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I'm not an expert on BTC or anything. In fact I'm not even long on BTC. I don't think it will work in the long term. That said I'm just answering questions as I

by skizm 9y ago

I'm not an expert on BTC or anything. In fact I'm not even long on BTC. I don't think it will work in the long term. That said I'm just answering questions as I understand them: > BTC is worth thousands of dollars, so if everyone starts using BTC will people pay irrational fractions of BTC for bread and milk at the supermarket? will there be some adjustment? The block chain supports values as small as 0.00000001 BTC (called a Satoshi). More terms will be coined as more common denominations eventually are used to buy things. > How will other entities handle conversion and exchange? Will the general population have some compulsatory event to liquidate their own bank accounts into BTC funds? There will be no single event, over time people will simply not use their local currency any more in favor of BTC. Slowly, over time, the population will lose trust in fiat and gain trust in BTC. This may occur over decades or more. > Could this change asset valuation worldwide(Real estate, investment funds, etc)? If no government entity mediates currency value and printing can they tax your earnings if companies pay through some decentralized medium? What happens when nobody is paying taxes? I'm not sure about these. Right now if you sell things for BTC I'm pretty sure you have to pay taxes on the "fair market value" of the BTC, which I have no idea what that would be (maybe the average price at the time of the payment?). I assume people long on BTC are hoping laws will adapt by the point when it is widely accepted. > How about other cryptocurrencies, is there some kind of zero-sum game race to the top going on? Can they co-exist in the long term purist scenario? I mean, a cryptocurrency is only as valuable as the trust people have in it. So all the same rules/theories apply to other cryptos the same as BTC. BTC just happens to be the most popular at the moment, and therefore has the highest market cap (not even sure if this term applies).

nosuchthing 9y ago
>There will be no single event, over time people will simply not use their local currency any more in favor of BTC. Slowly, over time, the population will lose trust in fiat and gain trust in BTC. This may occur over decades or more. The BTC network processes about 3 transactions per second. Bitcoin advocates will tell you this doesn't matter, or it can be improved with a future fork - which by then why not just make a newly designed protocol/altcoin network entirely ? (Consider: is what they're telling you based on their current investments that they'll sell off after you've bought in? Now think of what happens when a hedge fund, or other early adopter who has acquired several thousand coins or if there's whales who've traded their way to now own %10 of the coin supply in the network. What happens if they divest and crash the 'value' of this coin 'investment'?) The great thing about cryptocoins is you can create an improved protocol and if it's better then previous protocols, the users will migrate. There's a lot of misinformation flying around because people are trying to spam their investments into their cryptocoin service networks which they've bought into (or engineered a marketing pump and dump scam, i.e. premined ICOs like antshares) in hopes that they can later sell at excessively inflated prices because of some arbitrarily limited "supply" which a programmer just typed into the software running their network.

by skizm 9y ago

nosuchthing 9y ago

>There will be no single event, over time people will simply not use their local currency any more in favor of BTC. Slowly, over time, the population will lose trust in fiat and gain trust in BTC. This may occur over decades or more. The BTC network processes about 3 transactions per second. Bitcoin advocates will tell you this doesn't matter, or it can be improved with a future fork - which by then why not just make a newly designed protocol/altcoin network entirely ? (Consider: is what they're telling you based on their current investments that they'll sell off after you've bought in? Now think of what happens when a hedge fund, or other early adopter who has acquired several thousand coins or if there's whales who've traded their way to now own %10 of the coin supply in the network. What happens if they divest and crash the 'value' of this coin 'investment'?) The great thing about cryptocoins is you can create an improved protocol and if it's better then previous protocols, the users will migrate. There's a lot of misinformation flying around because people are trying to spam their investments into their cryptocoin service networks which they've bought into (or engineered a marketing pump and dump scam, i.e. premined ICOs like antshares) in hopes that they can later sell at excessively inflated prices because of some arbitrarily limited "supply" which a programmer just typed into the software running their network.