Topic: Will bition eventually deflate to oblivion? (Read 2285 times)

I hope so, bitcoin deflating means that it's a perfect long term saving system.

It willl replace the current (bankrupt) ponzi scheme pension fund systems, that are ponzi schemes, and it will help the youth save up for their retirement.

Most pension funds are looted by banks 24/7 because they dump their bad trades there, plus they are a ponzi scheme, so it will collapse soon.


I want to save up for my retirement in bitcoin, not in ponzi scheme pension plans.

yes, there will always be other coins like Litecoin but Bitcoin will be the leader. but it is nice to have the second coolest crypto too 

In every currency there are lost funds.  There are millions of dollars out there that have been lost, destroyed or misplaced.  This will happen with BTC also.  From what I am reading this will only happen with all of those people who loose their wallets and do not know how to access them, but, like treasure hunters, I am sure there will be people who attempt to find them and make claim to them.  This is one key to be able to tell that sooner or later BTC will be acknowledged as a currency.

No of course not.       

For example, let's say I have 1 gold bar of 1 kg.     

I can only pay for a car or something with that gold bar, because I can't break the gold bar in half and the stores can't give me change. 

Now if I had 100 coins of 10 gram each I would still have 1 kg of gold total, but now I can also buy groceries, because I can spend 1/100th of my total amount of gold by only spending 1 coin and not all 100 of them.

But it's still the same amount of gold.

Same with Bitcoin. There will never be more than 21 million Bitcoin, but if Bitcoin become so rare or so valuable that 0.00000001 Bitcoin becomes worth a lot of money we can just make transactions of 0.0000000000000000001 Bitcoin instead.     

There will not be any more Bitcoin, the denominations just become smaller. It's like trading gold atoms instead of gold coins.

And this is exactly why taxes are so taxing and why the government insists inflation is a good thing.       

But like someone else mentioned, don't pay taxes in Bitcoin, sell a part of your Bitcoin, pay taxes in fiat. Let the government keep their trash money.

In this thread I get a lot of science about the workings of the BTC.


and I am grateful to all the masters who have told this

If it's so easy and technically possible to add more decimals into the protocol, it actually means Bitcoins can be just as easily dilluted as fiat!

(!!!)

This is purely a theoretical option as that would call for a consensus of the miners, but wait a minute, in a few decades let alone a few years (now?) mining will be as highly centralized as the Fed's power to print money.

https://blockchain.info/charts/n-transactions-per-block
number of transactions divide by
https://blockchain.info/charts/avg-block-size
= roughly 500bytes a tx

with bitcoin being 1mb, thats 2000 possible tx a block (max)..
more evidence?
there has never ever been more than 2000 tx per block
https://blockchain.info/charts/n-transactions-per-block?timespan=all

but mining pools prefer to keep it under 1300tx or under 0.8mb blocks to blackmail fee's out of people, but thats a whole different argument

I believe the 8 decimal places aren't a hard limit and can easily be increased. So if there's only a few satoshi left we can just increase the amount of decimals and we trade in fractions of satoshi, no big deal.       
And the few people who still have large amounts would be pretty rich in that case.

Can you quote your source for max transactions?  Also, what's actually causing that processing bottleneck?

Its harder now, but when we will be in situation described it will be as easy as breathing.

Well yes, Bitcoin would technically end up deflating into oblivion. But it's the same thing with gold, other precious metals, and other depletable resources in general. There will constantly be fewer coins available, because as Bitcoin becomes more and more common, more will be lost for one reason or another.

Hypothetically, at the worst point, if necessary, a hard fork can be added to the chain to "reset" the missing coins, which will hopefully become apparent once the 21m coin cap hits.

How does a currency deflate to oblivion?

If BTC continues to go up, it's because it is a stable store of value while fiat currencies are incinerating in the inflationary bonfire.

If the blocksize issue isn't properly addresses or governments decide to turn bitcoin an illegal asset, it will most probably deflate to oblivion...

Your obviously right with the numbers, but I mean deflation occurs only when there are more lost coins than mined ones, otherwise more new coins are available for spending. And hardly to imagine people will become so careless to loose more coins than is mined, considering how mining is costly with current hashpower.

yet some dumbasses who are honest to declare their 'income' from bitcoin are trying to get their local tax offices to accept bitcoin..

i know.. mega face palm!!

even if we were all honest declaring our bitcoin earnings. its far more better to sell our coins privately and give the tax man the crappy debtnotes (fiat) which they love.. and thus know bitcoin is still in circlation.. and not hoarded by government

Its impossible to tax Bitcoin.

a government wont buy all 15mill coins in circulation..
the reason is just buying lets say 200,000 is enough to cause a price rise from $500-$1000
the more they buy the more the price rises.. costing them more and more each time

so they would run out of funds before even buying 1million coins.. and along with that by bumping up the price wont kill off bitcoins but get more people involved.

it would actually cost more to buy a hoard then to mine.

no way in hell would any government do that. and even if they did get their hands on lets say 10million coins cheap to drop into a deadwallet, that would make the remaining coins worth more.
so here is my theory of how governments can get coins.. for free..
easy.. start accepting them as tax
10%
every week people put 10% of their income into government address.. within a year the government receives a large stake of coins
as it passes through many hands weekly
imagine for 3 weeks.. Bob gets paid 1BTC for a weeks work, Bob pays jane and jane pays jim, each of which will spend it during the week

EG
january 1st: Bob gets paid 1btc.. pays 0.1btc tax, buys food and bills from jane with 0.9btc during week one
january 8th: jane received 0.9btc.. pays 0.09 tax, buys food and bills from jim with 0.81btc during week two
january 15th jim received 0.81btc.. pays 0.081 tax, buys food and bills from jim with 0.729btc during week three

and its only 3 weeks of the first month and the tax address already has 0.271 (27%) of bills 1btc funds

now imagine 10 million Bob's getting paid 1btc and buy thing things that week..  that 10 million coins by week 3 has given tax office 2.71mill coins.

so here is a lesson guys DO NOT advocate governments accept bitcoin directly.. because within 1 year they can hoard them all. whilst still printing them bank notes to pay public services

Or we just use Litecoin for smaller transactions and bitcoin will remain the online diamond for larger transactions and wealth storage.

I higly doubt bitcoin will ever have 100% market share, so there will be plenty of sub altcoins to use for small TX.

maybe that can happen only if the security of BTC has been leaked and is known by the hackers.

so I guess BTC will continue for decades to come, because we already know that some countries already admitted BTC.

So I think that it will be forgotten BTC is less precise expression