Discuss “Bitcoin as Money” below.
Loved the comparison of the printing press to breaking control of centrally controlled FIAT.
The worry can be with Bitcoin that the people who create currencies will start to fight Bitcoin as they don’t have control over it.
Bitcoin = Digital Gold
It’s amazing to know that every one of the specification of Bitcoin as money is million times better then the currencies today. It was about time. Life changer!
Very good to include this lesson in the training it is required to have some background what is money versus currency.
Bitcoin as money would remove most of the governments control. It would have little to no influence over monetary policies. Bitcoin’s neutrality would allow ideas and information to dissiminate without being over censored. It’s accessibility and future applications of the technology has the potential to impact trade and those around the globe.
Money works until the fiat system breaks down and then stops, bringing destruction thru out our society.
BTC’s has 4 key areas to provide future stability :
a) Monetary Properties b) PoW c) Monetary Policies d) Neutrality
I think the longer anyone with motivation to fight bitcoin continues to fight it the longer they will not be able to take full advantage of its use. Those people/organisations can only make it difficult for a percentage people passionate about the revolution that is bitcoin (which is consistently growing) can really only do so for so long before resistance against bitcoin becomes more effort than its worth. they’ll either have to cut their losses and jump ship to bitcoin or do an Athens and fade away.
Really enjoyed the reference to BTC being deflationary vs disinflationary - I fell right into that fallacy but now I know to avoid it!
Bitcoin is widely used as medium as exchange and it stores value!
IMO bitcoin is as they say, digital gold, but better. It’s secure, transferable, immutable and fungible and semi anonymous.
I love how the cryptography hashing ensures that the chain is secure, like number on pages, but based on the info of the previous page (block). The incentives built into blockchain is also excellent, because no man is doing something that does not benefit himself, even if the benefit is just feeling that you have done the right thing.
After reading the Bitcoin Central Bank article, which was filled with vocabulary I had to look up to get the full understanding of what was being said, I still have quite a few questions:
1- In the quote, “Rational economic agents hold a balance of bitcoins even if they have no bitcoin-denominated liabilities.” Who are the economic agents? The miners or the public in general who own bitcoin? And I’m not sure how to interpret the last part of the sentence about liabilities. Can someone please clarify?
2- I’d like to better understand what asymptotic money supply targeting (AMST) is.” From what I looked up, “In mathematical analysis, asymptotic analysis, also known as asymptotics, is a method of describing limiting behavior.” How can we translate this to relate to bitcoin? It will never be hyper inflated due to the limits imposed on the supply?? Another definition described asymptotics as follows: “becoming increasingly exact as a variable approaches a limit- usually infinity.” Again, I’d like an analogy to bitcoin here as I’m still a bit foggy on this “asymptotic” word.
3- Are legacy payment systems simply our current payment systems such as credit cards, electronic funds transfers, etc.?
Thank you in advance for any insights on this!
I read the interesting optional article, “Bitcoin Is A Platypus,” and it said that bitcoin "distributes “special dividends” (hard forks) like a stock”- How is a hard fork like a stock/ a special dividend??
Thanks in advance for responses!
I think one of the greatest things about Bitcoin is that when people first encounter it and try to figure out if it is money, they are forced to learn about the history of money and what it has become. Once they realize how bad central bank fiat currency is the argument for Bitcoin becomes much easier to understand.
CocoaCrypto, coming from Australia I am familiar with the Platypus and its a neat article comparing the animal to Bitcoin. The second thing I really like about Bitcoin is the fact that it covers so many disciplines. Maths, cryptography, economics, history, social studies to name a few. The fact that is so cleverly crafted and seems to offer a great solution to many problems across many disciplines is fantastic. Imagine for a minute how many people would not have died in wars if they had to be funded with sound money.
To quote Robert Kiyosaki,
Bitcoin is open-source people’s money which is not part of the system.
I have a question. What if a person or group with deep pockets ie Rothschild’s started buying up bitcoin and hoarding it. Wouldn’t tgat force up the price and then keep the price up by reducing supply (due to hoarding). Couldn’t that create a big bubble which would later be burst if they did a mass sell off causing the price to fall dramatically, meaning other hoarders would lose money. This could create a rollercoaster effect to destabilise bitcoin and prevent it being trusted or adopted on mass. Since there will only ever be 21 million bitcoin, please explain to me how there isn’t a danger of some bad actor buying enough of it up to create problems.
I am using bitcoin as a hedge to the inflating dollar. Bitcoin value won’t go up because it is really worth more, it will go up because the value of the dollar is going down.
Proof of works stands as itself.
Impressive how little it cost to move 300 0r 500 million BTC