin supply will continue to inflate throughout our lifetime.
As was pointed out by Satoshi, the price of Bitcoin tends to the cost of mining it (and vice versa).  In other words, the price of producing one bitcoin tends to the cost of producing it.  This means that if Bitcoin ever becomes substantially more valuable, the value dumped into mining it will proportionally increase.  Do you think that ~10% of the world's wealth is going into maintaining today's fiat "ledger" every year?

nothing keeps purchasing power exactly flat all the time, the gold the romans used 2000 years ago still buys products today.
bitcoin is only 5 years old it will pick up exchange volume and will be less volatile and much much more expensive in the future.
you're shitcoin is not a clone of bitcoin, for it to be a clone of bitcoin it needs to be as accepted by merchants and have the same hashing power securing it.
digital currencies (that is crypto currencies) only exist for 5 years, since 2009 they have exploded in value, and that's without anyone with a gun forcing people to accept it, the free market chose bitcoin as money.

the dollar lost 90% of its purchasing power since 1913 and in the last 5 years it has been printed to oblivion, it is clear it will fail the same way as all the other paper currencies have failed in human history,
but hey, don't worry, im sure its different this time...

I wouldn't say "simply because it can't be printed", but a combination of the fact that it can't be printed AND the fact that's incredibly useful for reducing the friction of exchange. That's what a good money does: makes it easier for people to transact. Ultimately, bitcoin may be the best money system humanity has ever had, because its core properties (*one* of which is scarcity) all contribute to this friction reduction.

When it comes down to it, all money is just an accounting system. Be it wampum, gold coins, paper dollars, or bank account balances, these are all tools for keeping track of who has given value to who. Sound familiar? They're all mechanisms for keeping track of a ledger, either literally (bank account balances) or abstractly (people holding gold). Note that Narayana Kocherlakota at the Minneapolis Fed branch wrote a paper to this effect in 1996, concluding that good money is just a subclass of this societal memory function, and that a good memory tool is therefore a superset of money: http://www.minneapolisfed.org/research/sr/sr218.pdf (pdf warning). Academics have more recently applied this idea to bitcoin: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2275730

The bitcoin blockchain *is* the theoretically ideal global accounting ledger. Compared to every other money system we know, it provides that function with less friction (and note that supply-uncertainty can be considered friction since it distorts people's natural allocation decisions). The ledger is global, nearly free and instant to use, open, transparent, authoritative, always available, and uncensorable. It doesn't require the hassle of moving around physical objects to secure space in the ledger, and the validity of entries in the ledger is globally *credible* (no one can mess with it, and everybody knows that). If you study the tools/technology humanity has historically used for money, you should realize just how much of an ideal advance on the technology of money and societal recordkeeping/accounting bitcoin represents. This is why some have the audacity to claim that bitcoin will, eventually, replace gold and/or fiat.


tldr:
For those who don't like reading, you can watch Wences Casares explain this all very well in 31 minutes: http://www.youtube.com/watch?v=NERAN-89j8M

The point is both gold and Bitcoin lost purchasing power this year, Bitcoin spectacularly.  My shitcoin is an exact clone of bitcoin.  It also can't be "printed all day long." How much should I put you down for?

Re. "no paper money ever survived...":  No digital currency ever survived in history.  How old are you?

the point is that bitcoin will maintain its purchasing power just like gold did simply because it can't be printed.
the USD is a bunch of paper the bankers print all day long, no paper money ever survived in history.

I didn't quite get what you said. If you turn 2k into 5k, i.e., if you gain 3k, its nothing... but if you lose 2k you lose everything?? Help me out. Maybe I missed something here.

Wait, are we switching topics?
My point is simple:  BTC is only worth as much as people think it is--no different from fiat.
*Other than most stores give you a blank look when you ask to pay with it.

Can you eat BTC?
*More importantly, does ur mom know ur on the interweb?

At least you can buy food with dollars & gold... At the current moment you can't even buy anything worth anything with bitcoin! Even food is a hassle to buy with BTC. It needs to get easier! MUCH EASIER!!! Before the masses start to use bitcoin! GLTA!

can you eat dollars?
the only thing that matters is how many goods can a dollar buy, and the answer is less and less every year.

Just take the zimbabwean dollar crisis. The people have no trust in their own currency anymore, no matter how the government tried printing and telling them look, this zimbabwean dollar note is worth this much. The people just don't think it's worth as much, cause nobody else thinks it's worth as much, so there's no value at all, even though it's officially money

Not following you at all.  Sure, one dollar is always worth one dollar--not open for interpretation.  Are you now saying that fiat is not "only worth as much as what they think it to be"?

Well touché. But you're wrong, it's different. Here's why: for fiat, say a 1 dollar note is worth 1 dollar. for Bitcoin, one btc can worth 100, 1, 1000, 1000000 dollars. It's not up to me to think how much a btc is worth and that's how much it's worth. With fiat, if I have a one dollar note, I know it's worth one dollar and anyone else I trade that one dollar note to knows it's worth one dollar. And that one dollar note is worth one dollar because it's printed to be a one dollar note, decided by the government. Capisce?

FTFY.
Also works with gold.

Fiat is only guaranteed by people, nothing else. Fiat have a value only because people believe it has a value. When the people no longer believe in it, it will have no value. That is why banks and governments are trying so hard to kill Bitcoin. For when the people start to realized the paper money they're holding is only worth as much as what they think it to be, not the number printed on it, not how much of it was issued, then that would be the end of it. While governments can control their people's thinking and their printed out-of-thin-air fiats, they cannot control Bitcoin. And that's the ultimate fear of governments around the world, for power is nothing without control.

So was that not you telling everyone who wouldn't sell they're sheep and should follow the herd? Oh it was you...imagine that...

The American constitution is no guarantee

Ok seriously, how do you not understand no one cares what you think? Find a new hobby besides being an annoying douchebag on the Internet.