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Temporary pause of Bitcoin withdrawals on Binance

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Re: Temporary pause of Bitcoin withdrawals on Binance

#471

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Gold famously doesn't decay, but why should I expect prices to remain constant in terms of gold? If I sell you a chicken today for 80 milligrams of gold, why would you be obligated to sell me an equivalent chicken for 80 milligrams of gold in twenty years? Gold isn't a perfect store or value, it's just a perfect store of gold.

Yea - I was just saying it's probably the closest we have ever gotten. The chicken example is interesting b/c what would you actually compare gold to? Say chickens were commonplace today and could be had for 80 milligrams of gold but then some disease wiped them out and only 10,000 could be grown and sold each year. Obviously they'd be worth more than 80 milligrams of gold - but as prices for other things perhaps com…

So the question is basically "How fast does credit decay?"

Let's switch from goods to services and favors. Let's suppose you're in a real bind one day, and need some help -- painting your house, moving cross-country, who knows -- and I step up and help you as a favor, and spend a solid week of my time.

How long do I have to redeem that favor and get a week's worth of time out of you? How does the intervening time affect the answer? If I disappear for twenty years and show up on your doorstep expecting the favor to be repaid in full, is that a reasonable expectation? What if we are close friends for those twenty years, trading favors back and forth?

There aren't necessarily right or wrong answers to those questions, but that's basically the question inflation answers -- it's the price for not participating. You do a job, you get your currency, and then you can roll your currency into participating in the shared risk for maintaining our systems of production, or you can stand back, and see the credit for your past contributions decay over time. Sometimes it decays slowly, when everything is going fine. Sometimes it decays quickly; if things begin going badly and you're not invested in the outcomes improving, your credit for your past contributions declines faster.

Re: Temporary pause of Bitcoin withdrawals on Binance

#472
post #251

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> Also, how are wallets the same thing as servers? That analogy seems a bit stretched. It's a stretch but I think we can agree of the underlying statement: People. Aren't. Nerds. The learning curve to understand the technology of wallets is comparable to that of understanding the technology of running servers. PS: After writing this out loud I'm tending towards more people understanding how servers work than how wall…

It's the usability of gpg, but with a cost of losing all your money if you make a mistake with the user interface.

> It's the usability of gpg

Hehe, so using custodian wallets is like using Gmail to host your private gpg keys.

Re: Temporary pause of Bitcoin withdrawals on Binance

#473
post #419

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You must be living in a perfect society with zero government/political corruption. Good for you.

What “totally legit” things have you been doing with crypto? Curious to know more.

Probably a sovereign citizen type who thinks that the existence of government is a crime to humanity. Gotta have some windmills to tilt at.

Re: Temporary pause of Bitcoin withdrawals on Binance

#474

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I think that there are missiles on the other side that are hurting people in more physical, fatal ways.

Of course. But fighting against the war shouldn't involve creating more harm.

No post body was provided.

Re: Temporary pause of Bitcoin withdrawals on Binance

#475
post #465
post #453

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("dawned") ... but yeah. It's depressing. Countries with already bad economic conditions (like "we literally don't have functioning currency" level, not the things US residents complain about) seem particularly susceptible to it.

I really thought I had written "dawned"... I think it's the same issue I have when writing "ratio", I always end up writing "ration". Thanks for the correction.

The older I get, the more errors my typing contains versus the mental stream of consciousness I intended to type.

Re: Temporary pause of Bitcoin withdrawals on Binance

#477

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> Maybe the issue is just that we no longer have a store of wealth that isn't tied to a speculative asset? You say speculative, I say productive. Is a non-productive store of value actually a thing which exists in nature? For most things, you can't store a thing itself: grain rots, chickens die, houses decay, iron rusts, water is fouled. If you want to have a thing in the future, you need a way to produce the thing:…

You can very well sell these goods and buy new ones maintaining a fixed amount and using it to back your currency. This would be my favourite currency.

So your proposal is, what, you have a warehouse of grain, and each day you sell your grain at price $X and buy new grain (N days more recently harvested) at the same price? Because you're trading nominally fungible commodities they're priced the same, but when you go back twenty years later you'd have an equivalent quantity of grain to withdrawal regardless of how the price fluctuated in between?

The main problem is that you'd need to pay for storage over the 20 years in between, which would take the form of selling some Y% of your grain each year to pay the storage on the remaining percent, which is basically the same as inflation.

Re: Temporary pause of Bitcoin withdrawals on Binance

#478
post #388
post #372

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Money isn't wealth. What you can get for it is. Hoarding casino chips does not prepare you for the future. It just makes the people running the casino richer with goods you traded for the chips. Oh you say, I can trade the chips with other people. Also the chips are numbered and we have an agreement to never accept a casino chip numbered over 1 trillion. Then we pay the casino one chip every time we trade. So the cas…

Money allows optionality - instead of hoarding food and fuel, you can hoard money and buy the things you need in the future. If you know for sure that you need food and fuel, and hoard them in advance, they will rot and evaporate by the time you need them. Inflationary money is like rotting food, instead of canned food. It makes no sense at all to store your wealth in rotting and evaporating things.

How do you know people will want to trade fuel for casino chips in the future?

Re: Temporary pause of Bitcoin withdrawals on Binance

#480

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Prices rise for more than one reason. For example marble is more expensive because it’s more difficult to find and mine than it was in the past (just a contrived example). But prices also rise due to increases in money supply. I agree that Bitcoin is a poor currency compared to fiat currency, but conversely a dollar is a very poor store of wealth while Bitcoin is looking like it may be a good store of wealth. The con…

I agree with most of what you said, except that Bitcoin looks like a good store of wealth. It has a very short track record, and has shown huge volatility. How does that indicate a good store of wealth?

Well I would just mention it looks like it to me but that’s an opinion, not a fact. I don’t think it’s dissimilar to any other financial advice though. Like some people think Amazon stock is a good investment. I personally don’t. That’s all :)
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