I don't understand bitcoins

[civvver]

And then I read an article like this and I'm just like why? Why would anyone want to use bitcoins over real money?

It's essentially adding currency to a barter system isn't it? There's an unregulated currency which you as a small business owner might sell x of an item for y bitcoins, then buy z supplies with your y bitcoins. You circumvent taxes I guess cus you use an anonymous currency.

I can't really think of reasons for individuals to use it though, other than stores offering discounts because they can save money.

But how does bitcoin value stay stable? You can't mine it anymore, so supply is pretty limited, but people trade the stuff online for real dollars. How is it not volatile? There's no bitcoin federal reserve you know.

Also hacks. Look, all money in this day and age is virtual. But banks are regulated and back by the government so if hackers steal all my digital money I am covered by federal guarantees, similar to fdic insuring your physical deposits back in the day.

Look at this https://medium.com/@CodyBrown/how-t...es-with-verizon-and-coinbase-com-ba75fb8d0bac

This guy lost equivalent of 8k and I don't think he's getting it back. This major company that stores your bitcoins is getting sued for lack of security. Just seems like something I don't want to be involved in, especially if the only benefit is avoid taxation (my payroll is already taxed in us dollars) and maybe a couple 10% off coupons for pizzas.

 

[Synobun]

Bitcoins are great if you're looking to earn fiat currency.

They are awful if you intend on using them as a currency themselves.

Like beanie babies except less embarrassing.

 

[Zelig]

Tulips, Myths, and Cryptocurrencies

 

[Lexicus]

But how does bitcoin value stay stable?

It doesn't.

Bitcoins are useful if one wants to buy illegal stuff on the internet.

 

[civvver]

It doesn't.

Bitcoins are useful if one wants to buy illegal stuff on the internet.

And that's it?

 

[Lexicus]

And that's it?

Pretty much, the only other reason I can think of is some sort of anti-state LARPing where you are opposed to the use of 'fiat currency' or something.

 

[Valka D'Ur]

Bitcoins are great if you're looking to earn fiat currency.

They are awful if you intend on using them as a currency themselves.

Like beanie babies except less embarrassing.

And what's wrong with beanie babies? You've just insulted about half of my stuffed animals, some of whom are Fuzzy Knights characters (last I heard, the creator of the Fuzzy Knights webcomic lives in Vancouver; he's Canadian).

It doesn't.

Bitcoins are useful if one wants to buy illegal stuff on the internet.

They're used on legitimate websites, too. For some reason, Big Fish Games accepts them as currency. I can't think why, though. If you time your purchases carefully and take advantage of sales and punch bonuses, you can get most games either free or at least 50% off.

 

[Lexicus]

They're used on legitimate websites, too.

That's true, but those sites usually also allow for transactions in other currencies, and afaik most people who get bitcoins pay for them using some other currency, so I just don't really see that as 'useful' since it's just adding a pointless intermediate step in the transaction. I guess one thing I've seen is having a choice between bitcoins and paying via Amazon, so I guess it could be helpful if you want to buy stuff from certain websites but don't want an Amazon account. That's a pretty niche use though, and every person I've ever talked to who's used bitcoins has used them on the dark web to buy naughty things.

 

[Synobun]

And what's wrong with beanie babies? You've just insulted about half of my stuffed animals, some of whom are Fuzzy Knights characters (last I heard, the creator of the Fuzzy Knights webcomic lives in Vancouver; he's Canadian).

 

[Valka D'Ur]

Well, I've never used bitcoins. My BFG purchases go through my PayPal account.

So what are they doing with them?

 

[Synobun]

If you're up for a read, here's an article. The gist of it is that many people thought beanie babies were going to be superbly valuable as they aged and their value skyrocketed because of an artificially created demand (much like how Bitcoin enjoys its temporary value bumps).

But that ended up being not true. Beanie babies are worthless now (as an investment tool) and Bitcoins will likely follow that path. My joke was that holding out for Bitcoins to be a real long-term investment is less embarrassing than holding out for beanie babies to be a real long-term investment. They're fine as plush animals themselves.

 

[warpus]

And then I read an article like this and I'm just like why? Why would anyone want to use bitcoins over real money?

A lot of people get a kick out of the idea that they are using a currency that has no central bank controlling it.

They see a future in that concept so they support it. Plus it's made a bunch of people rich and people like that because they think they could be next.

 

[GoodEnoughForMe]

I mined 10000 bitcoins while wearing my ron paul 2008 shirt and building my underground bunker

 

[Lexicus]

Tulips, Myths, and Cryptocurrencies

The problem here is that the dollar and other fiat currencies are not "mythical" in that there's nothing mythical about the jail sentence you will do if you consistently refuse to pay your taxes in them.

