Bitcoin is Money?
No matter what is Bitcoin Money or not. Its usefulness, not definition, important.
At different times in history, the feather is money. Shellfish is money. The dollar and the Euro is money. Gold and silver is money. Bitcoin and other cryptocurrency can also be money.
No problem, and the argument for what this money and this is irrelevant and kept over the years with reference to Bitcoin. The only thing that matters is what you can do with bitcoin, not definitions. No matter what you call the "email" emails, if the email is working. The same can be said about the Bitcoin. If you can use it the same way You use the money, then you can call it money. And what economists and others think, not belonging to the public image and distractions.
People say that some form of money, like Bitcoin or u.s. dollars, unfounded.
But that's not true.
They are supported by one thing: belief.
This is a misuse of the word "support". Federal Reserve System the previous banknotes backed by gold. This means that you can switch them to physical gold. "Support" in this context means "to be saved". You don't just change the meaning of words gives rise to the argument, and the argument will be left blank. This conviction means as a measure of integrity in a monetary context, and we can see that this is true in a Fiat. All the renewed currency, without exception, causing inflation, and all Governments are released they have full public confidence.
If you and I am sure that something is money, and we agree that it is money, then that is money. But if I call something money, and no one else in the world calls it that, not money. The same goes for gold, dollars and cryptocurrency.
It's really wrong. People in the United States will not take the euro for goods sold, not because they have not "believe" that the euro is your money, but because they can't spend in the local market. and to create the basis of a standard money what everyone in the world to accept them, which doesn't make sense. This is a complete distraction from the important issues that arise around Bitcoin and inability to understand what is Bitcoin actually offers.
The Government has an advantage because they force you to pay taxes on their money. In other words, the Government basically makes use of its own form of paper money, threatening people with punishment if they did not pay taxes in the Government.
After this argument, pieces of wood, like the Tally, is money. This agreement does not require a lot of people, but only using force. So money is a result of coercion or collective delusion?
The dollar has a monopoly as a legitimate means of payment to pay the tax on US. According to John Maynard Keynes and many other economists, it is the ability of the Government to compel the payment of taxes in a particular currency to give the currency intrinsic value. This theory of money coming to the fact that we estimate the dollar just because we have to use them to pay taxes — otherwise we would go to jail.
Refer to Keynes ... It's unbelievable. Being able to make someone do something that can change the objects into money. If that's true, it really could be the money, including the ones that are kidnapped, and even not Keynesians will argue that "the person money."
Called cryptocurrency, such as the Bitcoin, has two common features. First, they are not issued or administered by a central bank or a regulatory body. They are created according to the specific computer algorithms and issued and transmitted through a distributed computer network using open source code.
This is a very bad description of how Bitcoin work, but it does not matter that there is no understanding of his work. People also make a blog post and have no idea of the complex programs that ensure their performance. Trying to explain the work of the Bitcoin for computer illiterate is a silly idea, they need to find another way to explain how it works.
A second common feature in cryptocurrency is the encryption that is part of the "crypt" in the title. Possible to monitor the transactions that occur on the Blokchejne is called, which is a list of the major currency unit and the entire transaction.
This shows once again that the understanding Rikardsom how Bitcoin work incomplete. It would be much better if he used it himself, and then talk about user experience, rather than trying to delve into the details of low level. I'm sure if he tells how writing a blog, he does not explain how SSL works. SSL working (or Apache or browser) is hidden from the user and don't care for blogging.
But the identity of the participants of the transaction are hidden behind what is considered a code could not be destroyed. Only parties who perform the operation has the button needs to decode the information in the chain-block in such a way to gain access to ownership and the use of currency.
This is nonsense, and that's not how the Bitcoin work. Even close. You do not have or do not accept Bitcoins in transactions. It's hard to believe, but it is really the right description.
This does not mean that cryptocurrency is error tolerant. But in General, the system works pretty well and is growing rapidly in both legal and illegal transactions.
This is not true. The system works great and have the uptime (time constant) is unmatched. There are no illegal transactions at Bitkone. All transactions are simple messages sent and received by software customers, and that's it. Any attribute that you place in the transaction is purely a perspective, not a fact. This is the statement that there are "illegal phone calls". No one in their right mind thinks about it, and this is no different than the Bitcoin phone calls or text messages, except the way the message is processed. It is just data, from start to finish, always, without exception.
It's worth noting that the US dollar is also a digital cryptocurrency for all intents and purposes. Only the dollars released by the central bank, the Federal Reserve and the bitcoin issued personally. While we can sometimes hold a few dollars of paper in their wallets, most transactions are expressed in dollars, whether in the form of currency or securities, held in digital form.
That's not true. The dollar is no way "digital cryptocurrency". Anyone who considers cryptocurrency dollars, did not understand what is Bitcoin is and why it is special. Bitcoin fundamentally different from dollar on every level, and that is why it is so interesting. If you do not understand why the dollar is not cryptocurrency, then you will not be able to understand why Bitcoin is very important and why it is so revolutionary.
We pay bills online, pay for purchases with a credit card and receive direct deposits into our bank account in digital form. All transactions are encrypted using the same encoding as the Bitcoin.
This is not true. The same software is used to perform many tasks, but the program has a Bitcoin is very unique. It is like saying, "the ink used to print a variety of newspapers, so that Newspapers are similar to a paper dollar, since both are using ink and paper."
The difference is that our digital dollar holdings known to few reliable contractors, such as our Bank, brokerage and credit card company, while proprietary rights bitcoins is known only to the user and is hidden behind the code in Blokchain.
The difference is the method that goes beyond the mere knowledge of ownership. There are no reliable contractor in Bitcoin, all the same. Ownership of Bitcoins known to all people on Earth. All you have to do is look in blockchain to see who controls how much bitcoins. And there is no such thing as "blockchain".
Bitcoin and other Cryptocurrencys present particular problems for the existing system. One of the problems is that the value of Bitcoin is not constant in dollars. In fact, the cost of this is quite variable, fluctuating from $100 to $1100 in the last few years.
The fact that the price of the bitcoin runs up and down is not a problem for existing systems. This is a result of immature pricing system that gets better every day. Bitcoin volatility chart shows a steady downward trend. Bitcoin volatility is one of the arguments against it, we heard many times and many years. This is not new, not interesting and not deep.
*One solution to the problem of volatility Bitcoin I find interesting is to tie bitcoins gold at a fixed rate. This would require the agreement of the community and sponsors Bitcoin ready to make physical gold market in the agreed value in Bitcoin. Types of bitcoin, backed by gold, it could even become a global reserve currency, especially if supported by the strength of gold such as Russia and China, who are looking for a way out of the current system of hegemony of the dollar.
Ideas for connecting with old gold Bitcoin, and several companies tried and failed. There is no reason to associate the Bitcoin with gold; It does not offer the additional utilities or security, or the value of, but really represents the em and the risk. Bitcoin, backed by gold, there's never going to happen. This is a bad idea that has been rejected by the market. Bitcoin alone is enough to change the world, that world. Support the Bitcoin with gold is like saying, "the email will be more useful and acceptable if it will be used to scan a handwritten letter is then sent to the recipient." Very silly, but that's what it has to offer.
Clearly, experts have real experience with Bitcoin, and yet he remains in writing articles about the topic cryptocurrency. Question: "Why?". Why he wouldn't ask someone to help him understand the bitcoin, rather than repeating the same thing every time he was asked?
His experience in business, and currency markets is very valuable for the community of Bitcoin, but would be lost if Rickards stubbornly refuse to accept the facts and accept bitcoins.