Topic: The problem bitcoin solves (Read 947 times)

Bitcoin provides investment opportunities. Bitcoin bridges will always increasing it's value within the financial sector. Bitcoin solves the issue for the normal transaction like slow transaction which normally is as a result of the delay by third hand. Bitcoin will help transaction across the wordwide within seconds.

I think that this year really can solve the problem of scalability and this should really affect the speed of transactions and their price.  Perhaps the cost of transactions in the Bitcoin network greatly affects Bitcoin pricing, and therefore we have results that were in 2018.  At least ethereum copes with this problem successfully, but I would like Bitcoin to do the same.

I think that this year really can solve the problem of scalability and this should really affect the speed of transactions and their price.  Perhaps the cost of transactions in the Bitcoin network greatly affects Bitcoin pricing, and therefore we have results that were in 2018.  At least ethereum copes with this problem successfully, but I would like Bitcoin to do the same.

Bitcoin is not the best solution to be used in financial services.
In this industry we need a reduced response time and bitcoin blockchain is very slow to do that.
Having said that, if we need to solve problems in the financial industry we need a faster chain that will execute transactions faster than the currenct state of bitcoin chain.

Bitcoin is not the best solution to be used in financial services.
In this industry we need a reduced response time and bitcoin blockchain is very slow to do that.
Having said that, if we need to solve problems in the financial industry we need a faster chain that will execute transactions faster than the currenct state of bitcoin chain.

Bitcoin solves many financial problems especially those related to financial transactions. Bitcoin grants its users the power to own control over their financial lives via its decentralized platform where there is no third party interruption in transactions. This facilitate fast and secured transactions.

I believe bitcoin can solve everyone's problems, even for rich people as well, there are tons of altcoins as well as bitcoin so that idea of "only 21 million limited" is bull shit these days, if bitcoin gets too big then ethereum will follow and litecoin too so when there is 50 trillion worth of 50 coins that doesn't make it limited at all and then rich people and poor alike can use crypto currencies all globally to connect to each other.

Internet managed to make the world smaller, I can speak with people from all over the world and I can read stuff people put online anywhere in the world, bitcoin and crypto is solving that financially, bringing people together financially is the next step towards making us a union of humans instead of each nations, with enough interest towards bitcoin and alts we can finally reach that.

People moving values of that order will pay up for the fees without a problem, and we're seeing that already-- multi million dollar transactions are sent with fees ridiculously higher than the recommended fee.

It makes sense as well because when you're about to settle a transaction with someone, you don't want to be a cheapskate by including a low fee while a dump would wipe out like $100k of your transaction value in minutes.

It's better to 'lose' $10-$15 in fees and have your transaction included in a timely manner than to lose a lot of value due to a dump because you were trying to save a few bucks

In other words, if you are sending 1M dollar worth of Bitcoin, you can typically wait and you can pay (actually, if you pay, you don't have to wait)

We are at an age where you can send money to your friend in a second via digital banking right now and we are here talking about how it is awesome for bitcoin to send a 30 dollar to someone in another country in 6 hours with 5 bucks transaction fee. So that used to be the best thing about bitcoin because it was less than 30 minutes and cost only few cents, nowadays the investment part is getting more attention because just recently we have moved %200+ upwards in the past 3-4 months, that is why the problem bitcoin solves changes all the time

There is a big difference between using bitcoin as a payment globally and using bitcoin as investment. First of all the global payment thing is awesome but it is becoming worse and worse, the blocks are more heavy, the transactions cost more and the times are getting worse as well.

We are at an age where you can send money to your friend in a second via digital banking right now and we are here talking about how it is awesome for bitcoin to send a 30 dollar to someone in another country in 6 hours with 5 bucks transaction fee. So that used to be the best thing about bitcoin because it was less than 30 minutes and cost only few cents, nowadays the investment part is getting more attention because just recently we have moved %200+ upwards in the past 3-4 months, that is why the problem bitcoin solves changes all the time.

Bitcoin just not resolve dealing with transactions using peer-to-peer system. We are using bitcoin because it is the most efficient way to buy goods and send money along international borders. In addition, it is made also as a key to be profitable. Many investors are putting their capital in bitcoin because they know that holding it for long term will make a big result that might change to their lives. That is why I say that bitcoin is life changer.

I wouldn't agree more.
And on top of that, it solves inequality patterns that exist among the people that live in poverty and those who don't.
It provides a gateway for people especially who live in the African continent and struggle to find ways of adding a small income to their pockets.

Bitcoin is a big help to solves the financial problem from many people who are unemployed or no regular work, through bitcoin they can earn huge of profit and maybe bitcoin can change your lifestyle in the future and it can help to boost the economy in every country.

