Why Bitcoin Is Soaring

[@acem82]

A dollar today would be worth about 3 cents in 1913, when the Federal Reserve was created. Before that time, there was a general (but very slow) price *deflation,* and that meant that money just sitting there would be worth *more* in the future. -An Economist

[@mjgbabydragonlet]

Most Excellent Why Minute.

[@pourush_5]

Informative

[@malekyo]

I still can’t buy my pint of milk with bitcoin.

[@brandonboulton2776]

That's because it's not currency. It's a store of capital. Time for everyone to learn economics.❤

[@LG-Musique]

I’ll give you a pint of milk if you give me 1 Bitcoin 😂

[@malekyo]

@@brandonboulton2776 ok it’s not currency but a cryptocurrency. Got it ;)

[@BriscoJr.]

​@@LG-Musique You beat me to it!

[@tf5pZ9H5vcAdBp]

Then you're not trying hard enough.

[@jaygee553]

This has to happen to the news / information.

[@mikemcconeghy4658]

Is there a limited supply of gold? Or diamonds? Pretty sure we're still mining both, faster than the market can consume. I suspect organizations control the supplies to keep the prices up.

[@flightcomputer2437]

Damn right they do. It's proven in the case of diamonds, which are actually as abundant as coal, and now can be made artificially. It's all a huge con, and yet people think Bitcoin is somehow less trustworthy. People don't even understand that there is more debt than money to pay the debt, so essentially all money is worthless. Why is Bitcoin suddenly less real than fiat? If anything it's more real because it actually has finite supply.

[@nobodyspecial9262]

Maybe I'm missing something but Bitcoin makes no sense to me, I have yet see a Grocery Store in my area, a Gas Station, or Hot Dog Vendor who accepts Bitcoin, yet each take Dollars. If you cannot buy necessities with it, why is it so good?

[@kakatuskak3317]

Because it stores the value over a long time. You can convert it to something which you can use as something to buy things with. And you can do this in every moment in the future, and you have a higher chance that there is still value instead of fiat money for example. Roughly it has the function, gold had before. You cant buy bananas with gold. But with gold you can convert the value of gold into the actual value of fiat money or any other trade value. And this action is timeindependent or to be more specific more timeindependent than the actual alternatives.

[@loneDreamer0]

It is a gamble. While the analogy to gold has some ground (it being deflationary), gold is a tangible asset with significant commercial use, so intrinsic value. Bitcoin is no doubt an interesting experiment, but it has not fulfilled it intrinsic proposition: it can't work as a currency as long as you can't purchase anything with it, no institution guarantees its value, and the value fluctuates wildly over time. By virtue of comparing its value to dollars, you can see how it is basically a speculative asset, but one with no tangible assets underneath (like a company's stock). So it it closer to a virtual casino token, and its value tied to how much people want to pay for it.

[@AApron]

​@@loneDreamer0Gold sellers/brokers accept Bitcoin as payment to purchase gold and have for quite some time now.

[@bertblue9683]

Because it's not a currency. The name cryptocurrency confuses the weak minded. Keep studying, keep asking questions.

[@NormalPerson053]

If you want a crate of eggs just one crate of eggs will you barter your house to get one crate tell them to give you change. Bit coin is getting close to the level property. Bitcoin is like investment. But sad part is many of us don't have skills to earn enough for investment.😢

[@McMillanScottish]

I prefer money that doesn't require electricity to access.

[@flightcomputer2437]

Guess you don't like ATM's either then.

[@McMillanScottish]

Bitcoin is less "finite" than he suggests. When you can just add decimal points as needed, you still have a bottomless pit. Eventually, Bitcoin will be worth $80 trillion each, and they'll just break it down to 12 decimal points. What changed?

[@AugustusCaesarBCE]

Study Bitcoin or regret it bitterly in the years to come.

[@rphb5870]

you don't have to study it to avoid it. The only ones who will regret it, are the people who bought into it

[@joejackson6205]

Excellent presentation hope the incoming Sectratary of The Treasury sees it. My problem with digital currencies, and gold, is you have to convert it to cash, or deposit it as US currency in your checking account to buy most things like food. Last time I checked, you don't get change if you bay in bitcoin or gold.

[@rphb5870]

don't compare bitcoin with gold, it is hard to imagine any two concepts more opposite each other.

[@joejackson6205]

@rphb5870 you missed my point. Precious metals, digital currencies , etc, have to be converted to cash or cash deposits in bank accounts before transactions can be made. Gold is generally not accepted at McDonalds, nor Bitcoin at the grocery store. Invest where you want, but to use what you've earned, it has to be converted to cash or cash deposits into bank accounts.

