Why do we need bitcoin?

I firmly believe that BCH is a bit, derivative, is the center of existence.

Jimmy Song, the core developers, bitcoin Blockchain LLC partner Capital

People think of too little money. This is the wrong legal tender. The decline in the purchasing power to inspire people to spend. People think of too much money. This is the wrong legal tender. Inflation means that you need to store the value of portfolio diversification and complex.

Learn more about money, I believe the world will have more than anyone could have expected a greater change. Those who anticipate these changes and actions will be the biggest winner.

1. how do you spend?

I was a libertarian (libertarian). I don’t mind what do you do with your money. Ownership means to do what you want, you can spend on coffee, can also save up until death.

The following is the actual situation of economics:

(1) credit card payment, the customer cost is lower than that of bitcoin, although the higher cost of businesses. Merchants pay credit card transfer fee (2-3%), consumers have to pay for bitcoin transaction fees. In addition, the business may be converted into the currency to pay for.

(2) to pay by credit card, the customer is concerned, some of the benefits is bitcoin payments do not have. These benefits include: consumers more secure (may require credit card chargeback), return to the integral, cash back card, rewards, and 25-55 without interest, without repayment; this time if there is any price, but also beneficial to the customer (because the customer consumption in advance, while prices low to buy goods).

(3) the world accept credit card businesses, more than accept bitcoin businesses.

There are some exceptions to the above situation. For example, the use of bitcoin business purse.io services, means that consumers can get the benefits of using discount the way it could offset the inconvenience brought must wait. The consumer credit card if there is debt, that 25-55 days is not without interest on the. Of course, there are some other use cases, but not a credit card can use bitcoin (dark network, international remittance, micro payment, I classes or V – Tone coin circle Conference)

In addition to these special occasions, credit card payment is more convenient and more reasonable. It also did not consider the tax, the user experience, you may bitcoin privacy damage. The economy is more reasonable and more convenient means of credit card.

So, my strategy is: if you want to use bitcoin as a means of payment, to do a lot of chain transactions (on-chain TX), this method is more reasonable and more convenient:

(1) in the case of debt, credit card payment.

(2) received when the credit card bill, sell the appropriate number of bitcoin, pay bills.

2. encryption Keynes doctrine

I change a saying: if you believe bitcoin long term appreciation, then, using the above strategies that will make you richer at least 3%, from the value of the transaction (than chain transaction).

So, why so many people will stand up against me? I just say a obvious fact that economics, why they react as if I was a pagan, should be tied to the stake12?

This is a very interesting question, because the chain transaction covers all “strategy will certainly make people lose wealth. Why the BCH camp will be against a people a way to get rich? It is the same goods, why they will be driven by ideology, forcing people to pay a higher price?

BCH camp believes that the “cost” behavior, really let them have the value of virtual currency. I have probably said, these people are crypto currency Keynes doctrine, believe that their network value is paid by people who use it. Personally, I said at the beginning of the strategy is reasonable in economics; but they think, from the collective perspective, this strategy will lead to the decline in the value of the network.

This concept is the Keynes doctrine pursued. They always urge people to spend their money, even in many cases, money is reasonable and economic strategy.

Scare people, let people make their own wealth to reduce things, thereby increasing the collective interest — this kind of thing in the social moral system of compulsory measures, the police are plainly there. Because they prefer personal freedom as a sacrifice on the altar in the Keynes doctrine, this idea is too strong, so their insults, bullying, threats are shown naked. As long as people make such a thing, you must give up their “freedom” and “Anarcho capitalists” and “voluntarist” label.

In other words, BCH does not believe that the personal sovereignty concept, rather than forcing others to work according to their own economic philosophy

These encryption Keynes nationalists believe that the velocity of money (the velocity of money) is the key. Keynes: let the core doctrine of means of payment, or trying to get people to spend money, to create value. In other words, the BCH camp believe that the value of the network from the speed of transactions and trading volume.

Like most of Keynes’s ideas, the premise of this idea is: summary statistics (aggregate statistics) can accurately reflect the reality, and personal preferences of no great importance. A statistical summary of Keynes who would create some garish and meaningless, pretend to reflect the macro economic health. The Keynes doctrine that, spend money on a Ponzi scheme, and spend money on life-saving surgery is equal, as long as the summary statistics on the reasonable.

This philosophy has also led to the BCH camp trying to let more merchants to accept bitcoins as a means of payment. Their philosophy is to increase total expenditure (aggregate spending), you can create wealth network.

3. why do people want bitcoin?

Bitcoin has more than 9 years of history, the present situation of 9 years, and this idea draw further apart. If the total expenditure really is the key value of the network, then we should think of a large businesses closed, the price will fall. However, in 2013, Silk shut down Internet black market Road, 7 next week, bitcoin prices have soared, from $80 rose to $1100. Well, 2014-2015 new merchants who accepted bitcoin bitcoin does not allow a little appreciation.

