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Pragmatic Capitalism

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The crypto currencies sure seem to be showing every single sign of a bubble. I just don’t see what other people are seeing. Bitcoin sure does seem to be just a number on a computer screen, why the hell would you pay thousands of dollars for that? What am I missing?

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Posted by laskerfan12
Posted on 07/25/2017 8:00 PM
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I agree with the sentiment of your comment.
Holding a bank deposit is holding the beneficiary part of a real contractual obligation to be provide something to the holder of bank deposits by the persons who are the counterparties to the credit. In comparison holding Bitcoin is holding a unique sequence of decimal numbers.

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Posted by Dinero
Answered on 07/26/2017 6:34 PM
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    Well, the value of these various blockchain technologies is in the way the blockchain makes the transfer of certain data more efficient. People claim that Bitcoin is a more secure and trustworthy way of making payments therefore Bitcoin is quite valuable. Is that true? Perhaps. But are people really going to start buying a super volatile speculative asset to make payments with when they can own a zero duration note that settles at par every single day (which is what a bank deposit ultimately is). I doubt it. Therefore, as a payment tool I see Bitcoin as being highly inefficient at what it needs to achieve.

    There are some other more interesting uses for the Blockchain, but I am not really an expert in all of those. Bitcoin, however, strikes me as a highly speculative thing to be betting on since it’s really just a bet that people will adopt it for the purpose of making payments and that just doesn’t strike me as something that Bitcoin will ever be very useful for.

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    Cullen Roche Posted by Cullen Roche
    Answered on 07/26/2017 8:04 PM
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      From a functional perspective, the primary advantage of Bitcoin is it allows relatively fast transfers of money to be made to anywhere in the world at relatively low fees, without any pesky banking, bureaucratic and political middlemen involved and without having to kowtow to them to get access to your own money. Its peer to peer and decentralized transfers with all that implies, good and band. Bitcoins are also limited to 21 million ever being mined at a continually increasing difficulty in doing so, so there is also value in the scarcity.

      Bitcoin has its share of problems including volatility vs fiat, but this is very early days in the beginning of an entire new world order. Just as a toddler first has to learn how to crawl, then to stand, then to walk, so do cryptocurrencies.

      The other innovation that Bitcoin unleashed is the concept of a global transparent public ledger that no one owns or controls. It’ll be very, very useful for invoice accounting purposes, education history, work history, legal titles, letters of credit, etc. all of the kind of things that need to be verified near instantly to reduce costs and lower the risk of fraud and abuse.

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      Posted by MachineGhost
      Answered on 08/02/2017 7:22 PM
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