[@rphb5870]

@@joejackson6205 bitcoin always yes. but not so for gold. Gold can and are used directly as money. What thou art missing is that people do not, nor have they ever used gold to pay for a restaurant visit. What we can do, is to go to a car dealership, slap a handful of gold coins on his desk, and exchange that for a new car. That is what gold are for, mayor purchases. it is impossible to pay for a meal at McD with gold for the simply reason that gold is too precious, we wouldn't be able to handle a coin small enough to pay for a burger. that is where we have silver and copper

[@flightcomputer2437]

​@@joejackson6205But what's the problem with that? Gold and BTC hold more value than currency, so that simply means you get more currency for your gold or BTC when you convert it to spend. That's the whole point.

[@thomasfalanga9163]

My problem, the dollar was based on the gold standard it’s value was pretty much set now it’s based on Wall Street and it’s all over the place bit coin what’s its foundation? And what keeps it from going away with a key stroke?

[@katieneubaum4284]

Solid question, but there’s plenty of answers that you won’t find here. IRS creation process is very very secure there’s a Tuttle Twins episode about it that’s actually very informative and fun.

[@flightcomputer2437]

Bitcoin is based on the same thing as Wall street and therefore the USDD- perceived value. Seeing as there is no gold standard there is no foundation to anything anymore. So there's no difference. As for what's to stop it going away with a single key stroke. The same can be said for your bank account, which is simply numbers saved on a server.

[@Thaumogenesis]

People that use fiat currency as a store of value... we call them poor.

[@alexfzbrito]

You are a man of culture

[@Craig121000]

Bitcoin isn't real, as most will discover when they lose everything for getting involved

[@brianhoward1245]

It's going up forever Laura... forever!

[@AlexRussell-kd9pd]

Bitcoin is even more risky than a fiat currency backed by a competent government (sorry, Venezuela) as its value ONLY depends on what people think it is worth. It's value has plunged twice, and it will plunge again. Fine, all 21 million get mined, that's it, but does this scarcity mean anything in the real world? It is still just numbers in a computer that only has value if people are willing to trade with it. There are over 200 digital currencies ranging in value from less than 1/100,000 of cent to over $100,000. Only speculation makes bitcoin valuable.

[@Logan_236]

Is that not how the USD works as well? If everyone stopped buying it right now and tried to sell it for another currency, would the value not plummet?

[@coc1841]

Certainly, its value must be at the cost of energy requires to mine it. Basically, you are converting the cost of electricity to BTC. It may plunge once or twice, but human greed will keep it afloat, no matter what. Besides this, it can be very useful in some circumstances.

[@brianhoward1245]

Bitcoin was riskier 10 years ago at $100 than it is now. If it was going to fail, it would have done so by now. Yes, it is volatile, but its volatility decreases over time and will continue to do so. At this point, it is riskier not to own Bitcoin than to own it.

[@AugustusCaesarBCE]

HFSP

[@acem82]

All value is subjective, including gold, silver, or dollars. People value things for what they can do with the things.

[@michaelhemmat]

The United States government already owns a huge amount of bitcoin from seizures. All crypto exchanges have to comply with government regulators so the tracking myth is gone too. I don't understand why people still believe in the original suggested benefits of any crypto.

[@bobmnz6914]

New Zealand 1960's the equivalent of $24 paid for Mum at home with 6 to 8 kids paid from one wage that Dad earned from a 44 hour week. Today to buy what that got, takes $1000 a week from Dad and Mum working with the kids running riot. AND Government support for 1.6 kids. We don't even produce enough to maintain our population level.

[@DADSGETNDOWN]

I wouldn't buy it no matter what, anyway. I don't fall into the trap, nor do will I be part.

[@Post-Trib]

Like buying gold with a paper IOU 📃

[@tf5pZ9H5vcAdBp]

Explain how Bitcoin is a trap.

[@brianhoward1245]

How is it a trap? So if you could go back in time and buy it for pennies, you still wouldn't? Million dollar Bitcoin is less than a decade away, but you can buy it right now for a fraction of that. Have fun staying poor.

[@acem82]

I'm fine with this thinking. More for us. By the time you realize your mistake, all the libertarian folks will be rich!

[@oo--7714]

​@brianhoward1245 bro he would still be poor a 10x isn't much. And inflation will eat up most of those gains

[@joejohnson4183]

Bitcoin is like having stocks , you have something on paper or in digital but not in your hand unlike precious metals . An old saying that makes sense , a bird in the hand is better than 2 in the bush .

