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Bitcoin Price Hits Fresh Record High Above $2,200 (cnbc.com)
An anonymous reader writes: Monday marks the seven-year anniversary of Bitcoin Pizza Day -- the moment a programmer named Laszlo Hanyecz spent 10,000 bitcoin on two Papa John's pizzas. More important than the episode being widely recognized as the first transaction using the cryptocurrency is what it tells us about the bitcoin rally that saw it break through the $2,100 mark on Monday. Bitcoin was trading as high as $2,185.89 in the early hours of Monday morning, hitting a fresh record high, after first powering through the $2,000 barrier over the weekend, according to CoinDesk data. Throughout the weekend, the value of cryptocurrency was looming around $2,000.
It's the online extortion racket that is creating a big part of this rise in the price of bitcoin. Would it really have gone up so much if so many people weren't being asked to buy and send it to criminals as a result of viruses and malware? The problem with that is that it is increasingly becoming seen by the general population as the way for criminals to make and move money, therefore it is becoming ever more tainted.
Deflation and Inflation are not a bad thing on their own.
If their rate is in balanced with the rest of the economy it isn't that big of a deal. If the economy slows a relative deflation is a good thing, because it will make our prices cheaper so it would be purchased more from other economies.
Inflation when the economy is good is also a good sign. As we can purchase more from cheaper economies.
The problem is when these go at a rate faster then the growth of the actual economy.
Deflation during a strong economy, causes over consumption where people buy things that they cannot really afford for the long term.
Inflation during a week economy, causes under consumption where people can't buy things that they need to simulate the economy.
If something is so important that you feel the need to post it on the internet... It probably isn't that important.
Here is the problem: Bitcoin, by design is slowly limiting the amount of bitcoin available (this is similar to the availability of gold). So each bitcoin is worth more. I as a worked want to get paid in a fixed amount of bitcoin every week. I don't want to get paid on a floating amount based on daily trade values of the currency. Trying to budget for anything when you don't know if you are getting paid 1 bitcoin, 2 bitcoin or 1.76543 bitcoin this week would drive people mad. As more people use the currency, more currency is needed for people to use. Otherwise no one has currency to use and the currency is worthless to use.
The average person wants a currency that has a stable value and is easy to spend and be paid with. Playing the "well, we need to check its trading value before we can pay you" game will drive people to riot. Check out the bank runs and currency fluctuations of the 1920's and 1930's as a good example. Governments clamped down on a lot of the excesses at that point.
Architectural plans are like computer source code with a couple of differences: You only compile once.