Bitcoin

As previously discussed in this thread, what is happening with Bitcoin is the opposite of inflation. It is deflation, which creates a much different set of problems than does inflation.

 

Yes you're correct.

 

Yeah I see that now: a currency who's value (so far...) keeps trending up.

 

I wish them well, but I still want physical currency for now.

Back when I was sleeping through all of the advanced economics classes that I never went through, they used to say that "money" had to have certain properties:
durability, (?)
portability, (maybe TOO portable!)
divisibility, (CHECK!)
uniformity, (?)
limited supply, (???)
and......
acceptability (?)

Since economists are even more contentious than politicians, there are many variations of the "(insert made-up number here) characteristics of money." that bitcoin either meets all of, some of, or none of.

One example: (Miles Franklin)
(1) It must be durable, which is why we don’t use wheat or corn or rice.
(2) It must be divisible, which is why we don’t use art work.
(3) It must be convenient, which is why we don’t use lead or copper.
(4) It must be consistent,, which is why we don’t use real estate.
(5) It must possess value in itself, which is why we don’t use paper.
(6) It must be limited in the quantity that is available, which is why we don’t use aluminum or iron.
(7) It should have a long history of acceptance, which is why we don’t use molybdenum or rhodium.

Miles says that only GOLD and SILVER fit all seven characteristics, but not so long ago a friend wanted me to buy some of his gold that he was trying to sell short because he had fallen on hard times.
It's rather hard to get change for a Canadian Maple-leaf, even at it's assigned legal tender value of $50 (which I immediately offered!!)
When I handed him a pair of side-cutters and said that I wanted $100 worth.....he demurred.

I think he still has the coin.

I wish bitcoin well, but I think that it's a little light in some of the above qualities.
Some point out that this is also true of the $USD......but it IS backed by the world's biggest superpower.....for now, which is why a $100 bill is about as ubiquitous a currency as you will find at present, and I've always been able to get correct change for one, at least in some parts of everywhere I've ever been....

Since economics = politics, YMMV.

 

Which is exactly why such arbitrary rules are nothing but rough guidelines.

 

'not necessarily' being the operative term. we aren't necessarily in another real estate or stock market bubble.
we won't know unless we hear a pop.

 

too many dollars (or bitcoins as it were) chasing too few goods.

edit: credit comes in there somewhere. (someone else's bitcoins)

 

Moonbucks in south America was caught out using customers computers on their free WiFi.

 

Yes it is exceedingly small.

A high end i7 makes about 180-200 MH/s, that's "Mega-Hashes per second". Assuming every one of those 1.65m computers have top of the line i7's and every core is consumed to mine at 200MH/s, that's 330TH/s. A single Antminer S9 does 14.5TH/s. So all the hacked computers in the world, equate to 22 Antminers which is about 1 shelf. And again that's assuming everyone's computer contains a $500 CPU when we know the average computer in total costs that much.

 

Geesh, I used to love the smell of Kodak HC110, Stop Bath, Fixer in the morning. What is happening?

 

Mmmmm, Dektol!

Posted via the PriusChat mobile app.

 

i had no idea kodak was still around. did the chinese buy the name? what happened to eastman?

 

I'm pretty sure I used to make up my own fixer, at least. I had one of those scales in a glass-enclosed cabinet. Friend of my dad worked in a lab, supplied me with everything, gargantuan multi-format enlarger for example.

Regarding the "pretty sure", it's funny how time works on your memory, till it's a memory of a memory, twice removed.

Sorry for being off-topic, but this bitcoin just isn't doing anything for me. I keep thinking tulips...

 

Because the following drop will be greater. Take the few people that still believe in your failing company, alienate them with fast profit chasers, and when they figure out what they bought and dump it, you're left with less than what you started with. Only if you have an actual something should they be doing this. If I was a traditional company, I'd stay away from these mentionings until the field is more evened with the few big ones reigning supreme.

My guess would be BTC (obviously) and ETH will survive the inevitable doom of the millions of useless cryptos.