Topic: Want to get your friends into Bitcoin? Show them this! - page 2. (Read 3968 times)

this is a problem if we ever want to move to a new currency.
Unless we all decide to donate our coins to the public for the sake of market liquidity, which will increases the rest of our coins value ALOT. But then there's the free rider problem, where some people will keep their coins instead just to get even bigger slice of wealth, and this is totally uncontrollable for such decentralized currency.

I saw this and the whole series quite some time ago.  Now, I get why Bitcoin having a limit to the amount that can be created is ideal over a currency that can be printed at will.  Here's what I still don't get:

How does Bitcoin help everyone else who doesn't have Bitcoin?  How is Bitcoin supposed to replace fiat, if everyone can't get it and in order to get it, they have to buy it with fiat? 

I saw this video before and I just enjoyed watching it again. I went to school in the 80'ies and somehow I got the impression that banks lend out only the money that people deposit into their savings account. I don't know if this was something I just assumed because it would be the logical thing, or if they actually told us this in school. Any of you guys remember?

That will still go over the heads of many Americans...  Sadly.

too high of an entry point? Just buy less BTC.
At $600 a piece we can now mainly trade with mBTC, when it gets higher we might trade with nano BTC.
The current price is not what matters, it's all about if it will rise or fall.

This video is to show that Bitcoin is more trustworthy than fiat currency, period.

Would you rather buy a dummy Rolex or a real one?

Yes, although prices in the $600 are probably cheap in comparison to what we will see in a few years from now, it is still too high of an entry point for a lot of first time investors.   They may be better off getting their feet wet with LTC first...and maybe a couple BTC if they can afford.

After watching the video, I can conclude that this is insufficient to convenience an average joe to use bitcoin
You still need to explain the details of bitcoins to them and counter all the FUD the media has been making

But this video is a good comeback against "I rather believe in USD because it is backed by the government" and "its a Ponzi scheme"

Wow. You're so wrong.

If you go to a bank to get a loan of 500 000 to buy a house, the bank needs to give 500 000 of REAL MONEY to whomever you are buying the house from. I'll try to simplify this. The bank gets this from deposits at the bank. Say 10 people come in and deposit 100 000 each. The bank has 1 000 000. The bank gives the seller of the house 500 000, in exchange for the buyer to pay the bank back over 30 years. The bank owns 500 000 in cash and a 500 000 asset. So, if all 10 people who deposited 100 000 come back for their money, they can't get it - the bank only has half that - 50 000 for each person. This is where people say a bank doesn't hold all the money people deposit, so if there is a run on the bank, they can't pay out immediately.

The banks determine how much cash they need on hand so that normal deposits / withdrawals can take place. This might be as low as 1% - they only need $10 000 on hand. So they use the other $490 000 to invest in stocks/bonds, etc. When the bank is TOO risky with it's investments, it loses the capital (part of the $990 000 it invested / lent out), then it CAN'T pay back depositors immediately (and if they ask for all their money back, the bank becomes insolvent).

But the bank doesn't just create 'bank money' out of thin air. The government creates money out of thin air (by selling bonds) but not banks. The bank might say '$1 000 000 in deposits' but actually only have $10 000 in their cash ledger. But adding up all the other assets / investments, the bank should have MORE than $1 000 000, which is where they generate their profits.

Banks which 'cheat' have their CEOs and upper management steal/take/embezzel money from the original $1 000 000, similar to what Mt. Gox might have done.

I am guessing you didn't go to school in the U.S. right?
Me neither btw, just asking.

at my school they did, and i guess other schools do that as well!

They teach things about bonds and money, how it is just created as numbers in banks - at least at my school they did!
It was not called "bad" and it was not about the slavery behind it, but it revealed the process of how money is working, and how banks can create "bank money" for loans.

An example that i remember from school was:
"If you go to a bank to get a loan of 500 000 to buy an house, the bank did not to have these 500 000. Its enough that the bank got the house as leverege, so the bank can create the money for the leverge as called "bank money"."

I did not remember which class that was but i guess it was "oberstufe" like the germans call it.

So schools doesn't seem to be that bad at all

(Sry for my bad english, but i guess i missed some classes there, in school english doesn't seems to be that important at all XD)

Wouldn't the world be a better place if we only traded in Bitcoin and Gold Bitcoin pieces? 

Good video, but sadly a lot of the gold bugs that enjoy watching such videos are fiercely against Bitcoin, which I personally have never understood as I love both gold AND bitcoin, they both have their strengths in this modern internet wireless age.

That is very true.
I have lost MANY money from selling coins to soon in my begining as a Bitcoiner due to the fact that I was impatient.
Patience is a virtue.

EDIT: I wish I never done that, I could have had ALOT of money now, instead I got jack shit 

good video,  but be careful, btc is not for everyone, especially ones with weak heart.

That's one more of a reason to tell them:
I TOLD YOU SO!!!!
You can still get in before it goes over $1000 again

I used to recommend buying bitcoins to friends and relatives when bitcoin was in the 25 to 100 USD range, but at current prices I don't bother anymore.

I am sure they do, that's why they chose Bitcoin



To be honest, I have been looking for it too
Most people argue with me about BTC, I now have the tools to shut them up without wasting my breath



I agree with you both.
They should teach this shit in school, but they won't.
They want their future slaves to know only what they tell them.

And yes, it is the parents job to properly educate their children.
And we are talking about their freedom here.

Why would they? And why do parents rely so much on school?