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Bitcoin worshippers will tell you, "no it does not matter, why would you not spend bitcoins, it's better than fiat", blah blah blah... Yet if you look at /r/Bi

by vinhboy 13y ago

Bitcoin worshippers will tell you, "no it does not matter, why would you not spend bitcoins, it's better than fiat", blah blah blah... Yet if you look at /r/BitCoin, there are dozens of "OMG!! I spent all my bitcoins on Pizza instead of holding on to them, look at this gif of me being sad" So to answer your question, it's just insanity. I miss the days before this month when BitCoin prices were stable for a couple of months. Spending it was actually pretty cool.

danielweber 13y ago
Yep, there are two fundamental and incompatible forces behind Bitcoin. First is the currency group. Second is the speculator group. The more success the second has, the more problems the first has.
- Helianthus 13y ago
  Heh. And the success of the first group is dependent on the success of the second group.
snitko 13y ago
I spent bitcoins on many things and intend to do so in the future. The thing is, if you need something, you'll buy it, either with USD or Bitcoin. If you buy it with USD, then that is the amount of Bitcoins you haven't bought instead. So it doesn't matter. Bitcoin in no way stops you from spending it when you really want.
- JamisonM 13y ago
  This is true, but the definition of "really want" changes if everything you can buy is subject to deflation in your currency of choice. If you believe Bitcoin will keep rising you will defer every expense until the last possible second and many transactions you will defer and later find that you do not need to engage in them, thus there is less commerce ongoing. How does a rational consumer justify going out for dinner on Friday if on Sunday they expect the date to be 15% cheaper, and Tuesday to be 20% cheaper, and so on? It is like the pain of finally biting the bullet and buying a new computer in the 90's knowing it will be cheaper in 3 weeks, but on every transaction you make.
  - snitko 13y ago
    Yet people still bought computers knowing full well they are going to be cheaper in a couple of months. Why? Because they needed them. Same thing with Bitcoin. Of course, you won't be buying stupid stuff you really don't need. And you know what, that's a very good thing for the economy, because it will make people very responsible when it comes to buying things and investing their money. Bitcoin is an ultimate cure for consumerism and excessive spending. Economy as a whole and people in it don't really profit from investing into useless hole digging, even though it may look good on the paper.
    - john_b 13y ago
      Honest question, what do people "need" Bitcoin for that cash or other payment systems can't do? The only unique advantages I see are those that are illegal in many jurisdictions and those that are related to speculation. The number of people who need currency for illegal activities plus those who speculate in currencies is finite and not a significant portion of the population, so I'm just not seeing how regular people are going to derive any use from Bitcoin that couldn't be achieved by other means.
      - snitko 13y ago
        Liquid store of value. USD is liquid, but inflationary. Gold is a good store of value, but you can't really spend it like you can spend Bitcoin.
    - jmonegro 13y ago
      That is actually /not/ very good for the economy at all. If you abruptly reduce spending to the absolute minimum, sure it sounds very idealistic, but you're grinding most economic activity to a halt, causing hundreds of millions of layoffs, and minimizing the job market. I estimate that we'd have about 60-70% unemployment, and no jobs for those people to go to because, well, other people just aren't spending any money.
      - snitko 13y ago
- melvinmt 13y ago
  It does matter. If you have already decided on the purchase (so you're ignoring the opportunity costs of investing in BTC) then spending USD will not affect your position in BTC and thus you'll be better off spending USD if you believe t1 value of BTC is higher and t1 value of USD is lower.
greyfade 13y ago
I buy waffles every Saturday morning with bitcoin.
- vinhboy 13y ago
  Dude.. you're eating away a new Ferrari every Saturday morning. Stop that!

by vinhboy 13y ago

danielweber 13y ago

Yep, there are two fundamental and incompatible forces behind Bitcoin. First is the currency group. Second is the speculator group. The more success the second has, the more problems the first has.

Helianthus 13y ago
Heh. And the success of the first group is dependent on the success of the second group.

snitko 13y ago

I spent bitcoins on many things and intend to do so in the future. The thing is, if you need something, you'll buy it, either with USD or Bitcoin. If you buy it with USD, then that is the amount of Bitcoins you haven't bought instead. So it doesn't matter. Bitcoin in no way stops you from spending it when you really want.

JamisonM 13y ago
This is true, but the definition of "really want" changes if everything you can buy is subject to deflation in your currency of choice. If you believe Bitcoin will keep rising you will defer every expense until the last possible second and many transactions you will defer and later find that you do not need to engage in them, thus there is less commerce ongoing. How does a rational consumer justify going out for dinner on Friday if on Sunday they expect the date to be 15% cheaper, and Tuesday to be 20% cheaper, and so on? It is like the pain of finally biting the bullet and buying a new computer in the 90's knowing it will be cheaper in 3 weeks, but on every transaction you make.
- snitko 13y ago
  Yet people still bought computers knowing full well they are going to be cheaper in a couple of months. Why? Because they needed them. Same thing with Bitcoin. Of course, you won't be buying stupid stuff you really don't need. And you know what, that's a very good thing for the economy, because it will make people very responsible when it comes to buying things and investing their money. Bitcoin is an ultimate cure for consumerism and excessive spending. Economy as a whole and people in it don't really profit from investing into useless hole digging, even though it may look good on the paper.
  - john_b 13y ago
    Honest question, what do people "need" Bitcoin for that cash or other payment systems can't do? The only unique advantages I see are those that are illegal in many jurisdictions and those that are related to speculation. The number of people who need currency for illegal activities plus those who speculate in currencies is finite and not a significant portion of the population, so I'm just not seeing how regular people are going to derive any use from Bitcoin that couldn't be achieved by other means.
    - snitko 13y ago
      Liquid store of value. USD is liquid, but inflationary. Gold is a good store of value, but you can't really spend it like you can spend Bitcoin.
  - jmonegro 13y ago
    That is actually /not/ very good for the economy at all. If you abruptly reduce spending to the absolute minimum, sure it sounds very idealistic, but you're grinding most economic activity to a halt, causing hundreds of millions of layoffs, and minimizing the job market. I estimate that we'd have about 60-70% unemployment, and no jobs for those people to go to because, well, other people just aren't spending any money.
    - snitko 13y ago
melvinmt 13y ago
It does matter. If you have already decided on the purchase (so you're ignoring the opportunity costs of investing in BTC) then spending USD will not affect your position in BTC and thus you'll be better off spending USD if you believe t1 value of BTC is higher and t1 value of USD is lower.

greyfade 13y ago

I buy waffles every Saturday morning with bitcoin.

vinhboy 13y ago
Dude.. you're eating away a new Ferrari every Saturday morning. Stop that!