Topic: The problem with Bitcoin is... (Read 1636 times)

You are promoting an offline site in your signature, just thought to let you know

So how would one stake without electricity?

The biggest problem is, we are saying saying here, never to do some things that are  good  for the Bitcoin .  I think!

The road is tortuous, the future is bright

to Bitcoin,the problem is necessary  for the  growing up!

I'm not really bitching...just pointing out that all of the problems people complain about tend to revolve around the fiat world of bitcoin. Which is not really a bitcoin problem.

The problem with Bitcoin is peeps bitching about this evolution. Offcourse these problems will last, as long as the puppeteers pull all the strings, but if you keep bitching about it, mass adoption will never happen. As soon as people adopt it and banks see a decrease in demand of fiat and therefore the end of the financial fraud system as we know it, all problems above will vanish. Long story short, promote, don't demote!!!!

Buy some short contracts with your BTC and you are immune to price changes.

It can be hard, I agree. With an increasing amount of Bitcoin ATMs this should get easier. However, I don't think it is expensive. In fact, there are a lot of exchanges that have a low fee structure.

Again there a a lot of exchanges with a low fee structure. I do not see exchanging bitcoins being too expensive given you are using the right way to do it.


I see this as a huge problem as well. Fortunately bitcoin is a global currency and there will almost always be ways to buy bitcoins in a way that protects your financial privacy. However, I wishthis kind of regulation wouldn't exist at all

I do not exactly see this as a problem, tho it is true. As said before, buying a short contract along with our bitcoins makes you immune to price changes. However, this also means that you don't gain any money in fiat terms if the BTC price increases. A lot of people are in for the money that can potentially be made by price changes. Those ppl should't complain in case they lose money instead of gaining money.
Again everyone is free to buy a short contract to hedge against price changes. If you don't do it, you are speculating, and speculators can lose money. No excuses!
If bitcoin get more widespread use, companies might choose not to immediately sell their coins.

I agree that it can be a problem to people who do not hold their bitcoins themselves. However, I have never seen someone lose their BTC to an exchange fraud if he didn't leave any BTC at that exchange.
It's a learning process that will take some time. People are used to being reimbursed if some company holding their funds acts maliciously (except for Cypriots maybe).
With time, people will re-learn that it is more save to have sole control over ones money.

That goes back to lowering the price again, right? Well, it's not the miners fault. The bitcoin algorithm just does this. It (currently) adds ~3600 BTC per day which then are distributed amongst those who pay the price for it. The money is paid to the electricity companies and part of it is for the miners in order to keep the network running. I don't see a problem here. Again if you are afraid this can lower the BTC price too much, go ahead and buy a short contract.


Ok, to sum things up:

- Buying and selling Bitcoin is not easy enough right now. This has to be worked on and will probably come with a premium to pay for easy access (BTC ATMs take a high fee)
- There are ways to buy bitcoins that are not expensive. They just aren't always easy to use
- People selling BTC because of expenses (miners, merchants, companies) cause bitcoin price drops, but everyone can go and buy a short contract to hedge against this.
- Therefore, only who wants to profit from bitcoin price changes has to live with potential losses. There are no excuses.
- Malicious exchanges make it harder to store bitcoin in a safe way. Innovation is needed (hardwarewallets etc.) in this area.
- Regulation makes it harder or bitcoin to be obtained or sold and it makes it harder for companies to offer bitcoin services. Less regulation would help.

That are some solutions I can think of. There are probably a lot more.

Sure.

Use less fiat.


Too volatile?  For a brand new technology in its infancy? How do you know it isn't "exactly volatile enough"?  Is there some particular measurement that we can use so that we can know when you've decided that it has the appropriate amount of volatility?


That depends on where you are located.  There are many areas of the world where it is quite easy, and not very expensive.  Other areas of the world will catch up eventually.


Then don't.  Spend your bitcoins, or hold on to them until you can spend them.


Governments regulate everything in life, Bitcoin is no exception.  Yet somehow all those other processes get along just fine?  Bitcoin will too.


That's how free market works.  This isn't a problem, it's a feature.  Eventually the price will be driven low enough that purchasing bitcoins will become a bargain.  This will encourage many people to purchase many bitcoins.  The increased demand will drive the price back up.  In time a relative equilibrium will be reached and the price will stabilize a bit.  That's not likely to happen for several years, possibly a few decades.


Fraud exists anywhere in the world where value exists.  It always will. If people demand it, processes can be put into place to reduce fraud, but those processes will decrease convenience and privacy. This isn't unique to bitcoin, fiat, or exchanges. At the moment, people seem to prefer more convenience and more privacy, and are willing to risk a certain amount of fraud.


That's there prerogative. It's their money and they have the freedom to do what they want with it.  That just means more (and cheaper) bitcoins for the rest of us.  Eventually the block reward will be halved, and then again every 4 years after that. They will have less bitcoins available to "dump" which will reduce supply and drive up the exchange rate.

Bug out, and nuke the Blockchain from orbit! 

    The most simple and effective method is that  you accept it, ye, accept the  Bitcoins,and  prompt others to accept it, prompt marchants to accept it, when most people accept it, no matter how serious  they sell, Bitcoin will steadfastly stand on one's ground!
    
   At that time, the banks and the countries will store a certain amount of the BTC, as they store the golds today.

I know the solution to one of these problems: "Miners are cashing out their bitcoins for fiat to pay for electricity."

PoW mining uses electricity, PoS mining does not. Problem solved.

Some whales unite to form an organization aiming for stabalizing the price of bitcoin. When the price is low， they buy back the redundant supplies of bitcoin on the open market. when the price is pushed higher, they release their reserve to replenish the shortfall of bitcoin on the market place. It will maintain the price of bitcoin and distribute the bitcoin fairly. The bitcoin holder and merchants will be comfortable to hold bitcoin.

More bitcoins are being spent now than they were. Early adopters are not as much of a factor now.

No users.

The underlying core issue here is how the coin gets distributed. Early adopters own a large chuck which is true.
Bitcoin mining is reserved for the elite and they can do 'almost' whatever they want which causes all the issue with volatility. It would be different if everyone gets the chance to get involve in mining and get a piece of the daily take.
And to tackle the issue here may not be easy as it involves changing the whole operating concept and coding...
So if i were you, just accept the fact

To much holders!

I don't see any of the things you've listed in your thread as being solved in less than a few years.

You can't blame merchants for converting their btc directly to fiat as they know the volatility is a big problem.

Also, early adopters are also a main reason for the price to swing from time to time, they still own a huge chunk of the Bitcoins in existence.

3D print some weaponry and go to war.

It's the only way.

Fiat currency is backed by the AR15 and drones.

Fire?

fiat

The price in fiat is too volatile.

It is too hard/expensive to exchange fiat for bitcoins.

It is too hard/expensive to exchange bitcoins for fiat.

Governments regulating the process of going back and forth from fiat to bitcoin.

Merchants driving down the price by immediately converting their bitcoins to fiat.

Fraud on the fiat/bitcoin exchanges.

Miners are cashing out their bitcoins for fiat to pay for electricity.

Can you think of any solutions to this problem?