Topic: MIT technology wrote a negative article on Bitcoin - page 2. (Read 3349 times)

LoL

No, certainly not.

Banks are "Trusts"... No? You trust your funds will be there.


You are arguing semantics, and failing. A bank is nothing more than a storage location to keep things of value. Next you are going to say that credit unions are not banks... A blood-bank is a bank... Some even pay for blood, exchange blood for money, OMG!

The initial value of BTC came from money spent on assets, and time labored without pay. Debt. The same thing that drives it now. The same thing that gives money its value.

After mining, the miners still have to run, to do the transactions. Us, being the banks, have to depend on them, or buy assets to keep the network moving. The cost is our assets and operation expenses in electricity and time. Our payment is fractions of fees, after mining has stopped.

A bank-note is a check for $1.00 or $5.00 or $10.00 ... ... It is owned by the bank, given/lent to you, and has no actual physical representation as an asset beyond what you "think" it is worth, to you. Banks will not give you anything other than another dollar, for your dollar... Actually less, in most cases.

We stop using dollars, and the thing in your wallet is only of value to you. The bank won't take it, or they will, but you will get nothing for it. They have nothing to give you. They won't even give you the pen at the teller, because they don't want your dollar. It is worthless to them if you don't want it, and if they can't find anyone to use it.

It has happened before, and it will happen again. Banks are an old inefficient dinosaur that can't afford to keep up. It costs them too much of your money to maintain. Currency will be tulip-bulbs in the future. Something like BTC, birthed from BTC, will be the future. (For now, it is the future. FIAT is undoubtedly the past.)

You are right, it is not a "money lender"... That is not the only type of bank. Not all banks lend your money out to strangers or their friends, or themselves. If that is your idea of a bank, then continue to use those places. They are doing you wonders, decreasing the value of your dollar. The one in your wallet. (Wallet is a style name, like purse, or vault, or safe, or pocket. They are all storage containers, and thus, banks. Funny, because most banks keep your money in other peoples wallets. Irony!)

ROFL.

Thank you for the laugh, at least you are funny in your insistence to misinform people.

Hold your money in my leather wallet would made me a trustee, not a bank.

By the way, I can ensure you that a leather wallet is certainly not a vault.

You cannot fault the writer of the MIT article for being an "idiot" because it is a total 180 degree shift in paradigm. I learned about Bitcoin roughly 10 days ago and it took me all weekend to understand it. Is it money? Is it the new Paypal? Is it a stock?

These are the points he addresses;
1. medium of exchange - Yes, overstock.com, tigerdirect, Las Vegas hotels, and a growing list of merchants accept it.

2. unit of account - wild price fluctuations prevent it from being a unit of account. This is true but only because bitcoin is so thinly traded due to it being new and most shares of BTC are held by just a few miners. This will change as these large holders of BTC spend their BTC as the dollar price of BTC goes up and as more merchants accept BTC. I suspect that these miners were lacking places to spend their BTC. As more people adopt BTC, these miners could finally unload their BTC without dropping the price too much. A lot of these people who own BTC are privacy freaks and registering under KYC regulations to use an exchange with large quantities of BTC would probably freak these people out. Their only recourse is to spend it, but until recently, there's only so many pizzas you could order online with your BTC millions because nobody accepted BTC until recently. Also, these large holders of BTC would find it impractical to do local bitcoins to cash out. For example, if you were to use localbitcoins and cash out of 1 BTC a day, it would take you 10,000 days to cash out of 10,000 BTC. You generally don't want to do a FTF transaction with more than 1 BTC because that would leave you open to too much robbery risk. Even if you live in certain parts of America where it is legal to carry a gun and bullet proof vest, you could cash out of 10 BTC a day, but that would still take you 1000 days to cash out of 10,000 BTC, so this is impractical if you own a large holding of BTC. However, now that you could buy a car or house with BTC, then it is much easier to cash out of BTC by spending it. As more miners spend their BTC and more people get into it, the wild fluctuations in price would disappear.

3. store of value - BTC cannot be stored in a bank and digital wallets are less secure than a bank. I think the ctiizens of Cypress would beg to differ. Again, this is a change in paradigm. Keylogger viruses are a very real threat to BTC. I've seen others on this very forum lose lots of dough this way. Cybercriminals are very real and very difficult to catch as they're usually in another country not under your law enforcement's jurisdiction. BTC is the wild west. But does this make it inferior to fiat? Maybe, maybe not. This is a matter of opinion.

