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bitcoins

Traditional banks' total annual energy consumption of traditional banks is around 26 TWh on running servers, 26 TWh on ATMs, and 87 TWh from an estimate of 600k+ branches worldwide.

According to recent estimates, Bitcoin consumes around 120 terawatt-hours (TWh) of electricity annually, and can serve 100x the capacity of the banking network in that capacity.
 
:laughing

This has been a record of circular logic supporting a ledger to record transactions. Something humans have been doing since BC times. Yet, this is the right way to move forward. Ponzi and pyramid come to mind.
 
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cheez said:
Says someone who has a vested interest in the USD remaining the world's reserve currency, in insisting that oil is priced in USD, etc.

Scams are.
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See the difference is, no one on a message forum pitches the USD. They might pitch an individual company or real estate or something like that, but I've never seen any regular Joe Blow pitch the dollar (they wouldn't be able to influence it anyway).
 
Reli said:
See the difference is, no one on a message forum pitches the USD. They might pitch an individual company or real estate or something like that, but I've never seen any regular Joe Blow pitch the dollar (they wouldn't be able to influence it anyway).
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...because the dollar is well established, whereas Bitcoin is sixteen years old.
 
When I try to con vince my friends to buy into an idea that directly benefits me, I own it up front.
 
James said:
When I try to con vince my friends to buy into an idea that directly benefits me, I own it up front.
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I don't directly benefit from anyone else using Bitcoin. How could I? I passively benefit from the broader use of the currency, as any currency user does.
 
cheez said:
"It could blow up the economy"

or it could revolutionize it. Change is scary, I know.
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Well let's be honest here: if anything, BC may have anti-inflationary effect(s), but higher cost of capital effects. Interesting.
 
The value increase came from where? Buyer's funds. Trapped cash is still trapped (invested). It's just a different person's cash. As Bid/ Acceptance ratchets up, more cash is trapped at each transaction close.
 
Sunk, trapped, buried, invested, locked up, etc. dollars from an outside source, locked up.
 
crypto currency isn't tied to an sources of gold/value/etc, however, they can be redeemed from any source, regardless of where the money got paid to purchase them.

Has anybody else considered the ramifications of this type of dynamic?

Berto, what are your thoughts on this? Doesn't that break down, in part, the foundation of what the monetary system is founded on?
 
Holeshot said:
Sunk, trapped, buried, invested, locked up, etc. dollars from an outside source, locked up.
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How is it trapped, when people can spend it? You can spend bitcoin almost anywhere these days.

If someone bought 1 bitcoin for $6K back in 2020 and it's now worth $94K, and he uses it to buy shit, how does that not cause inflation? In fact, even if he keeps it in bitcoin, he probably still buys a lot of shit because he feels confident using his other assets to do so.
 
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Even relatively small circles of wealth unquestionably causes inflation, just look at what ridiculous bay wages have done to real estate in California and at least halfway across the country. Grossly increased buying power for some is a decrease in buying power for all.
 
Climber said:
crypto currency isn't tied to an sources of gold/value/etc, however, they can be redeemed from any source, regardless of where the money got paid to purchase them.

Has anybody else considered the ramifications of this type of dynamic?

Berto, what are your thoughts on this? Doesn't that break down, in part, the foundation of what the monetary system is founded on?
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Hey Brett, see below. Investment grade capital tends to stay investment grade and we see a rise/ fall of different investment vehicles based on capital moving between them. That's my simple explanation. IMO, investor feelings about the health of the economy outlook tends to drive personal spending more than anything else. BTC can be redeemed easily, but so can physical gold and silver (in coin form). Regarding BTC or Gold/ silver coinage affecting the monetary system, I don't see these value stores breaking down our monetary system. What really breaks monetary system(s) is something simple that you're well aware of: inflation -----> hyperinflation.

I worry about inflation and have for decades. I worry about the strength of our position as the WRC and I worry about those who don't understand why that is the most important thing to our economy and country. Second is our spending levels, governmentally. From all parties.

Reli said:
How is it trapped, when people can spend it? You can spend bitcoin almost anywhere these days.

If someone bought 1 bitcoin for $6K back in 2020 and it's now worth $94K, and he uses it to buy shit, how does that not cause inflation? In fact, even if he keeps it in bitcoin, he probably still buys a lot of shit because he feels confident using his other assets to do so.
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In simplistic terms: the funds to purchase e bit coin came from somewhere. If another investment, then investment grade capital took the place of either spendable capital or reinvested capital. I see "inflation" from gain on investment sale as the ultimate in fungibility and given all economies are local in a world market, the sale of an investment asset may not be inflationary, locally. W/in the investment market itself, there may be inflation, but that doesn't translate directly to market for physical goods, necessarily.

In short, my Econ belief has always been that investment grade capital tends to stay investment grade. Basis may play a part here, but I just don't see liquidation of assets as a large boon to inflation of pedestrian level goods and services. YMMV.
 
I'll still stick to my pieces of eight, (physical gold and silver), thanks very much. I am a self-professed simpleton after all.......
 
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