We are at an age where you can send money to your friend in a second via digital banking right now and we are here talking about how it is awesome for bitcoin to send a 30 dollar to someone in another country in 6 hours with 5 bucks transaction fee. So that used to be the best thing about bitcoin because it was less than 30 minutes and cost only few cents, nowadays the investment part is getting more attention because just recently we have moved %200+ upwards in the past 3-4 months, that is why the problem bitcoin solves changes all the time.

The problem that is overcome by bitcoin is that transactions without intermediaries are usually called the p2p system. Long before Bitcoin was launched, everyone transacted and sent money to use bank intermediaries, etc. When bitcoin was launched, this became a new innovation because everyone can send and transact without intermediaries, transparency and privacy. Not even controlled by any party, I think Bitcoin has overcome our problem with Fiat.

With a limited amount, bitcoin can also be a new investment area besides gold. Even bitcoin is relatively more profitable in investment because of its high volatility and increasing years.

Many have talked about the importance of skepticism and peer review to maintain good standards in society. The question could be raised of whether Paul Krugman's stance: "fiat money retains value as it is backed by guns" is verifiable by history. Certainly many are aware of venezuela and other nations issues with inflation and overprinting of fiat currency. However most seem not to comprehend the negative consequences of these principles until they have first hand, real life, experience with them. That learning curve could blind many to the intrinsic value of crypto currencies. Its possible bitcoin is still undervalued

I think that Bitcoin helped a lot to stop the dominance of banks like only relevant source of financial services.

The problem that is overcome by bitcoin is that transactions without intermediaries are usually called the p2p system. Long before Bitcoin was launched, everyone transacted and sent money to use bank intermediaries, etc. When bitcoin was launched, this became a new innovation because everyone can send and transact without intermediaries, transparency and privacy. Not even controlled by any party, I think Bitcoin has overcome our problem with Fiat.

With a limited amount, bitcoin can also be a new investment area besides gold. Even bitcoin is relatively more profitable in investment because of its high volatility and increasing years.

Bitcoin become more profitable investment at the future and always could solve many problem with payment transaction, you can use bitcoin for sending payment around all of the country.

While Bitcoin and other cryptocurrencies can help people living in struggling economies, for now, cryptos with their volatility are still not so useful as speaking of business. Imagine, that you are an owner of eg. shipyard (or any other business where you are basing your business activities on long term contracts, which usually are not amendable). You sign contracts for building ships for like 2-3 years in advance. And even regular fiat currency exchange rates can bring the company to the edge of bankruptcy. Until we get over the volatility, we cannot say the problem is fully solved.
But still, a partial solution is much better than having no alternative at all.

When bitcoin raising up maybe all of problem will be solve, but when we are seeing bitcoin on lower price many investor is not happy because have invested money in bitcoin with higher price.

When bitcoin raising up maybe all of problem will be solve, but when we are seeing bitcoin on lower price many investor is not happy because have invested money in bitcoin with higher price.

Bitcoin and blockchain are different things. Blockchain is the technology behind the possibility of bitcoin. As some of the statements here, some are interpreting blockchain and bitcoin as the same. But it is not. Cryptocurrencies could really compete with the central banks and it is not the Paypal and Visa they compete with. But after 100 years, people will become more interested in educating themselves and will have access to education more than what we have today. That is the time that governments could not regulate everything especially when it comes to currency and trades.

When bitcoin raising up maybe all of problem will be solve, but when we are seeing bitcoin on lower price many investor is not happy because have invested money in bitcoin with higher price.

Bitcoin and blockchain are different things. Blockchain is the technology behind the possibility of bitcoin. As some of the statements here, some are interpreting blockchain and bitcoin as the same. But it is not. Cryptocurrencies could really compete with the central banks and it is not the Paypal and Visa they compete with. But after 100 years, people will become more interested in educating themselves and will have access to education more than what we have today. That is the time that governments could not regulate everything especially when it comes to currency and trades.

if you look at the history of bitcoin, there is no fraud when the transaction is done using bitcoin. maybe only a few are misusing the purchase of illegal weapons, but that's just me listening to the gossip (not yet valid) and I think it's just an opinion from the government because the anonymity of bitcoin transactions makes them a little scared. and also the crypto exchanger that can still be hacked must be repaired immediately the security system. more than that, bitcoin has resolved what Fiat cannot solve, such as money laundering and corruption.

