The cost of mediation increases transaction costs, limiting the
minimum practical transaction size and cutting off the possibility for small casual transactions,
and there is a broader cost in the loss of ability to make non-reversible payments for non-
reversible services.
This is one of the reasons for bitcoins.
http://bitcoin.org/bitcoin.pdfI think we're looking at it the wrong way. Maybe bitcoin isn't destined to become a currency, but something else. It's deflationary, has no consumer protection, transfers are irrevocable and no identities are tied to the addresses. How can this ever become a currency?
This is the problem. People just look at the all time highs and become to blind to see, that all that is just coming from the promise of a cheap, reliable and fast transaction system. Not because bitcoin is the new world of warcraft gold. Pleeease get that into your heads. Please.
Bitcoins are worthless if they are just stored.
Bitcoin was never going to be a universal, flattened currency. Neverever. That is not it's niche in a monetary ecosystem. Bitcoin is a risk distributor, just one part of an emerging monetary ecosystem.
Bullshit. Read the bitcoin paper and come back.
Bitcoin is super silver.
Bitcoin doesn't need to be a currency to be successful. It will in fact be wildly successful even if only functioning as a store of value, the tax havens amounts to trillions. The first phase is speculation and this is where we are now... people believe in bitcoins future potential and that is what drives the price up and the large market cap will make it viable for large fortunes to be stored in bitcoin, eventually it will stabilize at much higher prices. At that point it will work well as a way to settle debt even if we're not able to do as many transactions as other networks I don't think it matters. Micro-transactions can happen off-chain, big money stored safely away from government and bankers.
AAAAAH . Are you people really that stupid??? Please go and buy Second Life Dollars and WOW Gold.
You know why bitcoin has a value at the moment? Because it promises to be a worldwide currency. Not because Satoshi is such a nice name or because somebody wants to have them just for having them.
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