Bitcoin is a Ponzi scheme—the Internet’s favorite currency will collapse. - Page 2 - TigerDroppings.com

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Vols&Shaft83
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re: Bitcoin is a Ponzi scheme—the Internet’s favorite currency will collapse.


quote:

nice edit. why didn't you leave your original post up?





Because you touch yourself at night






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Doc Fenton
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re: Bitcoin is a Ponzi scheme—the Internet’s favorite currency will collapse.


FWIW, just to do some back-of-the-envelope calculations with respect to price, according to Wikipedia, about 171,300 metric tons (~5.5 billion troy ounces, at 32150 oz/ton) of gold have been mined in human history, with about 2500 metric tons (~80.4 million troy oz., or ~1.5% of the historical total) being extracted per year in recent years.

Only about 40% of gold is used for investment purposes, but assuming easy convertibility of other gold for investment purposes, the total amount of gold wealth in the world is at about $1600 x 5.5 billion = $9 trillion.

So if bitcoins were to achieve the same level of currency demand as gold bullion, given a supply of 21 million, that would work out to about $400,000 per bitcoin.

I don't think bitcoins will ever achieve the same level of demand that gold does (and I also think that gold price is currently somewhere between 2-3 times more expensive than where it usually is in historical terms), but it's an interesting comparison to make just to show how arbitrary the demand for a non-legal-tender currency can be.

One of the problems with bitcoin value is that it will necessarily fluctuate up and down relative to the amount of government financial repression out there, and is not tied down to any intrinsic worth with redemption value or legal tender status. Thus, it's use for storing wealth will probably never be very good. It's value for clandestinely transporting wealth, however, is what makes it interesting.






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Doc Fenton
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re: Bitcoin is a Ponzi scheme—the Internet’s favorite currency will collapse.


What also makes this particularly interesting to me is that it could stand as a model for how a government might control supply of a future legal tender currency.

This is where we get into all the theoretical talk about the proper course of monetary policy, the "Taylor Rule," the classical monetarist policy recommendations of Milton Friedman on the proper growth rate for a currency (even though he was not in favor of having a central bank), etc.

In a sense, that gets back to the point that Felix guy was making in the original post. If I were to start a country and create a monetary system from scratch, I think having some bitcoin-like system where the currency automatically increased at a rate near the economic growth level would be a good idea. I would certainly prefer this to having money created by a central bank via reserve ratio and interest rate policy decisions.

Just random stuff to think about I guess...






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joshnorris14
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re: Bitcoin is a Ponzi scheme—the Internet’s favorite currency will collapse.


quote:


An economy might run into inefficiencies if its supply of currency gets too small, particularly its legal tender currency. For an individual currency itself that is just one of many within the wider economy, however, a stable supply is actually beneficial to its value. This is why American colonists loved the thaler and the Spanish pieces of eight so much.

By Gresham's Law, the stable currency will tend to be more for storage and transport, while currencies with higher supply growth rates will tend to be stored only sparingly and used more frequently for common transactions, but this does not make one currency more "successful" than the other. It simply means that the currencies tend to be utilized in different ways.


Solid post.






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Vols&Shaft83
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re: Bitcoin is a Ponzi scheme—the Internet’s favorite currency will collapse.


How are your 1.03 bitcoins doing?





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joshnorris14
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re: Bitcoin is a Ponzi scheme—the Internet’s favorite currency will collapse.


Solid, thanks for asking.





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Vols&Shaft83
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re: Bitcoin is a Ponzi scheme—the Internet’s favorite currency will collapse.


quote:

Solid, thanks for asking.



Cool, I want in. I'll trade you a front row seat to the Rich Dad Academy Real Estate Training Seminar for 1 Bitcoin, what do you say?



This post was edited on 4/12 at 6:15 pm


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Poodlebrain
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re: Bitcoin is a Ponzi scheme—the Internet’s favorite currency will collapse.


I wonder when Paul Krugman is going to weigh in on bitcoins? He can hypothesize about a single bitcoin being worth $1 trillion and the Satoshis worth $10,000 and further fractional units worth lesser amounts. All the U.S. government needs to do is buy a few hundred bitcoins and hold them until they are worth $1 trillion each, and we can pay off our national debt. Meanwhile Congress can deficit spend to its heart's content.





