3 ms·
I wouldn't say it means he's nuts. Even if you ditch the right-wing politics commentary, there's a problem with decentralized currency - it's directly in opposi
by beat 9y ago
I wouldn't say it means he's nuts. Even if you ditch the right-wing politics commentary, there's a problem with decentralized currency - it's directly in opposition to the interests of governments. Which makes it questionable whether it will ever succeed. That's not nuts.
That said, as I've pointed out elsewhere, bitcoin does not currently behave even remotely like a useful medium of exchange. The price needs to be be rock-solid stable, the way the dollar or the euro or the yen is stable, and it needs to be extremely liquid, usable for most transactions. When bitcoins are generating 500% annual returns relative to stable currencies simply by existing, spending them is actually irrational (although unloading and getting out while the getting is good might not be). Until it's stable, forget government interference... the banking system won't accept bitcoin.
- testvox 9y ago> spending them is actually irrational (although unloading and getting out while the getting is good might not be). Can you expand on this thought? What is the difference between "spending" bitcoin and selling it?
- beat 9y agoYou "sell" bitcoin for currency. You "spend" cash (or bitcoin) for goods and services. I wrote that comment while munching on a bagel and a diet coke, for which I paid $5.26. The transaction took only a few seconds. I can do that partly because I know the five bucks I spend today would still be worth about five bucks six months from now, would still buy me a bagel and a diet coke. I spent five bucks. I did not "sell" five bucks. That's not how a medium of exchange works. If I reasonably suspected that the five bucks I'm spending on the bagel would be worth ten bucks in a few months, I'd be very hesitant to spend it. On the way home from the bagel shop, I gave another five bucks to a homeless woman. Could I have even done that with bitcoin?
- jstanley 9y agoIt doesn't matter how much your money will be worth in 6 months' time if you need to eat. If it's the only money you have, you must spend it, or go hungry. It's the same reason people buy computers even though computers get cheaper over time. If you need a computer now, it's no good waiting, even if you know you'll get more for your money later. And in fact it is much easier to send bitcoin to a homeless person than it is to send them a bank transfer, as it is extremely difficult for a person without an address to even get a bank account.
- beat 9y agoNot as easy as handing them a $5 bill.
- deleted 9y ago[deleted]