Re:The Bitcoin bubble – Greater fool theory
by omio on Thursday November 09, 2017 @10:09AM
(#15663004)
Bitcoin may be a finite supply but cryptocurrencies in general are infinite. So can you really say it is a fixed monetary system?
Re:The Bitcoin bubble – Greater fool theory
by beefield on Thursday November 09, 2017 @10:24AM
(#15663128)
Each one of the cryptocurrencies I have encountered relies on the idea that the supply is somehow predefined.
Give me a cryptocurrency whose supply is adjusted based on the needs of their users and I am interested. Give me a cryptocurrency that allows heavily negative interest rates for savings to embrace current consumption in the economy over hoarding of "money" and I am interested. But these are complete anathema for the current cryptocurrency folks.
Re:The Bitcoin bubble – Greater fool theory
by omio on Thursday November 09, 2017 @11:13AM
(#15663561)
It can be done easily. I would say it will be done in the future by governments and forced on us. The amount of control a government would have with a forced cryptocurrency is the only problem I see.
Re:The Bitcoin bubble – Greater fool theory
by beefield on Thursday November 09, 2017 @11:59AM
(#15663939)
Yes, easily if it is made by government. But if you wanted to do that without government help enforcing things bit in a distributed manner, I find it a bit more difficult.
Re:The Bitcoin bubble – Greater fool theory
by cableshaft on Thursday November 09, 2017 @05:45PM
(#15666409)
There are cryptocurrencies out there that are inflationary, although it's a set inflationary amount. Ethereum and Dogecoin are two of them.
Re:The Bitcoin bubble – Greater fool theory
by stevep98 on Thursday November 09, 2017 @10:08AM
(#15662996)
I wonder whether scrutiny of those tax avoidance schemes revealed in the paradise papers or Panama papers will lead to those investors moving their funds to bitcoin.
Re:The Bitcoin bubble – Greater fool theory
by bringtheaction on Thursday November 09, 2017 @10:14AM
(#15663034)
Rather they would use a crypto currency with actual anonymity don't you think?
I'm not going to mention it by name lest someone thinks I'm here to "shill" it (which btw I'm not, I only hold BTC and ETH currently).
Re:The Bitcoin bubble – Greater fool theory
by havetocharge on Thursday November 09, 2017 @10:36AM
(#15663235)
Well said. Credit is unlimited and it propelled real growth in the past. The sole use of Bitcoin would make this capability an anti-pattern.
And claiming that bitcoin's success would be bankers loss indicates that you don't quite get what is the utility finance sector creates. One of the main things banks do is they convert short term deposits to long term loans. There is nothing in bitcoin that reduces the need for that service in our economy. There were banks at gold standard times and there will be banks in the extremely unlikely world where bitcoin is main currency in a society.
There is no mechanism in bitcoin that would manage the volatility of the currency (against the price of bread and butter, not other currencies) That in itself makes it DOA as a proper currency. Further, even if that was sorted out and a society would want to have bitcoin as their currency, why the f*ck (pardon my french) the society would want to give the seignorage to bunch of cryptonerds? It is not like it is difficult to make a fork.
I am not mad about missing one more tulip bubble/ponzi scheme. I am mad that people never seem to learn.
Modern money is debt. It is a marker who in the society is owed and how much. Thinking that those markers should have fixed supply is just not smart.