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Topic: what if btc takes over €/$ ? (Read 2716 times)

full member
Activity: 182
Merit: 100
February 19, 2013, 07:59:47 PM
#43
If BTC took over, budgets would be balanced by default.

Because they wouldn't be able to get a loan on bitcoin talk's newbie forum, either!

Well, even if they were able to get a loan, they couldn't just print more money to pay off that loan. Obviously they could mine, but that is different.
hero member
Activity: 603
Merit: 500
February 19, 2013, 03:37:32 PM
#42
You cant buy anything with BTC, it's only valuable because people can cash it out to fiat once the transaction is done with and can pay their rent/buy food, etc

http://pizzaforcoins.com
Cool I always wanted to pay a large fee so someone else could order from dominos with their credit card instead of just using my credit card because ?

Keeping cash reserves in a currency losing value to buy that pizza just cost you double the cost of the pizza.
You dont have a cash reserve when you use a credit, I'm buying that Pizza with debt which I will pay for with money that I made at my job. Left over savings are invested wisely to counteract the effects of inflation.

P.S. USD inflation is incredibly low and I dont have to worry about prices going from $30 to $5 overnight.

USD just lost 20% of its value in the past week.

btw...welcome to the forums, enjoy learning about Bitcoins

Give me a source, I want charts.

I can provide you with a Pie Chart. 1btc  38ekqAEguGbNpNN7TkKcowQjYbFQ7KjDe3
sr. member
Activity: 280
Merit: 250
February 19, 2013, 01:30:40 PM
#41
If BTC took over, budgets would be balanced by default.

Because they wouldn't be able to get a loan on bitcoin talk's newbie forum, either!

Hello, this is Ben. I started mining today on my quite new Dell, but it doesn't seem to work. Can somone lend me 85 Billion/ 29 = 2931034482.758620690 BTC before the end of the month please. I pay you back for sure.
sr. member
Activity: 407
Merit: 250
February 19, 2013, 11:15:14 AM
#40
Once the fractional value of bitcoin is approximately $1/mBTC I believe the free market will widely adopt BTC

Is that before or after the point when Bitcoin mining uses all the worlds energy output?

sr. member
Activity: 476
Merit: 250
Bytecoin: 8VofSsbQvTd8YwAcxiCcxrqZ9MnGPjaAQm
February 19, 2013, 10:27:43 AM
#39
If BTC took over, budgets would be balanced by default.

Because they wouldn't be able to get a loan on bitcoin talk's newbie forum, either!
full member
Activity: 182
Merit: 100
February 18, 2013, 08:36:21 PM
#38
If BTC took over, budgets would be balanced by default.
sr. member
Activity: 476
Merit: 250
Bytecoin: 8VofSsbQvTd8YwAcxiCcxrqZ9MnGPjaAQm
February 18, 2013, 01:25:31 PM
#37
People hoarding would have no affect on your ability to make a purchase using Bitcoin.

maybe, but would i want people to have hoarded thousands of these? they didn't work for them, just speculated and were there early.

Yes, they did work for them.
donator
Activity: 1722
Merit: 1036
February 18, 2013, 07:54:17 AM
#36

+1 It is for posts like THIS that the "donate" links are put on the signatures.


What would happen if Bitcoin become the dominant, reserve currency on the market?

Nothing.

Apart politicians would not be able to steal purchasing power from the fiat currencies held by the working people using the printing presses to print money for themselves and their supporters.
Without the printing presses, they would be forced to tax or borrow from the public.
But if the tax they will be hated and if the borrow they will be hit immediately by rising interest rates. The current interest rates are unsustainable without the Fed. running the printing presses at full speed to keep them at this low levels.
It would be the end of profligate spending by politicians to keep people on the dole (to vote for them), to finance stupid projects, to make stupid wars, etc.

There will be higher interest rates, so people will be interested in saving more, delaying consumption, investing only in really high return projects (no stupid solar panels, windmills, and likes).
Without money the government will not be able to finance the War on Drugs and other stupid wars like the War on Terror.
Instead of focusing on winning hearts and minds they will stay real and will focus on splatting skulls and chests (cheaper, faster, surest).

