Main Area and Open Discussion > Living Room

Bitcoin theft causes Bitfloor exchange to go offline

<< < (2/5) > >>

Renegade:
SpoilerGovernments? Money? Governments do not control the money supply... That's left up to private banks... The name of the government is on the money, but that is where it ends. :( Seriously. Look it up. The last remaining government backed currencies include Iran and North Korea.... Don't believe me? Look it up. :) ;) (I think Cuba and Syria are the other 2 - not 100% certain there, but 90%.)

Paul Keith:
Since nobody is using them, they will not become popular...-vlastimil
--- End quote ---

I don't understand money but isn't this less of a deflationary problem than a general adoption problem? That is to say, they are not popular so barely anyone uses them and since nobody uses them/knows about them globally then it creates an identity problem not founded in most currencies that ride on state authorization?

If that is the case, then wouldn't the deflation problem be more of a feature than a flaw?

That is to say, if no one uses them, no one can get rich off them so most of the early adopters are actually neutralized from adopting the same hoarding approach they might adopt in other forms of currency.

Yes, that also means there's a high chance bitcoin is never adopted by buyers and sellers but as long as the deflation factor exists, there's also a strong chance of preventing early adopters from being hoarders and so long as that mentality does not foster, the only problem of Bitcoin is adoption instead of market manipulation pre-mass adoption.

Not that I use Bitfloor but I think this is a blessing in disguise. Bitfloor is part of a market manipulated concept to create a crevice for the Bitcoin flow and so long as people use such services and then be burned by such services, it helps bridge the trauma process for understanding why the lack of such an appearance are an improved feature for Bitcoin as a currency compared to the traditional idea of needing a form of exchange/storage service.

Also I think as with any currency, the problem is not government backing but people backing. I don't mean people adoption either. I mean the idea by which a certain concept becomes a "Duh!" principle to a large group of people that the existence of such a concept becomes accepted "as is" no different than say a God or a plant.

Government backing would just lead to bitcoin banking where not just government but online services try to paint Bitcoin as something it is not. On the plus side, government backing means dumb citizens like me must reconfigure our idea of transactional currencies especially where most poor people's concept of money coming from the ATM as a salary provider.

Also I think in this case of simplicity, government and private banks being lumped together is a much simpler version than trying to separate government from private banks especially in a time when there are many people who still believe in the idea that there is a heroic individual that government cannot bribe away. In other topics like the Federal Reserve, yes, separate gov from private banks but Bitcoin? I'd rather have my decentralized vs. oligarchy confusion cleaned up first and I think most of the world especially those living in the backwards part of the world would love to have that cleared up first too when it comes to Bitcoin.

tomos:
It has a fatal flaw - limited amount of coins and hence unavoidable deflation problem.
-vlastimil (September 05, 2012, 12:27 PM)
--- End quote ---

Vlastimil, what do you mean by deflation here - do you mean a decrease in the purchasing value of the money?

I would have thought "limited amount" would have lead to inflation of it's value (?)
But of course if it's not being used the value could deflate...

vlastimil:
I meant deflation of prices. If year ago you could buy 1 unit of something for 1 bitcoin, now you can buy 3 units of the same thing for the same bitcoin. Nobody invests bitcoins, cause they themselves seem the best investment and always will seem that way due to the fixed amount of coins. The larger the number of people who are using bitcoins the more valuable they are (more people - same amount of coins). So, if you have a bitcoin, you should tell all your friends about it to increase its value. Bitcoins currently run on pure PR, they are not backed by and accepted by a large enough number of merchants as real currencies are.

It is unimaginable that bitcoins are mainstream, because that would mean that the currently rich people would have to give away half of their wealth to a few bitcoin early adopters. Not going to happen, rich people (usually) are not that stupid.

Still, I hope for bitcoin 2.0 that would fix the issue and would be the right thing for online purchasing, not for investing.

Stoic Joker:
I've often wondered about the whole selling time in the CPU distributed computing thing. How (if at all) profitable is/could Bitcoin Mining be?

Navigation

[0] Message Index

[#] Next page

[*] Previous page