Skip to content

Comment · Wed, November 20, 2013

What most investors don't get about Bitcoin as a currency

Original post in this thread

BCLaraby · 96 points

Is that we're on the edge of creating a truly single global currency backed by the full faith of the world.

Now, I'm admittedly simplifying here but think about it. The USD is supported by all that America has to offer, the full force of the promise of the United States. Its workers, its output (GDP), Exports, you name it. It's all just a promise, an IOU, but a promise backed by real econonmic might.

Same with the UK, with China. Same with India. And Australia and Canada.

All these nations singular currencies are representative of the work put into them by us, the people, who build and maintain the economy.

Now Imagine all of the people of the world willingly trading in their own currencies for Bitcoin, voluntarily creating a single universal currency backed by the full faith of the world's economies. Essentially creating a Net that allows for a stable, instantly transferrable currency no matter where you are or how much you need.

Some guy in China wants to do business with someone in Australia? Done. Instantly. No exchange rates or time wasted or middlemen. Just done. Its the Internet of Money.

The long and short of it?

In Bitcoin we've created the real-life Sci-Fi…

What they were answering

ferretinjapan · 6 points

I recommend you try to at least understand Bitcoin a little better before you outright dismiss it. To even weigh in on the subject and claiming you have absolutely no interest in Bitcoin voids any perspective you have anyway.

I bet you don't even realise that the very design of Bitcoin solves a long standing communications problem (long thought impossible to solve) called the byzantine generals problem. This allows Bitcoin to be completely decentralised, and it's system of fees and coin distribution allows it to be a self-sustaining network and gives it the ability to grow as demand increases. Something unheard of.

Inventing a good currency is impossible. Existing currencies are proof of that. Bitcoin has more qualities that make it money than real money has, but it is hands off regarding distribution, and price discovery. This is where the free market comes in, as the Bitcoin Economy grows, these price shocks will lessen in frequency and intensity as there is better liquidity and the coins become more distributed over time.

No-one is pointing a gun to your head saying you MUST use bitcoin (you ARE being forced to accept USD though, try asking to get paid in gold or silver, or try paying your taxes in euros), so you are free to ignore, or avoid Bitcoin as much as you like.

But if you are going to criticize it, at least be inf…

u/MisterYouAreSoDumb

Bitcoin is where it is at right now because it was the first. What makes people put their stake in it long term, when there are alternatives like Litecoin and Peercoin? What prevents someone from taking the Bitcoin algorithm, improving it and streamlining it? What is preventing Bitcoin from becoming Myspace, where another currency will become Facebook?

I see a lot of people making arguments for the sustainability of Bitcoin, by applying benefits the come with any crytographic currency. That would be like arguing that Altavista is going to be the biggest thing in the world, because search engines are revolutionary. Well Altavista is no more, and Google dominates. So what makes Bitcoin Google, and not Altavista?

Other MYASD lines in this thread

Related in the archive

Commentr/BitcoinNov 22, 2013

@SUBWAY just retweeted me to their 1.6 million followers mentioning /u/techguy90's Bitcoin purchase in one of their stores, linking to his article.

Replying to BenSBernanke · Assuming this was tonight, it would have amounted to 0.023 BTC... I'll speculate this $18 Subway meal will become **The Million Dollar Sub**. Much like the infamous Million Dollar

That would be a market capitalization of $924 trillion once we reach 21 million bitcoins. The current total capitalization of the entire planet is only $71 trillion. Seems plausible.

8
Commentr/BitcoinNov 20, 2013

This is how everyone new to bitcoin feels right now.

Replying to qrios · You can also buy local from someone face to face in a public place.

For 20% or more over the highest market price. Volatility is making that option not very useful at this point in time. Eventually the market is going to need to decide if this is a currency or a commodity. It can't be bo

5
Commentr/BitcoinNov 21, 2013

CNBC graphic on Bitcoin Performance (11/20 Fast Money)

Replying to OutaPlace · I really feel the same way. Unless you got on at the lowest point, its really expensive to get into. On top of that, I hear a lot of "get your friends into it" or "help spread the

As the market expands, the same amount of bitcoin will be in the hands of many more people. If the market capitalization reaches high enough, most people will not be trading even close to a whole coin. Then volatility wi

4
Commentr/BitcoinNov 20, 2013

How To for crash selling

Replying to pyalot · Worked so far... of course eventually the 300 spartans all died, so maybe that's a bad analogy mkay?

I believe that is what he was insinuating. That Bitcoin is going to put up a good fight, but will eventually be overtaken. The, "hold no matter what" mindset is the same mindset the Spartans had when facing the Persians.

3
Commentr/BitcoinNov 20, 2013

If you've been waiting to buy at low prices and now decide that "meh, bitcoin's not that great" don't come back here in 6 months when we are over $1000 and lament over "how you nearly bought some in November"

Replying to [deleted] · More chances for us to buy some on the cheap. Trends show that Bitcoin always springs back up to new heights. I don't see why that would change now that China is in the game and th

As the market expands, previous trends become less and less accurate. Be careful basing decisions off past tendencies, as the market demand and price drastically alter the way the market reacts to situations.

2