tag:blogger.com,1999:blog-6704573462403312459.post1366313283422828871..comments2024-03-28T06:53:23.473-04:00Comments on Moneyness: The dollarization of bitcoinJP Koninghttp://www.blogger.com/profile/02559687323828006535noreply@blogger.comBlogger12125tag:blogger.com,1999:blog-6704573462403312459.post-1107273448763887532018-04-16T12:33:29.060-04:002018-04-16T12:33:29.060-04:00Thank you for taking the time to publish this info...Thank you for taking the time to publish this information very useful! <br /><a href="https://reliablecryptoconsulting.com/" rel="nofollow">blockchain</a><br />whiteheadcmnscolleenhttps://www.blogger.com/profile/16726219718015837860noreply@blogger.comtag:blogger.com,1999:blog-6704573462403312459.post-10322234958352577122015-08-20T03:58:37.446-04:002015-08-20T03:58:37.446-04:00Still trying to learn about Bitcoin.
Haven'...Still trying to learn about Bitcoin. <br /><br />Haven't had the courage to buy bitcoins yet.<br />I fear the volatility, the fees, the tax consequences.<br /><br />I don't see the volatility when using dollars because merchants price things in dollars.<br />Credit card companies have done a good job hiding the fees.<br />I don't see tax consequences because the government treats dollars as currency.<br /><br />In your previous article you said merchants love bitcoins because the fees are less than the credit card companies charge.<br /><br />I was wondering if it would help get consumers, like me, to use bitcoins if merchants advertised the price of an item in bitcoins as well as dollars?<br /><br />Let's say a merchant wants to sell something and lists the price as either $250 or one bitcoin.<br /><br />It doesn't matter to me if a bitcoin was worth more or less than $250 as long as I could get the item for one bitcoin.<br /><br />I would be unhappy if the merchant just ran a script dynamically calculating $250 into the amount of bitcoin based on the moment to moment conversion price of dollars to bitcoins.<br /><br />I want a set price for an item in bitcoins just as I have a set price for an item in dollars.<br /><br />Would my request be good for merchants? Probably not. They would be assuming the volatility.<br /><br />Would my request be good for bitcoin? I think it would. <br /><br />Bitcoin seems to be nothing more than a medium of exchange between currencies with the purchasing of goods and services almost an afterthought. <br /><br />Before I get dinged I believe bitcoin was supposed to be a replacement for fiat currency for the purpose of buying and selling goods and services. I am guessing having bitcoin act as a medium of currency exchange was probably not a priority.<br /><br />I'm hoping my suggestion would get the use of bitcoin back to what I think was its intended purpose.<br /><br />For bitcoin to become the replacement, goods and services need to be priced in bitcoins.<br /><br />I will believe bitcoin has come of age when I walk into Walmart and see the price of an item listed in bitcoins as well as dollars.<br /><br />I still would have the impediment of converting dollars into bitcoins in the first place.<br />Don't know what to suggest about that. Like most people, I am not paid in bitcoins.<br /><br />Don't know what to suggest about taxes. <br />Wish bitcoins were treated as a currency and not as property subject to capital gains taxes.Richard Sewillhttps://www.blogger.com/profile/14913476237638866730noreply@blogger.comtag:blogger.com,1999:blog-6704573462403312459.post-71924312923620616942015-08-04T00:04:31.030-04:002015-08-04T00:04:31.030-04:00I believe you are seeing speculation to get a gate...I believe you are seeing speculation to get a gateway fee on bitcoin from providers to mitigate downward risks. This 'problem' is temporary and shortly to be solved with one of either sidechain, smart contracts, or secondary systems like Etherium or bitsharesX as you suggested bitusd...nubits etc. Bitcoin will dollarize presently because it has a profit to be made doing so and the dollar is presently showing strength. The process will reverse quite rapidly and bitcoins 'instability will be a temporary benefit for some while scripting/smart contracts will allow value to be maintained dynamically against a basket of currencies and commodities. IOUs (Ripple/Fed) invoke multiple layers of counterparty risks and the best use case of Bitcoin as a currency is that risk is totally eliminated.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6704573462403312459.post-8116625854567315272015-07-15T17:04:41.309-04:002015-07-15T17:04:41.309-04:00bitcoin/blockchain's value will be more clear ...bitcoin/blockchain's value will be more clear once it is easier to use the 'programmable money' aspects. bitcoin is unlikely to become popular because it is superior store of value or unit of account.