It's official: Miners can't produce enough Bitcoin

cointelegraph ^

[AggregateThreat]

The figures underscore what many have described as an ongoing liquidity squeeze in Bitcoin, where large buyers suck up any available supply and remove it from circulation, sending it to cold storage for long-term hodling.

As Cointelegraph reported, the phenomenon was already visible in November, but December saw a clear increase in demand from Grayscale and other institutional entities.

[Vermont Lt]

Why on earth would you use a Bank of America Coin, when they are not widely used, limited in scale and scope, and “second to the game?”

The entire reason for crypto currency is to get out of the Central Bank devaluation hell. It is the same reason you would buy gold, silver or any other hard asset.

[SgtHooper]

Red herrings?

[ml/nj]

All that means is it’s the money the government will take to pay taxes. Outside of that it doesn’t mean a thing.

I think you're the one that needs to read up. If you owe ANY debt to ANYONE in the United States you may pay it with Federal Reserve Notes, and if the creditor refuses to accept them, the debt is quitted except for exceptions provided for by law where such payment may be impractical or cause undue hardship upon the creditor.

I just happen to have an Encyclopedia Britannica here. It says: "Legal Tender, any type of money or medium of exchange that by law must be accepted for the payment of all debts, public and private. The creation of legal tender is by government fiat." (I.e. FORCE!)

Your discussion of counterfeit coppers is silly. They may have some value to collectors, but they are otherwise worthless.

ML/NJ

[discostu]

Operative word MAY. They don’t have to take it. And that idea that the debt goes away is a complete myth. Try buying a pack of bubble gum with a $100 at 7-11, they ain’t taking it, and you don’t get the gum for free.

The Encyclopedia Britannica is wrong. It does NOT have to be taken.

It’s not a silly discussion at all. Those counterfeits WERE taken as money for nearly a century before England fixed their metals problem. That period of history is the proof that the power of money comes from PEOPLE not government. READ IT. LEARN

[ml/nj]

Read what is printed on the front of every Federal Reserve Note since FDR outlawed private ownership of gold in 1933. (Funny, before that creditors could and DID sometimes insist in payment in GOLD rather than paper.)

Also see my post at #63 on this thread.

ML/NJ

[Reily]

From 1933 to 1974 it was illegal for U.S. citizens to own gold in the form of gold bullion, without a special license. On January 1, 1975, these restrictions were lifted and gold can now be freely held in the U. S. without any licensing or restrictions of any kind.

So I could insist you pay me in gold if I wanted to!

[GailA]

btt

[BiteYourSelf]

What is hodling?🙄

[BuffaloJack]

“ Bitcoin is a Ponzi scheme.
Social Security

Social Security...
When I reached 65 and asked them to start sending me checks, they asked about my pre-1975 employment. I told them, “what of it?” I did not get a social security card or number until it was mandatory in 1975. For 13 years before that I had an IRS tax ID and did not contribute to the democrat’s Ponzi Scheme, because SS was voluntary and I opted not to join. They were not happy, but screw them.

[fhayek]

Not to beat a dead horse here, but the government can only require you to use U.S. currency to pay your taxes. It cannot force individuals to use U.S. money in transactions between themselves. Say the US went full Zimbabwe and cranked out the dollars like Monopoly money. If you walked in my store and offered me worthless money for the goods in my store that I used real wealth to produce or acquire. I would say forget it. If you said the government was forcing me to accept it. I would say, the store is closed, and so would every other business in America. It would be economic Armageddon.

Allowing other forms of barter or currency would allow the economy to function, at least on some level.

[fhayek]

I don’t know about Ponzi scheme. Maybe Tulip mania. Again, I have no issues with people buying Bitcoin. Just, I am not sure about how you can objectively value it. At least you can do that with a stock or a bond. Hence, speculation.

[neefer]

Yeah, I’ve been reading for a while but have yet to put my toe in the water. Lots of risk but also big payoffs. A bit like betting on the ponies.

[aMorePerfectUnion]

“ Just, I am not sure about how you can objectively value it. At least you can do that with a stock or a bond.”

Ultimately, you value based on demand.

Good current examples of companies with little demand currently and small valuation: coal, oil, uranium, shipping.

Sure, they still have fire sale assets if you break them up and sell the pieces.

Now is actually the best time to buy these, if you are willing to hold for a long time.

Assets with ridiculous valuation: Tesla

Tesla PE Ratio:1,417.01 (as of 12/31/20)

1,400 years to get your investment back, based on what Tesla earns per share.

Total nutso!

BTC is valued by the demand of buyers minus sellers, limited supply, etc.

Simple as that.

Someday, that demand may dry up and valuation will adjust with it, like Tesla.

[fhayek]

Ultimately, valuations always adjust with reality. 1400 years. LOL. By 3421 we will all be teleporting....

[aMorePerfectUnion]

“ valuations always adjust with reality

Fact check: TRUE

And dreams always sell for higher prices than reality.

[Mr. K]

‘mining’ one bitcoin far outweighs the cost of one deluxe board.

[knarf]

THAT'S why people whisper in banks .... their god is in the tabernacle ... and it's doors are open.

It might hear you.

[Fury]

Interesting. Need to do some more research on bitcoin.