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WikiTiger
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re: Bitcoin is a Ponzi scheme—the Internet’s favorite currency will collapse.


quote:

I wonder when Paul Krugman is going to weigh in on bitcoins?


from September 2011: Golden Cyberfetters

from today: Adam Smith Hates Bitcoin






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WikiTiger
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Member since Sep 2007
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re: Bitcoin is a Ponzi scheme—the Internet’s favorite currency will collapse.


quote:

from today: Adam Smith Hates Bitcoin


by the way, Krugman shows his ignorance by calling out the process of "mining" without even understanding it.

quote:

And now here we are in a world of high information technology — and people think it’s smart, nay cutting-edge, to create a sort of virtual currency whose creation requires wasting real resources


Ummm, hello Krugman, go do some research...."mining" is the process that secures the network. It serves a vital purpose. But hey, he's no different that you morons on this site: making all kinds of claims, arguments and prognostications without actually understanding what you are talking about



This post was edited on 4/12 at 7:20 pm


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Vols&Shaft83
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re: Bitcoin is a Ponzi scheme—the Internet’s favorite currency will collapse.


quote:

Adam Smith Hates Bitcoin



He also hated stupidity, I see a pattern.






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LSURussian
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re: Bitcoin is a Ponzi scheme—the Internet’s favorite currency will collapse.


quote:

Solid, thanks for asking.


As solid as the shares of Wells Fargo and JP Morgan Chase Bank which I bought & sold today to make a little over $1,300???






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LSURussian
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re: Bitcoin is a Ponzi scheme—the Internet’s favorite currency will collapse.


quote:

he's no different that you morons

Now, now wiki. Take a deep breath and exhale slowly.....

PS- BTW, it's "than" you morons, not "that."



Moron.






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joshnorris14
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re: Bitcoin is a Ponzi scheme—the Internet’s favorite currency will collapse.


quote:

As solid as the shares of Wells Fargo and JP Morgan Chase Bank which I bought & sold today to make a little over $1,300???


Yes

Feel free to send me some bitcoin with those profits

1DPkEFW9W5DcPN7w4ExAsD4mDD9pQFiAzf






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LSURussian
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Member since Feb 2005
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re: Bitcoin is a Ponzi scheme—the Internet’s favorite currency will collapse.


They are on their way.....

On second thought, GFY. I'm not yo' momma.....



This post was edited on 4/12 at 7:38 pm


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lsu_tiger_az
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AZ/LA
Member since Mar 2004
30394 posts

re: Bitcoin is a Ponzi scheme—the Internet’s favorite currency will collapse.


quote:

They are on their way....


Hey Russian,

next time. send him my azcoins. They are just as safe as bitcoins. Just send the cash to me, and I will send him a long stream of numbers...











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WikiTiger
LSU Fan
Member since Sep 2007
40721 posts

re: Bitcoin is a Ponzi scheme—the Internet’s favorite currency will collapse.


quote:

next time. send him my azcoins. They are just as safe as bitcoins. Just send the cash to me, and I will send him a long stream of numbers...


it's so funny to watch you old people squirm as you don't understand new technologies. i hope i never get like that






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LSURussian
LSU Fan
Baton Rouge
Member since Feb 2005
80736 posts

re: Bitcoin is a Ponzi scheme—the Internet’s favorite currency will collapse.


quote:

send him my azcoins

Are those pronounced "ass-coins"?






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Vols&Shaft83
Tennessee Fan
Member since Dec 2012
13127 posts
 Online 

re: Bitcoin is a Ponzi scheme—the Internet’s favorite currency will collapse.


Wiki Mad Brah? Yeah Wiki Mad





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LSURussian
LSU Fan
Baton Rouge
Member since Feb 2005
80736 posts

re: Bitcoin is a Ponzi scheme—the Internet’s favorite currency will collapse.


quote:

it's so funny to watch you old people squirm as you don't understand new technologies







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