Dude you really have to stop acting like you know anything, because here we are, yet again, and you're wrong. You say its stupid, how could it be like that and in the same breath, i wont actually educate myself... unbelievable. bitcoins work just like the United States dollar. Once it was separated from the value of gold, it has a virtual value. Sigh... they're no more or less a currency than the worthless piece of paper you call a dollar. Unless someone honours that worth... and they're in demand.
There has to be a limit of supply, otherwise there is no value on demand. Basic economics. The algorithm of bitcoins means that Bitcoins are created at a decreasing and predictable rate. The number of new bitcoins created each year is automatically halved over time until bitcoin issuance halts completely with a total of 21 million bitcoins in existence.
If you get bitcoins from "solving math problems" then how is that a limited supply? What backs the bitcoin? Nothing? As far as I have seen, it is like any other virtual currency and its value rather than being placed on a physical commodity is instead based on demand of itself.
Basically what an economy is, is trade. You have a commodity, you trade that for another commodity. The bitcoin cannot be any form of an economy or currency because it has no base, was made up with no commodity to back it, and is limitless as far as I can see. I have somewhat educated myself on the matter, read their site watched the video on their site did other reading etc, however it all boils down to this:
It is NOT a real currency. Those who are using it as such, will soon see no value in it, because it itself has no value being a virtual currency. Its only value is in a computer where it was created. And then its value becomes a series of 1s and 0s.
Whats even more interesting is its tie with illicit activity:
http://www.forbes.com/sites/andygre...rom-ross-ulbricht-alleged-owner-of-silk-road/
Which is to be expected from a virtual currency.
Although, I would be interested to see the day when we can literally just make our currencies with no commodity and buy goods and services with it. Would be nice to live in an economy where everything was free. Oh if we thought the global economy was in trouble before....
To be honest, I havent taken one class in economics. But any high school graduate can tell you that a currency with no commodity is not a currency and an economy with no trade is not an economy. It has a virtual value. I like that. Its funny how you can say that and then tell me Im wrong when your saying exactly what I am and then following it with the exact opposite of that.
But like I said, I am no master of economics. And with the global economy going further in the toilet with each passing day perhaps a virtual economy based on nothing will save the world from itself.
http://moneymorning.com/2013/12/20/impact-bitcoin-u-s-dollar/
If politicians are scared of it I suppose it cant be that bad. But is it really a good idea to destroy an economy based on commodity and replace it with an economy based on virtual 1s and 0s? I think that is an even worse alternative than a default.
And one last thing, please explain the part to me again where this company thats sole purpose is to "solve math problems" is handing out a "limited" amount of FREE money to people who have to initially invest into said company? Thats my favorite part
http://money.cnn.com/2013/12/13/technology/bitcoin-europe-regulation/
