Bitcoin Gets Close to $5,000 • Hacker News Board

Re: Bitcoin Gets Close to $5,000

#171

Post by rizalp » Tue, Sep 05, 2017, 4:09 AM UTC

tradersam wrote: post #167

rizalp wrote: post #162

Earlier quoted context omitted.

I don't agree with you Bitcoin will never replace current fiat money as it is inherently flawed: price fluctuate too much, and favor early owner of it.

> as it is inherently flawed: price fluctuate too much, and favor early owner of it. These aren't flaws, welcome to economics, man. Once bitcoin gains enough things will be priced in BTC, so fluctuation won't be an issue. Deflationary economics benefit the savers, while inflationary economics benefit the spenders. Just because bitcoin's economic model isn't something you're used to or like doesn't mean it is 'inheren…

It is flawed because the pool of currency is limited. What happen when our economy grows fast, but then there's not enough BTC to support it? Price will decrease and benefit the savers, sure. But then many people will prefer to save instead of spending, which will not fuel the economy

Re: Bitcoin Gets Close to $5,000

#172

Post by urza » Thu, Sep 07, 2017, 11:15 AM UTC

rizalp wrote: post #171

tradersam wrote: post #167

Earlier quoted context omitted.

> as it is inherently flawed: price fluctuate too much, and favor early owner of it. These aren't flaws, welcome to economics, man. Once bitcoin gains enough things will be priced in BTC, so fluctuation won't be an issue. Deflationary economics benefit the savers, while inflationary economics benefit the spenders. Just because bitcoin's economic model isn't something you're used to or like doesn't mean it is 'inheren…

It is flawed because the pool of currency is limited. What happen when our economy grows fast, but then there's not enough BTC to support it? Price will decrease and benefit the savers, sure. But then many people will prefer to save instead of spending, which will not fuel the economy

"which will not fuel the economy"

So you mean, like, people will not waste nature's resources for things they don't really need? Oh, what a tragedy!

Re: Bitcoin Gets Close to $5,000

#173

Post by urza » Thu, Sep 07, 2017, 11:32 AM UTC

rizalp wrote: post #161

GhostVII wrote: post #122

Earlier quoted context omitted.

I just don't see what benefits Bitcoin gives to me over a regular bank. First of all because it is decentralised, it is much less scalable than the current system, so I don't think it is going to be able to replace regular banking anytime soon (although I don't know a tonne about the scalability issues). Also I like to have a centralised system, because if my bitcoin gets stolen/I screw up and lose it, it is gone for…

I'm very much agree to this, especially the deflationary part. Current Bitcoin pricing seems to favor the early `investors`, and fluctuate too much. That is not acceptable for use as money, which must store a stable value for a long time...

US Dollar lost 95% of it's purchasing power over the last century, so much for "must store a stable value for a long time".

The wealth distribution of dollar is based on how many more people your grandfather killed than my grandfather. I don't have any problem with currency where initial distribution rewards people who took investment risks because they saw potential in innovative new technology.

And volatility - volatility in bitcoin is actually smaller every year, and this trend will continue. And btw volatility is natural and healthy. It's when something is not moving that you should be worried.