Quote from: HardFacts on March 28, 2020, 02:50:14 AM

Quote from: Abiky on March 28, 2020, 02:35:55 AM

With only 21 million Bitcoins that will ever be mined, there's more than enough reason for it to be widely compared as Gold.

UTTER STUPIDITY...

There is a LOT more than limited supply needed to give something value, limited supply itself means NOTHING. Only 1000 " Hard Facts Coins " have ever been mined, so are they worth trillions each Cheesy

BitCoin grew up in a bubble where virtually everything went up. This is BitCoins first economic crisis, and the price has CRASHED, it is down by 66 % since its all time high, how is that limited supply thing working out ? BitCoin price is heading down again as I post, you should be very worried....

$ 6,263.21

-7.80%

This kind of volatility is totally normal on bitcoin, you can not expect hundreds of times of value increase without such scale of withdraw. But the concern that bitcoins grew only because of economy bubble is interesting

Bitcoin has not really experienced any major economy crisis since it was born, and this time it is actually performed quite well: Given the scale that crash on S&P and Oil, bitcoin should have crashed more than 99.9% by now if it is correlated to normal financial market, since its volatility is usually 5-10 times bigger than them. But it did not, clearly says that it is either independent of the economy crash or it is highly resistent

But for its price to rise, we need some other mechanism or consensus, so that when in panic, a lot of fiat money are going to buy bitcoin without the slightest hesitation.

(Edit) In fact I prefer a smart contract kind of design, where smart contract automatically buy bitcoin based on the scale of economy crash or the scale of QE. The only question is how to get the QE liquidity into cryptocurrency market, or you just create them out of thin air as well like USDT. I feel that the people with the access of QE money have the possibility to do this but their motivation might be a question

Quote from: squatter on March 19, 2020, 10:09:07 PM

Quote from: Abiky on March 19, 2020, 09:18:51 PM

Exactly. As long as Bitcoin is measured against Fiat, it'll never be able to achieve independency from the existent monetary system.

To overcome this phenomenon, Bitcoin would need to become the global unit of account, much like the dollar is today. This goes beyond just the abandonment of fiat currencies.

Imagine if fiat currencies are abandoned and people return to using gold and gold-backed notes as their primary unit of account. In that situation, I think bitcoins would at best occupy the same space that gold already occupies in relation to fiat today.

Bitcoins would be treated like any other commodity: When economic turmoil strikes, speculators would sell them for safe haven assets like gold, gold-backed notes, and government bonds whose credit rating would be linked to gold reserves.

Besides that fiat money religion is everywhere, I also don't think it is a good idea to make bitcoin a standard unit of account, since the production cost (mining cost) rises too fast. The cost basically decided the value of a coin, and if a coin's value rises very fast, and you use it as unit of account, everything's price (counted by bitcoin) will drop so dramatically that merchants simply have no way to make a profit

The unit of account should be stable, and can not be created out of thin air (against debt). So I promote to use energy unit like Jole or KWH as unit of account. Since everything's production eventually goes back to the use of energy, it can be a very stable and object measure of value

By using energy as unit of account, there will be different view of value. For example, currently when a barrel of oil price crashed from $40 to $20, and people use USD to measure value, they will call oil price crashed. But if you use energy as the unit of account, a barrel of oil always contains same amount of energy, so it is just the USD suddenly get more valuable