Topic: real-world bitcoin usage: store of value (Read 783 times)

True, but the value of the fictional bitcoins would still have to be pegged to the value of real bitcoins, so it would work like a gold backed currency, e.g. bretton woods, which is a much better prospect that the completely unpegged fiat currency the world currently uses.

Of course it can. There will be people who will trust companies like coinbase and circle and xapo that these companies will give them "real" bitcoins when they choose to withdrawl, thus they don't mind if coinbase etc actually uses fractional reserve.

Since half a year ago, i've kept ALL MY WEALTH in Bitcoin... yes ALL.
I have almost triplicated my wealth since i made that move.

Wild price swings aren't that important dealing with Bitcoin when your other alternative is a highly manipulable, fractional-reserve backed, fiat money.

Well, we don't need millions of people. 1 million people, who want to store a part of their wealth in a little sum of 1 bitcoim would be enougj for some magical time.


How can fractional reserve work in bitcoin when we have a public and transparent ledger? I'm not sure if you fully understand bitcoin.

Well, we don't need millions of people. 1 million people, who want to store a part of their wealth in a little sum of 1 bitcoim would be enougj for some magical time.


How can fractional reserve work in bitcoin when we have a public and transparent ledger? I'm not sure if you fully understand bitcoin.

OP is nice to read but it needs millions more people like him.

I don't see why people crib about fractional reserve banking.
It is only a matter of time before it is true in the bitcoin world too.

Venezuelan here.

My country has had capital controls since 2002. Buying outside our country is a nightmare. You can get prosecuted for simple things like buying gift cards with penalties such as removing FOR LIFE your annual quota of a paltry $300 on credit cards. You can't use any other means to buy goods or pay services besides credit cards. The dollar has been pegged to a crazy 6.3 VEF/USD since some years ago (up from another crazier 4.3 VEF/USD).

Since half a year ago, i've kept ALL MY WEALTH in Bitcoin... yes ALL. Every single VEF i get, after buying food, gets converted to Bitcoin immediatly.

Not Dollars.

Not Euros.

Not GBP.

Bitcoin.

I have almost triplicated my wealth since i made that move. When the black market exchange rate was 150 VEF/USD, i held Bitcoin. Some weeks ago the black market exchange went to ~450 VEF/USD. Guess what, i feel like a rich man. I can maintain my WHOLE FAMILY OF 5 (food, basic services, debt) with just .3 BTC/month. The rest gets stashed away.

Also, i began mining. 1 Antminer S5 gives me, after electricity costs (which are almost non-existent, electricity cost here is a joke) the same wage my wife and i earn (we're both engineers) TWICE a month.

Your government will do stupid things, i guarantee it. Don't trust a single drachma/euro to them. If you want to hedge, use something like Bitreserve, but believe me, wild price swings aren't that important dealing with Bitcoin when your other alternative is a highly manipulable, fractional-reserve backed, fiat money.

If you want more specifics, pm me.