Topic: The Supply of Bitcoin Is Limited. The Supply of Cryptos Isn't! - page 4. (Read 2163 times)

Other crypto currencies are helping bitcoin to gain it's price. Think of it as bitcoin being the gold and other crypto currencies as the fiat for each country, they have their own purpose and are just basing their prices on bitcoin because they have their own purposes and use.

Baskets or tied money have been around a long time.
the ECU is often forgotten.
All CBs will eventually issue their own cryptos, they're just playing a waiting game.
The volatility of BTC is only matched by the volatility of fiat currencies (those of us tied to GBP painfully know that - and the vol is definitely against us.
The only options, I see, in the future, is everyone actually creating / owning their own baskets, with XAU included.
XAU is heavily held by CBs for a good reason. They will continue to hoard it, and only sell when overstocked / market price is sky high eg Swiss CB several years ago.
John Reade, the strategist at the World Gold Council, is a good person to watch follow for XAU. He's worked at investment banks, HFs and now the World Gold Council, if you want someone to follow for Gold advice; I used to work with him and thoroughly recommend his unbiased opinions.

So, if Bitcoin really takes off, we think we have an honest, state-free money.  No central bank, or anyone, can create bitcoins past the 21 million limit.

Correct?  In practice, no.

What Western central banks are doing now is getting us used to the idea of multiple cryptocurrencies being viable.  When they use their printed money to buy some new cryptos, their values go up.  

One simple example of how they can continue to expand their money supply is to have a basket of cryptos against which they 'manage' exchange rates with dollars, euro, etc.  Say, at first this basket contains 1 BTC, 10 ETH, and 100 LTC, and the Fed and US government have an official or unofficial policy of keeping this basket at the price of $100K, with a combination of keeping money printing and public debt under control, and selling the BTC/ETH/LTC in its vaults to scare savers away from moving their dollars into coins.

As time goes on, the Fed will want to create more dollars.  (As it always has.)  Then they will  buy up lots of new cryptocurrency XYZ (cheap) with their dollars, and raise the price of XYZ.  After XYZ has 'proven itself in the market with its technical superiority,' the Fed will add it to the basket, and the new basket will be priced at $120K.  Since the 'base money' has expanded by 20%, the number of dollars can also be expanded by 20%.

This is only one of many variations.  The Fed doesn't even have to declare a basket (as mentioned above.)  Whatever it buys will rise in value, and will become part of the 'basket'.  Whatever it abandons will die out.  It will have all the power.

The system will be no different from the early days of gold and silver standards, but with a new twist: there are an unlimited number of new gold and silver mines, and only central banks know where they are!

So, I'm still thinking that gold and silver, whose scarcity is secured by physics, rather than computer code, are the superior forms of money for improving our freedom from governments and bankers.

I agree. The high number of altcoins (new tokens, to be specific) is not good at all in crypto-world. Yes, there are only 21 million bitcoins available once all BTC are mined, and I think that's good. The limited number of bitcoin is an example of a healthy cryptocurrency since it will allow people to ask for its demand, thus making it to continuously circulate in the market. That's also one of the reason why the value of bitcoin is rising up until now. The law of supply and demand is being followed by it, and more people are embracing the bitcoin movement.

On the other hand, tokens with high supply is one of the things that a bad altcoin possess. By law of supply and demand, once a product has very high supply, and doesn't match with the damand, the tendency is that its value will depreciate. People who owns such tokens/altcoins will have a hard time to sell their coins since there's a lot of supply out there, and the worst thing is that they will be dumping these coins for a long time, and as time passes by, it will lose its value because there is no smooth flow of it in the crypto-market.

So, if Bitcoin really takes off, we think we have an honest, state-free money.  No central bank, or anyone, can create bitcoins past the 21 million limit.

Correct?  In practice, no.

What Western central banks are doing now is getting us used to the idea of multiple cryptocurrencies being viable.  When they use their printed money to buy some new cryptos, their values go up.  

One simple example of how they can continue to expand their money supply is to have a basket of cryptos against which they 'manage' exchange rates with dollars, euro, etc.  Say, at first this basket contains 1 BTC, 10 ETH, and 100 LTC, and the Fed and US government have an official or unofficial policy of keeping this basket at the price of $100K, with a combination of keeping money printing and public debt under control, and selling the BTC/ETH/LTC in its vaults to scare savers away from moving their dollars into coins.

As time goes on, the Fed will want to create more dollars.  (As it always has.)  Then they will  buy up lots of new cryptocurrency XYZ (cheap) with their dollars, and raise the price of XYZ.  After XYZ has 'proven itself in the market with its technical superiority,' the Fed will add it to the basket, and the new basket will be priced at $120K.  Since the 'base money' has expanded by 20%, the number of dollars can also be expanded by 20%.