 

[civvver]

If you're up for a read, here's an article. The gist of it is that many people thought beanie babies were going to be superbly valuable as they aged and their value skyrocketed because of an artificially created demand (much like how Bitcoin enjoys its temporary value bumps).

But that ended up being not true. Beanie babies are worthless now (as an investment tool) and Bitcoins will likely follow that path. My joke was that holding out for Bitcoins to be a real long-term investment is less embarrassing than holding out for beanie babies to be a real long-term investment. They're fine as plush animals themselves.

I had some beanie babies as a kid I put the little tag protectors on hoping they'd be worth thousands of dollars in my future. Though I only paid the retail $5-7 for them so no biggie. They're probably worth $1 used on ebay now.

Interestingly, certain lego limited release sets go for huge money now. Like there's a star wars imperial star destroyer huge one that was like $500 retail and now it's I think $2000 on ebay. I actually looked up a bunch of my old sets like I have the entire UFO space collection. Surprisingly they are worth about what I paid for them in the 90s. But didn't go up.

I do randomly have this video game though that I got for $20 and now goes for upwards of $80. It's weird too cus I hate the game, played it like 2 hours. It's like a worse final fantasy tactics.

A lot of people get a kick out of the idea that they are using a currency that has no central bank controlling it.

They see a future in that concept so they support it. Plus it's made a bunch of people rich and people like that because they think they could be next.

I don't understand why anyone would not want a central bank though. You need that stability. I guess it's all fight the man kind of stuff where people hate the 1% and think a central bank is a big part of that.

The problem here is that the dollar and other fiat currencies are not "mythical" in that there's nothing mythical about the jail sentence you will do if you consistently refuse to pay your taxes in them.

In the article though the guy even says laws and justice are mythical concepts, only applicable cus we believe in them. In that sense he is right though many people would call those natural laws. And in a practical sense the USD is backed by a powerful government and everyone believes in it.

 

[Valka D'Ur]

If you're up for a read, here's an article. The gist of it is that many people thought beanie babies were going to be superbly valuable as they aged and their value skyrocketed because of an artificially created demand (much like how Bitcoin enjoys its temporary value bumps).

But that ended up being not true. Beanie babies are worthless now (as an investment tool) and Bitcoins will likely follow that path. My joke was that holding out for Bitcoins to be a real long-term investment is less embarrassing than holding out for beanie babies to be a real long-term investment. They're fine as plush animals themselves.

Thanks, I'll read the article later today (my soap opera is on in a few minutes ). I didn't start collecting them for an investment. I just think some of them are cute, and in truth I'd basically grown out of any real interest in stuffed animals before I started to read Fuzzy Knights. And when the creator gave some of us fans permission to do our own home-brewed FK comics (not infringing on his copyrights, of course, and treating the characters respectfully), I started trying to track down some of them. I have my Mossfoot and Violet (they're actually green and burgundy Russ Berrie teddy bears, not beanie babies). I had to give up on finding Target (a black and white cat). The original was bought in Japan, so there may not ever have been any in North America. But Ben... holy crap. Ben was based on Benjamin Bunny from Beatrix Potter. I've been searching for the right version of Ben for YEARS. I'm starting to think that the FK creator has the only one on the whole planet. None of the ones I've seen are a combination of the right size, right clothes, right eyes, right body. There are some that are close. But only the real Ben will do.

 

[Kozmos]

I think the various cryptocurrencies (Ethereum, Ripple, Monero, LTC, BTC, BAT) will find their own niche and will exist alongside regular currencies, there is great potential there but the community and infrastructure is not there yet. Especially if automation continues at the current pace, tax heavens keep getting pressed on and countries start slowly retracting paper currencies to fight crime and for other reasons.

I was initially very skeptical of Brave browser and the BAT concept, but after doing some mental frame shifting I imagined a few futures in which they are very viable. Also anything that could potentially undermine Google and Facebook gets my support and various decentralized crypto-projects all aspire to do that one way or another.

 

[Zelig]

The problem here is that the dollar and other fiat currencies are not "mythical" in that there's nothing mythical about the jail sentence you will do if you consistently refuse to pay your taxes in them.

That sounds like the response you'd give to that article by only reading the title.

 

[warpus]

I don't understand why anyone would not want a central bank though. You need that stability. I guess it's all fight the man kind of stuff where people hate the 1% and think a central bank is a big part of that.

A central bank has control and the people who support BitCoin likely believe that the future of humanity and human economy will have to rely a system in which nobody has such power.

I'm not one of those people, so I'm just guessing btw, so don't take that for gospel. It's my take on the situation based on what I know

 

[Lexicus]

No, I read the whole thing actually. Describing money as a matter of consensus is not the whole story when historically money as we know it evolved as part of the state apparatus. Coercion is fundamental to the whole enterprise.