Did you know you can divide a dollar or euro in 100 cents and get 100 times your money?
And wait until you hear about stock splits!
The problem is that they inflate way more than they deflate, and many times they inflate a lot. I'm not entirely knocking fiat, having a relatively low volatility is useful for pricing things, and keeping wages steady etc. It works well if the central bank don't create too much too quickly and banks don't go bust due to reckless lending and regulators do their jobs to help ensure the previous two things don't happen. Unfortunately there's no guarantee about those things, as we've seen.If I have a €10 banknote I own one trillionth of the total value of the euro. (Best stat I can find for Euro M2 is 10 trillion). Now tomorrow the ECB can issue more Euro and I get diluted. This is seen as a problem by the crypto currency enthusiasts. However the value of Eurozone out put is also increasing so I own a smaller share of a bigger pot. If the CB over does it we get inflation, if the CB under does it or does it too slowly we get deflation. This is how successful fiat currencies work.
Because if you never spend it you might as well never have had it. It's the same reason people buy deflationary goods now even though they know they'll be cheaper next year.Bitcoin enthusiasts tell us that they cannot be diluted. And for holders of Bitcoin that is true. What they do not tell you is that Bitcoin is set up to be almost endlessly subdividable. Such a currency if widely adopted would return us to feudalism. Bitcoin holders like feudal landlords owning everything with no incentive to spend it. After all there are only 21 million bitcoin why spend them.
Heck I don’t know. As I said before this BTC thing is like Quantum Mechanics. It defies common sense. It defies common sense to me that an entry in a ledger with no other meaning has value just because it exists or just because it records an earlier transaction. Arguing that it’s scarcity gives it value is applying common sense but since the whole concept fundamentally abandons common sense why can’t we abandon the scarcity requirement as well. Some folk think you can anyway; not me as I am too set in my ways to have the courage to abandon common sense in the first place.Satoshi's game theory is underrated. How do you launch a monetary system with an initial value of zero and get it to critical mass? How do you establish any initial value at all or get people to care about it until it is worth something. It's chicken and egg. Fixed supply and front loaded distribution encourages and rewards the early adopters and helps bootstrap the system.
How is an alt-coin with unlimited supply going to bootstrap itself?
Au contraire, governments are gold to socialists...big government, small industry and all that. It's the central banks set up to make the rich richer that are evilnotice I don’t say governments as your faith holds these to be evil)
Duke, how I LOL'd !!!!You state that fiat currencies devalue and deflate. You obviously enjoy name calling but in fact these two are opposites, it’s like calling Kim thin and fat at the same time (you would never do that I know, Kim is perfect).
You state that fiat currencies devalue and deflate. You obviously enjoy name calling but in fact these two are opposites
The Wolf of Wall Street is calling it a scam:
http://www.dailymail.co.uk/news/article-5185485/Wolf-Wall-Street-says-Bitcoin-huge-scam.html
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