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My "buy in" was a $300 AMD graphics card which I then kept using for games after the mining difficulty was too high. As far as I'm concerned my BTC is an added

by Akujin 9y ago

My "buy in" was a $300 AMD graphics card which I then kept using for games after the mining difficulty was too high. As far as I'm concerned my BTC is an added value. If it crashes to worthlessness I would not care. PS: I have no intention of cashing out. Since BTC is deflationary I'd rather hold till each BTC is worth 100k. Check this thread in 2030 :)

QAPereo 9y ago
For what it's worth, I hope that you make that fortune.
mywittyname 9y ago
Deflationary does not imply an ever-increasing value. At some point, deflationary commodities will be so rare as to be useless. Lack of supply leads to a lack of velocity, which leads to a lack of liquidity. Once that happens, people will move to a competing product. Imagine if soy beans gradually went extinct. In the short-term, the prices would spike as companies reliant on soy beans compete for the shrinking supply. But as prices go up, these companies either go bankrupt, or find alternative inputs to replace soy beans. Either way, the prices eventually hit zero before extinction occurs. The once plentiful and valuable becomes rare and worthless.
- _muff1nman_ 9y ago
  > Lack of supply leads to a lack of velocity, which leads to a lack of liquidity How does one define supply with a divisible unit like bitcoin? Arguably, supply does not diminish, rather people use smaller units of bitcoins.
  - Akujin 9y ago
    Technically supply does diminish. People like to calculate the market cap of Bitcoin based on the theoretical amount of them in existence however people lose their wallet.dat files all the time which contains the password allowing someone to send those bitcoins elsewhere. This causes deflation to occur on top of the regular limit on the amount of bitcoins. Tldr; Bitcoin is deflationary because math.
  - mywittyname 9y ago
    Well, it's totally possible to lose a btc irrecoverably. Secondly, at some point, calculations become onerous. Like, if btc is $100k/coin, then normal, every day transactions will need to be in 0.000001 coins. Which is an incredibly annoying unit to work with, it's trivially easy to miss an order of magnitude, i.e., 0.0000001 at a glance, is that a dime, a dollar, or a ten? Accidentally give a $100 instead of $10 once, and you'll be annoyed, do it twice and you're done using btc.
    - eosrei 9y ago
      mBTC: MilliBitcoin - 1 thousandth of a BTC uBTC: MicroBitcoin - 1 millionth of a BTC Further details: http://bitcoinchaser.com/bitcoin-units-and-denominations http://bitcoinchaser.com/bitcoin-units-and-denominations
- xamuel 9y ago
  1btc is actually equal to 100,000,000 satoshi, and if it ever gets to a point where that's not enough supply, people can just split satoshis further.

by Akujin 9y ago

QAPereo 9y ago

For what it's worth, I hope that you make that fortune.

mywittyname 9y ago

Deflationary does not imply an ever-increasing value. At some point, deflationary commodities will be so rare as to be useless. Lack of supply leads to a lack of velocity, which leads to a lack of liquidity. Once that happens, people will move to a competing product. Imagine if soy beans gradually went extinct. In the short-term, the prices would spike as companies reliant on soy beans compete for the shrinking supply. But as prices go up, these companies either go bankrupt, or find alternative inputs to replace soy beans. Either way, the prices eventually hit zero before extinction occurs. The once plentiful and valuable becomes rare and worthless.

_muff1nman_ 9y ago
> Lack of supply leads to a lack of velocity, which leads to a lack of liquidity How does one define supply with a divisible unit like bitcoin? Arguably, supply does not diminish, rather people use smaller units of bitcoins.
- Akujin 9y ago
  Technically supply does diminish. People like to calculate the market cap of Bitcoin based on the theoretical amount of them in existence however people lose their wallet.dat files all the time which contains the password allowing someone to send those bitcoins elsewhere. This causes deflation to occur on top of the regular limit on the amount of bitcoins. Tldr; Bitcoin is deflationary because math.
- mywittyname 9y ago
  Well, it's totally possible to lose a btc irrecoverably. Secondly, at some point, calculations become onerous. Like, if btc is $100k/coin, then normal, every day transactions will need to be in 0.000001 coins. Which is an incredibly annoying unit to work with, it's trivially easy to miss an order of magnitude, i.e., 0.0000001 at a glance, is that a dime, a dollar, or a ten? Accidentally give a $100 instead of $10 once, and you'll be annoyed, do it twice and you're done using btc.
  - eosrei 9y ago
    mBTC: MilliBitcoin - 1 thousandth of a BTC uBTC: MicroBitcoin - 1 millionth of a BTC Further details: http://bitcoinchaser.com/bitcoin-units-and-denominations http://bitcoinchaser.com/bitcoin-units-and-denominations
xamuel 9y ago
1btc is actually equal to 100,000,000 satoshi, and if it ever gets to a point where that's not enough supply, people can just split satoshis further.