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RE: Mission Accomplished -- Bitcoin Dead as a Payment Method
i get that, that is what the other cryptos are for imo. Just like gold and silver you wouldnt buy a cup of coffee with gold as the micro percentage of gold you would get for 5 bucks is a hastle so it would make more sense to buy a 5 dollar cup of coffee with a quater oz silver coin.
Also, 5dollar cup of coffee? If that isnt proof that the dollar is dying then i dont know what is.
lol
Gold and silver are divisible. Money was gold and silver not very long ago and in my view it is desirable that it become so again. Bitcoin is even more divisible than gold but what's the point of a Satoshi if you can't spend one? The whole equating Bitcoin to gold isn't really a good analogy. It never cost a fee to spend gold. The comparison would make more sense if the smallest unit of a Bitcoin was much larger than it is. I agree that other cryptos can serve that purpose but then what's the reason those cryptos couldn't completely displace Bitcoin? Seems like if they are easier to spend it would make them more desirable.
As far as the $5 cup of coffee, yes, inflation play a big role (because money is no longer gold and silver) but in this particular case it's mostly just Starbucks ridiculous prices. Back when gold was money, you could spend it on a cup of coffee if you wanted. You would just get back some smaller units of gold and or silver in return.
the number of coins, supply and demand. just like silver, its easier to spend but that does not mean its more valuable then gold because there is less gold in the world. Because bitcoin has the cap on 21million coins, not 100billion. because the cost to mine one bitcoin is so high it keeps the price high.
If bitcoins and gold were falling from the sky and we had to sweep the streets clean of it, it would be worthless. alot of the new coins coming out that is what they are doing, creating more supply then demand could ever asorb. supply and demand.
I think you are confusing money and currency with this statement. money holds value and does not suffer from inflation like currencys do.
O.o
Gold and silver are still money and you can still trade it for a cup of coffee. there is nothing that says you cant, its just that most people would prefer to barter with worthless paper money then actual physical assets because paper is easier to cary around then chunks of gold. does not mean the paper is worth more. You wouldnt buy a cup of coffee with a 500dollar bill when you have 5's just like you wouldnt bust out your 10oz gold bar and ask for change when you have silver coins. i feel the same way about bitcoin, i wouldnt be trying to buy stuff for a single sat when i have an alt coin that serves a better puropse for small transactions. With the speed of transactions in exchanges right now i dont see changing my 300 bitcoin sat to whatever in litecoin so i can buy a cup of coffee a problem. but ease of use does not dictate value to me when the number of supply makes it something not rare and easily mined with minimal money and effort put in to get the prize and there for is worth nothing to me. Hell i still turn bitcoins into usd if thats all someone will take and they have something i want to buy, does not mean i would invest long term in the dollar or that the currency has more of a value then the bitcoins im exchanging at that point of time because im transfering an amount of value to someone and when done instantly (or in short amount of time) the markets have not changed and the value is the same when they get it regardless the form of currency they take it in. what happens to the value of the currency they want to be paid in has no effect on me or my money as the value at the time was transfered. if they want to be paid in monopoly money insted of gold who am i to say gold isnt valuble because some dumbass prefers monopoly money?
Just my warpped opinion though, till i got into crypto i would have said only gold and silver are money and the rest is currency at best, most fiat.
:D
But Bitcoin is hardly the only limited supply cryptocurrency. There are others that have much lower transaction costs and speeds. It would seem to me that they are more usable and demand for them will ultimately be higher. Why use Bitcoin when you could use something exactly like Bitcoin except for lower transaction costs and higher transaction speed?
Yes, you can still trade gold or silver for coffee but it is impractical in most cases. The reason it is impractical has nothing to do with the value of gold and silver (and you would typically use coins, not carry around bars), it has more to do with legal tender laws. I don't know why you are using ridiculous sized gold amounts in you example. 1/10 ounce gold coins were once common and that's more like using a $100 bill than a $500 bill and that is plenty common to use in grocery stores and other places if not just to buy a cup of coffee. This would not be a practical use for Bitcoin as things stand today. This is why comparing bitcoin to gold and another cryptocurrency to silver really isn't a good analogy. It doesn't cost you anything to spend either gold or silver or dollars for that matter. And rarity alone doesn't make something valuable. It helps but the demand has to be there as well and there are plenty of reasons demand may move from Bitcoin to other cryptocurrencies over time. Not saying it will happen, just that it could.
Not sure what your point regarding currency vs. money is. I thought we were talking about the dollar and why a cup of coffee costs $5. The reason is partially inflation. Also, money can increase or decrease in value relative to other things just as currency can. Currency can be 100% backed by gold or silver (and used to be) or be completely fiat. And as for an even easier way to spend gold than 1/10 oz coins, you could deposit it in a bank and write a check for whatever fractional amount you wanted. Or use a card or phone or whatever and do it electronically.