BITCOIN

Adyinvestment

lozzy1965 said:

But how does the fact that your 1 unit of currency, which has been split into 2 units now so that 2 people can own it, prevent the pizza seller telling you that your 2 pizzas now cost more?  It's supply and demand.  Bitcoin will not remove inflation.

You are getting a little confused here, no extra Bitcoin is created and the Pizza would not cost more.

It is the same as a Pound - this can be split into 50p, 20p etc, but at the end of the day 1 Pound is still 1 Pound regardless of how many smaller coins are used.

Malthusian

lozzy1965 said:

But how does the fact that your 1 unit of currency, which has been split into 2 units now so that 2 people can own it, prevent the pizza seller telling you that your 2 pizzas now cost more?  It's supply and demand.  Bitcoin will not remove inflation.

It will remove inflation but perhaps for a different reason than you are thinking.

If the money supply is fixed (as it is for Bitcoin) and the production of goods and services increases (which it will, forever and ever amen, unless the world enters a new Dark Age), then the result is deflation. Actually "result" is the wrong word, production expanding faster than the money supply is the definition of deflation.

Deflation is fatal for economies because instead of spending or investing their money, people hodl it waiting for number go up. Falling spending and investment -> prolonged recession and mass unemployment. It doesn't matter whether an economy runs on fiat cash or Bitcoin, deflation has the exact same result for the economy.

But I won't dwell on that further because it was already done to death on page minus several hundred.

Subdividing a currency is not inflation. If the smallest coin in the economy is currently one silver sesterce which is also worth one pizza, and to make small transactions easier I mint a load of bronze asses and decree that 1 sesterce = 2 asses, one pizza still costs 1 sesterce or 2 asses. Same applies if it's digital tokens rather than metal.

lozzy1965

Yes, thank you for the above two replies.  I wasn't really meaning to imply that goods will go up simply because you subdivide the lowest currency unit down.  I was running with the previously given example and ended up talking utter nonsense
My point was intended to be, and not made very well, that there is a limited supply of Bitcoin which is not spread very evenly across the world population and that somehow, my gut feeling was that may lead to inflation.  Unfortunately I'm not clever enough to work out why   And moreover, the deflation explanation made by Malthusian (above) does seem more plausible.

Scottex99

There are whales for sure. The genesis wallet owned by Satoshi is untouched and has something like 900,000 BTC in it (including some associated super early wallets).
Any individual whale or group of them (pod, lol) could in theory all dump in coordination to try to nuke the price but generally it doesn't seem to happen often and the only real reason for doing that would be then to buy up the market again lower which in theory just pushes the price back up.
In short, there's always going to be an uneven spread, depending on how early you got in or how much you invested etc. Same as some oligarch having $100m and some homeless kid having $1 in the current world.
A good target for a normie is to get to 1 BTC in their lifetime

mooneysaver

https://www.businesswire.com/news/home/20220323006002/en/SafeMoon-Appoints-Three-New-Members-to-its-Leadership-Team-as-the-Company-Moves-to-Next-Stage

Injecctt it

Scottex99

mooneysaver said:

https://www.businesswire.com/news/home/20220323006002/en/SafeMoon-Appoints-Three-New-Members-to-its-Leadership-Team-as-the-Company-Moves-to-Next-Stage

Injecctt it

Hahaha, GL with that

Zola.

well well well, Russia are now saying they will soon take payment for Oil & Gas in Bitcoin, something I believe I stated could happen with a super power somewhere in this thread a long time, before this horrible war even happened.

Now Yellen (a massive bitcoin hater) is conceding and the all too familiar bitcoin game theory is well and truly in play...

https://www.youtube.com/watch?v=2Y0A8PvaloI

We have Brazil introducing a bill to make Bitcoin legal tender....we also have the likes of Rio de Janeiro now accepting bitcoin for tax payments...

And lastly, we have Exxon, mining bitcoin to lower their emissions (I thought bitcoin burned the planet?)

https://www.cnbc.com/2022/03/26/exxon-mining-bitcoin-with-crusoe-energy-in-north-dakota-bakken-region.html


it's all probably nothing

Zola.

Rumours that Apple are tipped to embrace Bitcoin with Apple Pay and a partnership with Strike, the Bitcoin investment app.

lozzy1965

Zola. said:

well well well, Russia are now saying they will soon take payment for Oil & Gas in Bitcoin, something I believe I stated could happen with a super power somewhere in this thread a long time, before this horrible war even happened.

Now Yellen (a massive bitcoin hater) is conceding and the all too familiar bitcoin game theory is well and truly in play...

https://www.youtube.com/watch?v=2Y0A8PvaloI

We have Brazil introducing a bill to make Bitcoin legal tender....we also have the likes of Rio de Janeiro now accepting bitcoin for tax payments...

And lastly, we have Exxon, mining bitcoin to lower their emissions (I thought bitcoin burned the planet?)

https://www.cnbc.com/2022/03/26/exxon-mining-bitcoin-with-crusoe-energy-in-north-dakota-bakken-region.html


it's all probably nothing

Hmmm, not entirely sure it's surprising to hear Russia announce that, given the financial constraints imposed on it by most of the rest of the world.  It's certainly not a good thing if Bitcoin allows them financial oxygen!

RolandFlagg

Tom Lee sums what you need to do for the next decade in just over two minutes:

https://youtu.be/DdIRwyNL32s