Cryptocurrency

[northernladyuk]

It has no intrinsic value, similar to a fiat currency.

The UK government will accept GBP to pay your tax bill, which is denominated in GBP. That is the argument (or an argument) for fiat currency.


But there's no arguing with the tulip maniacs.

[BR14]

It has no intrinsic value, similar to a fiat currency.

Let's be clear though..... As a currency it's value ONLY exists insofar as what people can trade it for (and I don't mean trade as in speculation I mean it as in trading for goods). Just like every other currency.


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that's the bit i don't see. WHERE can it be traded for goods without incurring huge fees?

it just looks like magic beans to me, i'm afraid

[northernladyuk]

that's the bit i don't see. WHERE can it be traded for goods without incurring huge fees?

it just looks like magic beans to me, i'm afraid

Magic beans grow into magic beanstalks. Hard to see that with bitcoin.

[Lance]

The UK government will accept GBP to pay your tax bill, which is denominated in GBP. That is the argument (or an argument) for fiat currency.

Indeed.
GBP has value as the UK government says they'll honour it. They'll even borrow it from you, and pay you back with more of it than they borrowed. And you/we consider this fair even though we know they have the printing press and can make as much as they want whenever they want.

[northernladyuk]

Indeed.
GBP has value as the UK government says they'll honour it. They'll even borrow it from you, and pay you back with more of it than they borrowed. And you/we consider this fair even though we know they have the printing press and can make as much as they want whenever they want.

None of which is an argument for bitcoin.

I do have a giggle at the argument 'fiat currency is bad because of x, y, z, therefore bitcoin'. Anyway, fill yer boots.

[Lance]

that's the bit i don't see. WHERE can it be traded for goods without incurring huge fees?

it just looks like magic beans to me, i'm afraid

the fees you pay are set by your choice. The higher the fee the faster your transaction is processed by the miners. No fee and you could wait a REALLY long time.

As for fees for goods. That's nonsense. The vendor sets a price and you pay it or not. That's not a fee, that's called retail.

Fees for exchanging do exist. And those fees are again determined by the market. You don't like the fee Bittylicious charge then use trade.com, or bleutrade.

[FrontEnder]

You mean FIAT currency?

Most money has no intrinsic value. The paper in your wallet is inherently worthless. The coins have minimal scrap value. The money in your bank account is only valuable because we limit trust in the banks to accurately record transactions and balances etc.

I think the thing to remember is that every form of currency is replaced at some point newer and better suited for the job. Bitcoin is certainty better for some things that make a useful currency. It's volatility at the moment makes it bad for day to day use.

Just to expand on this:

There are a variety of opinions on what constitutes a good currency. The following seem to be fairly universally agreed upon.

1. Generally Accepted - Many people must accept the money as a settlement of debt or as a discharge of obligation.
2. Durable - Its quality/value does not deteriorate over time, which is why we do not tend to use food products as money.
3. Divisible - If you divide the money in half, each half should be worth 50% of the whole. This is why we tend not to use diamonds or artwork as money.
4. Stable/Consistent - The value does not fluctuate substantially with time.
5. Transportable - It is easy to move from one place to another.
6. Scarce - It is difficult to acquire.
7. Easily recognizable - It needs to be obvious what it is, mostly for the purposes of #1.
8. Difficult to Counterfeit - This mostly has to do with #6.

Right now, I'd say bitcoin beats regular money on 2, 3, 5, 6, 7 and 8. Point 4 will most likely come when point 1 is reached.

[Lance]

None of which is an argument for bitcoin.

I do have a giggle at the argument 'fiat currency is bad because of x, y, z, therefore bitcoin'. Anyway, fill yer boots.

you mistake me.
I'm not arguing for or against. That would be futile as it does exist and isn't going to go away. Ditto with fiat currency.

There seem to be people who don't know what it is, or how it works (bitcoins and fiat) but still argue the pros and cons with great confidence.

[northernladyuk]

you mistake me.
I'm not arguing for or against. That would be futile as it does exist and isn't going to go away. Ditto with fiat currency.

There seem to be people who don't know what it is, or how it works (bitcoins and fiat) but still argue the pros and cons with great confidence.

I've never heard a sound argument that bitcoin is anything other than a short-term asset bubble.

[scooterscot]

Indeed.
GBP has value as the UK government says they'll honour it.

GBP has been loosing value consistently those past 50 years. There was a time £1 would buy you $4 US.