Tell me about Bitcoin

[Ares]

The only realistic viable alternative, as far as I can tell, open to this author, is direct bartering of goods and services, without a medium of exchange, which has its advantages in avoiding third parties taking their cut, but in general great disadvantages in that you can not create a market place for goods and services, which means that rarely buyer and seller would optimize their return. Iow John Smith wants to buy bacon for labour but the butcher doesn't need new horse shoes which John Smith is particularly good at making. Instead he is asked to sharpen his knives, which he never did well before. Johns brother Adam Smith is good a sharpening knives though, but he wants a birthday cake for his daughter, but perhaps the baker wants to trade a birthday cake for horse shoes? So that John Smith can eat bacon... Or perhaps John and Adam hasn't spoken to each other for years because of a sour barter deal, and the butcher trades some poorly cut pork scraps for some blunt knives. Adams daughter never got a birthday cake and the baker had to carry his flour himself from the mill, since the foot of his horse had an infection, and his horse was taken to the butcher who tried to barter it away as prime pork...

Barter has it's place on a small scale and I myself have done bartering with great success. Labor for labor most of the time. But like your scenario above points out it's not very good when it comes to accepting payment as a business.

[madfranks]

The only realistic viable alternative, as far as I can tell, open to this author, is direct bartering of goods and services, without a medium of exchange, which has its advantages in avoiding third parties taking their cut, but in general great disadvantages in that you can not create a market place for goods and services, which means that rarely buyer and seller would optimize their return. Iow John Smith wants to buy bacon for labour but the butcher doesn't need new horse shoes which John Smith is particularly good at making. Instead he is asked to sharpen his knives, which he never did well before. Johns brother Adam Smith is good a sharpening knives though, but he wants a birthday cake for his daughter, but perhaps the baker wants to trade a birthday cake for horse shoes? So that John Smith can eat bacon... Or perhaps John and Adam hasn't spoken to each other for years because of a sour barter deal, and the butcher trades some poorly cut pork scraps for some blunt knives. Adams daughter never got a birthday cake and the baker had to carry his flour himself from the mill, since the foot of his horse had an infection, and his horse was taken to the butcher who tried to barter it away as prime pork...

A modern economy cannot function without a medium of exchange (money). Your post does a good job showing why.

[Neuro]

A modern economy cannot function without a medium of exchange (money). Your post does a good job showing why.

Bartering as the only form of commerce can only function in a small low tech village IMO. I wouldn't rule it out as a possibility in my lifetime. Post-SHTF...

[Neuro]

Barter has it's place on a small scale and I myself have done bartering with great success. Labor for labor most of the time. But like your scenario above points out it's not very good when it comes to accepting payment as a business.

I have done bartering frequently as well, exchanging adjustments for artwork, massage, dinners, car servicing...

[madfranks]

I have done bartering frequently as well, exchanging adjustments for artwork, massage, dinners, car servicing...

I once designed a facade renovation for a carpet/window cleaning business in exchange for carpet/window cleaning for my house. But to your point, how often does a carpet/window cleaning business need a elevation drawing of a new facade, while at the same time an architect could use some carpet/window cleaning?? For the rare occasions in our modern economy where such needs happen to overlap, it's a cool thing, but we could never count on this as the primary method of economic activity.

[madfranks]

I have done bartering frequently as well, exchanging adjustments for artwork, massage, dinners, car servicing...

What other types of "servicing" have you traded your skills for??

[Neuro]

What other types of "servicing" have you traded your skills for??

Notch notch I say no more...

But what I meant was an oil change and changing the filters.

[Hitch]

Blockchain technology is a double edged sword though. Decentralized it is a tool that could free all of mankind. Centralized (state controlled) it can be used to enslave us all.

How could it be centralized in control? I thought, by design, that would be impossible with bitcoin. The only thing I can think of, is bitcoin is ahead of it's time and .gov could work on an "approved" or "backed by the gov" type of coin as a competitor. But even then, the people buying bitcoins wouldn't trust a government cryptocurrency. Any thoughts on that?

Also, I found this interesting link regarding the total value of bitcoin, compared to other types of investments, stocks, US dollars, etc.

http://www.marketwatch.com/story/how...ive-2017-06-21

[Ares]

How could it be centralized in control?

Say for example the Federal Reserve gets around and creates it's own "digital dollar". All member banks would likely use a Proof of Stake algorithm instead of a proof of work. While it would technically be Blockchain technology it would be centralized. Bitcoin itself could never be centralized due to the nature of it's initial release. But the technology itself is open source and could be made to be centralized by a state.

I thought, by design, that would be impossible with bitcoin.

With Bitcoin yes, it cannot be centralized. But the technology is freely available and there is nothing preventing a state from creating it's own centralized blockchain.

The only thing I can think of, is bitcoin is ahead of it's time and .gov could work on an "approved" or "backed by the gov" type of coin as a competitor. But even then, the people buying bitcoins wouldn't trust a government cryptocurrency. Any thoughts on that?

Most Bitcoin enthusiast would not under any circumstances trust a government issued cryptocurrency. They might trade in it, they might even transact in it if it's beneficial for them to do so. But trust would still be in Bitcoin and other decentralized currencies. Kind of like Gold and Silver, we hoard it, but we certainly do not pay our taxes with it.

Also, I found this interesting link regarding the total value of bitcoin, compared to other types of investments, stocks, US dollars, etc.

http://www.marketwatch.com/story/how...ive-2017-06-21

[catman99]

The price has been skyrocketing in recent years. Now is the time to invest in bitcoin, it's going to be worth it in the long run