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shares crash worldwide
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Hang on a sec, now you're conflating different things.
Under the Gold Standard there was FRB: each ounce of gol had multiple claims on it. Indeed that's what led to its ultimate collapse in 1971. The French wanted 'their' gold out of the system and there was effectively a bank run, just the same as happened with Northern Rock really.
Debt has acted as money since at least the Roman times so really if we are going to use Bitcoins solely as a currency with no FRB as seems to be implied in dryhat's posts then really we are looking at a deflationary world if GDP is going to continue to rise as if the money supply is constrained but the number of goods and services rise then the goods and services need to cost less each. This is what happened in the west in the 1870s: post Civil War USA and also Germany and France expanded their economies rapidly and the money supply couldn't keep up. That led to deflation in the early part of the decade and a vicious depression in the second part.
I still fail to see any advantage to Bitcoin over a fiat currency issued by a Government. In fact in many respects it combines the worst aspects of in specie and fiat currencies being at the same time constrained without having the (mostly psychological) security of having something tangible as money.
The sole advantage to Bitcoin is that it operates in a shadow banking system that has no AML controls. No AML controls make it very good for people who need to get around AML, e.g. drug dealers.
Ultimately, the US and EU will get their act together and put Bitcoin on the suspect list for money laundering and the gig will be up.
If Bitcoin does manage to have all the advantages and none of the disadvantages of in specie money (highly unlikely IMHO but that appears to be your position) then it is doomed to failure due to Say's Law: bad money drives out good. Bitcoin would become purely a store of wealth, rarely if ever changing hands. At that point it stops performing one of the chief functions of money and stops being money.
HTH.
I am not arguing a replacement ...Although I admit that having an alternate money supply out there may pose a threat to the present supply being used ...But many dodgy currencies have that problem ..The locals will give you a better rate for dollars or pounds than the local spondaloosees
I am trying to say that something can still have a value even if it does not replace or do everything you want it to.
Gold has severe limitations ..especially as regards how much you have to spend to keep it safe if you wish to send it to me...even cash has that problem...
you can't deal with me one to one as unfortunately, people and the system are not trustworthy enough to handle gold or cash ..the very reason banks and promissory notes developed.
Bit coins or many of the other electronic currencies solve that real problem ..the mote point is governments and banks lose a real reason for being in the process if you don't need the security they offer for transactions.
globalds, I just wonder what the plan to give change is when a single bitcoin might be worth a street of houses if it ever became popular. Seems that it would need a massive reduction in the value of the currency unit to achieve that, unless we want to talk in micro-bitcoins for buying food.
No, I wouldn't say that gold was designed for speculators. Gold mine production is fairly stable and quite well matched to demand. Bitcoin has a designed in halving of production every four years, nicely short for those who want to make speculative profits based on a lack of money supply.
Bitcoin is like saying Gold ..
you can divide gold into more manageable units and the same applies with bitcoin. Did I read in this thread it goes to 8 decimal places ..I see 4 places on the page I use.
So if I said it was a million pound note ..you could still get a penny out with 8 digits ..??
As for the mining of bitcoin. I hope I have this right ?
part of the mining process is the computing of transactions the encryption work ..this work requires computer time and the bitcoins being discovered are reward for this work .
due to not only moors law ..but also the ingenuity of people when looking for profit if you didn't make it harder ..the coins detection would be increasing far too rapidly ...
For a while it was worth botnets doing mining rather than the traditional DDos attacks ..but new hardware dedicated only to mining and I suppose the drop in value has reduced this ,so I hear
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How to keep it safely and to transport it without creating an unacceptable risk and if you intend to pay with it ..how you safely get it to the other person and then how they secure it .
What makes you think anything stored as computer code, regardless of encryption, physical and virtual barriers is remotely safe?"If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0 -
grizzly1911 wrote: »What makes you think anything stored as computer code, regardless of encryption, physical and virtual barriers is remotely safe?
I would say comparatively safe ..
Which is as good as you need ...0 -
I would say comparatively safe ..
Which is as good as you need ...
I think I would prefer to have 80 x 25g of gold stashed around my house than I would on some cyber geek mobster controlled servers hosted in god knows where that could no doubt be tapped into by the NSA or GCHQ should they decide to.
Appreciate they would be more difficult to trade with"If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0 -
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grizzly1911 wrote: »What makes you think anything stored as computer code, regardless of encryption, physical and virtual barriers is remotely safe?
Put it that way, the entire global financial system is just numbers on a computer screen. How many numbers are there? infinite! So they can keep expanding the numbers supply until a loaf of bread costs a trillion units of whichever fiat currency? Min wage could be a couple of trillion per hour. But then the central banks would have to create trillions of trillions of units every month to keep things proped up.
I think there would be a collapse of confidence before we get there. But that could be years away yet.
What many do not understand is that hyper inflation is not a monetary event. It is a confidence event. The entire world monetary system is now just a con game. When the con is up, and confidence is lost its game over for fiat currencies.0 -
Put it that way, the entire global financial system is just numbers on a computer screen. How many numbers are there? infinite! So they can keep expanding the numbers supply until a loaf of bread costs a trillion units of whichever fiat currency? Min wage could be a couple of trillion per hour. But then the central banks would have to create trillions of trillions of units every month to keep things proped up.
I think there would be a collapse of confidence before we get there. But that could be years away yet.
What many do not understand is that hyper inflation is not a monetary event. It is a confidence event. The entire world monetary system is now just a con game. When the con is up, and confidence is lost its game over for fiat currencies.
why do you say hyper inflation is not a monetary issue?0 -
You don't.I hope I have this right ?
So many mistakes in just a few words:due to not only moors law ..but also the ingenuity of people when looking for profit if you didn't make it harder ..the coins detection would be increasing far too rapidly ...
1. The faster computer and more computers parts are taken care of by increasing the difficulty of mining about every two weeks.
2. The total production is halved, not the number of bitcoins produced by a particular amount of computer power. So throw a hundred times as much computer power at the problem and you still end up with say 50 instead of 100 new bitcoins mined as before even though you're now using 200 times as much computer power per bitcoin.
3. Mr. Moore spells his name with an e.0 -
When the con is up, and confidence is lost its game over for fiat currencies.
Are you rooting for fiat currency collapse in the hope it will wipe out your CC debts?We have total over ten grand in CC balances. We keep swapping it around to try and get 0%, but its stressful. We may have to default in the end. Our income is going down and cost of living is going up. There is no way we can pay it all off. I fear we are not alone. But for now they will keep lending us and my wife keeps spending.0 -
todays close 6028,will shares rally tomorrow or dip below the 6000?0
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