Prices for stuff like homes and other will fall as interest rates will raise. People will pay a house full in cash or with a small loan. They will not be serf for 30 years to the bank.

Just little things like these, nothing more.




sr. member
Activity: 453
Merit: 254
February 17, 2013, 08:11:03 PM
#35
What would happen if Bitcoin become the dominant, reserve currency on the market?

Nothing.

Apart politicians would not be able to steal purchasing power from the fiat currencies held by the working people using the printing presses to print money for themselves and their supporters.
Without the printing presses, they would be forced to tax or borrow from the public.
But if the tax they will be hated and if the borrow they will be hit immediately by rising interest rates. The current interest rates are unsustainable without the Fed. running the printing presses at full speed to keep them at this low levels.
It would be the end of profligate spending by politicians to keep people on the dole (to vote for them), to finance stupid projects, to make stupid wars, etc.

There will be higher interest rates, so people will be interested in saving more, delaying consumption, investing only in really high return projects (no stupid solar panels, windmills, and likes).
Without money the government will not be able to finance the War on Drugs and other stupid wars like the War on Terror.
Instead of focusing on winning hearts and minds they will stay real and will focus on splatting skulls and chests (cheaper, faster, surest).

Prices for stuff like homes and other will fall as interest rates will raise. People will pay a house full in cash or with a small loan. They will not be serf for 30 years to the bank.

Just little things like these, nothing more.



newbie
Activity: 34
Merit: 0
February 17, 2013, 12:37:57 PM
#34
If you don't like btc, why are you here?

I couldn't agree more, why is there so much negativity in this thread?
tipped.
full member
Activity: 182
Merit: 100
February 17, 2013, 11:55:25 AM
#33
You cant buy anything with BTC, it's only valuable because people can cash it out to fiat once the transaction is done with and can pay their rent/buy food, etc

http://pizzaforcoins.com
Cool I always wanted to pay a large fee so someone else could order from dominos with their credit card instead of just using my credit card because ?

Keeping cash reserves in a currency losing value to buy that pizza just cost you double the cost of the pizza.
You dont have a cash reserve when you use a credit, I'm buying that Pizza with debt which I will pay for with money that I made at my job. Left over savings are invested wisely to counteract the effects of inflation.

P.S. USD inflation is incredibly low and I dont have to worry about prices going from $30 to $5 overnight.

If you don't like btc, why are you here?
newbie
Activity: 34
Merit: 0
February 17, 2013, 11:41:38 AM
#32
Back to what if BTC took on mainstream fiat:

There are $1.16 trillion USD in circulation (http://www.federalreserve.gov/faqs/currency_12773.htm).  In contrast there are roughly 10 million bitcoin in existence(http://blockexplorer.com/q/totalbc).
If nothing changed today (no inflation or growth) a bitcoin would need to be roughly worth one million times more than it already is to replace USD globally.  Of course this is a huge over simplification because in the processes a lot of factors would change.

The bottom line is bitcoin is still in beta and nobody really knows how this game will play out.  The market incentives in my view are pointed towards holding BTC, investing in BTC(to encourage distributed ASIC mining, and BTC business - full disclosure I have holdings), and mining until the difficulty pushes my hardware out of profitability.  Once the fractional value of bitcoin is approximately $1/mBTC I believe the free market will widely adopt BTC, however the oil-dollar has more solid footing now than it ever has; basically BTC will need to be adopted to trade a commodity greater than oil (I think it will be information).  Now please tell me all the ways I am wrong, which seems to be the point of these forums lately.
legendary
Activity: 1264
Merit: 1008
February 17, 2013, 12:10:34 AM
#31

 how do we justify some people hoarding thousands of btc for doing nothing?



good point.  sounds exactly like what people do with USD or EUR.  so what's the bit deal you might ask?

simple answer:  you can't counterfeit the BTC / fraudulently create them
legendary
Activity: 1638
Merit: 1001
₪``Campaign Manager´´₪
February 16, 2013, 10:53:32 PM
#30
You are the one with the name freemoney maybe you should tell us. Smiley Maybe not by doing nothing, but very little. Early adapter mines thousands and hoards.
Does next to nothing and gets rich. That is an unjust system. LTC adoption will change it.

