Bitcoin exchange rate reached $100 USD per BTC • Hacker News Board

Re: Bitcoin exchange rate reached $100 USD per BTC

#431

Post by Evbn » Mon, Apr 01, 2013, 10:38 PM UTC

aneth4 wrote: post #215

lolcraft wrote: post #176

Some people here seem to think that this is temporary, that sometime in the future Bitcoin will stabilize into a glorious future global currency -- never mind the new class of cryptobarons it will have created from its inner circle, through shameless hoarding. My question is, what then will happen when Bitcoin stabilizes, that is, when the time to new coin mined approaches practically infinity? Let's assume the globa…

You are espousing one form of economics which many consider unsustainable. Regardless, many assets are deflationary. Rich people buy real estate and commodities because they are deflationary, or at least not inflationary. There is nothing wrong with assets that grow or maintain value. Bitcoin is a liquid and easily transferrable deflationary value store, just like gold. Telling people they should submit to inflation…

That is backwards. Inflation helps debtors, punished capital holders, and is irrelevant to hand-to-mouth wage earners.

Price inflation only hurts wage earners when it is coupled with flat nominal wages-- but that is merely a (too powerful) psychological trick that people don't notice.

Re: Bitcoin exchange rate reached $100 USD per BTC

#432

Post by Evbn » Mon, Apr 01, 2013, 10:40 PM UTC

api wrote: post #254

aneth4 wrote: post #215

Earlier quoted context omitted.

You are espousing one form of economics which many consider unsustainable. Regardless, many assets are deflationary. Rich people buy real estate and commodities because they are deflationary, or at least not inflationary. There is nothing wrong with assets that grow or maintain value. Bitcoin is a liquid and easily transferrable deflationary value store, just like gold. Telling people they should submit to inflation…

Sustainability is really the achilles heel of inflationary economics. The Earth is finite. Exponential growth cannot continue forever. When a steady state is reached, that's apocalyptic to inflationary money systems since debts all the sudden can never be repaid. Edit: I don't think space colonization matters here. Sure, it may be possible. But Mars is sufficiently far from Earth and the energy cost of transport suff…

People will find plenty of ways to kill each other before the Earth's resources are exhausted. We have a billion year energy supply and raw materials are never lost, only converted from one form to more annoying forms.

Re: Bitcoin exchange rate reached $100 USD per BTC

#433

Post by Evbn » Mon, Apr 01, 2013, 10:43 PM UTC

narrator wrote: post #301

lolcraft wrote: post #176

Some people here seem to think that this is temporary, that sometime in the future Bitcoin will stabilize into a glorious future global currency -- never mind the new class of cryptobarons it will have created from its inner circle, through shameless hoarding. My question is, what then will happen when Bitcoin stabilizes, that is, when the time to new coin mined approaches practically infinity? Let's assume the globa…

If you want to take the red pill: Please read F.A Hayek's critique of "The Paradox of Savings" ( http://mises.org/daily/2804 ) for a refutation of inflationist monetary policy. This was an essay he wrote during the debate with Keynes and others, explaining the flaws in the Keynesian theories. It was written in the 1930s , but explains better than any other theory the dynamics of a fixed money supply currency like bit…

Too many nested critiques of refutations of theories for a novice to make sense of that article.

Re: Bitcoin exchange rate reached $100 USD per BTC

#434

Post by sturmeh » Mon, Apr 01, 2013, 10:52 PM UTC

MacsHeadroom wrote: post #136

xhrpost wrote: post #79

Everyone keeps saying that a crash is around the corner and the current price is unsustainable, been hearing it since $40/BTC, maybe earlier. I don't completely disagree, the question I keep pondering though is, if there is a big sustained crash coming, is it from $100 to $30, or $900 to $300?

MtGox verification cue for people who want to buy more than $50k USD in a month is almost 10,000 long right now. You do the math. I'm going to go with something closer to $300 to $150 at least. If there's a pop coming, it is a long ways off.

I got verified so I could fund my account without paying ridiculous fees, not so I could buy more than $50k USD in a month.

Re: Bitcoin exchange rate reached $100 USD per BTC

#435

Post by eli_gottlieb » Mon, Apr 01, 2013, 10:52 PM UTC

aneth4 wrote: post #215

lolcraft wrote: post #176

Some people here seem to think that this is temporary, that sometime in the future Bitcoin will stabilize into a glorious future global currency -- never mind the new class of cryptobarons it will have created from its inner circle, through shameless hoarding. My question is, what then will happen when Bitcoin stabilizes, that is, when the time to new coin mined approaches practically infinity? Let's assume the globa…

You are espousing one form of economics which many consider unsustainable. Regardless, many assets are deflationary. Rich people buy real estate and commodities because they are deflationary, or at least not inflationary. There is nothing wrong with assets that grow or maintain value. Bitcoin is a liquid and easily transferrable deflationary value store, just like gold. Telling people they should submit to inflation…

Inflation works because it keeps those too poor to have real assets on the gerbil wheel.

