I must have been misunderstood. I didn't say "peg to the USD". I did say "regulate to an amount of value" (and I took the amount of value that $1 represents today). A given amount of hash work represents an amount of economic value.
This is true. One thing I did not realize when I bought my first S9 was that "difficulty" continues to increase. That simply means, which I did not know when I started, that as more hash power comes online it reduces the percentage I contribute. In January I received 0.018 BTC per day. Now, I receive 0.013 BTC per day. Correction, 0.011 the last 24 hours. My hash percentage has almost been halved and the price of Bitcoin has nearly doubled. If the price were to fall to $700, I would turn off the miners.
If one can have a decent estimation of how much economic value an amount of hash work will represent in the future (say, Moore's law and somewhat extra), we can program in advance the amount of hash work that can make a coin at a given moment in time.
I do that in my pro-forma. I'm sure the larger and sophisticated companies do the same. Who would regulate it? If it's in the code, well, I'm sure there is a coin that does that: http://www.coinwarz.com/cryptocurrency/coins
If suddenly, someone dumps 500 billion dollars on the market, the FED will sell assets and buy up dollars to avoid a serious crash of the dollar value. You cannot crash the dollar market by dumping it. You cannot corner the dollar market by buying up all dollars: the FED will print you out of business.
When visiting Argentina, México, Guatemala and Morocco - to the best of my recollection - they accepted USD. Is the value of the Méxican peso low because they accept USD? What happens when a lot of USD goes out of the country through black market or people taking $9,999 outside the US? If people bring it back in ... let's say all of the evil corporations bring their money to the US from offshore accounts, how does that impact the value of the USD both in the US and globally?
Sure. I also use bitcoin occasionally.
Cool. I was starting to wonder
But I mean, "the general public". The gains you have by using it don't outweigh the volatility risk.
They do for me because of my globetrotting nature, but that's why I am in BTC.
I agree that those who hold speculate. There is no doubt about that. Mainstream adoption, for remittances and such, would likely be an "in-and-out" transaction w/ a company holding that risk. Ethereum may be the best place for this, but I think that whole damn thing is funky because of the pre-mine and DAO. If you want to talk about scam and trouble with the SEC, the Ethereum founders use tricky language to avoid regulations and are located in Switzerland - thinking it will help them avoid regulations.
Apart from special applications, and apart from some geekiness, honestly, doing a wire order to an exchange, buying coins, withdrawing them, paying on the internet, is more hassle and cost than using my credit card for everything which is "open and legal". And with my credit card, I have some legal protection if I'm scammed.
Yup. Good thing you don't live in Greece or Spain. However, there is something private and personal about our spending habits that have been exploited. Even when the banks - they speculate and *shouldn't* - have required a bailout.
I have bank accounts as well.
Putting aside a reserve of bitcoin for future buying (which I did, because of said hassle) and see that it takes a factor of 5 gains, induces me to keep them aside even if that wasn't the purpose.
I was glad to see the price drop a little and I'm hoping it does not go over $2000 before the end of June-ish.
So this "money" cannot be stored as neutral value keeper. If you store it, you speculate (heavily). Most people speculate on "up", of course, but they speculate. They end up speculating even if that was not the idea.
I agree. I am holding it because of the high tx count and not wanting to pay high fees. I'm also saving to buy another miner. It's just another currency for me, a foreign currency for the country of the Internet.