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How many time are people going to scream...bubble? http://bitcoinweekly.com/articles/comic-reaction-after-dramatic-rise-of-bitcoin-s-value http://bitcoinweekly.

by kiba 15y ago

How many time are people going to scream...bubble? http://bitcoinweekly.com/articles/comic-reaction-after-dramatic-rise-of-bitcoin-s-value http://bitcoinweekly.com/articles/comic-reaction-after-drama... Anyway, hoarding is not a problem. http://bitcoinweekly.com/articles/one-apple-today-two-apples-tomorrow-or-how-i-stopped-being-afraid-and-learned-to-love-deflation http://bitcoinweekly.com/articles/one-apple-today-two-apples... Even if we need to use the satoshi(the lowest unit of bitcoin), we can extend decimal space. Does anybody actually have anything new or novel criticism for bitcoin? Or are we going to repeat trending the same ground everytime a new bitcoin story come up?

baselogic 15y ago
Speaking for only myself, this is the first article that I have read which goes beyond the usual arguments made against Bitcoin. I would strongly recommend reading the OP again properly as the links you have posted do not seem to address the issues it brings up.
caf 15y ago
That article on why deflation is allegedly not a problem does not address the concerns raised. In particular: Deflation, on the other hand, can damage the economy by placing an incentive to save, rather than spend. Over-saving can be just as damaging as over-spending. But unlike saving, you have to spend some eventually, so there's a built-in incentive to spend: continued survival. A deflationary economy can also stifle entrepreneurship because it increases the risk of loss without significantly increasing the return on the investment over that of simply letting the money sit and gain value. The first answer doesn't apply to a new entrant currency like Bitcoin - you don't have to spend bitcoins to survive, you can continue to spend local legal tender on the essentials of life. The second objection is noted but not even rebutted - it's just ignored. This seems to be the real potential problem for bitcoin - the incentive is to sit on it, not to circulate it. I think the original article is spot on.
- hippich 15y ago
  Regarding entrepreneurship part.. For me bitcoins is just another sale channel for my http://store.gifti.us http://store.gifti.us . Once I receive coins I immediately exchange them to fiat dollars to pay suppliers. It works perfectly so far. And this is how I suppose it should work, at least until bitcoins will not become world currency =)
- vrotaru 15y ago
  Marginal utility, marginal utility, marginal utility. It's true for USD, BTC, EUR, PLN... you name it. The more money you have the less valuable the last unit (coin) is. Or seems. Value is subjective, anyway. So what we have here is just another feedback mechanism which will regulate the level of saving/hoarding according to individual preferences of savers/hoarders. This way, hoarding, it self-regulates.

by kiba 15y ago

baselogic 15y ago

Speaking for only myself, this is the first article that I have read which goes beyond the usual arguments made against Bitcoin. I would strongly recommend reading the OP again properly as the links you have posted do not seem to address the issues it brings up.

caf 15y ago

That article on why deflation is allegedly not a problem does not address the concerns raised. In particular: Deflation, on the other hand, can damage the economy by placing an incentive to save, rather than spend. Over-saving can be just as damaging as over-spending. But unlike saving, you have to spend some eventually, so there's a built-in incentive to spend: continued survival. A deflationary economy can also stifle entrepreneurship because it increases the risk of loss without significantly increasing the return on the investment over that of simply letting the money sit and gain value. The first answer doesn't apply to a new entrant currency like Bitcoin - you don't have to spend bitcoins to survive, you can continue to spend local legal tender on the essentials of life. The second objection is noted but not even rebutted - it's just ignored. This seems to be the real potential problem for bitcoin - the incentive is to sit on it, not to circulate it. I think the original article is spot on.

hippich 15y ago
Regarding entrepreneurship part.. For me bitcoins is just another sale channel for my http://store.gifti.us http://store.gifti.us . Once I receive coins I immediately exchange them to fiat dollars to pay suppliers. It works perfectly so far. And this is how I suppose it should work, at least until bitcoins will not become world currency =)
vrotaru 15y ago
Marginal utility, marginal utility, marginal utility. It's true for USD, BTC, EUR, PLN... you name it. The more money you have the less valuable the last unit (coin) is. Or seems. Value is subjective, anyway. So what we have here is just another feedback mechanism which will regulate the level of saving/hoarding according to individual preferences of savers/hoarders. This way, hoarding, it self-regulates.