Bitcoin

Out of context: Reply #59

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  • ETM0

    There is some of incorrect information in this thread about bitcoins.
    Some basic info:

    - Started in 2009.
    - Mining of bitcoins exponentially becomes more difficult every day as more mining (cpu processing) is created/added, so the longer you wait, the less you can make.
    - Bitcoin hash creation has a finite limit. When it's reached, no more coins can be minted. Which will help it retain value and prevent inflation.
    -All money is 'fake'. Paper money is nothing but a promise, agreed to amongst different parties and adopted by society. Digital numbers moving around a computer (as your bank does today) is just data and not even tangible. You can accumulate or lose wealth without ever touching physical money. Bitcoins are no different. But it's not attached to a country or current currency, so it's truly global.
    -Merchants accepting bitcoins continues to grow.

    I don't know how people have trouble with a digital currency when the same people give a merchant a plastic card with a code, then numbers are reduced in a computer database attached to your identity and you walk away with a physical good. If you exclude the option of "cash"... it's the same exact concept.

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    • yet, it suffers from an insane inflation issue where one bitcoin is nearing $100monospaced
    • LOL. It's value against another currency is not inflation.ETM
    • Inflation REDUCES the purchasing value of currency. Economics 101.ETM
    • bitcoin tends toward deflation, by nature of its limited number of total bitcoins.monNom
    • well, regardless, it "inflated" 4000% in what, 4 years?monospaced
    • Inflation would dictate increasing currency has less purchasing power. Which is not the case.ETM
    • You are not using the term inflation properly in this context.ETM
    • But we know what you are saying.ETM
    • But the rising exchange rate can be moot if something that cost one bitcoin 4 years ago still costs the same today.ETM
    • I see. Makes sense, thanks for clarifying.monospaced
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