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Bitcoin solves a real problem: It creates a permanent fix for monetary inflation, which allows people to save money without being taxed on their savings. The r

Bitcoin solves a real problem: It creates a permanent fix for monetary inflation, which allows people to save money without being taxed on their savings. The rest of "cryptocurrency" is snake oil. Most of it attempts to reintroduce inflation and undermine the fix which Bitcoin introduced. While they may come up with a bunch of reasons for their decision to mint new tokens - the sole purpose of the new inflation is to enrich the creators, who intend to exchange their zero production cost tokens for some other tangible wealth before the naive buyers of the tokens realize they've been scammed. Building on top of Bitcoin is the way to solve real problems because each development strengthens the permanent fix on inflation and enables Bitcoin to be more accessible. A "blockchain" is just a linked list where each tail item is content addressed.

The_rationalist 7y ago
Bitcoin solves a real problem: It creates a permanent fix for monetary inflation But crypto coins are too unstable, I would only invest my money in an inflation less system if stablecoins existed
louwrentius 7y ago
Bitcoin is imho a terrible solution because it’s unstable / volatile and it’s totally a ponzi scheme + piramid scheme. I want my money to be backed up by a government that wants to keep society stable. Sad to see that bc is always so tied to distrust of governments. That way of thinking seems so naive.
- Vinceo 7y ago
  Why is it a ponzi scheme + pyramide scheme?
  - quickthrower2 7y ago
    It’s neither. It might be a bubble though.
- sparkie 7y ago
  Bitcoin isn't "unstable". It's very stable, as money is released on a very predictable and predetermined schedule. You know precisely how much inflation is going to occur and when it will end. The only "volatile" is the exchange rate market of Bitcoin to USD. Obviously, this is going to be volatile for some time because demand varies from day to day. What's obvious, however, is that the trend in demand is continuing to increase over time. If you look at purchasing Bitcoin to hold for 4 years or more (or indefinitely), then you aren't concerned about the day to day fluctuations in the exchange rate. If you purchased Bitcoin at any time in the past 10 years, and held onto it for 4 years, there is no point at which you could've made a loss. In fact, on average, you would've almost doubled your money if you converted it back to USD after 4 years. They say past performance is no indication of success, but next month we enter another "quantitive hardening" period in Bitcoin, where the new supply released over the next 4 years is half of the supply released over the previous 4 years. If the rate of growth in demand stays the same, the exchange rate will continue to rise - but that itself causes an increase in demand because more people want to hold onto an appreciating asset rather than a depreciating dollar. Especially true given that the Fed has committed to rapidly devaluing the dollar this year in a struggle to deal with COVID-19. Bitcoin doesn't care about the virus. There's nobody to bail out bitcoiners. The State is the virus, and Bitcoin is the remedy.
  - louwrentius 7y ago
    > What's obvious, however, is that the trend in demand is continuing to increase over time. That's exactly what I would say if I have cryptocoins That is the pyramid scheme part. Convincing people to buy as not to miss out.

The_rationalist 7y ago

Bitcoin solves a real problem: It creates a permanent fix for monetary inflation But crypto coins are too unstable, I would only invest my money in an inflation less system if stablecoins existed

louwrentius 7y ago

Bitcoin is imho a terrible solution because it’s unstable / volatile and it’s totally a ponzi scheme + piramid scheme. I want my money to be backed up by a government that wants to keep society stable. Sad to see that bc is always so tied to distrust of governments. That way of thinking seems so naive.

Vinceo 7y ago
Why is it a ponzi scheme + pyramide scheme?
- quickthrower2 7y ago
  It’s neither. It might be a bubble though.
sparkie 7y ago
Bitcoin isn't "unstable". It's very stable, as money is released on a very predictable and predetermined schedule. You know precisely how much inflation is going to occur and when it will end. The only "volatile" is the exchange rate market of Bitcoin to USD. Obviously, this is going to be volatile for some time because demand varies from day to day. What's obvious, however, is that the trend in demand is continuing to increase over time. If you look at purchasing Bitcoin to hold for 4 years or more (or indefinitely), then you aren't concerned about the day to day fluctuations in the exchange rate. If you purchased Bitcoin at any time in the past 10 years, and held onto it for 4 years, there is no point at which you could've made a loss. In fact, on average, you would've almost doubled your money if you converted it back to USD after 4 years. They say past performance is no indication of success, but next month we enter another "quantitive hardening" period in Bitcoin, where the new supply released over the next 4 years is half of the supply released over the previous 4 years. If the rate of growth in demand stays the same, the exchange rate will continue to rise - but that itself causes an increase in demand because more people want to hold onto an appreciating asset rather than a depreciating dollar. Especially true given that the Fed has committed to rapidly devaluing the dollar this year in a struggle to deal with COVID-19. Bitcoin doesn't care about the virus. There's nobody to bail out bitcoiners. The State is the virus, and Bitcoin is the remedy.
- louwrentius 7y ago
  > What's obvious, however, is that the trend in demand is continuing to increase over time. That's exactly what I would say if I have cryptocoins That is the pyramid scheme part. Convincing people to buy as not to miss out.