Quite to the contrary, it gets the proletarians out of debt!

Re: Bitcoin exchange rate reached $100 USD per BTC

#436

Post by x3sphere » Mon, Apr 01, 2013, 10:52 PM UTC

MacsHeadroom wrote: post #136

xhrpost wrote: post #79

Everyone keeps saying that a crash is around the corner and the current price is unsustainable, been hearing it since $40/BTC, maybe earlier. I don't completely disagree, the question I keep pondering though is, if there is a big sustained crash coming, is it from $100 to $30, or $900 to $300?

MtGox verification cue for people who want to buy more than $50k USD in a month is almost 10,000 long right now. You do the math. I'm going to go with something closer to $300 to $150 at least. If there's a pop coming, it is a long ways off.

For US accounts you need to be verified just to get any money into the system - at least through wire transfer or Dwolla ( the most popular methods)

Re: Bitcoin exchange rate reached $100 USD per BTC

#437

Post by sturmeh » Mon, Apr 01, 2013, 10:54 PM UTC

wmf wrote: post #269

al1x wrote: post #231

...and what happens when a competing cryptocurrency is released?

There are a bunch of forks of Bitcoin that have received approximately zero attention (relatively speaking). Standards tend to be natural monopolies.

LTC has seen 200% growth over the last week, people are adopting it hoping it will be an equal competitor.

Other people are adopting it just in-case they're right.

Re: Bitcoin exchange rate reached $100 USD per BTC

#438

Post by alexmat » Mon, Apr 01, 2013, 10:56 PM UTC

makomk wrote: post #427

api wrote: post #254

Earlier quoted context omitted.

Sustainability is really the achilles heel of inflationary economics. The Earth is finite. Exponential growth cannot continue forever. When a steady state is reached, that's apocalyptic to inflationary money systems since debts all the sudden can never be repaid. Edit: I don't think space colonization matters here. Sure, it may be possible. But Mars is sufficiently far from Earth and the energy cost of transport suff…

Why would you want to repay the debts in the first place?

If the interest rate drops.

Re: Bitcoin exchange rate reached $100 USD per BTC

#439

Post by fnordfnordfnord » Mon, Apr 01, 2013, 10:57 PM UTC

dragontamer wrote: post #367

fnordfnordfnord wrote: post #359

Earlier quoted context omitted.

OTOH, if you're the supplier, there is no risk for you to go ahead and send the stuff if you were paid in bitcoin.

Precisely. No risk at all. You don't even have to send your stuff to your client, because you've already been paid. Bitcoins right now puts the consumer / supplier relationship upside down. The supplier is already right... not the customer. I wonder if any customers will prefer to paying BTC over Paypal, especially after they've been defrauded a few times.

Nobody said it was perfect. It's a shame that a decent escrow service doesn't exist.

Re: Bitcoin exchange rate reached $100 USD per BTC

#440

Post by Klinky » Mon, Apr 01, 2013, 10:59 PM UTC

dobbsbob wrote: post #289

aneth4 wrote: post #262

Earlier quoted context omitted.

What you should be worrying about is the money supply, not the individual coin value. Is there any acceptance in commerce of these competitors? Unless there is an underlying demand created by available products, these coins will be worth nothing. In my opinion, features won't matter. Bitcoin has critical mass, and it's unlikely to face real competition.

Read about namecoin here: http://dot-bit.org/Main_Page It works perfectly as an open DNS p2p system, a decentralized p2p magnet tracker (think pirate bay but impossible to shut down), secure online voting, plenty of other possible uses. There's also PPcoin a low energy coin compatible with BTC miners that's getting more popular. Another advantage to Litecoin is you don't see it in the news everyday with the words 'Dr…

>>Another advantage to Litecoin is you don't see it in the news everyday with the words 'Drugs' and 'Blackmarket' beside it...

You should qualify that with the word "yet". Is there anything in Litecoin's design that doesn't allow it to be used for drugs and by black markets? No. Honestly, Litecoin doesn't even have that going for it. Acceptance as an actual currency is the difference between a cryptocurrency becoming a legitimate investment versus a speculative pump-and-dump scheme.