Usd to bitcoin conversions
Posted On 23.06.1969
Any e-currency which is peer-to-peer must also be deflationary. Somehow, years later, the debate rages on, still by people who seem to think that the limited supply has something to do with macroeconomic policy. Security First and foremost, people aren’t going to trust their money with something unless they understand how it works. Ownership The major advantage to closed-source is that you can sell the software, usd to bitcoin conversions otherwise extract cash from its use.
P2P protocol Bittorrent every single day. Puzzle Piece 2: Open Source Means Competition Open source software can be effortlessly copied. The copies can be trivially renamed, they can be trivially modified to use different colors, or words, or different starting parameters. It’s Darwinism at the speed of the information superhighway. If you don’t know that, you don’t know anything about software, and you definitely don’t know anything about Bitcoin. Central Banks are designed to coordinate monetary policy for large areas , but: the easier it is for someone to leave a group, the harder it is to get the group’s members to do something they don’t want to do.
Puzzle Piece 3: The Winner-Take-All Network-Effects of Value-Storage Citizens use only one form of money. Which commodity would best transport value across time? The fundamental challenge is to acquire something now, that someone else will want later. It is durability where Bitcoin holds the critical advantage. What drives this amusing little quirk?
Well, of all the things to save, one will be -objectively- best. Over time, individuals will recognize the advantages of this money-form, and start saving in it, purely for convenience. Having two things serve as money is non-fungibility. It introduces complexities of an unacceptable nature. In fact, because modern computing allows prices to be quickly and effortlessly recalculated and redisplayed, and allows e-transactions to be fast and cheap, we have many options for fast roundtrip conversions that drastically reduces money’s need to serve as a unit of account or even as a medium of exchange. I hope it is now clear: if Bitcoin didn’t have a fixed money supply, it would be replaced by something which did. Hopefully it is also obvious that something with a decreasing money supply also won’t work.
If the supply is decreased uniformly across accounts, nothing of any consequence occurs whatsoever. People who criticize Bitcoin for being deflationary seem to have missed a number of more important things. Policy is primarily caused by what is possible and effective, not by what is desirable. Bitcoin, as a protocol, is immortal. We can choose to ignore Bitcoin, but it cannot be shut off, it cannot be destroyed.
Regardless of how we feel about it, it is here to stay. Bitcoin might cause permanent deflation, it might cause mass unemployment, it might cause famine, or cause the water of the Nile River to change into blood or trap the whole universe in an endlessly repeating loop of Thursdays. Should Bitcoin, a deflationary currency, be used as money? Will Bitcoin be used as money?
The will and should questions are usually quite related, of course. In a few billion years, this entire planet will be incinerated by the Sun and obliterated completely. I’d start with those, if you have a magical way of dealing with sad truths. This one might not even be sad, it might be happy.