Author Topic: The truth about BitCoin and the world economy  (Read 163 times)

ArnoldW2

  • Trusted Member
  • Guru
  • ******
  • Posts: 496
    • View Profile
The truth about BitCoin and the world economy
« on: January 09, 2018, 10:48:43 pm »
Bitcoin Isn’t the Bubble — The Global Financial System Is
I agree with most of what the author of this article wrote.  Here are some key excerpts:
Quote
For one thing, bubbles don’t do what bitcoin has done since its inception in 2009…They don’t come right back a couple of years later and soar again to a new price 10 times greater than the previous bubble’s high, which is what bitcoin has done after each one of its three or four previous “bubbles” burst.

When a real bonafide bubble bursts. It stays below the prior high for decade at least, sometimes forever.

While we’re on the topic of bubbles, it seems the truly gigantic bubble in the world isn’t bitcoin, but rather the global debt market. This leviathan now stands at around $233 trillion, or 318 percent of global GDP. Even more troubling, an estimated $11 trillion of government debt now trades at negative yields. This means whoever is buying this paper is doing so despite the fact they are guaranteed to lose money on the “investment.” Much of this buying has been propelled by central banks which can print their own currency and buy debt indiscriminately. This is not characteristic of a healthy financial system (particularly so many years into a global recovery), but rather a zombie one that’s been artificially propped up since the financial crisis.

The rise of bitcoin foreshadows the emergence of something potent and new in the realm of money and finance, which also happens to be something the world desperately needs.

http://thehill.com/opinion/technology/367768-bitcoin-isnt-the-bubble-the-global-financial-system-is


Understanding the NonCOINformist
This is another very worthwhile read.  Some key excerpts are:
Quote
The argument most used against Crypto-assets is that it is a bubble like the Tulip bubble 500 years ago. I would venture to guess that 90% (99.9%?) of the people making this argument know nothing about the tulip bubble other than they read somebody else’s post that Bitcoin = Tulip bubble and it fits with their negative narrative against Crypto-assets.

The other argument that I hear less now but by those with the least amount of research is that Crypto-assets will fail because ultimately its only purpose is nefarious and clandestine and that eventually all governments will outlaw it.

These people fail to realize/admit almost all crime is greased by cash, either US dollars or the other fiats, and nobody has thought to outlaw USD.

cash has no intrinsic value and in fact, most of our US dollars are entirely in digital form. When its said the government is printing money they are just changing some numbers in the ledger. Its the monetary equivalent of all music going from vinyl to iTunes.

But what intrinsic value does gold really have? Its a rock that people say has value.

Once you get a certain mass to own Bitcoin, I truly believe it has a NETWORK EFFECT that is more powerful than corporate economics.
https://www.linkedin.com/pulse/understanding-noncoinformist-marc-baskin/



unix

  • Trusted Member
  • Wise Sage
  • ******
  • Posts: 3707
    • View Profile
Re: The truth about BitCoin and the world economy
« Reply #1 on: January 11, 2018, 05:39:38 pm »
I would jump on the BTC bandwagon *if* the rules were such that it could never be expanded. If they agreed on a fixed amount of currency and that was it. 10 million or 5 thousand.

Here is an economic truth #999 *drumroll*

The quantity is irrelevant. Any amount of currency will do, because each individual unit of currency, crypto, gold, paper or seashells will adjust its purchasing power to reflect the quantity.  It's not necessary to grow the currency at all to have a functioning economy.

e.g. you can make 1 bitcoin per month or 1 dollar per month if a car costs 5 dollars and a meal 1/4 cent.

The fatal flaw in this cryptocurrency, as I see it, is all this mining bullshyt.   this means someone can run a mining farm and constantly devalue the currency at my expense. they make coins at the expense of non-mining members.
Brawndo. It's got what plants crave.