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This is a pretty dumb comment. The costs associated with bitcoin come down to power and hosting costs, the costs of banking can be huge, difficult to verify and
by celticninja 12y ago
This is a pretty dumb comment. The costs associated with bitcoin come down to power and hosting costs, the costs of banking can be huge, difficult to verify and can lead to consumers losing money that banks hold. No one loses bitcoins when a bitcoin miner goes broke or shuts down.
- deleted 12y ago[deleted]
- lmm 12y agoBanks don't fail because of mysterious hidden costs that they didn't know existed. They fail because they get the accounting wrong and/or because people defraud them - i.e., the exact same reasons that lead to mtgox's failure. Difference is, bank deposits are FDIC protected.
- brudgers 12y agoWe are in agreement. Bitcoin is pegged to energy price, as was noted in the top comment. Energy prices are down. Currencies largely pegged to energy prices, such as the ruble are also down. On the converse the cost of the bailout is pegged to the price of money. Fiat lowers that cost via inflation. The surplus currency created by the bailout is reflected in low interest rates. The key is that money is more fungible than energy. Buying energy and converting it into bitcoin is likely to be inefficient when the market reaches equilibrium. As a value store, nobody wants rubles when they try to cash out.