Are Bitcoins The Future?

Re:Are Bitcoins The Future? by snitko on Friday April 05, 2013 @05:24AM (#5497418)

You won't be paid less. The money you'll be paid would worth the same, numbers don't matter. Also, your savings would increase in value as everyone else's.

I find it very common even here on HN that many people fall for this fallacy that money == value.

[ Parent | on HN ]

Re:Are Bitcoins The Future? by Nursie on Friday April 05, 2013 @05:38AM (#5497454)

You miss my main point - that the rewards of any economic growth produced by those doing productive work in a BTC economy is enjoyed by those hoarding, not by those producing. Work performed in the past is valued higher than work performed in the present.

As a result anyone with enough old money can parasitise on productive society forever, to the nth generation. And instead of doing so by (at the very least) stimulating the economy through investment, they can do it just by sitting on their mattress full of cash.

Again, why would I participate in an economy where my hard work is of direct benefit to people just sitting on cash?

[ Parent | on HN ]

Re:Are Bitcoins The Future? by snitko on Friday April 05, 2013 @07:05AM (#5497638)

That's a valid concern but it doesn't stand scrutiny. Production itself doesn't create deflation. If the number of goods and services in the world remains more or less constant, it means there is no deflation. At the same time, people will still be working and producing things.

It's only when money are invested then you have a surplus of things in the economy which deflates the money. By investing, hoarders allow others not-yet-rich people access to capital. Thus, if hoarders want to become richer they will have to make rich others too.

[ Parent | on HN ]

Re:Are Bitcoins The Future? by Nursie on Friday April 05, 2013 @07:11AM (#5497662)

"If the number of goods and services in the world remains more or less constant"

Does it though? I thought we were all addicted to growth? If we continue to have any growth then with a limited cash supply, each unit becomes worth more (deflation).

"By investing, hoarders allow others not-yet-rich people access to capital."

I'm not clear on how you think this works, because (AFAICT) hoarding BTC is just holding on to currency, not any sort of investment?

" Thus, if hoarders want to become richer they will have to make rich others too."

Or they can just sit on it while others do the work and achieve much the same with no risk...

[ Parent | on HN ]

Re:Are Bitcoins The Future? by snitko on Friday April 05, 2013 @08:00AM (#5497814)

Ok, I think you misunderstood my statement. I was saying this: if you want growth, you need to invest. If you don't invest, you don't get more goods and services in the economy. If you don't have more goods and services, each unit of money can't grow in value (e.g. no deflation) because there wouldn't exist more things you can buy. Thus, if you want money to increase in value, you have to invest.

It's a tricky circle, but once you understand it, it all becomes clear.

[ Parent | on HN ]

Re:Are Bitcoins The Future? by Nursie on Friday April 05, 2013 @08:26AM (#5497909)

Yes, but if currency is deflationary, it's best for me if someone else does these things and I just sit back and profit from my currency holdings.

[ Parent | on HN ]

Re:Are Bitcoins The Future? by snitko on Friday April 05, 2013 @03:48PM (#5500632)

Not necessarily. By investing you take your destiny in your own hands: you deflate your savings and also collect profits. It is not a given that those just sitting around will profit more from inaction, but it is true that you make them richer too. Well, I can live with that.

[ Parent | on HN ]