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You Don’t Understand Bitcoin Because You Think Money Is Real

20 points by joeyespo 9y ago

LinuxBender 9y ago
Is bitcoin insured and by how much in each country?
- craftyguy 9y ago
  No, and zero point zero.
sharemywin 9y ago
my understanding is taxes back up other currencies. which are back up with giant armies.
- andirk 9y ago
  I agree. Bitcoin doesn't have guns so it is quite the feat for it to think it can become as powerful as those with killing power. But I believe in Bitcoin and I want to see it win. However large that win may be I don't know.
  - FractalTree 9y ago
    Is there a solution to Bitcoin's transaction fees, and transaction times? I used Bitcoin in the early days, but it's currently entirely useless as a currency. I do however, believe in the future of cryptocurrencies in general.
- sjg007 9y ago
  I mean gold isn't a currency but something you can exchange into them and some people accept gold. Bitcoin is the same concept. At some point you might not need guns if everyone decides to use it.
truculation 9y ago
Sure money is real; we can't explain our world without it. Its instantiations/records are physical (and therefore each is 'tangible' in some appropriate sense). e.g. marks on paper, magnetic domains pointing this way rather than that way, electrons being here rather than there. When we develop new tech, wealth potentially increases -- so funding tech startups is an appropriate avenue for creating new money.
TheCoelacanth 9y ago
Money is real. If I don't pay taxes with it, men with guns will come and put me in jail. If my landlord doesn't pay their taxes with it, men with guns will come and take away their building. Bitcoin doesn't have any men with guns to set a baseline demand.
- shawnz 9y ago
  > Bitcoin doesn't have any men with guns to set a baseline demand. I think that depends on where you're spending it.
- nickthemagicman 9y ago
  Tell that to Venezuela whose money is absolutely worthless and they have dudes with guns...
  - TheCoelacanth 9y ago
    That's because the people that the men with guns can use them on have very few real assets (both physical assets and human capital), so they can't give up very much in real value in exchange for the currency that the men with guns are demand. That leads to the currency not being very valuable. In places where the people do have significant assets that they can give up in exchange for the currency, the currency has a lot of value.
alimw 9y ago
Surely every dollar, physical or not, can be said to be 'backed' by the assets of the issuing institution? Assets that are most likely government or corporate or mortgage debt, implying a stake in real state apparatus, business or property...
- Terr_ 9y ago
  Dollars aren't backed by assets, dollars are backed by debts. Collateral is nice but not required. At its core a dollar-bill is a uniformly-sized, freely-transferable IOU, representing a credit held by the bearer with the US government as the debtor. Even if nobody else wants your rectangle of paper and linen, the US government has to honor it when they do things like ask you to pay taxes. That's the foundation of the dollar being worth something. See also: "Debt, the first 5000 years" by David Graeber
  - deleted 9y ago
    [deleted]

20 points by joeyespo 9y ago

LinuxBender 9y ago

Is bitcoin insured and by how much in each country?

craftyguy 9y ago
No, and zero point zero.

sharemywin 9y ago

my understanding is taxes back up other currencies. which are back up with giant armies.

andirk 9y ago
I agree. Bitcoin doesn't have guns so it is quite the feat for it to think it can become as powerful as those with killing power. But I believe in Bitcoin and I want to see it win. However large that win may be I don't know.
- FractalTree 9y ago
  Is there a solution to Bitcoin's transaction fees, and transaction times? I used Bitcoin in the early days, but it's currently entirely useless as a currency. I do however, believe in the future of cryptocurrencies in general.
sjg007 9y ago
I mean gold isn't a currency but something you can exchange into them and some people accept gold. Bitcoin is the same concept. At some point you might not need guns if everyone decides to use it.

truculation 9y ago

Sure money is real; we can't explain our world without it. Its instantiations/records are physical (and therefore each is 'tangible' in some appropriate sense). e.g. marks on paper, magnetic domains pointing this way rather than that way, electrons being here rather than there. When we develop new tech, wealth potentially increases -- so funding tech startups is an appropriate avenue for creating new money.

TheCoelacanth 9y ago

Money is real. If I don't pay taxes with it, men with guns will come and put me in jail. If my landlord doesn't pay their taxes with it, men with guns will come and take away their building. Bitcoin doesn't have any men with guns to set a baseline demand.

shawnz 9y ago
> Bitcoin doesn't have any men with guns to set a baseline demand. I think that depends on where you're spending it.
nickthemagicman 9y ago
Tell that to Venezuela whose money is absolutely worthless and they have dudes with guns...
- TheCoelacanth 9y ago
  That's because the people that the men with guns can use them on have very few real assets (both physical assets and human capital), so they can't give up very much in real value in exchange for the currency that the men with guns are demand. That leads to the currency not being very valuable. In places where the people do have significant assets that they can give up in exchange for the currency, the currency has a lot of value.

alimw 9y ago

Surely every dollar, physical or not, can be said to be 'backed' by the assets of the issuing institution? Assets that are most likely government or corporate or mortgage debt, implying a stake in real state apparatus, business or property...

Terr_ 9y ago
Dollars aren't backed by assets, dollars are backed by debts. Collateral is nice but not required. At its core a dollar-bill is a uniformly-sized, freely-transferable IOU, representing a credit held by the bearer with the US government as the debtor. Even if nobody else wants your rectangle of paper and linen, the US government has to honor it when they do things like ask you to pay taxes. That's the foundation of the dollar being worth something. See also: "Debt, the first 5000 years" by David Graeber
- deleted 9y ago
  [deleted]