Proof of Work is Proof of Ponzi

Discussion in 'Crypto Assets' started by dozu888, May 19, 2018.

  1. jem

    jem

    but if the instrument you are accepting for payment is an alternative to fiat based currency which has an unlimited supply - A supply which is created by electronic entry at the will of a FED chair - and the chair has been known to crate trillions at will without any monitoring or control from the govt until years later or maybe never. - which store of money is more a fraud? ( I imagine many other countries privately run central banks operate the same way... with private citizens getting to create fiat money at will.)

    And I am not sure that bit coin is a ponzi if the supply really does cap.

    so then you have a limited supply currency vs an unlimited supply.
    Eventually the central banks will have to make the politicians shut down these superior stores of value.
     
    #11     May 20, 2018
    SunTrader and johnarb like this.
  2. Simples

    Simples

    I raise you ONE BILLION Shitcoin. Yes, you will beg for it right after the great FADCoin Crash!
    And it will run on ...... (insert imagination here)
     
    #12     May 20, 2018
  3. dozu888

    dozu888

    2 points:

    1- BTC can't possibly become a mainstream currency... just to name 2 main reasons - a. it doesn't have guns, so if one day it becomes a threat to the banks with guns, they will come with guns and shut it down. Reason b is it's design flaw. if the world productivity grows from 21 million gadgets to 42 million, then the price drops from 1 to 0.5 btc per gadget. That is deflation and Japan already showed us what a death spiral looks like.

    2 - store of value... perhaps, but in this regard Gold is better, a physical substance irreplaceable by any other physical substance. btc as a digital puff of thin air, can be replaced by who knows which other puff of thin air some where down the line... the possibility of going to zero is always there.
     
    #13     May 20, 2018
  4. SunTrader

    SunTrader

    1 - see 2
     
    #14     May 20, 2018
  5. SunTrader

    SunTrader

    You must be referring to the U.S. dollar which has 97% of its value over time.
     
    #15     May 20, 2018
  6. dozu888

    dozu888

    these are 2 different things... e.g. gold is a store of value, but not a mainstream currency.
     
    #16     May 20, 2018
  7. dozu888

    dozu888

    Can't take this by it's face value... some independent thinking is needed here.

    - yes it lost 97% of value... but only if you put it under a mattress for that time... productivity growth has far exceeded the erosion of the currency. In other words if you invested the dollar in any productive assets such as stocks or bonds, the return would far exceed the erosion.

    - the erosion is necessary in the modern monetary system. part of it is by design - the Fed has an inflation target as a safety margin to make sure we don't fall into the deflation black hole. The other part is by accident, such as when 2008 happened, QEs were needed to make sure credit didn't freeze and you still could find bread on the supermarket shelf.... don't believe in gold/silver/btc blindly... if any of these were the currency in 2008, we could all starve to death.

    So don't just take it by face value... this "97%" story is the one used mostly by gold/silver/btc salesmen to convince the public to buy what they push... need to dig deeper and see what is really happening here.
     
    #17     May 20, 2018
  8. SunTrader

    SunTrader

    LOL The same can be said for anything else used as a form of payment for something else. BTC or Gold or Fine Wine or whatever.

    BTW QE's were used to save the Too Big To Fail banks (which now of course are even Bigger which means Bigger QE's next time) . No other reason.
     
    #18     May 21, 2018
  9. dozu888

    dozu888

    if you put gold nuggets under a mattress it won't lose 97% of its value... on paper it looks like an attractive feature, which is used by the gold/silver/btc salesmen to push to the public.

    yes, to save the TBTF in a way... but it did put bread on the supermarket shelf.
     
    #19     May 21, 2018
  10. SunTrader

    SunTrader

    I am not a Gold bull, not even a Gold buyer. But I am also not a blind faith believer in The Fed.
     
    #20     May 21, 2018