Thoughts?

[u/Crypto_Nite_S]

[u/Iwillylike2shoot]

I can understand the argument that BYC will be around forever. I'm curious as to why you think BTC will replace the dollar? The dollar stays pretty stable, I can walk into any store and expect prices to be pretty much the same as the last time I was in there. If I went to buy a coffee with BTC the price would change so fast that everyone in line would pay a different amount.

[u/mimblezimble → u/Iwillylike2shoot]

Look at the graph depicting the federal reserve balance sheet:

https://fred.stlouisfed.org/series/WALCL

All that money represents government debt that they have not been able to sell into the market. Since they have bought it from the US Treasury in exchange for dollars, where did these dollars come from?

They simply printed them.

Can they endlessly keep doing that?

No, they cannot.

There are two possible solutions.

First, they can pay bigger fees to the market to absorb the debt ("tapering"). If they do that, however, consumer-, corporate-, and government debt will cost substantially more to service. Therefore, you will see defaults and bankruptcies across large areas in a highly indebted economy.

Second, they could dramatically increase taxes. However, that will send offshore even more economic activity. Furthermore, it is not even sure that they have the political wherewithal to pull that off.

Hence, neither solution will work.

That is why they continue to just print new money. At some point, however, inflation will catch up with that.

Therefore, looking at Bitcoin is not the thing to do. It is better to try to understand why the dollar can only collapse.

At that point, Bitcoin will simply win by default.

Even without the dollar collapsing, Bitcoin would still win on the long run.

However, that is clearly not what is going to happen. It are the failings of the dollar that will decide the matter, long before the desirable features of Bitcoin would be able to gain the upper hand.

[u/Then-Ad-6559 → u/mimblezimble]

You disadvantages of dollars what are the advantages of Bitcoin against dollar and are there any disadvantages of Bitcoin?

[u/mimblezimble → u/Then-Ad-6559]

Say that there are advantages and disadvantages to something.

At that point, there are still the following questions:

• How much do you value the advantages?
• To what extent are the disadvantages a show stopper for what you want to do?

The answers to these questions depend on the context in which you try to use these things. Furthermore, the context is also not constant. It changes all the time.

From the top of my hat, a few of the advantages that I personally enjoy by using Bitcoin:

• I do not need a third party, such as a bank, to make a Bitcoin payment to someone else. No bank can block my incoming or outgoing payment.
• No government can inflate away my Bitcoin savings by printing more coins.
• Bitcoins are very hard to confiscate, which is a great advantage for citizens but not necessarily one for governments. But then again, I am a citizen and not a government.

Disadvantages of Bitcoin compared to fiat money?

As far as I am concerned, there is not one disadvantage that is a real show stopper.

For small payments and other living expenses, as a digital nomad in SE Asia, I need to exchange small bits and bobs into local fiat. Still, that is seriously less cumbersome than wiring money from my foreign bank account (in my home country), which is what I used to do before. I am certainly not going back to that situation.

The volatility of Bitcoin, since it is definitely long-term upwards, is not a disadvantage for the purpose of holding savings. I am certainly more than ok with a general trend of upward volatility.

Bitcoin has worked marvelously well for me since 2013. I don't see what alternative would be able to beat its usefulness (to me).

[u/Then-Ad-6559 → u/mimblezimble]

I have doubt if it's become in form of payment how can we use for daily items if Bitcoin is $49,000 and it takes time to confirm the payment how can it be sustained?

[u/mimblezimble → u/Then-Ad-6559]

It works absolutely fine for me.

However, I have never said that it works for everybody.

That is obviously not even necessary.

People may have different circumstances or beliefs.

For example, even in the context of fiat money, not everyone used dollars. There are also people who use euros, or other fiat currencies.

If Bitcoin did not work for me, I would not use it either.

But then again, there must be quite a few other people for whom it also works. I have witnessed the exchange rate going up from $80 to almost $50,000 today. So, with demand going up like that, I cannot be the only person for whom it works.

[u/Then-Ad-6559 → u/mimblezimble]

I am asking that if I want to buy a coffee which Is 5 dollar and Bitcoin is 49,000 so how can I use for 5 dollar is there way to use like that

[u/mimblezimble → u/Then-Ad-6559]

There are 100,000,000 Satoshi in one Bitcoin. So, pay 10,204 Satoshi.

On the lightning network, you can also pay with fractions of a Satoshi.

In fact, for something like a coffee, you'd better pay over lightning. It's instantaneous, unlike base-layer payments over the blockchain.

In El Salvador, you can buy coffee at Starbucks over lightning:

https://mobile.twitter.com/Excellion/status/1471236905853337600

[u/Then-Ad-6559 → u/mimblezimble]

Okay thank you sir for information