Hacker News Board Hacker News, browsed like a classic message board
Live data from Hacker News

One year on, El Salvador’s Bitcoin experiment has proven a failure

theconversation.com

Post reply on HN
Print view View original

91–100 of 299 posts

Re: One year on, El Salvador’s Bitcoin experiment has proven a failure

#91

Post by taolegal »

sschueller wrote: post #9
espadrine wrote: post #7

Earlier quoted context omitted.

> If there was some crypto without any incentives of hodling long term, I'm sure the adoption would be higher Interestingly, that is also the analysis that most central banks make. Their monetary policy sets a positive target inflation rate for this exact goal. However, that monetary policy is often a large part of why people use Bitcoin.

Should do what Switzerland has been trying to do. Negative interest rates to punish those who are hodl the Swiss Franc.

I have a hard time with left leaning economics if only because they revile "consumerism" but their policy prescriptions, in practice, make it impossible to do anything but consume.

The demonization of "hoarding" is basically an endorsement of consumption. Of course, they then regulate your consumption.

You could see how people resent the micromanaging of their lives.

Re: One year on, El Salvador’s Bitcoin experiment has proven a failure

#92

Post by gopuck16 »

koonsolo wrote: post #70
croon wrote: post #11

It's not a failure because Bitcoin tanked (relatively), it's a failure because Bitcoin tanking was and will always be a significant risk. People who got rich from Bitcoin weren't savvy, they won the lottery. It's not a sound investment decision based on outcome. Investments are sound based on probability and risk beforehand. El Salvador gambled which is stupid. Whether they won or lost at the lottery is inconsequenti…

I agree with you on the El Salvador part, but not on the investment part. > Investments are sound based on probability and risk beforehand. Investing in bitcoin had a limited downside (lose 100%), but a very high upside (reaches it's initial goals). For me, the potential gains outweighed the low probability. I consider myself very lucky that I made some money (wasn't crazy to put all my money in there). But for me, w…

What you've stated here is your experience, now if you try to extrapolate the thinking/investment model you've used to large number of people - there is very limited upside and very high downside.

Re: One year on, El Salvador’s Bitcoin experiment has proven a failure

#93

Post by pessimizer »

donatj wrote: post #27
croon wrote: post #11

It's not a failure because Bitcoin tanked (relatively), it's a failure because Bitcoin tanking was and will always be a significant risk. People who got rich from Bitcoin weren't savvy, they won the lottery. It's not a sound investment decision based on outcome. Investments are sound based on probability and risk beforehand. El Salvador gambled which is stupid. Whether they won or lost at the lottery is inconsequenti…

Have you seen the dollar’s buying power recently? I went from living very comfortably to living paycheck-to-paycheck in about 6 months. Holding my value in USD has become a significant risk.

If 8% inflation has put you paycheck to paycheck, living "very comfortably" was already living far beyond your means.

Re: One year on, El Salvador’s Bitcoin experiment has proven a failure

#94

Post by pessimizer »

mihaic wrote: post #88

After so many cycles, Bitcoin has become one of the most respectable pyramid schemes available to the general public (only behind real estate speculation maybe). I think we'll see another even worse cycle unfortunately within the next 10 years.

At least it may have peaked before we got to the point where we had 15 "Flip this Token" shows airing on the Bitcoin & Garden network.

Re: One year on, El Salvador’s Bitcoin experiment has proven a failure

#96

Post by pessimizer »

taffronaut wrote: post #82
Macha wrote: post #16

Earlier quoted context omitted.

"Only as bad as embezzlement" is not the endorsement for cryptocurrency or the response to criticism this comment portrays it as

How should we rank stupidity versus corruption? My point is that we are outraged at this guy's transparently stupid act, but I opine that we would be less outraged (or not even notice) if he was corrupt to the same extent that he is stupid. Neither is a virtue but as we stand in judgement then maybe our standards should be challenged.

He is corrupt. El Salvador is half a dictatorship, and the reason it went on this bitcoin venture is because its beardo bro dictator hangs out with bitcoin people and unilaterally decided to do it.

Re: One year on, El Salvador’s Bitcoin experiment has proven a failure

#97

Post by Andrew_nenakhov »

mtrycz2 wrote: post #74
croon wrote: post #11

It's not a failure because Bitcoin tanked (relatively), it's a failure because Bitcoin tanking was and will always be a significant risk. People who got rich from Bitcoin weren't savvy, they won the lottery. It's not a sound investment decision based on outcome. Investments are sound based on probability and risk beforehand. El Salvador gambled which is stupid. Whether they won or lost at the lottery is inconsequenti…

It is a failure because BTC has pivoted away from the Bitcoin whitepaper (p2p ecash), limited its blocksize and has taken the path of this strange "digital store of value" (lol). BTC's activity rose gradually up to 2017, and then topped off at 1MB and even dropped. [1] If Bitcoin's momentum hadn't been dissolved, it wouldn't require people to be forced by State to accept it. [1] https://bitinfocharts.com/comparison/s…

/r/btc is strong in this one. Lost truly he is.

Re: One year on, El Salvador’s Bitcoin experiment has proven a failure

#99

Post by pessimizer »

spreeker wrote: post #33

FIAT has proven time and time again to fail. Dollar world trade is unfair and benefits the USA unfairly. I would prefer a neutral crypto currency to be the new world reserve instead of a competing currency like the YUAN. Government should not have the power to print money out of thin air. The technology of blockchains is improving, for the example lightning network should make it very well possible. Just like with th…

https://en.wikipedia.org/wiki/Bancor

Re: One year on, El Salvador’s Bitcoin experiment has proven a failure

#100

Post by koonsolo »

gopuck16 wrote: post #92
koonsolo wrote: post #70

Earlier quoted context omitted.

I agree with you on the El Salvador part, but not on the investment part. > Investments are sound based on probability and risk beforehand. Investing in bitcoin had a limited downside (lose 100%), but a very high upside (reaches it's initial goals). For me, the potential gains outweighed the low probability. I consider myself very lucky that I made some money (wasn't crazy to put all my money in there). But for me, w…

What you've stated here is your experience, now if you try to extrapolate the thinking/investment model you've used to large number of people - there is very limited upside and very high downside.

No it stays the same if you have an investment portfolio and only invest max 5% in high risk assets.

Assume you invest 1% of your portfolio in Bitcoin. What is your downside? 1%. Not that high, is it?

What is your upside? Maybe x100, so double your entire portfolio.

Right now, you came late to the game, so don't expect a x100. The risk is probably still the same, but the upside way lower. But when Bitcoin was still young, the upside was definitely worth the risk. And it didn't even live up to its original intent. Imagine the price if it did!

Post reply on HN