If you don’t believe it or don’t get it, I don’t have the time to try to convince you, sorry.
- Satoshi Nakamoto - Topics: Bitcoin, Cryptocurrency.
The root problem with conventional currency is all the trust that’s required to make it work. The central bank must be trusted not to debase the currency, but the history of fiat currencies is full of breaches of that trust.
Lost coins only make everyone else’s coins worth slightly more. Think of it as a donation to everyone.
Banks must be trusted to hold our money and transfer it electronically, but they lend it out in waves of credit bubbles with barely a fraction in reserve. We have to trust them with our privacy, trust them not to let identity thieves drain our accounts. Their massive overhead costs make micropayments impossible.
It might make sense just to get some in case it catches on. If enough people think the same way, that becomes a self fulfilling prophecy.
- Satoshi Nakamoto - Topics: Cryptocurrency, Bitcoin.
In this sense, it's more typical of a precious metal. Instead of the supply changing to keep the value the same, the supply is predetermined and the value changes. As the number of users grows, the value per coin increases. It has the potential for a positive feedback loop; as users increase, the value goes up, which could attract more users to take advantage of the increasing value.
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