/thread




All modern currency has zero inherent value*, its value is exclusively determined by its ability to be converted into goods or services. The tldr is that what props up modern currency is the strength of the underlying economy and country. For example, the US dollar has practical value because it is the legal tender in a huge, strong country which produces a ton of shit (and has the military to defend it if necessary). It is also a central finding of economics, backed up by both theory and empirical data, that in the long run, exchange rates between two economies are determined by the development of their relative productivity and monetary policy.

Bitcoin, just like all other kinds of inofficial currency, relies on market participants being willing to trade in them and has the drawback of not being the legal tender in any relevant economy. Furthermore, while bitcoin is less exposed to the perils of expansionary monetary policy than regular currency, it is more exposed to legal risks. In particular, there is fundamentally nothing stopping the governments or central banks from just banning bitcoin. If that happens in a major market, the bitcoin value will nosedive.

To use a practical and sligthly hyperbolic example: it would take 2/3rd majorities in both chambers of Congress to ban the US dollar; it would take years of Jerome Powell going rogue with ultra-inflationary policies to crash the USD via inflation - but he could essentially go "haha bitcoin go poof" with a simple regulatory act.





*Well, okay, paper money has marginal fuel value because you can use it to lit a fire when you're sitting under a bridge and freezing to death during the apocalypse...

This post was edited by Black XistenZ on Sep 16 2024 06:17pm

I have lost about 2 million dollars on etherium in the last year, crypto sucks

In regards to exchanges, a user can automate trading and do endless minute trades.. Meanwhile, some people are hand keying orders lol. Binance high volume anon trades, good ole days

Using binance is not using bitcoin

rn bitcoin doing like 3 or 4tx/s or something like that

max tx/s:

• bitcoin: 7
  
• mastercard: 50,000
  
• monero: more than 50,000 then bottleneck will be hardware limitations (but will keep growing over the years with better hardware etc)
  
• CBDC: 10s of millions

as for the fee structure, for bitcoin rn is about like 10 to $20 for a single tx and will keep increasing
for monero is less than a cent and will stay that cheap due to the dynamic blocksize

monero is what people think bitcoin is

I said using Exchange. The actual Bitcoin transacting is vastly more expensive and slow than exchange fees

This post was edited by RedFromWinter on Sep 17 2024 10:47am

not everyone lives in a country with a premier currency, let alone the USA with the world reserve currency. areas like south america or africa with currencies that are regularly hyperinflated are the best usecase for BTC currently.

This is really the only true strong argument for Bitcoin. If you live in a shithole, with an unstable currency, with a government or gangs that can take your wealth, you should hold at least part of it in something like BTC, where if you ever needed or wanted you can get on a plane with only your phone in your pocket and have at least portion of your wealth protected.

id go a step further. countries that have shown they cannot manage their own currency supply should just give up on having a fiat entirely, and just adopt BTC.

if you're running a banana republic you have enough to worry about without also figuring out how many useless notes to print without inflating your currency to the point of uprising.

its an economic stability measure that doesnt do all that much to wrestle control from your grasp.

100% this
people ain't even using bitcoin no more

literally title of btc whitepaper was "P2P digital cash"
it should have been able to do more tx/s than mastercard and cheap to transact but they kept the "temporary blocksize limit" that as per satoshi literally was just meant to be temporary but 14 years later and it's still there cause btc development been hijacked and what once was supposed to just be a temp thing is now praised by those people like some religious zealots in a cult living in the past "gotta follow the scriptures of the bible (original WIP code) and ignoring what their own jesus-like figure (satoshi) wanted to keep developing

now bitcoin is not even bitcoin but the ecosystem around it with exchanges acting as banks and that's what people are now calling "bitcoin"

it indeed is now a ponzi scheme without its original usecase of p2p digital cash no more but just a speculative ponzi scheme asset for people to speculate on its price through those centralized entities

You can't cede control like that though. Ceding monetary policy to developed sovereigns by pegging your currency to the dollar or whatever, you at least know that country's currency is somewhat stable. With BTC going from 15k to 60k back to 20k back to 60k and be at the mercy of miners and other eternal regulators, you would be wrecking your economy, exports, etc.