The profit is the exact amount that was removed from circulation. By spending that profit, the government reintroduces it in circulation. In other words, the lost money is restored.
There is literally no value to a bitcoin if no one else values it.
Correct. Same is true for regular money. To a large extent, it's also true for gold. Gold has some utility value, but most of the price is just expectation that others will value it as much as you do.
The opposite is true as well. As long as other people are valuing it, why should I not do the same ?
you'll still have a painting to look at.
If you just wanted to look at it, you can have a decent artist paint you a good replica for a small fraction of the price. You can't do that with bitcoin.
But I wasn't necessarily talking about the Mint replacing someone's individual coins or bills. What the Fed does is measure inflation. When money disappears from circulation, the inflation rate is reduced, and that causes the Fed to lower interest rates, which causes new money to be created.
That is a statement of faith, not of fact and is unsupported by any evidence that we could likely agree upon.
Without new events, the value has to stabilize. And you can't have unlimited new events. But note that I didn't exclude the possibility that this value could be $0:)
Yes you can profit from volatility. That however is in direct opposition to the idea that bitcoin is reliable as a store of wealth.
I didn't mean profit from volatility. I mean profit from being an early adopter. Bitcoin is going through a phase of price discovery right now. Once it is stable, and *if* at a price larger than $0, risk-averse people can use it as a store of wealth. If you don't mind some risk, and you can see the potential for further growth, you can get in now.
Fixing the money supply to a finite resource (real or calculated) is by and large not a good idea
That depends on your purpose. It's a good idea if you mostly use it for storing your wealth, and doing occasional transactions. It's not a good idea if you want to run a national economy on it. I don't think anybody is trying the latter.
Slashdot Mirror
Especially don't claim anything is dying before Netcraft has confirmed it.
since google doesn't know what your situation is
But Google knows. It has seen all your previous queries.
You can if you rebuild your house on 26' high reinforced cement columns and trade your car for a boat.
This. No need for land, we can all just live in the ocean. Do you like Kevin Costner ?
Human population is already beginning the process of declining
Life... ehmm.. finds a way.
150 milliwatts per square meter of ice...which is a lot.
The rise in CO2 causes an extra warming of 1500 milliwatt per square meter. And the sun is hitting a lot more square meters.
The profit is the exact amount that was removed from circulation. By spending that profit, the government reintroduces it in circulation. In other words, the lost money is restored.
There is literally no value to a bitcoin if no one else values it.
Correct. Same is true for regular money. To a large extent, it's also true for gold. Gold has some utility value, but most of the price is just expectation that others will value it as much as you do.
The opposite is true as well. As long as other people are valuing it, why should I not do the same ?
you'll still have a painting to look at.
If you just wanted to look at it, you can have a decent artist paint you a good replica for a small fraction of the price. You can't do that with bitcoin.
The vast majority of these people aren't going to pay taxes on the gains
Many of them aren't even US citizens. Good luck taxing them.
You can divide the remaining bitcoin into smaller units.
they could just buy a few millions of them
And how much would that cost, do you think ?
If they do not get them back, it is pure profit.
The profit is the replacement.
At some point national governments will start issuing their own currency in blockchain form. They will define the parameters, and will do the mining
What's the purpose of a blockchain then ? If there's one centralized trusted party, you might as well keep everything in a simple database.
Burn them, or shred them in a cross-cut shredder. Ask Uncle Sam to go make them again for you
They will, as long as the damage still allows them to verify them:
https://www.wikihow.com/Get-Da...
But I wasn't necessarily talking about the Mint replacing someone's individual coins or bills. What the Fed does is measure inflation. When money disappears from circulation, the inflation rate is reduced, and that causes the Fed to lower interest rates, which causes new money to be created.
That is a statement of faith, not of fact and is unsupported by any evidence that we could likely agree upon.
Without new events, the value has to stabilize. And you can't have unlimited new events. But note that I didn't exclude the possibility that this value could be $0 :)
Yes you can profit from volatility. That however is in direct opposition to the idea that bitcoin is reliable as a store of wealth.
I didn't mean profit from volatility. I mean profit from being an early adopter. Bitcoin is going through a phase of price discovery right now. Once it is stable, and *if* at a price larger than $0, risk-averse people can use it as a store of wealth. If you don't mind some risk, and you can see the potential for further growth, you can get in now.
The historical lessons of gold and silver as deflationary currencies are completely lost on the cryptocurrency crowd
What lessons ? The gold bubble has popped and people owning a handful of gold coins are now holding the bag ?
We're not mining any new van Gogh paintings, and they are still pretty valuable.
The Jurassic period. O2 in atmosphere was 130% modern levels. CO2 was at 1950ppm, 5-7 times modern levels
https://www.skepticalscience.c...
It's beginning to feel a lot like late 2000 again.
In the year $2000, Amazon was trading for $100 a share, and Apple was going for $4.95
Which has a lot to do with why we don't base our money supply on the gold standard anymore.
I agree, but people are using gold as a safe haven to store wealth, which was my point.
Bitcoin as a store of wealth? Maybe if you like a HUGE amount of risk on a highly speculative asset.
Over time, the volatility will get less, and the value will stabilize. Right now, the risk is high, but potential rewards are high too.
More than a few would like to replace all fiat currencies with bitcoin or something similar.
There are nutcases everywhere. None of these people are in a position of power where they could actually accomplish this "vision".
Mostly because Bitcoin has no value beyond speculation
Shifting the goal posts, I see.
every speculation bubble in history has had more people lose than win trying to time that.
The speculation bubble of gold has been surviving for thousands of years.
US coins/bills that are lost are simply made again. You can't do that with bitcoin.
Back in the beginning when you could do that on your home PC in a reasonable period of time.
If you did it back in the beginning, you would have mined multiples of 50 coins.
Fixing the money supply to a finite resource (real or calculated) is by and large not a good idea
That depends on your purpose. It's a good idea if you mostly use it for storing your wealth, and doing occasional transactions. It's not a good idea if you want to run a national economy on it. I don't think anybody is trying the latter.
Well, at least it's s*x and not sex.