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Bitcoin still makes no sense

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Re: Bitcoin still makes no sense

#81

I'm still surprised that bitcoin is hated here, such a great technology. It's a decentralised currency, and it's working really well. A lot of big institutions are taking it seriously now. Does paper cash printed by government make more sense?

In my view, money is a technology. A technology is designed to serve a purpose, and is said to work if it achieves that purpose reasonably well.

My simplistic view is that government money such as the dollar serves a small handful of purposes: It's a medium of exchange, short term store of value, and tool of government economic policy. The government has loosely defined "short term" by the target inflation rate. I suppose that regularizing the taxation process is another purpose.

Does it work? Apparently some national currencies work better than others. People in some countries will, if possible, use some other country's money in preference over their own, for all but minor daily transactions. Thus, objecting to one kind of money, and swapping it for another, predates bitcoins.

What I think makes bitcoin different is that no government can influence its purpose, leaving its purpose up to each user to define on their own terms.

Perhaps another way of thinking about it, is that its own behavior defines its purpose, because if your use is in opposition to its behavior, then it doesn't work for you. This could be said to be true of dollars as well.

Re: Bitcoin still makes no sense

#82
I think there are technicalities to bitcoin that make typical economic reasoning futile, and as a result non-tech people argue for things they don't really understand.

The energy consumption argument alone should completely destroy bitcoin's prospects. I'm not sure how you can even apply classical economics principles to something as uniquely different as bitcoin. Maybe the cost means people should only trade in extremely high amounts of bitcoin so there are less transactions? I don't know.

Re: Bitcoin still makes no sense

#83
post #48

This seems more like it's questioning cryptocurrency itself, and putting it at odds with fiat currencies and states. As for states, they're rolling out their own cryptos. The Chinese have CryptoYuan, the EU central bank is releasing a currency likely by late 2021, and the Federal Reserve is also planning to create a new currency. That's how they beat Bitcoin. Fiat currency is likely going to be slowly phased out as c…

Which state will win? Will USD fall to CryptoYuan, or will the US solution have advantage?

Where can you follow design of these initiatives?

Could a state actor DDoS another state's crypto, or will these just be centralized systems with just the crypto moniker?

Will Libra make it?

Re: Bitcoin still makes no sense

#84

Earlier quoted context omitted.

"with little positive effects to show for it" It's an efficient store of value. Here is a dilemma - you have 10 million dollars. You need somewhere to park your money. Do you follow the Chinese businessman pattern and buy real estate in Toronto? That seems complicated - picking a property, being subject to the real estate market, etc. Often these houses sit empty, since you are on the topic of wasted resources. Do yo…

> It's an efficient store of value. Here is a dilemma - you have 10 million dollars It's not a dilemma. At all. If you have 10 million dollars just lying around, chances are, uo already know what to do with your money. So your entire premise is based on a combination of assumptions that make it entirely laughable: - that if you have 10 million dollars, you have a problem with storing them - that in order to defend bi…

Please don't take HN threads further into flamewar.

https://news.ycombinator.com/newsguidelines.html

Re: Bitcoin still makes no sense

#86

Earlier quoted context omitted.

> It's an efficient store of value. Here is a dilemma - you have 10 million dollars It's not a dilemma. At all. If you have 10 million dollars just lying around, chances are, uo already know what to do with your money. So your entire premise is based on a combination of assumptions that make it entirely laughable: - that if you have 10 million dollars, you have a problem with storing them - that in order to defend bi…

Dimas, I already clearly listed the problems with those investments, in case you didn't understand, I will repeat: Stocks - all time high during COVID-19, propped up by fed printing money. Very risk invesment atm. Property - buying real estate of any form is a very complicated process, where you get burned if you don't understand the market. Securities - same thing as stocks - unless you are trading options, features…

Please don't post in the flamewar style to HN.

https://news.ycombinator.com/newsguidelines.html

Re: Bitcoin still makes no sense

#87

Earlier quoted context omitted.

> It's an efficient store of value. Here is a dilemma - you have 10 million dollars It's not a dilemma. At all. If you have 10 million dollars just lying around, chances are, uo already know what to do with your money. So your entire premise is based on a combination of assumptions that make it entirely laughable: - that if you have 10 million dollars, you have a problem with storing them - that in order to defend bi…

Dimas, I already clearly listed the problems with those investments, in case you didn't understand, I will repeat: Stocks - all time high during COVID-19, propped up by fed printing money. Very risk invesment atm. Property - buying real estate of any form is a very complicated process, where you get burned if you don't understand the market. Securities - same thing as stocks - unless you are trading options, features…

> Dimas,

I would appreciate if you called me by the nickname I specifically chose for the purpose of online communication

> Dimas, I already clearly listed the problems with those investments, in case you didn't understand, I will repeat:

In case yo didn't understand, I will repeat:

- If a person has a spare 10 million dollars they want to "park", it most likely means they already know how to manage their own money

- Ask yourself: how did people manage to "park" their 10 million dollars in the ancient era of 10 years ago, before blockchain.

> Diversified portfolios - oh, I guess you are. Next you are going to say "Index funds" - what do I win?

You win exactly nothing. Diversified portfolios is the way to "park" money: "don't put all your eggs in one basket" and all that.

Re: Bitcoin still makes no sense

#89
post #39

Earlier quoted context omitted.

Maybe less tech startups, but im pretty sure a bunch of people popped up to bilk other people out of their money during the beenie baby craze.

I'm not sure if you're defending bitcoin or comparing people buying it to crazed beanie baby collectors. At least, nobody was talking about a beanie baby based financial system at the time - however adorable it may have been.

I don't think bitcoin should be entirely dismissed as a scam (its more complex than that), but if we're going to compare it to a scam (and there are definitely plenty of scammers in the bitcoin ecosystem), i think its important to remember that neither scams nor speculative bubbles are new to human history.

Re: Bitcoin still makes no sense

#90
post #22

There have been lots of other currencies privately traded previously, but since the state has the guns the state can outlaw it. If it truly started competing with major currencies you would see it outlawed. It also is not secure as China is controlling a majority of the mining now and the majority can control the currency. Further, Google has a computer that can hack the encryption and you will see a lot more organiz…

A QC to implement shor's algo at a practical level would need millions of non-ec'ed qubits. At least publicly, we are likely quite far from any such advance.

Integer factorization (ie. Shor's algorithm) would only be useful to break RSA, not Elliptic Curve cryptography...
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