People buy bitcoin, not because of payment behavior, but because of lack of reliable (long-term scarcity). In other words, people want to bitcoin, because they think bitcoin is good value means.

What money itself is no problem, but the BCH camp had money blown into a virtue. Money is not a virtue in itself, unless you are Keynes’s.

Spend bitcoin, with sales behavior is the same. The nature of money think they buy goods or services to bitcoin. If you love the more goods or services, money is rational; but if you do not love more, the money is irrational. The beginning of the tweet, that is such a strategy, to obtain the same goods or services at lower cost. So in these cases directly to spend bitcoin, which belongs to the non rational behavior economics.

Indeed, there may be other secondary effects, add enough value, so even if you have additional costs are worth; those who advocate “consumer driven value of the people in general is that so. For example, a merchant may understand bitcoin, observed bitcoin can bring additional business, it will not immediately sell bitcoins, but will hold bitcoin, as a store of value, thus increasing the value of bitcoins; I call this strategy “hope should use” (hopeful adoption).

Maybe some place has been really worked as a merchant, and so; but there was no evidence that this practice is a principle. Many companies are after accepting bitcoin for a while to give up, because the cost is too high to accept payment. If they still hold bitcoin, then accept bitcoin first cost no more than the fixed cost increase payment option “is too high. These businesses stop accepting payment, because the costs associated with bitcoin currency reversal is too high, not cost-effective (usually by bit conversion payment (BitPay) or mining transaction (Coinbase) payment processor such). “I hope the application of” rate of return on investment (ROI) is very poor.

On the contrary, the typical situation is this: the payment for such businesses, its effect is equivalent to sell bitcoin effect, will put the price down. The BCH camp is to market the doings signal: “we do not want to hold!” It is not a virtue!

4. business application does not necessarily increase the value of the network

A merchant if only bitcoin as a means of payment, the person is not what the value of the network. Of course you can sell bitcoin exchange for goods or services, but to facilitate access to pay the price, this price is the loss of the benefits of other means of payment. Bitcoin no secondary effects, since only because businesses will bitcoin as a means of payment, it will immediately sell bitcoin exchange for currency, but usually in exchange for payment by automatic mode bit (BitPay) or mining transaction (Coinbase) payment processing for such. This type of businesses to buy and sell, the actual bitcoin is the same; this means that there are additional supply, low price.

There are a number of businesses, although do not provide incentives, but it retains its own get bitcoin. The businessman is bitcoin as a store of value. They use bitcoin as a means of payment, because want to bitcoin as a storage means. These do not sell bitcoin traders, the trading into a neutral event, is not affected by supply and demand.

There are other businesses, will take measures to allow people to use bitcoin to buy things. No matter what incentives, discount, let the other means of payment has become difficult, or simply to prohibit other means of payment, these are the real application of people. They not only want to make bitcoin storage means, but also willing to pay additional costs to achieve this point. This allows customers to buy bitcoin to obtain goods or services, let them buy things to the merchants, create additional bitcoin demand, thus a higher price.

The BCH camp advocate, Keynes’s “the way of consumption, prosperity” of the gospel, no distinction of these businesses. The use of bitcoin as a means of storage business, to not do so between businesses, “quality” difference. The class of all as they have to bitcoin as a storage means, this assumption is only Keynes who do that. Businesses in the transaction after the behavior of the “invisible” part, in order to decide whether they really use bitcoin.

In other words, businesses must first have the intention of bitcoin as a storage means.

5. see not see the effect

Economics is the study of not only the visible effect, and not see the effect. The increasing number of businesses looking at the application, this index is very easy for people to find, make people happy. Keynes’s statistics always lose a lot of information in the summary; this means of payment is no exception.

The application of compulsory measures BCH camp Keynes doctrine, and continues to insult, bullying, rejection of those who do not accept their “Statistics belief” of the people. BCH camp behavior is anti free, but also reflects the center of their money.

It is possible for the BCH camp is right, you may also need to make a summary of consumption of a currency is more valuable. If so, let the time to speak. But now there is a lot of evidence that the BCH camp, especially those in leadership, not to believe this idea, but refused to prove his idea.

Storage means are reasons for bitcoin value, and only businesses will bitcoin as storage means, their application will effect the means of payment. The BCH camp is completely guards, also attempted to take coercive measures to others, want to achieve prosperity. I wish them luck! They master Keynes will be proud of.

I firmly believe that BCH is a bit, derivative, is the center of the existence of an elite group determines its development roadmap, while BCH is a kind of legal tender.

At the same time, because the BCH center of the paternalism, led to a power struggle. Craig and Wright fight, bit half alive, for control, they are trying to grasp the future development direction of BCH.

Leave a Reply

Your email address will not be published. Required fields are marked *