"Buy Bitcoin"
"Join Steemit"
"Buy Bitcoin"
"Join Steemit"
Okay, I here I am, but why does everyone have to be so aggressive about it?
Come to think of it why are all the supporters of block chain getting so aggressive when anyone brings up legitimate criticism of this method of currency?
I'm constantly told;
"You're stupid"
"Bitcoin is the future"
"You don't understand it"
Yes, I do. You are creating a digital fiat currencies. Please note the plural, currencies. What's the point in talking about finite supply when you're making new cryptocurrencies exchangeable for the others every year?
Finite supply per cryptocurrency X Growing number of cryptocurrencies = Infinite currency supply
Now we have Steemit dollars to trade for bitcoin, more currency generated from nothing.. What will we have tomorrow?
Imagine if you tried a cryptocurrency model out in the offline world, just make your own currency to trade but with the larger population of people not glued to the internet. Might go something like this..
Infinite currency supply backed by nothing but the belief its users have in it.. Digital fiat..
I'm starting to believe its greatest advocates are figuring it out too.
This is why they're getting so aggressive selling it and so defensive defending it, Crypto will fail if it's user base doesn't grow.
The price of cryptocurrencies will rise only if the rate at which people pumping other forms of currency into it outstrips all the rate of cryptocurrency being generated.
We have an alternative to fiat currencies right now. Gold and Silver. You can hold it, you can bury it, you store it. They have real world uses and value, particularly silver. Cryptocurrencies do not compete with real money.
"... but gold is inconvenient to move around the world"
Everyone needs to stop thinking like a globalist. Why do you need to speculate globally if we had sound money to invest in actual wealth generating enterprises in our local towns and cities?
Oh alright, If you absolutely have to be a globalist go check out https://www.goldmoney.com/ . You can use that to transfer the ownership of Brinks held gold around the world instantaneously. I don't use it to as intended, and I hold very little gold there because it is either likely pool allocated or unallocated storage.
If you are making money off cryptocurrency, good for you, I hope you're sleeping well and I hope you know the right time to get out.
Upvoted for trolling block chain on block chain. :)
Block chain is not ponzi scheme. According my simple definition, ponzi needs mathematically to keep growing in order not to collapse. There is no such inbuilt mechanism in distributed ledger, by necessity. Various cryptocurrencies compete each other and other means of exchange for the total of global financial and other transactions. Purchasing power is the kingmaker, demand side without any supply is meaningless. Physical gold and silver in physical form are very clumsy for everyday payments, like buying an icecream or twitter corporation. And demurrage for upvoting your post with physical gold would be totally preventive.
Great point, I recently joined Steemit but had the same concerns regarding the currency and regarding the necessitation of a constant influx of capital. I also hold physical gold and silver and a gold money account as well which I'm still waiting on the card for. Great point, people so often see opportunities to enter the market, but so seldom see opportunities to exit the market. Nothing is guaranteed tomorrow, and at any point, especially when it comes to fiat currencies, if faith is lost, or the next layer of the pyramid scheme does not join, the value can fall away completely.
Fairly astute observations. Especially on the emotional factor.
However, cryptocurrencies are not a ponzi scheme.
Lets take Bitcoin. It has a set amount of bitcoins. Yes, in order for the price to go up, more people need to trade dollars for it, bidding up the price.
However, it does not collapse if people stop putting in dollars.
Many like using only bitcoin. Exchanging bitcoin directly for services and selling their services only for bitcoin. This is self sustaining, and does not require outside dollars. It is easier to gauge the transaction size, if there is dollar convertibility, but it is not needed.
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