Hey you could broker forever stamps
I actually considered this when they were .41 each, but I have no idea what $5,000 of stamps looks like; a full pallet?
Hey you could broker forever stamps
That's not a backing, a backing establishes and secures a value for exchange into real goods rather than simply an existence. That they exist and how to secure them is again no different than a US$ only using a different data system.
That's not a backing, a backing establishes and secures a value for exchange into real goods rather than simply an existence. That they exist and how to secure them is again no different than a US$ only using a different data system.
They are backed by common belief and is part of the reason the value swings so wildly. Early days though. As time goes on and more and more people believe then the value will stabilize.
Exactly, their value is determined by belief. Bitcoins are another religion.
What an odd opinion.
Are you insinuating that the idea of bitcoin is irrational?
Seems to me that a Bitcoin is more of an electronic stock certificate than a currency, the stock being tied to nothing but the belief in itself.
There may be some truth to that, but I challenge anyone to develop a convincing argument that bitcoin is inferior to USD.
Also, some of the posts in this thread lead me to believe that not everyone really understands what bitcoin is and how it works. I would encourage anyone who wants to participate in a constructive conversation to come to the table informed. Extra points for downloading and reviewing the bitcoin client source code.
People can believe in whatever they want. Are bitcoins irrational? Yeah, I guess they are since their value isn't tied to a ration of anything. US money used to be tied to a ration of metal, in fact the coins were minted of it. This no longer holds true which is why US currency is also irrational, another 'faith based currency'. However the USD is backed by the full faith and credit of the United States, what backs the bitcoin?
People can believe in whatever they want. Are bitcoins irrational? Yeah, I guess they are since their value isn't tied to a ration of anything. US money used to be tied to a ration of metal, in fact the coins were minted of it. This no longer holds true which is why US currency is also irrational, another 'faith based currency'. However the USD is backed by the full faith and credit of the United States, what backs the bitcoin?
It is inferior in that there is nothing at all backing its value, nor is there any assurance that you can use this currency in trade for your needs. When you are hungry and go to the grocery store, is there an assurance that the store will accept your bitcoin as payment? Is there a determined value at which you can trade that bitcoin for a pound of beef? Is there a way you can pay at the register in bitcoin?
That most people don't understand bitcoin is not the problem of the people, it is the problem of the bitcoin.
I'm not sure if that comment was in jest or not, but just in case:
ir·ra·tion·al
iˈraSHənl/Submit
adjective
1.
not logical or reasonable.
When I said Bitcoin was backed by math, you went after me and said it had to be backed by a physical thing. But now you're telling me USD is backed by faith in the US government. So which is it? Can it be backed by an idea or does it have to be a physical thing?
That most people don't understand bitcoin is not the problem of the people, it is the problem of the bitcoin.
I already said that the USD is also troubled, but it is an accepted standard. The fact that the USD is a fiat currency is already unconstitutional which is why we have The Federal Reserve as a work around. Why should we replace a troubled and problematic system of currency with another currency that has all the same problems plus more? That is, by your definition, irrational.
Such is the argument of all people who get left behind in the wake of change. If people don't want to learn anything new and get left in the dark ages, fine by me. But those people shouldn't expect anything other than a meager existence.
I'm not hearing an alternative solution.
I'm not hearing an alternative solution.
I don't have one, I'm just not seeing where Bitcoin has positioned themselves to be a viable alternative either. It's just more of the same crapola with increased volatility and decreased useability. Why go from bad to worse? I do like that it gets the Federal Reserve out of the loop, but that is also what will doom it into a black market currency in the end. China has already banned it. We could start trading in Yuan.
You're right with regards to usability. I believe that will change as more payment processors come on board. I don't agree that it's the same old crapola. Cryptocurrency is a new idea.... i know people love comparing it to USD or gold, but the truth is it isn't really like either of those at all. I FIRMLY believe that once a person understands the math/mechanism behind it, that they would be less likely to make comparisons.
...no one is required to accept it...
But the bottom line is that Henning is right - Currency is an IDEA, and it's backed by FAITH that when you trade something of value for currency, you'll be able (later) to trace that currency for something else of value.
The crypto is protection against counterfeiting.... just as the special paper and other features protect the us dollar. And I agree that the crypto is likely superior.
I don't see anyone arguing against that point.
While resistance to counterfeiting is one advantage, the primary advantage I see is that it is generated on a predictable basis and the volume of currency cannot be manipulated by a centralized entity.
Good point. The dollar bills in my wallet say "THIS NOTE IS LEGAL TENDER FOR ALL DEBTS, PUBLIC AND PRIVATE."
Of course, that doesn't stop the value of the dollar from fluctuating, but it's something.
BitCoin is the currency of criminals, drug cartels, terrorists and tax dodgers. I see this currency becoming very, very popular in the 21st century. Buy now.
Bitcoin is just another fiat currency, without even a nation's army to back it. It is going to crash hard.
Bitcoin doesn't have an Army, but it has something that fiat currencies don't have.
There can only ever be 20 million bitcoins.
Which in itself will kill it. As a currency it will be useless, it is no more than a stock certificate in a frozen growth company. How can you expand an economy when you can't expand its currency?
Long division.
I dropped AAPL at $13.00 to buy a $7,000 Ford Ranger.
Apple had switched to OS X(and I was a Unix Guy) and the iPod's they were coming out with looked neat. Then, I needed a truck. That was 2003ish.
How will it expand to meet demand? How will it be spent? Can you buy a new G-550 with them? Can you buy a yacht? Can you build high rise buildings in city centers with them?
Here's a compelling argument: I can't go to the local hardware store in town and buy anything without cash on the barrel head. He doesn't even take credit cards although will extend store credit if he likes you.There may be some truth to that, but I challenge anyone to develop a convincing argument that bitcoin is inferior to USD.
Finland judges it to be a commodity, not a currency.
Best,
Dave
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http://www.bloomberg.com/news/2014-...y-in-finland-after-failing-currency-test.html