How is LTC different in this regard?  Do you think litecoin is more fair?  The average person has not heard about bitcoin, let alone litecoin. Think the people mining litecoin now are not early adopters just the same?  Aren't they going to be rich for doing nothing just the same should litecoin become successful?
legendary
Activity: 1316
Merit: 1011
February 15, 2013, 07:05:27 PM
#29
You cant buy anything with BTC, it's only valuable because people can cash it out to fiat once the transaction is done with and can pay their rent/buy food, etc

http://pizzaforcoins.com

Enough with this pizza bullshit. Ok we get it you can buy pizza. What are you all fucking diabetics?

Apparently a currency is only worth something if you can buy food with it.
A currency is pretty worthless if you cant buy the basic necessities of life with it.

Correction: A currency is worthless when no one wants it. If people want bitcoin, we'll be able to exchange it for anything, soon enough.

People buy the basics with credit cards every day. There is absolutely no reason we couldn't do that with a credit-card sized electronic bitcoin wallet (already being worked on).
why would your average consumer ever want to use bitcoins? Irreversible charges and 10 minute transaction times along with having to pay the transaction fee are hardly attractive.

This. I don't get it people bitch about paypal's fees but bitcoin has fees too, sure it's a VERY small fee but if bitcoin really takes off the fee would just be insane 10m *0.0005 = 5K
legendary
Activity: 1078
Merit: 1003
February 15, 2013, 06:53:21 PM
#28
Well.  This thread escalated quickly.

People, please, these are questions that have been asked quite a number of times.  Gestas, Vince; why not research how Bitcoin works before asking remedial questions?  Better yet, research how the dollar works, and why every question presented could've been answered by Google.  There is nothing in this world which has known omnipotence from day one.  There was a day when today's standard American dollar wasn't even a twinkle in Uncle Sam's eye.  Bitcoin has been alive for a measly 3, 4 years?  Can't you see beyond the nose on your face?
legendary
Activity: 1288
Merit: 1076
February 15, 2013, 06:49:10 PM
#27
Does next to nothing and gets rich. That is an unjust system. LTC adoption will change it.

Freemoney can not buy anything from you since you don't value bitcoin.  He can only get value from his bitcoins by selling them or buying goods and services from people who willingly accept to give that much value into bitcoins.  So it's really not unjust in any way.

As for LTC (litecoin iirc?), I don't know much about this thing but if you think it's better than bitcoin for whatever reason, go for it.
legendary
Activity: 966
Merit: 1000
February 15, 2013, 06:42:53 PM
#26
isn't this part of what people want?

how will our economy work then and how do we justify some people hoarding thousands of btc for doing nothing?

if all 21 mil coins equaled the current amount of $ in the developed countries, 1 bitcoin would equal $ 10 mil.

i don't understand. this no work.

How exactly can you hoard bitcoins without doing anything?

You are the one with the name freemoney maybe you should tell us. Smiley Maybe not by doing nothing, but very little. Early adapter mines thousands and hoards.
Does next to nothing and gets rich. That is an unjust system. LTC adoption will change it.
sr. member
Activity: 742
Merit: 250
February 15, 2013, 05:58:10 PM
#25
yeah, i already gave up on this topic. what should have been discussed here is actually what if, not how it currently is.
newbie
Activity: 13
Merit: 0
February 15, 2013, 01:39:21 PM
#24
There just isn't enough acceptance of Bitcoins to make it a mainstream currency. Whenever you're buying or selling something with Bitcoins what do you do? Go to an exchanger to know how much USD it's worth. I can't pay my rent with Bitcoins, buy food, pay my bills... you get the picture. It will just never happen.
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