This volatility is exactly the reason it isn’t useful _for now_. In the past countries have created currencies, and it’s never been the case that they capitalize from 0 to _a lot_ in such a short time period. That’s why the USD chart is meaningless as a comparison against the same timeline. Wait 20-50 years and then we’ll see.
Bitcoin Is a Terrible Currency, and Not for the Reason You May Think
11–20 of 42 posts
Re: Bitcoin Is a Terrible Currency, and Not for the Reason You May Think
#12Solid Platinum is also not a very good currency. What is your point?
Re: Bitcoin Is a Terrible Currency, and Not for the Reason You May Think
#13The main reason I never got into Bitcoin is that I considered its deflationary nature a disaster and crippling flaw (for a currency).
That said, it's become much less a currency and more a fiat commodity one stashes like beanie babies so my original reasoning isn't particularly applicable at this point.
Re: Bitcoin Is a Terrible Currency, and Not for the Reason You May Think
#14Earlier quoted context omitted.
Bitcoin is only hyperdeflationary because it's being pumped, to my mind. It's mostly used as an investment and speculation tool, not as a currency, that is, not for paying for goods and services. It's not (yet) "digital gold", but rather "digital tulips" [1]. [1]: https://en.wikipedia.org/wiki/Tulip_mania
Agree. BTC is now a speculative tool similar to gold. If you want something that is more like a currency then bitcoin cash is better. The fees are like one penny. Also I don't think the deflationary is an issue because of how fast crypto can change hands. For example, I go to buy a t-shirt for $10 and I pay the merchant $10 equivalent in bitcoin cash. The transaction confirms in 10 minutes or less and the merchant ca…
> For example, I go to buy a t-shirt for $10 and I pay the merchant $10 equivalent in bitcoin cash.
This is why I don't think of bitcoin as a currency: I've never seen it used to denominate prices. As far as I can tell, not even Silk Road had prices set in bitcoin.
Paying "$10 equivalent in bitcoin cash" (or bitcoin, or litecoin, or whatever) is using those cryptocurrencies as a payment gateway; the currency in those transactions is $.
Re: Bitcoin Is a Terrible Currency, and Not for the Reason You May Think
#15I don't find this argument persuasive. If the currency is liquid, you can simply spend the new currency rather than the old, while using the old currency you would have otherwise spent to acquire the new currency. The spending will have negligible impact on your investment outcomes, and you'll be supporting the currency that you're investing in.
That's a pretty big if. Also, currency is liquid nearly by definition, and bitcoin in relation to other currencies has demonstrated many properties that make it practically very illiquid (e.g. the uncertainty of day-to-day price changes).
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Re: Bitcoin Is a Terrible Currency, and Not for the Reason You May Think
#16The main reason I never got into Bitcoin is that I considered its deflationary nature a disaster and crippling flaw (for a currency ). That said, it's become much less a currency and more a fiat commodity one stashes like beanie babies so my original reasoning isn't particularly applicable at this point.
Bitcoin has always been the game of finding the greater sucker... now more than ever.
Re: Bitcoin Is a Terrible Currency, and Not for the Reason You May Think
#17> Bitcoin is hyperdeflationary Am I the only one where this was the reason I was thinking? Interestingly, thinking honestly about bitcoin made me a Keynesian.
Bitcoin is only hyperdeflationary because it's being pumped, to my mind. It's mostly used as an investment and speculation tool, not as a currency, that is, not for paying for goods and services. It's not (yet) "digital gold", but rather "digital tulips" [1]. [1]: https://en.wikipedia.org/wiki/Tulip_mania
Even if it weren't being pumped the finite limit on total 'coins' would be a disaster for any real currency in any situation with an expectation of meaningful future economic growth.
Re: Bitcoin Is a Terrible Currency, and Not for the Reason You May Think
#18Bitcoin doesn't inflate enough, so there's no incentive to spend it.
I can't take it with me when I die, so I'll spend it at some point. Also, see marginal utility of value: https://www.investopedia.com/terms/m/marginalutility.asp
Re: Bitcoin Is a Terrible Currency, and Not for the Reason You May Think
#19Earlier quoted context omitted.
Agree. BTC is now a speculative tool similar to gold. If you want something that is more like a currency then bitcoin cash is better. The fees are like one penny. Also I don't think the deflationary is an issue because of how fast crypto can change hands. For example, I go to buy a t-shirt for $10 and I pay the merchant $10 equivalent in bitcoin cash. The transaction confirms in 10 minutes or less and the merchant ca…
> For example, I go to buy a t-shirt for $10 and I pay the merchant $10 equivalent in bitcoin cash. This is why I don't think of bitcoin as a currency: I've never seen it used to denominate prices. As far as I can tell, not even Silk Road had prices set in bitcoin. Paying "$10 equivalent in bitcoin cash" (or bitcoin, or litecoin, or whatever) is using those cryptocurrencies as a payment gateway; the currency in those…
>Paying "$10 equivalent in bitcoin cash" (or bitcoin, or litecoin, or whatever) is using those cryptocurrencies as a payment gateway; the currency in those transactions is $.
Precisely. We're entering some real fiat currency inception here. Bitcoin is worth whatever people value it at, similar to most forms of currency (backed by the faith of the issuing government). Now we're going to faith upon faith.
Re: Bitcoin Is a Terrible Currency, and Not for the Reason You May Think
#20> Bitcoin is hyperdeflationary Am I the only one where this was the reason I was thinking? Interestingly, thinking honestly about bitcoin made me a Keynesian.
Could you elaborate on what you mean by Keynesian in 2017?
ideological beliefs about the nature of money (liberals not interested in non-state currencies, and Austrians believing that currencies must have intrinsic value)
https://unenumerated.blogspot.com/2011/05/bitcoin-what-took-...