Why Bitcoin will fail
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Why Bitcoin will fail
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Re: Why Bitcoin will fail
#2It's already failed. It's gone from the currency of the future, to a store of a value, to just a pure speculative commodity. Nothing more or less. Use it to make money, and get out.
Re: Why Bitcoin will fail
#3You are talking about a short time horizon. Yes, bitcoin will possibly crash, but that is when a large part of the speculative play money will leave the eco system. Bitcoin could still gain value afterwards if there will be an increasing utility.
Re: Why Bitcoin will fail
#4Good read.
There are more mature cryptocurrencies emerging that are based on 'loans' as the author describes. The Maker Project's stable coin 'Dai' is an example, which is only created by collateralized debt positions. However, the debt position is currently based on ETH, which is 'backed' by speculation.
Re: Why Bitcoin will fail
#5In Poloniex you can lend money. Would that count as loans? There are pre-mined cryptocurrencies like Ripple and Stellar that doesn't need proof of work to solve the double spending problem, and thus doesn't need lots of electricity to work.
Re: Why Bitcoin will fail
#6You are talking about a short time horizon. Yes, bitcoin will possibly crash, but that is when a large part of the speculative play money will leave the eco system. Bitcoin could still gain value afterwards if there will be an increasing utility.
you mean like dogecoin ?
Re: Why Bitcoin will fail
#7The thing about loans, that is borrowed capital that you use to try and create more capital, is that there isn't enough capital to go around. Capitalism does depend on a certain percentages of businesses failing, and that debt being written off.
You also can't make loans with BTC because debt needs to be enforceable. There must be violence behind debt. In the past that meant someone turns you into a slave or breaks your legs. Today the violence has been reduced (you get bad credit score and debt collectors keep calling), but it's still there. States have to have a monopoly on violence to enforce debt.
I don't really agree with where this guy is going, because the entire way loans are used to generate fiat currency isn't really sustainable. David Graeber has talked a lot about every great civilization has needed some form of debt relief at some point, either when a new leader comes in or when the civilization collapses.
People in the ancient world knew the empires they lived under would eventually end. Today in many high income countries, most people cannot see the end.
Re: Why Bitcoin will fail
#8The thing about loans, that is borrowed capital that you use to try and create more capital, is that there isn't enough capital to go around. Capitalism does depend on a certain percentages of businesses failing, and that debt being written off. You also can't make loans with BTC because debt needs to be enforceable. There must be violence behind debt. In the past that meant someone turns you into a slave or breaks y…
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Re: Why Bitcoin will fail
#9It's already failed. It's gone from the currency of the future, to a store of a value, to just a pure speculative commodity. Nothing more or less. Use it to make money, and get out.
maybe local blockchain cryptocurrencies may stay useful without turning into gambling..
Re: Why Bitcoin will fail
#10Has anyone tried to “peg” a cryptocurrency to USD? That seems like an ideal thing to have... Somehow change reward size based on exchange rate. That is increase supply when above 1:1 and decrease when below.