This is only one of many variations.  The Fed doesn't even have to declare a basket (as mentioned above.)  Whatever it buys will rise in value, and will become part of the 'basket'.  Whatever it abandons will die out.  It will have all the power.

The system will be no different from the early days of gold and silver standards, but with a new twist: there are an unlimited number of new gold and silver mines, and only central banks know where they are!

So, I'm still thinking that gold and silver, whose scarcity is secured by physics, rather than computer code, are the superior forms of money for improving our freedom from governments and bankers.

It gives us the reason why we want to earn bitcoins more. More miners and earners the more it will limited its supply and in that reason the more rises its price.

I'm badly need to it also. I have limited income even if I've working in a company.

No doubt that cryptos can ensure some regulatory freedom as it is not limited physically like gold or silver. However, the unlimited supply of altcoins is not good for the overall crypto community. We are seeing new altcoins are popping up every single day and flooding the market where most of them are worthless and makes no sense to buy. This way the investments are getting divided into thousand fractions. If we had only a handful of altcoins with proper marketing plans and roadmap, that would be much beneficial for the crypto community. If we can't control this trend, then millions of altcoins will flood the market which will eventually bring down the worth and reliability of crypto currency market.

We are just wondering why the price of bitcoin go further than of altcoins. And we can say, is just because of bitcoin limitation? Yes that's true, we nearly approaching its ceratain limitation but it could be hardly be mined right. Because of its limited in supply now in the market, a big possibilities that it will continuously goes up. And besides bitcoin is highly in demand in the market compared to altcoins.

Fiat money (as we have today) is not the only way for the imperial elites to control the world.  (In fact, I believe it's one of the less desirable, from their point of view.)

Remember, before Bitcoin, there was silver and gold.  Those are decentralized, anonymous, and limited-supply too.  What the elites did back then was to hold enough precious metals to sell them at a fixed paper-money price.  This was effectively a suppression of gold and silver so the elites could continue to print money and debt.  (It was called the 'gold/silver standard.')

But they lost most of their gold this way, and don't yet want to embarrass themselves by 'pegging' to gold and silver again, at a price high enough to maintain stability, which would be much higher than today.

After Bitcoin (and cryptos) has risen to a high enough level, the elites will do to it the same thing they did to gold and silver.  This has been my whole thesis of why Bitcoin and cryptos are allowed/driven to go up.

Yes but doesn't that makes crypto a bit more controllable and practical to be used as a daily means of transactions? I understand that this would mean centralization but it would also ensure that people are not ripped of in case of hyper deflation due to bitcoin prices surging upwards. I mean this can be looked forward as a positive trait in cryptos.

Fiat money (as we have today) is not the only way for the imperial elites to control the world.  (In fact, I believe it's one of the less desirable, from their point of view.)

Remember, before Bitcoin, there was silver and gold.  Those are decentralized, anonymous, and limited-supply too.  What the elites did back then was to hold enough precious metals to sell them at a fixed paper-money price.  This was effectively a suppression of gold and silver so the elites could continue to print money and debt.  (It was called the 'gold/silver standard.')

But they lost most of their gold this way, and don't yet want to embarrass themselves by 'pegging' to gold and silver again, at a price high enough to maintain stability, which would be much higher than today.

After Bitcoin (and cryptos) has risen to a high enough level, the elites will do to it the same thing they did to gold and silver.  This has been my whole thesis of why Bitcoin and cryptos are allowed/driven to go up.

... but what make it interesting is that crypto's are using blockchain technology which is  decentralized, has privacy and transparency so there came the new hope to those who want to have financial freedom.

Bastards control us because we allow them to do so. Look how many people on the forum dreaming about the legalization of bitcoin. They do not understand that they themselves give themselves into the hands of these bastards? Maybe people have as Pets are accustomed to their controlled hosts and can't live without it?

Baskets or tied money have been around a long time.
the ECU is often forgotten.
All CBs will eventually issue their own cryptos, they're just playing a waiting game.
The volatility of BTC is only matched by the volatility of fiat currencies (those of us tied to GBP painfully know that - and the vol is definitely against us.
The only options, I see, in the future, is everyone actually creating / owning their own baskets, with XAU included.
XAU is heavily held by CBs for a good reason. They will continue to hoard it, and only sell when overstocked / market price is sky high eg Swiss CB several years ago.
John Reade, the strategist at the World Gold Council, is a good person to watch follow for XAU. He's worked at investment banks, HFs and now the World Gold Council, if you want someone to follow for Gold advice; I used to work with him and thoroughly recommend his unbiased opinions.

All CBs will eventually issue their own cryptos, they're just playing a waiting game.