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by forgetsusername 3702 days ago
>Can someone explain?

What exactly is the news here? Some company accepts some new form of payment that hardly anyone uses.

When it comes to "money", Bitcoin proponents seem massively misinformed on how it actually works. The blockchain technology is interesting, but a new currency isn't as exciting as they want you to believe. I don't care that my dollar has no inherent value, as long as people accept it in exchange, that's all I care about. And they do, everywhere.
2 comments
jMyles 3702 days ago
> that's all I care about

Well that's a bit short-sighted then.

Plenty of people care about a lot more than that in a currency, namely that is it responsibly and equitably managed. Bitcoin is not this, of course, but it's a giant step in the right direction compared to the Federal Reserve.

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forgetsusername 3702 days ago
>Bitcoin is not this, of course,

Then why should I care about it?

>"It's a giant step in the right direction compared to the Federal Reserve.

The Fed system is far from perfect, but despite what the conspiracy theorists think, it didn't spring out of some sinister idea; it's the evolution of a complex financial system that has generated more wealth, for more people, faster, than at any point in history. Those are facts that you're up against when promoting Bitcoin, a system where some early adopters think they are going to hoard the currency until they get rich from it, because other people can't obtain it. Why would any outsiders buy into that system? That's the thing that some people can't grasp; there is no reason whatsoever for your currency to be scarce. It should grow to match demand.

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rhino369 3702 days ago
No, it's a massive step in the wrong direction compared to the federal reserve. There is reason bitcoins value wildly fluctuates and the US dollars doesn't.
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statoshi 3702 days ago
Not really - it's more because the dollar-based economy is massive in comparison to Bitcoin and thus has much higher capital requirements to move the market. If you think that centrally managed currencies are great, you should probably read the multitude of horror stories. Here's a recent one: http://bloom.bg/1ryY2ZK
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bigmanwalter 3702 days ago
Isn't it because big ships don't maneuver so quickly?
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rhino369 3702 days ago
No it's because the fed actively manages money supply while Bitcoin managed money supply by setting money growth at a predetermined rate.

That and the vast majority of bitcoins are held for speculation instead of used as a currency.

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CyberDildonics 3702 days ago
Many other countries have currencies that fluctuate wildly even with their own central banks. Is the US just better at managing it? The Yen lost half of its value a few years ago.
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sergiosgc 3702 days ago
> Some company accepts some new form of payment that hardly anyone uses.

I also believed that. Recently I've come to realize I'm skewed because I'm in an eastern country with little financial controls. Bitcoin has real traction in places like Brazil or China. That has real value, and it is enough to make BTC gain critical mass.

Had you asked me two months ago, I'd say bitcoin as a currency was doomed. Today? Not so sure anymore.

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