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The author clearly haven't read the top Bitcoin book (the bitcoin standard) as an introduction of what problem Bitcoin solves (inflation). He changed his whole

The author clearly haven't read the top Bitcoin book (the bitcoin standard) as an introduction of what problem Bitcoin solves (inflation). He changed his whole life by moving away from Turkey to the country with the reserve currency status and then says that ,,everything's fine with the money and banking system''. I challenge him to move back to Turkey and interview some people there.

duhast 5y ago
Bitcoin solves inflation with deflation and transfer of surplus from labour to Bitcoin holders. Add inelastic coin supply, low transaction rate, no anonymity, high energy consumption, whales owning most coins, tendency to concentrate mining capacity in the hands of few players (7 pools own 50% of mining capacity), undemocratic governance and it looks even worse. Bitcoin is not money. At best it's a digital collectable. After a decade of trying Bitcoin's only application appears to be facilitation of ransom payments, speculation for rich and insecure middle class and evasion of sanctions by the likes of Iran or North Korea. Hard currencies simply don't work in practice and are fundamentally undemocratic. We tried this with gold and it didn't work.
- xiphias2 5y ago
  The great thing with Bitcoin is that everybody gets the price what they deserve. Those ,,whales’’ are whales because they risked their capital when it was riskier to own, not because they were from wealthy families. It’s still a risky investment of course, so I understand that most people don’t want to own it.
  - duhast 5y ago
    Bonds are a form of lending and pay coupons. Shares experience capital appreciation from business growth and pay dividends from profits. Houses bring rent. How does Bitcoin create wealth?
    - landemva 5y ago
      Most understand a gold coin, or btc, don't generate wealth. They store wealth and shift it across space and time.
    - kybernetikos 5y ago
      Not bitcoin per se but lots of cryptoassets do produce wealth in similar ways. There are tokens on ethereum than give you interest based on lending out your deposit just like a bank does. You can also get paid fees for providing liquidity for traders. You can also get paid for securing the cryptoasset system in a PoS system although I don't think that has an equivalent in the fiat space.
johnny_b_g 5y ago
>what problem Bitcoin solves (inflation). Some inflation is fine (some would argue has some value/purpose) - what you don't want is too much inflation, or deflation ("hyper"). But I doubt any cryptocurrencies can truly solve it (Bitcoin least of all). But what I find fascinating, especially from the Bitcoin crowd, is how they trash all fiat currencies ("because inflation!!"), but still use fiat to compare/set the price of Bitcoin. Basically, without fiat to give it value, their precious Bitcoin is worthless.
- xiphias2 5y ago
  What country do you live in? Sorry, but for us, Hungarians inflation is devastating. It's the same for people who live in Argentina, Venzeuela and Turkey getting almost the same salaries as last year with prices of basic items going up like crazy. There are new price controls introduced all the time, but it's never enough to not feel poor.
  - johnny_b_g 5y ago
    I said some inflation is fine (ie. normal/expected) except hyper inflation/deflation.
    - randomhodler84 5y ago
      What if it isn’t, and the Keynesians were lying to you?
  - AnIdiotOnTheNet 5y ago
    Drinking water is good for you, but drinking too much water will kill you.
- landemva 5y ago
  I do not think inflation is fine. Advancing technology and improvements in manufacturing should make my money buy more, not less.
  - 5y ago

duhast 5y ago

Bitcoin solves inflation with deflation and transfer of surplus from labour to Bitcoin holders. Add inelastic coin supply, low transaction rate, no anonymity, high energy consumption, whales owning most coins, tendency to concentrate mining capacity in the hands of few players (7 pools own 50% of mining capacity), undemocratic governance and it looks even worse. Bitcoin is not money. At best it's a digital collectable. After a decade of trying Bitcoin's only application appears to be facilitation of ransom payments, speculation for rich and insecure middle class and evasion of sanctions by the likes of Iran or North Korea. Hard currencies simply don't work in practice and are fundamentally undemocratic. We tried this with gold and it didn't work.

xiphias2 5y ago
The great thing with Bitcoin is that everybody gets the price what they deserve. Those ,,whales’’ are whales because they risked their capital when it was riskier to own, not because they were from wealthy families. It’s still a risky investment of course, so I understand that most people don’t want to own it.
- duhast 5y ago
  Bonds are a form of lending and pay coupons. Shares experience capital appreciation from business growth and pay dividends from profits. Houses bring rent. How does Bitcoin create wealth?
  - landemva 5y ago
    Most understand a gold coin, or btc, don't generate wealth. They store wealth and shift it across space and time.
  - kybernetikos 5y ago
    Not bitcoin per se but lots of cryptoassets do produce wealth in similar ways. There are tokens on ethereum than give you interest based on lending out your deposit just like a bank does. You can also get paid fees for providing liquidity for traders. You can also get paid for securing the cryptoasset system in a PoS system although I don't think that has an equivalent in the fiat space.

johnny_b_g 5y ago

>what problem Bitcoin solves (inflation). Some inflation is fine (some would argue has some value/purpose) - what you don't want is too much inflation, or deflation ("hyper"). But I doubt any cryptocurrencies can truly solve it (Bitcoin least of all). But what I find fascinating, especially from the Bitcoin crowd, is how they trash all fiat currencies ("because inflation!!"), but still use fiat to compare/set the price of Bitcoin. Basically, without fiat to give it value, their precious Bitcoin is worthless.

xiphias2 5y ago
What country do you live in? Sorry, but for us, Hungarians inflation is devastating. It's the same for people who live in Argentina, Venzeuela and Turkey getting almost the same salaries as last year with prices of basic items going up like crazy. There are new price controls introduced all the time, but it's never enough to not feel poor.
- johnny_b_g 5y ago
  I said some inflation is fine (ie. normal/expected) except hyper inflation/deflation.
  - randomhodler84 5y ago
    What if it isn’t, and the Keynesians were lying to you?
- AnIdiotOnTheNet 5y ago
  Drinking water is good for you, but drinking too much water will kill you.
landemva 5y ago
I do not think inflation is fine. Advancing technology and improvements in manufacturing should make my money buy more, not less.
- 5y ago