If you think the Fed will stop hiking, look at Bitcoin

Frederick Foresight said:
So how are you a shareholder in a medium of exchange? How would that concept transfer to currency, which you want BTC to replace? You're all over the board here.

But how does that alone create value to the thing itself? Near as I can figure, you're conflating an infrastructure for exchange with the value of the thing being exchanged. And so how does that profit you as a "shareholder?" Because some whales bumped up the price?

Wait. So is BTC the bank or the thing stored in the bank?
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Yes, if you own bitcoin the digital asset, you are part owner of the Bitcoin monetary network and bitcoin is traded on exchanges all over the world as well as p2p markets, i.e. restaurant in Lugano or a vegetable market in Turkey

All of the Bitcoin miners and their infrastructure costs and operational costs exist for bitcoin the digital asset

If you bring up imaginary whales as your argument, then you have to look at your motives

Yes, Bitcoin is a bank, when you buy bitcoin using your fiat currency, you have effectively opened a digital bank that you take full ownership, no need for custodial intermediaries, you simply store in your own wallet

This is one of the reasons El Salvador presented to their lawmakers that over 70% of the population was unbanked even after decades that banks have been there

You're getting overwhelmed by the many use-cases of Bitcoin and you try to paint them in the negative. Bitcoin the digital asset can be used as MoE, but also as investment asset, but also a transfer of value mechanism across borders instant settlement and for low costs and many more
 
Baron said:
If you consider the most powerful computer network on this planet working around the clock to ensure the integrity and security of BTC transactions to be "nothing", then sure, it's backed by "nothing".
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Unless they are making offers to buy Bitcoin then they're not "backing it".
It's really that simple.

johnarb said:
Bitcoin's value is greater than the sum of all its parts = fraud-free, 24/7 operations
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Hahaha! Nothing says fraud free like a new crypto firm failing every five minutes.

So a long as you perfectly generate your keys, never use a computer with any security flaws whatsoever, never make any mistakes, and magically find a bunch of counterparties to do business with that will transact directly in Bitcoin and are willing to provide all services and products up front you're fine...
As long as you don't care about privacy either, or getting hauled in by the government.

Bitcoin is a ridiculously flawed system, but all these people keep clinging to it becaus they want to get rich quick, not to help oppressed people in poor counties.

Oppressed people would be much better served by a stable currency, that was administered by a collection of reasonable people.


https://xkcd.com/538/
 
engineering said:
Unless they are making offers to buy Bitcoin then they're not "backing it".
It's really that simple.
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Huh? The price of one BTC has gone from zero to $25,000.00 over the past decade, so there's definitely no shortage of offers for it.
 
Baron said:
Huh? The price of one BTC has gone from zero to $25,000.00 over the past decade, so there's definitely no shortage of people making offers on it.
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But you are just changing the subject.
You made some specific statements about what was "backing" Bitcoin.

I'm pointing out the the only people backing it are they people willing to buy it. There are plenty of others willing collect money as an intermediary, or to be the next FTX.

I will concede that there are many willing buyers at the moment, but not everyone even vaguely involved with Bitcoin should be construed as backing it.
 
engineering said:
I'm pointing out the the only people backing it are they people willing to buy it.
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BTC is a digital asset. I wonder why you wouldn't think the thousands and thousands of people running machines to mine BTC, validate transactions, and secure the network aren't backing it. If it weren't for their ongoing efforts there wouldn't be any BTC for anyone to buy.
 
Baron said:
BTC is a digital asset. I wonder why you wouldn't think the thousands and thousands of people running machines to mine BTC, validate transactions, and secure the network aren't backing it. If it weren't for their ongoing efforts there wouldn't be any BTC for anyone to buy.
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That's what bothers me. You are relying on miners to keep the system going. At what price does it become unprofitable to mine? No miners; no system!
Once the final bitcoin has been mined, how are miners going to be paid? If the fees are high enough to keep the system going, will they be too high to make small transactions?
 
engineering said:
Hahaha! Nothing says fraud free like a new crypto firm failing every five minutes.

So a long as you perfectly generate your keys, never use a computer with any security flaws whatsoever, never make any mistakes, and magically find a bunch of counterparties to do business with that will transact directly in Bitcoin and are willing to provide all services and products up front you're fine...
As long as you don't care about privacy either, or getting hauled in by the government.

Bitcoin is a ridiculously flawed system, but all these people keep clinging to it becaus they want to get rich quick, not to help oppressed people in poor counties.

Oppressed people would be much better served by a stable currency, that was administered by a collection of reasonable people.
More...

You're conflating companies or people that commit fraud with Bitcoin but this is incorrect

Give me the txid that was fraudulent on the Bitcoin blockchain and I'll take a look

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If someone paid for a good or service using a check and the check bounces, that is fraud, the person spent more $ than he/she had in the bank account

If someone buys a laptop and then reports it to the cc as unauthorized and gets the charge reversed, that is fraud

If someone sells a solid gold bar for $ and the buyer later discovers the core is some other material, that is fraud

None of those are possible on the Bitcoin monetary network. Every transaction is valid and fraud-free when you use the Bitcoin monetary system

That is why the Bitcoin monetary network settled $8 Trillion of value last year

This is why the market cap value of Bitcoin will eventually be over $200 Trillion and one bitcoin will be worth over $10M each

You cannot spend 0.5 btc if you only have 0.45 btc in your wallet, you cannot pay someone with bitcoins and then later reverse it so you can get your bitcoins back, and you absolutely cannot spend fake bitcoins


https://www.nytimes.com/2021/02/16/business/citibank-revlon-loan.html
 
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