As a closing knockout blow, the author states that an economy that is deflationary would require workers to take a pay cut every year. Again, this is a change in paradigm that the author fails to understand. With fiat, inflation FORCES you to take a pay cut every year. With BTC, deflation FORCES you to take a pay raise every year. This means with fiat, the employer has to keep giving you empty pay raises to keep up. With BTC, your employer has to keep giving you empty pay cuts to keep up. Neither system is better, but it is a total 180 degree paradigm shift.

Nothing like this has ever been done before on such a grand scale. It's gonna be real interesting where this bitcoin roller coaster takes us. Hang on, it's gonna git rough!  

A wallet is a form of bank, if it is "held" there, you have "banked it". Is a piggy-bank not a bank...

If you hold MY money in your wallet for me, that would make YOU a bank, and your wallet the vault.

I have a leather wallet which holds money as well and I am sure it is not a bank.

And he talks this at a time when the currency is in very early stage of adoption. He himself wrote the currency is making its way to some merchants and enthusiastic individuals accepting payments in BTC.

So, Augusto Croppo...

If it is not any of that... then why are you here, using it? Obviously it isn't worth any real value... Oh, that's right, because to you, it is something of value, just like the money you hope to get for it...

Coinbase isn't a bank... Funny, it holds money... it transfers money... It does exchanges... What exactly is a bank? Enlighten me with your wisdom of what a bank is... and what a bank isn't.

The only thing they don't do, that we know of, is lend your money or BTC out... That we know of... So it is better than a bank. Your funds are still there, they are not being loaned-out, being risked by that "bank". Laoning out money is not a requirement of a bank, that is just what most FIAT banks do.

ISAWHIM, please, just shut up. As more you talk, more it becomes clear your understanding of the discussed subject is poor.

Coinbase is not a bank.

Funny, I have a bank that accepts BTC and deposits into my bank account... It's called coinbase.

There is this other neat one... Maybe you heard of it, it's called PayPal... My other bank.

Then FIAT isn't a tangible object... Which makes you just an idiot and a walking contradiction.

You are right, it isn't a soft shiny malleable chunk of earth... (gold) Ever try spending that? Good luck finding someone who wants to use that for exchanges, without having a personal alchemist to smelt and test it for purity to ensure it isn't counterfeit.

No, it cannot be deposited in the same way as money is deposited in a bank. Could you please shut up and save the newbies of your misinformation?


Yet another more stupid than ever comment...

You can print "paper-wallets", which can not be hacked, and like a "check" or "bank note", represents your tender.

It can be deposited the same way money is deposited... It just isn't yet... Unless you count safety-deposit-boxes, in banks.

My bank accepts Euro deposits, but not all do.. does that make Euro useless or not a FIAT?

You deposit a dollar, it is turned into virtual representation in the computer there. You are the bank in BTC. The Network is similar to a banks network. Except, unless stolen, your BTC is always there, where you left it. With a bank, it might be there, but normally it is lent-out again to another person. (The majority of solid deposits in a bank are lent-out.)

What, no-one can steal your identity and use your ATM card or CC number linked to your account in a bank, or just rob the bank?

more stupid

You are more stupid than I thought...

None of your examples makes BTC a tangible object.

I'll refrain from making petty statements as your doing enough for everyone 

just curious.. have any of you drank from a fire hose before?
i ask because that is what an education from MIT is like..  I wouldn't be so quick to call someone from there an idiot over a difference of opinion.

That's funny, my miners are physical... the computer running your wallet is physical, the internet fiber-optics are physical, the memory where these originate and reside is physical... There are physical wallets and coins...

Lets see your bitcoin without some kind of physical asset to display it.

What isn't physical about it? Credit-cards are physical, FIAT is a physical form of "virtual trust", and banks...

FIAT is a virtual value.

Bitcoin also lacks additional characteristics usually associated with currencies.

*It cannot be deposited in a bank; instead it must be held in “digital wallets” that have proved *vulnerable to thieves and hackers. There is nothing comparable to the deposit insurance relied on by banking consumers. *No lenders use bitcoins as the unit of account for consumer credit, auto loans, or mortgages, and no credit or debit cards are denominated in bitcoins.

1*) Centralised Banks are to be removed on Earth for the sake of human future!
2*) Its also vulnerable to be stolen banks which uses digital numbers on their website
rest is crab to answer ...these mother fuckers such stupid i cant tell. They seem idiots to me.

Yet another stupid comment... No, it is not a "military grade cryptography that is remodding the entire landscape".