Modern financial history is littered with hyperinflation, defaults and currency devaluation. Bitcoin could put an end to that, says Saifedean Ammous

Paul Krugman, blogger, fiat-currency enthusiast and winner of the Nobel Prize in Economics earlier this year justified his scepticism about cryptocurrencies in the New York Times. He asked readers to give him a clear answer to the question: what is the problem cryptocurrency solves? He wrote: ‘Governments have occasionally abused the privilege of creating fiat money, but for the most part governments and central banks exercise restraint.’ He added that, unlike bitcoin, ‘fiat currencies have underlying value because men with guns say they do. And this means that their value isn’t a bubble that can collapse if people lose faith.’

Case closed, apparently. What he omitted to mention was that bitcoin has been operating successfully for almost ten years now, with no confirmed cases of fraudulent transactions. Every day, its traded volumes run to billions of dollars. In fact, bitcoin’s increasing reputation for security and the growth it is still undergoing suggests it is not about to go away. Could it be the market knows something about bitcoin and central banks that Krugman does not?

A closer look at the track record of government money offers a perspective somewhat different to that seen through Krugman’s rose-tinted spectacles.

As I write, Zimbabwe and Venezuela are undergoing the ravages of a collapse of government money, while Argentina, Iran and Turkey teeter on the brink. A quarter of a billion humans live in these failing economies — but not enough, evidently, to dissuade Krugman from endorsing government control of money so wholeheartedly.

It’s not even as if what is happening in these countries is a new phenomenon. Hyperinflation has occurred 57 times since the end of the first world war, afflicting several billions of people. In every instance, it has been the type of money whose worth is supposedly protected by men with guns that has become, well, worthless.

Indeed, hyperinflation is a form of economic disaster unique to government-created money. There was never an example of hyperinflation when economies operated a gold or silver standard. Government money is relatively cheap to produce, meaning governments in crisis are all too happy to produce it. In this way — as we have seen too often — it is possible for a society to lose all of its savings in the space of a few months, or even weeks. This is what happens when the wrong people gain control of the financial levers. Whatever alleged benefits government-managed money may have, a single episode of hyperinflation far outweighs them all.

While most countries have not experienced hyperinflation, they have almost all experienced significant currency devaluation over sustained periods. Between 1960 and 2015, for example, money supply in all countries increased by an average 32 per cent per year.

Krugman doesn’t seem to believe the value of government money needs to be justified intellectually. Instead, he believes ‘men with guns’ will suffice as an argument. The good news for him is that intellectual justifications do not ultimately matter when set against the realities of the market. The power of the state is usually sufficient to protect the economic monopolies he defends. However, the bad news is that the flow of bitcoin — which is decentralised, digital and cryptographically secured — is far harder to stop with guns.

Krugman cites the relatively high cost of bitcoin transactions as a reason the cryptocurrency cannot compete long term with fiat currencies. He seems, mistakenly, to assume bitcoin is competing with consumer payment networks like Visa or PayPal. But as I argue in my book The Bitcoin Standard, that is not what bitcoin is best suited for. Rather, bitcoin is an international settlement network, one that competes with the central bank settlement systems that are the foundation upon which networks like Visa or PayPal depend.

It must also be said that bitcoin transaction costs are relatively cheap compared with those of traditional settlement systems. And that’s not to mention that bitcoin offers international clearance within an hour, while the current banking system usually needs days, and sometimes weeks.

Certainly, there is appetite for a credible alternative to government-controlled fiat currencies. In the nine years that it has been trading, bitcoin has appreciated 700,000,000 per cent against the dollar, despite the naysayers and warnings of its impending collapse.

Perhaps the most compelling argument for bitcoin is the completely apolitical and predictable monetary policy it operates within. Bitcoin cannot be used for quantitative easing, for example. You can’t just print more of it when the whim takes you. If bitcoin’s continued growth deprives central banks of the ability to finance catastrophic wars by printing money, or if it prevents even one more tragic incidence of hyperinflation, the energy consumption required to mine it will be the best bargain humanity ever got.

Could bitcoin collapse? Of course it could. Any investor who puts a large amount of money into bitcoin must know they are taking a significant risk. But bitcoin’s price-falls these days bottom out at prices many times higher than they did only a few years ago.

Can government currencies and bonds collapse, or drop significantly in value, despite the ‘men with guns’ that protect them? The answer — after 100 years and more of hyperinflation, financial repression and sovereign default, which together have affected billions of people — is a resounding yes.

It’s no wonder so many people do not share Krugman’s enthusiasm for the last century’s experiment with government-controlled money, and herein lies the problem that bitcoin solves. Bitcoin offers anyone in the world an escape from being controlled by economists who believe they are immune to the lessons of history.

https://www.spectator.co.uk/2018/11/the-problem-bitcoin-solves/