<br /><br />It will become useful because of multi-sig, proof of ownership, cryptographic signing, etc.Rant2112https://www.blogger.com/profile/12059343646273908465noreply@blogger.comtag:blogger.com,1999:blog-6704573462403312459.post-33112184983026553572015-06-13T08:15:45.089-04:002015-06-13T08:15:45.089-04:00I think it would be more correct to say that the w...I think it would be more correct to say that the world is a pyramid scheme.Anonymoushttps://www.blogger.com/profile/09239004299815450101noreply@blogger.comtag:blogger.com,1999:blog-6704573462403312459.post-80997684890804774812015-06-13T08:14:04.717-04:002015-06-13T08:14:04.717-04:00Hi JP, i tend to see this differently (but might b...Hi JP, i tend to see this differently (but might be wrong). The reason why fiat money has demand is because it is legal tender and you need to pay your taxes with it and it legally exntinguishes debt. That creates a natural demand for fiat money. For Bitcoin there is nothing like that for the time being, to create it you need the decentralized databse of transactions that uses bitcoins as fuel to have a use case that then creates natural demand for bitcoins as a currency.Therefore for the time being I dont see the relationship you established, that circularity is not as strong as it might appear.Anonymoushttps://www.blogger.com/profile/09239004299815450101noreply@blogger.comtag:blogger.com,1999:blog-6704573462403312459.post-25118470147821258492015-06-13T06:53:47.965-04:002015-06-13T06:53:47.965-04:00Bit coin is a pyramid schemeBit coin is a pyramid schemeAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-6704573462403312459.post-13354530448027962702015-06-13T05:58:16.385-04:002015-06-13T05:58:16.385-04:00The provider can position themselves at any phase ...The provider can position themselves at any phase of the transaction, that is what makes Bitcoin great. For example, Cashila will settle SEPA payments on your behalf against Bitcoin. The payee does not even have to know that Bitcoin exists.<br /><br />The hedge providers do not necessarily increase the liquidity of dollar. Some mechanisms work without anyone having to hold dollars. For an overview of hedging mechanisms check out The Piachu's blog: http://tpbit.blogspot.com/2015/02/the-rise-of-fiat-denominated-cryptos.html . Adam Back also mentioned hedging as a possible use of sidechains.<br /><br />With such "dollarless" hedging mechanisms, there is no additional liquidity in dollars (euros/pounds), you just have a peg, which at least keeps the liquidity in cryptoassets. It also increases the perception of liquidity of bitcoin, because you know that at any time you can trade a bitcoin against a fiat-pegged cryptoasset, without the hassle of going into fiat.<br /><br />Just last week you wrote: "bitcoin lacks a non-monetary stabilizer (see here and here)". The intermediaries, by reducing transaction costs (and thus increasing liquidity), provide such a stabiliser. The problem with your argument, as I explained in my paper last year, is that you do not consider a reduction of transaction costs to be a source of non-monetary utility. This is a very tragic argument for an economist to make.Peter Šurdahttps://www.blogger.com/profile/02219200720577247444noreply@blogger.comtag:blogger.com,1999:blog-6704573462403312459.post-47690421383491172952015-06-12T18:03:14.057-04:002015-06-12T18:03:14.057-04:00For the purposes of this post, I've defined in...For the purposes of this post, I've defined intermediaries as payments providers and those who serve buyers, say wallet providers. <br /><br />But I'm curious, what do you mean by this? "Those that you have been seeking for years and failed to find." JP Koninghttps://www.blogger.com/profile/02559687323828006535noreply@blogger.comtag:blogger.com,1999:blog-6704573462403312459.post-14177137928725205572015-06-12T17:59:51.564-04:002015-06-12T17:59:51.564-04:00Hi Alex. To create a more stable coin, you need a ...Hi Alex. To create a more stable coin, you need a use case. To create a use case, you need a stable coin. Its a circle that that can't be broken into. Having a coin that is stable from the outset, says like bitUSD, might be able to break the circularity problem.JP Koninghttps://www.blogger.com/profile/02559687323828006535noreply@blogger.comtag:blogger.com,1999:blog-6704573462403312459.post-20704265703992478952015-06-12T17:10:40.491-04:002015-06-12T17:10:40.491-04:00The intermediares are bitcoin liquidity providers....The intermediares are bitcoin liquidity providers. Those that you have been seeking for years and failed to find. Just like forex markets provide liquidity to fiat and make it a better choice to hold, provide liquidity to the bitcoin market and make it a better choice to hold.<br /><br />Thanks to these liquidity providers, there is less and less reason to hold dollars (or in my case, euros). Just like when I travel to US or Canada, I don't need to hold dollars, I can keep paying with my euro-denominated debit card.<br /><br />There are also other costs of holding fiat which you do not mention. The fee you pay to the bank to maintain your current account, the fees your employer pays to the bank, the fees your employer pays to receive payments from the customers, and so on. For some types of businesses, this is more relevant than for others.<br /><br />The intermediaries are a logical step for a secondary medium of exchange. Complaining about them is like complaining that pawn shops are willing to buy gold and this dollarises gold. Whether they are sufficient is another thing.Peter Šurdahttps://www.blogger.com/profile/02219200720577247444noreply@blogger.comtag:blogger.com,1999:blog-6704573462403312459.post-57906368570237451352015-06-12T12:15:49.492-04:002015-06-12T12:15:49.492-04:00Don´t you think that it depends more on having a u...Don´t you think that it depends more on having a use case for Bitcoin (besides Silk Road and speuclation) and that then there would be natural demand. None of the actors you list is there because of a use case and is just an operator in the Bitcoin market. My impression is that to create a more stable bitcoin you first need a natural use case that hopefully is big enough to then create a reason to hold Bitcoin beyond the traditional use cases.<br /><br />Cheers,<br />AlexPreukschatAnonymoushttps://www.blogger.com/profile/09239004299815450101noreply@blogger.com