Topic: Ron Paul says Bitcoin is not "True Money". - page 2. (Read 4378 times)
Bitcoin is still very young. Give it some time ron paul. Once bitcoin has big public acceptance and has a trillion market cap it will have a less volatility.
I still believe this whole thing about the price and value is false, do you know why currencies like the dollar and euro are the way they are? It's because it's fixed, yes, globally rigged, when they think the value is going too low the central banks just print more money and buy stuff up to make it rise like a pump and dump scam. I'm amazed frankly that Bitcoin is holding steady above $400 and it's great seeing such a 'non-currency' rip these so called real currencies a new one in the markets, anything above $200 is amazing in this day and age when you look at how fucked up the economy is so revel in it.
Hell, even Litecoin can be seen trading above $10, the reason that 'cryptocurrencies' are so volatile is because they're simply honestly reflecting what's really going on in the market like Gold/Silver.
Hell, even Litecoin can be seen trading above $10, the reason that 'cryptocurrencies' are so volatile is because they're simply honestly reflecting what's really going on in the market like Gold/Silver.
legendary
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Core dev leaves me neg feedback #abuse #political
Ron Paul is right. Bitcoin presently is not money.
Why?
Money has to be very marketable. What does this mean? It means if you exchange large amounts of money for goods,services it's value does not plunge. The marginal utility of whatever is money has to be high. Bitcoin does not pass this test. When even a small amount of bitcoins enter the market the bid/ask spread begins to widen insanely.
Money needs to extinguish debts. What does this mean? Settlement. Simply put almost nobody is settling anything in bitcoin. People accept BTC only because they can be instantly exchanged into dollars. Bitcoin is a conduit to access fiat liquidity pools, not to settle anything. Couple nerds maybe settling their tiny debts here and there in BTC.
Money needs to be able to measure value. What cost X BTC now may cost 1/3 BTC even tomorrow. Economic calculation is next to impossible in bitcoin. The value swings are too wide to even know what it will be worth in an hour. Bitcoin's value has fluctuated from +20 -60% since Jan 1st. This is an annual inflation rate of something like 150%.
Bitcoin does not pass any of those three tests to be even remotely considered money. It is the equivalent of tokens that access fiat bid's at this point in time.
Why?
Money has to be very marketable. What does this mean? It means if you exchange large amounts of money for goods,services it's value does not plunge. The marginal utility of whatever is money has to be high. Bitcoin does not pass this test. When even a small amount of bitcoins enter the market the bid/ask spread begins to widen insanely.
Money needs to extinguish debts. What does this mean? Settlement. Simply put almost nobody is settling anything in bitcoin. People accept BTC only because they can be instantly exchanged into dollars. Bitcoin is a conduit to access fiat liquidity pools, not to settle anything. Couple nerds maybe settling their tiny debts here and there in BTC.
Money needs to be able to measure value. What cost X BTC now may cost 1/3 BTC even tomorrow. Economic calculation is next to impossible in bitcoin. The value swings are too wide to even know what it will be worth in an hour. Bitcoin's value has fluctuated from +20 -60% since Jan 1st. This is an annual inflation rate of something like 150%.
Bitcoin does not pass any of those three tests to be even remotely considered money. It is the equivalent of tokens that access fiat bid's at this point in time.
You're basically saying bitcoin has low liquidity, high volatility, and is not universally adopted at this point in time. And you're right. However, the growth is explosive, having already gone from a mere concept to a billion dollar market in just 5 years.
every government employee will lead you to believe that only legal tender is true money..
that does not mean that bitcoin is anything less. it just means that governments wont accept it to pay taxes.
nothing to get hyped up about..
that does not mean that bitcoin is anything less. it just means that governments wont accept it to pay taxes.
nothing to get hyped up about..
I don't think he meant it that way. Ron Paul is one of the biggest allies among the Feds that we've got. He supports Bitcoin. I think he was referring to the way it's used more than anything else. It's not as stable and established (yet) as what he might consider "true money."
Ron Paul is right. Bitcoin presently is not money.
Why?
Money has to be very marketable. What does this mean? It means if you exchange large amounts of money for goods,services it's value does not plunge. The marginal utility of whatever is money has to be high. Bitcoin does not pass this test. When even a small amount of bitcoins enter the market the bid/ask spread begins to widen insanely.
