Topic: USD down again. BTC rock steady. (Read 2928 times)

as well as in EUR, GBP, CAD, LRU, SLL, CNY, AUD, JPY

True story.

I'll argue your language, but the point is true.  This is not unique to the US Dollar though, it is the same story for any fiat currency; I think it was Keynes who theorized that any currency that A) is not tied to a uncommon base commodity and B) can have it's quantity arbitrarily increased, is inherently inflationary.

In a strange way then, BTC is less "virtual" than $, £ or €: we all know now that because the protocol that BTC operates on sets an arbitrary limit on the total number of "coins" that the currency has to (eventually) be deflationary.  Obviously that was the point when Satochi set a solid limit.  There has never been a commonly exchanged currency with an absolute ceiling on the number of units "floated", so it would be very interesting to see what would happen, especially if we get to the point where 8 decimal places is not enough to service all potential holders.

A true deflationary system would royally fuck the money-lending market as it exists too, since our current system of usury relies on a currency valuation being flat or inflationary.

A pure gold (or any other non-renewable commodity) standard is *theoretically* deflationary, but in practice it is almost never strictly that way since the pool of available gold is not set and new gold is mined or recovered all the time, but the same gold is also removed from the currency pool by industry.

Measured in USD

Sorry "L33T LIEK JEFFK", that is incorrect. There is no 'peg', only a floating exchange rate determined by the market.

The value of bitcoins are pegged against USD.

Therefore...

The dollar has lost over 96% of it's purchasing power in the hundred years since The Fed was created to "stabilize the value of the dollar." In the 150 years prior, the US Dollar actually slightly increased purchasing power. Fail.

Look at the long term value of the dollar. It has lost most of its purchasing power since inception. That's like comparing bitcoin to a pile of dog shit.

hahaha rock steady my ass 

True, but we don't see it reflected in day-to-day BTC/USD prices as you do with Au/USD.  I think as more foreign currency Bitcoin exchanges open, we'll see the value of the BTC less-closely associated with the USD.

But if the dollar falls, and the price of BTC in dollars stays the same, then BTCs also were devalued.

You guys realize that dollar debasement results in more dollars needed to price in equivalent value? So the dollar-based price would in fact rise. Part of that dynamic is happening in gold right now.

Exactly.  If you're measuring BTC value in USD, then a fall in value of USD also means a fall in value of BTC.

If you mean steady in relation to USD, that SUCKS, since it means both BTC and USD moved down compared to the rest of the world.

I don't agree with you at all. How do you control currency? By controlling its issuance which affects its inflation or deflation. Valuation was certainly on Satoshi's mind in the creation of bitcoin.

i'm not sure i agree with this...



BTC has been trading like a penny stock.  with time, maturity, and growth it will become more steady.

Satoshi mostly wanted to provide a private and secure currency that were p2p, decentralized and can't be controlled. He didn't really care about value. Bitcoins can have huge inflations as we saw recently, in early June, I was able to buy a HD6990 with 25 BTC, now I must pay like 60 BTC for it.

sure i'm serious.  compared to the previous 6 mo yes. 

i think this should give merchants alot more confidence in accepting btc for payment.

Thank you for injecting more reality into this thread.  "BTC rock steady", seriously?

i think thats b/c BTC is such an immature concept. 

overall tho since its inception, the volatility has damped down significantly.  this is what we need.