Quote from: larry_vw_1955 on Today at 03:02:37 AM

Quote

This already gives it a fixed value, it won’t ever be worth more than 1 litre of oil, because if it reaches higher prices than oil(Lets say 1 Bitcoin was 2$), people just can redeem their oil for Bitcoin and sell it right away, they essentially bought a Bitcoin for 1$ and sold it for 2$ in this example, making the price of 1 Bitcoin go back to 1$ over time, because there will always be new people coming, buying oil for Bitcoin and then selling it for profit, it would be free money from a flawed system. This system doesn’t work.

What exactly about it doesn't work? You've just illustrated how there is a built in corrective feeback loop to keep the price of bitcoin no higher than that of oil because if it goes above oil's price, profit takers come in and fix that. so that entire scenario of bitcoin selling for $2 while 1 liter of oil was $1 is not going to happen.

The problem becomes the reserves, the worth will be based on how much oil Bitcoin would have in its possession, not on how much oil there is. The problem starts in this example, when Bitcoin falls under 1$, then the oil reserves would start to deplete, making it go to 0. And this would happen in this scenario, because it would be easy to start an attack like this for big capital holders.

Backed currencies always had this problem, they start to fall apart when the reserves start to get depleted.

Backed currencies value = amount of reserves in possession

Quote

that can't go on forever though because at some point the market price of oil is going to be affected.

You almost got it, but Bitcoin would run out of oil, making it backed by nothing again.

Quote

Quote

There’s no asset that can do this in a decentralized way that doesn’t require trust, and apart from this,

There is but you aren't paying attention. I already gave oil as an example. Now not everyone can put up their own oil drilling well but if they wanted to they could. It just might cost money. Same as bitcoin mining. not everyone can do that since it costs alot but if they really wanted to, they could.

You’re drifting into fantasy land, you gotta catch up on some things. In theory everything works, but we always gotta take real life effects into account. Properties/ purpose of money and where oil exists.

Quote

You don't even know if bitcoin might go to zero one day and yet you're talking about placing limits on high high up it can go. smh.

Because i rather have a system architected well beforehand, than to repeat economic foolishness of the past. Im willing to take the risk for something better, im okay with it being able to fail, and i rather work on making something promising work, than to clinch onto some nonexistent security, that just doesn’t exist in this world. And even if it fails, it doesn’t mean anything. New doors will open itself, and everyone who was into this made a lot of experiences and gained a lot more knowledge. Equipping them well for the future. Plant the seeds you wanna harvest in this world, if no one plant seeds anymore, there wont be anything to harvest anymore. This is my personal mindset, not an attack on anyone.

Quote

According to a recent report from IBISWorld, the global oil and gas industry generates over US$2 trillion in revenue a year

How much revenue are people making in bitcoin right now? I bet not more than that. Bitcoin's entire marketcap isn't even $1 trillion.

Money needs to able to hold more than 2 trillion $, and like i said, it depends on the reserves in possession, not the yearly oil supply. The usd alone has 22 trillion $ in circulation. And this is just one fiat currency.

Quote from: larry_vw_1955 on Today at 03:02:37 AM

how do you get money onto decentralized exchanges? oh right, you have to first get bitcoin somehow.

Now you outed yourself as biased larry, because you obviously didn’t try or ever wanted to. You don’t have to get Bitcoin first. You can send money with ur bank, by mail, by giftcards, in person. You choose, and there’s probably even more ways.

Quote from: larry_vw_1955 on Today at 03:02:37 AM

and so you have to use something like coinbase. meeting in dark alleys aint my thing. plus, then you have to try and sell it to someone p2p which requires meeting up in a dark alley again.

Nah, there’s decentralized exchanges, that make this process easy and online, with protection against scams. Some require security deposits from both sides, for example. The process is similar to Coinbase, a little less convenient, but you’re gaining privacy and control in return. This will become relevant in the future.

Quote from: larry_vw_1955 on Today at 03:02:37 AM

and then reporting the entire thing to the irs.

Idk how this works in the us, here it’s sufficient to just archive everything in a simple way, and you don’t gotta report anything, until asked.

Quote

plus buying things p2p is probably like a 30% markup over somewhere like coinbase. so while it may be completely legal its probably completely dumb too.

For this the trick is to open ur own offer, you choose your buying price, someone will accept it, if you choose an markup similar to a fee on Coinbase. 1-2% for example.

Quote

but if someone doesn't have any other choice so be it. you also have to either hide your money under your mattress once you sell it p2p or explain to your bank where the money came from and they might file a SAR against you or close your account. Then you WILL be storing your money under your mattress but don't forget to check the box that says you sold crypto on your irs tax return anyway.

Too much comfort got us into this situation in the first place. Jk.

Quote

Quote

In 2020 there was buying opportunities for 5000$ still, only consistency and patience get rewarded here, but no one can guarantee you a profit.

I don't want to make a profit. I just want a stable store of value which is decentralized and trustless. something where I put in $1 and 10 years later I know it will be worth the same exact amount. No more no less. But I want it to be digital cryptocurrency, not fiat. The problem is, you can't have that. Not exactly but maybe you can come close. that's the whole idea behind backing up a cryptocurrency with a physical asset. You're pretty confident the price will be somewhat stable. There is the risk the value of the asset can go down but it's a risk you have to take.

I get that larry and it’s completely fine to want this. There might be a day where Bitcoin will be stable, but this depends on too many variables, right now and in the near future it won’t fit this requirement. And there probably won’t be any trustworthy backed-digital asset in the near future. If you want stability i wouldn’t even recommend you Bitcoin at the moment. It might be hard to find anything for this purpose at the moment.

Quote

Quote

This is about buying Bitcoin, because you understand what it offers, because you believe it will succeed, because you want the money system to be fixed, because you want control over your money back, this is no free painless money. It’s a wild ride, it takes time to get, it means a lot of studying, it means taking responsibility, but it’s also fun tho.

Bitcoin as an investment does not make sense to me. Even at $20,000 say someone put in $500. Bitcoin would have to go up to $40,000 for them to double their money. For bitcoin to double its marketcap is not easy and takes time. To go up by 5x, it would have to increase higher than it ever has before. the higher bitcoin's price is, the less attractive it is to me from an investment standpoint. what i cannot accept is putting money in and just watching it go down and down. if bitcoin is supposed to be valuable and has value then that should not be happening but i think it does happen. i understand why it goes up but they should fix it so it doesn't go down. and only goes up or stays at the same price. then it would be a better store of value for someone like me.

There’s no fix for not going down, this should always be considered before going into Bitcoin with any amount. To be able to afford to be down for months or even years, both mentally and financially. There’s no shame for anyone to say, that they can’t do or want it right now, or that Bitcoin isn’t for them. Bitcoin means signing up for a fight, it can’t get more uncomfortable than this.