Money needs to extinguish debts. What does this mean? Settlement. Simply put almost nobody is settling anything in bitcoin. People accept BTC only because they can be instantly exchanged into dollars. Bitcoin is a conduit to access fiat liquidity pools, not to settle anything. Couple nerds maybe settling their tiny debts here and there in BTC.
Money needs to be able to measure value. What cost X BTC now may cost 1/3 BTC even tomorrow. Economic calculation is next to impossible in bitcoin. The value swings are too wide to even know what it will be worth in an hour. Bitcoin's value has fluctuated from +20 -60% since Jan 1st. This is an annual inflation rate of something like 150%.
Bitcoin does not pass any of those three tests to be even remotely considered money. It is the equivalent of tokens that access fiat bid's at this point in time.
Why?
Money has to be very marketable. What does this mean? It means if you exchange large amounts of money for goods,services it's value does not plunge. The marginal utility of whatever is money has to be high. Bitcoin does not pass this test. When even a small amount of bitcoins enter the market the bid/ask spread begins to widen insanely.
Money needs to extinguish debts. What does this mean? Settlement. Simply put almost nobody is settling anything in bitcoin. People accept BTC only because they can be instantly exchanged into dollars. Bitcoin is a conduit to access fiat liquidity pools, not to settle anything. Couple nerds maybe settling their tiny debts here and there in BTC.
Money needs to be able to measure value. What cost X BTC now may cost 1/3 BTC even tomorrow. Economic calculation is next to impossible in bitcoin. The value swings are too wide to even know what it will be worth in an hour. Bitcoin's value has fluctuated from +20 -60% since Jan 1st. This is an annual inflation rate of something like 150%.
Bitcoin does not pass any of those three tests to be even remotely considered money. It is the equivalent of tokens that access fiat bid's at this point in time.
Ron Paul also says that Bitcoin should be perfectly legal on not taxed. This should be the headline instead.
It's not as interesting though and wouldn't start a discussion like this one did. 
Ron Paul also says that Bitcoin should be perfectly legal on not taxed. This should be the headline instead.
Most humans in general are creatures of habit...anything that threatens the norm is considered bad and viewed negatively. This is especially true with older generations, as they are the last fond of new changes and technology (unless it deals with preventing baldness or erectile dysfunction)
Yup, and when we're that age we'll surely do the same thing, as previous generations -all- have done. But without change, nothing has the potential to get better. If people are skeptical to bitcoins now, how skeptical weren't people to the internet?Lol, yeah once we are old and wrinkly...we will probably be clinging on to Bitcoin when there is something new and much better by then. Hopefully not though...maybe we will be looking back at these forums and discussing the good old days and how we amassed a fortune
Most humans in general are creatures of habit...anything that threatens the norm is considered bad and viewed negatively. This is especially true with older generations, as they are the last fond of new changes and technology (unless it deals with preventing baldness or erectile dysfunction)
Yup, and when we're that age we'll surely do the same thing, as previous generations -all- have done. But without change, nothing has the potential to get better. If people are skeptical to bitcoins now, how skeptical weren't people to the internet?Lol, yeah once we are old and wrinkly...we will probably be clinging on to Bitcoin when there is something new and much better by then. Hopefully not though...maybe we will be looking back at these forums and discussing the good old days and how we amassed a fortune
When asked why he thinks bitcoin does not fit the definition of money, Paul said it is his personal opinion, but that it should be irrelevant in the big scheme of things.
“Though I don’t personally believe that bitcoin is true money, it should be perfectly legal and there should be no restrictions on it, there should be no taxes on it. The people who operate bitcoin would, of course, be prohibited from committing fraud but the people should be able to have competition whether it is a basket of commodities or crypto-currencies – it should be perfectly legal,” said Paul.
Did I miss something, or is it correct that Ron Paul doesn't say exactly why he thinks BTC is not "True Money"?
“Though I don’t personally believe that bitcoin is true money, it should be perfectly legal and there should be no restrictions on it, there should be no taxes on it. The people who operate bitcoin would, of course, be prohibited from committing fraud but the people should be able to have competition whether it is a basket of commodities or crypto-currencies – it should be perfectly legal,” said Paul.
Did I miss something, or is it correct that Ron Paul doesn't say exactly why he thinks BTC is not "True Money"?
