Posted on 02/27/2021 8:21:34 AM PST by amorphous
“Therefore, my decision to accept bitcoin makes it more desirable to you, and vice versa,” Luther continued. “The network effect means that small shocks to demand are amplified, since anything making bitcoin more attractive to me also makes it more attractive to you and everyone else by virtue of the fact that it is more attractive to me. The same process works in the opposite direction for anything making it less attractive to me.”
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Or perhaps it is more the madness of crowds. A 21st Century Tulip Mania. How does one value Bitcoin? It’s neither a good nor a service. Its a finite supply of a non-tangible asset. A piece of code.
The deep state, aka deep banking industry hates bitcoin. btc allows individuals to bypass credit cards and the fees for btc are 10 times lower than that of credit cards, banking standards.
I work for dollars.
A computer program solves math problems for Bitcoins.
The first effort generates worth to my employer.
The latter benefits no one.
I don’t understand some things about bitcoin. I understand the idea that many are investing in bitcoin. But I don’t understand how bitcoin can become an alternative currency. Bitcoin values fluctuate in relation to the dollar and other national currencies. I understand it as an investment but also know the value is always going to fluctuate based on supply and demand, for bitcoin.
Cryptocurrency exchanges value them, 24/7. Which is a major reason I like trading crypto over futures or stocks. The fees are very reasonable for doing so.
Bitcoin has a yoyo worth never the same for long worthless.
Ping; If want to add your links
Electric power generation creates many jobs.
Bitcoin is infamous for its volatility, meaning that its valuation, or price, often swings drastically up and down over relatively short periods of time. This is what makes it an attractive speculative asset for some, but also is a barrier to its adoption as a widespread currency used for exchange.
I believe that the is one more difference that is important. Bitcoin has a structural limit on the number of bitcoins that can be produced (mined). There is no inherent limit on the number of dollars that can be produced by the Federal Reserve.
“I’m from the government and I’m here to help.”
“All your bitcoin are belong to us.”
Points gun.
Yep. Remember tho, “bad money (fiat) drives out good money.” Which is a way of saying people will spend money they feel is going to go down in value over money which they feel will retain value.
“But I don’t understand how bitcoin can become an alternative currency”
What is a currency? Does that mean anything, perhaps even pebbles, that are accepted by multiple parties as payment for something? Does it mean accepted by governments?
I don’t understand where a bitcoin comes from and why the source (a computer algorithm?), couldn’t be improved to produce bitcoins at a faster rate which would make their value decline.
But the privacy aspect of bitcoin transactions makes me keep them in the corner of my eye.
Maybe bitcoin is very similar to gold.
i’ve printed some out and put it under my mattress in case the internet and/or power fails ... that way i can spend it in an emergency ...
Which is another important feature of bitcoin, and all other cryptocurrency (there are over 1,000 now). It's easy to secure them. Without the private key, it's practically impossible to access to them.
There are billions of dollars in those blockchain freely accessible at anytime via the internet for anyone with the private keys.
All currency has a common purpose, to securely record a transaction.
It can be a trusted set of books or some item of value used in exchange. Many cryptocurrencies do both.
But the privacy aspect of bitcoin transactions makes me keep them in the corner of my eye.
Privacy is one area which isn't that great. Most cryptocurrency allow anyone to review the transactions which have occurred, with the dates and times. These are numbered transactions, and with the right tools can be traced and assigned to those who've made them to a great degree.
Cash, gold, silver, diamonds, are all much better for privacy concerns but are harder to transport. You can get "caught" with those, have them confiscated, and so forth.
What is to prevent some clever hacker from counterfeiting bitcoins, since all they are is ones and zeros?
21st Century version of tulips.
You actually CAN print them out and store them under your mattress if you like. "Them" being the private key. And likewise, banking will also be affected with power failure.
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