this post was submitted on 28 Jul 2024
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[–] just_another_person 5 points 4 months ago* (last edited 4 months ago) (3 children)

Being wrong in the trajectory or worth of something is one. Knowing the limitations and real-world applications of it is another. You still can't go to any store and use crypto, can't use it offline, can't trade it offline, and can't store it offline (don't get me started with hardware wallets, the chain is still online). Governments would never use it for this reason. Trading something online because you can catch profits in its market is something done with produce. It's no different than any other profit scheme in a tradable good whose value is determined by what people will pay for it.

As far as El Salvador...oof. How's that going for them? Not so well.

Also, your point in inflation...wow, you don't seem to understand economics. Any physical good sold is prone to inflation due to supply and demand. The currency doesn't determine how inflation works at all, so I'm not sure where you got that from.

Example: Florida grows oranges and are literally falling from trees, while Maine doesn't have the climate to support that type of agriculture. Therefore, oranges are cheap in Florida, but more expensive in Maine due to transport costs. Suddenly, there's a bad hurricane or cold snap in Florida that wipes out an entire years worth of orange crops. Now you have inflated Orange prices, the price of fertilizer goes up in Florida, agriculture equipment demand goes up in Florida, and orange farmers have less money to operate for the next growing season. Inflation.

How are you thinking Bitcoin solves any of this?

[–] AIhasUse -1 points 4 months ago (1 children)

The currency doesn't affect inflation? If every day the number of usd doubles, would that increase inflation, decrease it, or keep the value the same? That is extreme, but it should really clear things up for you.

You are right that if there are less oranges and the same demand, then oranges will go up in price. Now apply that same logic to the currency itself. If there is more of a currency and not more demand for it, should the value of that currency go up or down?

This really isn't complicated economics, I guarantee that if you crack open any intro to economics textbook, you will have your current understanding completely annihilated.

[–] just_another_person 0 points 4 months ago

Responded elsewhere, but again, this is called devaluation.

[–] AIhasUse -2 points 4 months ago (1 children)

Bitcoin prevents the arbitrary creation of new currency by a single powerful entity. I don't know who told you that creating tons of usd can't affect inflation, but you literally will find no economist claiming this. This isn't in the slightest a disputed claim. It seems like you've come into economics through some sort of anti-crypto mindset, and now you just assume that anything you heard from a "cryptobro" must be the opposite of the truth. Just take a sec to think about how people who are always wrong have created the 9th most valuable asset in the history of the world. Maybe your armchair hunches may need an adjustment.

[–] just_another_person 2 points 4 months ago

Printing currency devalues it...that's how that works. If you're unfamiliar with the concept, and don't want a boring read about it, read on how it's been used in espionage.

My point is that (read this carefully): absolutely no government on this planet with any substantial worth would EVER give up control of its Treasury. Thinking that governments are just looking for a better system is wrong. That's not what they need to manipulate global currency inflections and to control actual valuation of flowing currency in their favor. You're assuming they are looking for a solution to economic fluctuations, which is also wrong. Bitcoin solves none of this just by existing.

I think you're just too far gone, friend. You don't seem to understand the basic functions of an economy, and are focused on the crypto line of "we were right!". What Bitcoin holders were right about was making a digital transaction worth something that others would pay for, reasoning aside. It could have also not worked out that way as well, just like practically 99.99999% of all other crypto currencies that launched. It's only worth what people are willing to pay for it, which is something the crypto faithful don't like bringing up. They also don't like bringing up that vision of Bitcoin's usefulness has still not come to pass. Everyday retailers aren't using it, the majority of people aren't walking around transferring BTC in offline wallets, and you still can't directly trade it for currency without a transient middleman who is backing the transaction with their own hard currency (Coin banks and what it).

So the cryptobro crowd was right about the valuation, which is largely bolstered by their own trading, and wrong about everything. It's still just worth whatever people are willing to pay for it.

[–] AIhasUse -3 points 4 months ago (1 children)

It's going fantastic for El Salvador, I don't know why you would think differently. It is hilarious hearing someone say you can't use btc in the real world. I use it for Uber, airbnb, groceries, amazon, flights, restaurants, and way more. I think you are imagining the state of bitcoin at least 7 or 8 years ago, things have changed tremendously. The largest retail stores in Japan accept it directly. Many of the largest stores across Europe take it. There are countless resteraunts all over the world taking it directly. There are literally thousands of atms across Europe that will exchange it for cash. There are many 2nd world countries that use it regularly across Africa and South East Asia, South America, the list goes on and on. Your information really truly is way outdated. The future got here long ago, but I guess there are still bubbles of people completely oblivious.

[–] just_another_person 3 points 4 months ago

Stagnant economy, and global trade down as GDP is also reducing: https://www.reuters.com/technology/short-cash-el-salvador-doubles-down-bitcoin-dream-2024-02-02/

Bitcoin solves no problems here. Same issues as any currency.

Regular people say the "crypto dream" doesn't work as advertised:

https://www.reddit.com/r/Bitcoin/comments/17otops/just_got_back_from_el_salvador_thoughts_on_bitcoin/

Every dip in the market destroys net worth:

https://www.npr.org/2022/06/19/1106168947/what-the-crypto-collapse-means-for-el-salvadors-economy