Quite a few people in the Austrian school including Ron Paul believe that money needs to originate from the marketplace as a commodity first in order to be a currency, regardless of people disagreements with him including mine he's one of the few people to realise that if there's no fraud involved then why do people care? Given the history of currencies itself where we've used everything from shells, feathers to sticks with marks on them as currency I think both economic viewpoints are far too narrow minded in their definition which is why when something new like Bitcoin has come along a lot of the older people are struggling to get it.
I do like the Austrian economists more than the neo-keynesians for sure because they at least live in the real world and don't treat economics like it's some kind of religion.
legendary
Activity: 1302
Merit: 1008
Core dev leaves me neg feedback #abuse #political
My question is why does this matter?
Posted From bitcointalk.org Android App
Bitcoin getting mentioned in the media is always interesting. It doesn't change anything, but it's still interesting to discuss.Posted From bitcointalk.org Android App
also Ron Paul is a rare political figure, one of the very few who actually had the best interests of
the American people in mind, so his opinion is generally respected among a certain segment
of the population.
No, Like I said, and others have said here: He probably said it with fingers crossed behind his back, nod nod wink wink.
It could be that...it could be (like someone else said), no one would pick up the story if he didn't spin it a little bit... It could be that Ron Paul endorsing bitcoin
would be so huge that it would attract an unwanted amount of controversy (this is what I believe). Or, I could be wrong entirely, and he really doesn't think it is true money.
Maybe by true money, he means government issued (fiat) money.
My question is why does this matter?
Posted From bitcointalk.org Android App
Bitcoin getting mentioned in the media is always interesting. It doesn't change anything, but it's still interesting to discuss.Posted From bitcointalk.org Android App
also Ron Paul is a rare political figure, one of the very few who actually had the best interests of
the American people in mind, so his opinion is generally respected among a certain segment
of the population.
No, Like I said, and others have said here: He probably said it with fingers crossed behind his back, nod nod wink wink.
legendary
Activity: 1302
Merit: 1008
Core dev leaves me neg feedback #abuse #political
My question is why does this matter?
Posted From bitcointalk.org Android App
Bitcoin getting mentioned in the media is always interesting. It doesn't change anything, but it's still interesting to discuss.Posted From bitcointalk.org Android App
also Ron Paul is a rare political figure, one of the very few who actually had the best interests of
the American people in mind, so his opinion is generally respected among a certain segment
of the population.
No, Like I said, and others have said here: He probably said it with fingers crossed behind his back, nod nod wink wink.
My question is why does this matter?
Posted From bitcointalk.org Android App
Bitcoin getting mentioned in the media is always interesting. It doesn't change anything, but it's still interesting to discuss.Posted From bitcointalk.org Android App
also Ron Paul is a rare political figure, one of the very few who actually had the best interests of
the American people in mind, so his opinion is generally respected among a certain segment
of the population.
legendary
Activity: 1302
Merit: 1008
Core dev leaves me neg feedback #abuse #political
My question is why does this matter?
Posted From bitcointalk.org Android App
Bitcoin getting mentioned in the media is always interesting. It doesn't change anything, but it's still interesting to discuss.Posted From bitcointalk.org Android App
also Ron Paul is a rare political figure, one of the very few who actually had the best interests of
the American people in mind, so his opinion is generally respected among a certain segment
of the population.
My question is why does this matter?
Posted From bitcointalk.org Android App
Bitcoin getting mentioned in the media is always interesting. It doesn't change anything, but it's still interesting to discuss. Posted From bitcointalk.org Android App
My question is why does this matter?
Posted From bitcointalk.org Android App
Posted From bitcointalk.org Android App
Most humans in general are creatures of habit...anything that threatens the norm is considered bad and viewed negatively. This is especially true with older generations, as they are the last fond of new changes and technology (unless it deals with preventing baldness or erectile dysfunction)
Yup, and when we're that age we'll surely do the same thing, as previous generations -all- have done. But without change, nothing has the potential to get better. If people are skeptical to bitcoins now, how skeptical weren't people to the internet?
Most humans in general are creatures of habit...anything that threatens the norm is considered bad and viewed negatively. This is especially true with older generations, as they are the last fond of new changes and technology (unless it deals with preventing baldness or erectile dysfunction)
In due time they'll realize they're wrong, until then they have to convince the Common Joe that the only real currency there is are the ones established already.
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