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Bitcoin only has value to transfer or store money as long as it has value. See problems with that circular logic? If faith in BTC is lost, all its value is also

by dtech 4y ago

Bitcoin only has value to transfer or store money as long as it has value. See problems with that circular logic? If faith in BTC is lost, all its value is also permanently lost. It's even worse since a lot of crypto price is driven due to speculation that it will increase in price. This is a much worse situation than with fiat money, since there is a government and economy backing fiat, e.g. you have to pay taxes in the local fiat if you want to do business in a country. If I magically set the value of BTC to $0.01, it will never recover. If I do the same with €, people will quickly convert to a lot of € to buy things, driving the price back up.

ur-whale 4y ago
> Bitcoin only has value to transfer or store money as long as it has value. See problems with that circular logic Same exact logic applies to the Euro, the thing she is in charge of shoving down everyone's throat and competes with BTC.
- Bubble_Pop_22 4y ago
  At the end of the day it all comes down to what soldiers and military contractors accept as payment for their services. Currencies, like everything are backed by the power of violence. She speaks like that because she knows that the Euro is backed by the power of violence
  - ur-whale 4y ago
    > the Euro is backed by the power of violence Is it though? I'd be willing to agree with that argument for the USD, but the Euro? Apart from a few old firecrackers in french submarines, what violence is Europe capable of exactly these days?
    - Bubble_Pop_22 4y ago
      NATO and being best buddies with the US is important because once you remove the US, then the EU military might is clear when compared to the rest of the world ex US. It's like when Guns n Roses had "Use Your Illusion 1" at #1 and "Use Your Illusion 2" at #2 in the Billboard. #2 feels nice when #1 is also under your umbrella.
- beej71 4y ago
  Isn't the value of the Euro controllable to a certain extent by monetary policy? And isn't there a large global will for that policy to encourage a stable Euro that puts people in power who do so? It seems like an external backing force that doesn't exist with BTC.
  - ur-whale 4y ago
    You're assuming folks in charge of monetary policy: a)know what they're doing (they're not: large economies are chaotic systems, anyone pretending to know what effect pushing a lever will have is either delusional or a bald-faced liar) b) have an agenda that's aligned with the greater good. News at 11 : they're not. Their agenda is to stay in power.
    - beej71 4y ago
      I'd dispute point (a) partially. It's possible to have some insight and knowledge that has an at least partially predicted effect. But it is chaotic, so effectiveness is limited. And I'm skeptical of (b), depending on your definition of "greater good". But in our context here, "greater good" means monetary stability. In this case, the power of the rich people with the money is greater than the power of whoever is in charge of monetary policy. And the people with the money want to preserve value. They will have anyone ousted who doesn't do that. Or put another way, the best way to stay in power in the fed is to keep things going smoothly and upwardly.

by dtech 4y ago

ur-whale 4y ago

> Bitcoin only has value to transfer or store money as long as it has value. See problems with that circular logic Same exact logic applies to the Euro, the thing she is in charge of shoving down everyone's throat and competes with BTC.

Bubble_Pop_22 4y ago
At the end of the day it all comes down to what soldiers and military contractors accept as payment for their services. Currencies, like everything are backed by the power of violence. She speaks like that because she knows that the Euro is backed by the power of violence
- ur-whale 4y ago
  > the Euro is backed by the power of violence Is it though? I'd be willing to agree with that argument for the USD, but the Euro? Apart from a few old firecrackers in french submarines, what violence is Europe capable of exactly these days?
  - Bubble_Pop_22 4y ago
    NATO and being best buddies with the US is important because once you remove the US, then the EU military might is clear when compared to the rest of the world ex US. It's like when Guns n Roses had "Use Your Illusion 1" at #1 and "Use Your Illusion 2" at #2 in the Billboard. #2 feels nice when #1 is also under your umbrella.
beej71 4y ago
Isn't the value of the Euro controllable to a certain extent by monetary policy? And isn't there a large global will for that policy to encourage a stable Euro that puts people in power who do so? It seems like an external backing force that doesn't exist with BTC.
- ur-whale 4y ago
  You're assuming folks in charge of monetary policy: a)know what they're doing (they're not: large economies are chaotic systems, anyone pretending to know what effect pushing a lever will have is either delusional or a bald-faced liar) b) have an agenda that's aligned with the greater good. News at 11 : they're not. Their agenda is to stay in power.
  - beej71 4y ago
    I'd dispute point (a) partially. It's possible to have some insight and knowledge that has an at least partially predicted effect. But it is chaotic, so effectiveness is limited. And I'm skeptical of (b), depending on your definition of "greater good". But in our context here, "greater good" means monetary stability. In this case, the power of the rich people with the money is greater than the power of whoever is in charge of monetary policy. And the people with the money want to preserve value. They will have anyone ousted who doesn't do that. Or put another way, the best way to stay in power in the fed is to keep things going smoothly and upwardly.