[@rphb5870]

close, but the advantage of a stock is that it represent a share of the ownership of a company, it might just be a miniscule share, but if it is a company with actual activities and products like Nestle or Coca Cola, there should be a profit that the stock owners are entitled to. Bitcoin can better be described as a perpetual zero coupon bond

[@joejohnson4183]

@@rphb5870 But they are only as good as the times they are in . What happens in lets say WW3 with China or the collapse of society or hyperinflation where money is worthless ? And what makes you think the government especially China will not find a way to control , freeze or empty accounts ? Remember when Trudeau froze peoples bank accounts during their protests , so if all your bank accounts are frozen how will you transfer Bitcoin into dollars since the majority of businesses do not take Bitcoin . Try buying groceries or gas with them .

[@flightcomputer2437]

Sooo, by this logic you don't have a bank account then? You just have piles of gold at home. If not then you are talking BS.

[@rphb5870]

@@flightcomputer2437 we unfortunately need a bank account today to handle payments, but only a fool keeps their valuables in a bank. and a "pile of gold" is just about the wisest thing to be in. Gold have appreciated over 25% this year

[@joejohnson4183]

@@flightcomputer2437 Of course I have a bank account but I also have some precious metal including lead , copper and brass . Just remember how during disasters like Hurricanes dumb people did not take out cash before hand and then were surprised their cards were useless because there was no electricity .But never hope the government never does what commie Trudeau did to the truckers and the people that supported them by labeling them as terrorists . And don't think the government will not shut down the internet and all forms of communication if they deem it necessary for national security .

[@1wun1]

Who controls Bitcoin? Who made it?

[@flightcomputer2437]

Your Mom

[@MrMountain707]

US dollar has inflated over 99% since it's birthday. Let that sink in. The dollar will inflate over 100% over the next 50 years at a minimum with 2% yearly inflation. Time to buy Bitcoin..

[@CarlosC77]

one world currency coming quicker than many think

[@kelimike]

Would you wear a mark to access it?

[@acem82]

No, that's for Central Bank Digital Currencies (CBDCs).

[@kb6lcw99]

😊

[@WilliamAndRose1]

Bitcoin is (and always has been) an incredibly unfair resource though. I knew about it (relatively) early, when it was in the hundreds of dollars per BTC range and still mineable, but I chose not to participate because its method of generation and division among the population was inherantly unbalanced and, in my opinion, evil. Giving that level of purchasing power to just a small part of the population and leaving the rest out is absurd. Moreover, the processing power required to create and maintain it is a huge waste of resources - both in terms of electricity and wear and tear on computing hardware. Its such a farce all around, and I hate that it has still managed to gain so much traction.

[@tf5pZ9H5vcAdBp]

You had 14 years to read the white paper and get on board. Same as every other person on this planet. It's no one's fault but yours that you looked at it and said no. The energy required to run the network pales in comparison to many much less beneficial systems. As for leaving people out? You sound pretty socialist with that line of thought. I took the risk, I get the reward. Also you're just flat wrong about the hardware wear and tear. Mining GPUs are still in circulation and you can't identify them as such by any means. Linus Tech Tips did a whole deep dive on it.

[@tf5pZ9H5vcAdBp]

tl;dr you hate it because you didn't believe 10 years ago and because you were wrong you missed out on free bags of money.

[@brianhoward1245]

It's stilll far more fair than the current fiat system that rewards those closest to the money printer and steals wealth through inflation and debasement. You had 15 years to frontrun the big banks and institutions; the fact that you knew about it and chose not to invest is your own fault. Oh, and more electricity is used for Christmas lights and watching porn than the Bitcoin network uses, and it primarily uses stranded/wasted energy while incentivizing renewables, so there's that. BTW, your not to late, its going much, much higher.

[@acem82]

But the way gold, silver, or dollars is "divided" is moral? Pray tell.

[@WilliamAndRose1]

@@acem82 It's not, but it's a lot closer. Moreover, everyone gets the same amount of time per day (though granted we will live different numbers of days) and all of us know that we can work to earn money, whether in the employee of someone else or attempting to do so on our own. There is now no real way to earn new bitcoins, and back when it was possible (and very early on, trivially easy) so few people knew about it or had access to the hardware to mine it that it was not just unfair but farcically so.

[@Erapyo]

Scam

[@Munce72]

Great work Nick! Scooby snacks for you. Praying for the USA and the entire World. My allegiance is to Liberty, and the Repubic.