• Kecessa@sh.itjust.works
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    1 year ago

    Bitcoin: 4.7% believed to be in the hands of a single person, another 3.1% in the hands of four addresses. Deflatory so no incentive to use it to make transactions. Value depends on the network effect (i.e. a pyramid scheme). Small transactions now too expensive to be realistic. 24% of the supply was created in the first year, 35% over two years. Movement of funds takes too long to be useful. Those who got in early are guaranteed to be richer than those who got in late without having made any effort…

    Crypto would be great as a replacement of the stockmarket but it’s fighting to be cash instead and it’s doing a bad job of it because it’s cash as envisioned by tech bros, not actual economists.

    • I_Has_A_Hat@lemmy.ml
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      1 year ago

      I love posts like this, it lets me know most people still don’t have the first clue what they’re talking about. It’s honestly a bit impressive how nearly every point you tried to make is either misleading or straight up wrong.

      • Kecessa@sh.itjust.works
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        1 year ago

        I love posts like this, it lets me know most crypto lovers don’t have the first clue what they’re investing in. It’s honestly a bit impressive how you didn’t even try to actually argue against what I said because it’s just a list of facts.

    • electriccars@startrek.website
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      1 year ago

      By over 30%:

      Source: in2013dollars.com

      Meanwhile…

      $1000 would’ve bought 7.388 BTC in August 2013.

      7.388 BTC today is worth… $193,186.08

      Tell me again which one is the best place to store value?

      Edit: Downvoted for showing facts. Not surprised.

      • itsmect@monero.town
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        1 year ago

        Tell me again which one is the best place to store value?

        I don’t think you are ready to hear this yet, but it’s monero :P All jokes aside, bitcoin ain’t terrible, especially compared to the dollar, but I worry that botcoin’s security model will crumble more with each halfing. Transaction fees are already unusable in some cases, yet they barely contribute to the miner rewards. The math doesn’t seem to work out.

        • explodicle@local106.com
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          1 year ago

          Lightning has onion routing and lower fees.

          Sidechains (like BIP 300) will allow ring signatures backed by bitcoin.

          We don’t need a new money supply for each new feature.

            • explodicle@local106.com
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              1 year ago

              How much do you think the total security budget needs to be, and why? Where’s the math that doesn’t work out?

              • itsmect@monero.town
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                1 year ago

                The security budget is total fiat denominated miner reward of the entire network. The higher it is, the the more resistant bitcoin becomes to 51% attacks.

                As you know, each halfing decreases the block reward, which is currently the largest part of the total miner reward. In order keep a steady security budget, the price and market cap has to double each time as well. But remember, the security budget stays constant, so an ever increasing amount is secured by a relatively lower share.

                Transaction fees make up the remaining tiny share, and I honestly don’t see it growing much. Because the higher this fee becomes, the more people will find ways to avoid it, and just keep it on exchanges, custodial solution or lightning. This reduces the decentralization , the primary feature of bitcoin, and thereby reduces it value proposition.

                All this can be side-stepped by having holders pay a small, program-ably guaranteed fee proportional to their holdings, which is then paid out to miners. Yes, this is similar to inflation, but as long as it is lower than fiat inflation I can be worth the trade off. Considering how cult like bitcoin holder are, I don’t think this is a change they are willing to make, at least not before it’s too late.

                • explodicle@local106.com
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                  1 year ago

                  Why would we need to hold the total security budget steady/constant? We’re currently paying FAR more than necessary. If we assume total fee revenue won’t increase, then Bitcoin fees alone are already more than the entire security budget for some reasonably secure blockchains today.

                  And that’s a very conservative assumption. Lightning and p2p sidechains (which don’t hurt decentralization) increase efficiency, so the Jevons paradox predicts that total transaction fees paid will continue to increase. Lightning is less dependent on quick confirmations than base layer commerce is, reducing the impact of 51% attacks if/when they do happen.

                  When evaluating Monero’s monetary inflation trade-off, its primary competitor is Bitcoin, not the dollar. It’s not very hard at all to do better than the dollar. :-P I for one am strongly in favor of making changes in general (go BIP 300!) but tail emission has been proposed for over a decade and has been repeatedly rejected as unnecessary.

  • Semi-Hemi-Demigod@kbin.social
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    1 year ago

    I’m sure if Bitcoin had the largest and most powerful military in the world it would have become the world reserve currency by now

      • electriccars@startrek.website
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        1 year ago

        Yes sir. Wouldn’t want regular folks to be able to retain the value of their savings! Government’s restricted to being fiscally responsible instead of printing their way out of problems with the hidden tax on the poor that is inflation? Ridiculous!

        • Lucidlethargy@sh.itjust.works
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          1 year ago

          Oof, that’s not how economics works.

          Inflation is good so long as wages are rising with it. It’s killing us right now because wages are stagnating hard right now.

        • gonzo0815@sh.itjust.works
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          1 year ago

          Read about the great depression or the deflationary economics in Germany right before the Nazis took power. Deflation sucks, we already experienced it and we don’t need to try it out again.