![]() ![]() The creation of alternative 'coins' is then a good thing because it's a way to inflate the supply beyond the built-in limitations of bitcoin, but is still going to be something that is predictable. People are then incentivized to hold onto the money, which then (when the money gains acceptance) tends to get used in the form of loans and whatnot. When the supply of money doesn't rise to meet the demand then the value of the money tends to rise. You are just describing that is commonly called deflation. That's not really anything that is unique to bitcoin. > I'm saying it's a pyramid scheme because the exponentially declining mining rate is an obvious way to ensure that whatever value Bitcoin gets is predominantly funnelled to early users who mined or hung onto coins before it got popular. ![]() > So presumably you're no longer considering Bitcoin cryptocurrency, So perhaps we should say that it is a pyramid scheme that funnels value to early users and miners, and thieves who prey on those people.) (Of course, this only works if the early bitcoins doesn't get stolen by someone else, which given the state of IT security means they more or less have to be kept offline and disconnected from any powered-on device. I'm saying it's a pyramid scheme because the exponentially declining mining rate is an obvious way to ensure that whatever value Bitcoin gets is predominantly funnelled to early users who mined or hung onto coins before it got popular. I'm not saying it's a pyramid scheme because it's risky. ![]() It's not a real pyramid scam, but the risk is part of how speculation works. So presumably you're no longer considering Bitcoin cryptocurrency, since transaction delays are now so huge that schemes have sprung up where you pay people to get agglomerated into their transaction, driving transaction costs up to frankly ridiculous levels.Īs far as pyramid schemes go and risk. ![]() Posted 12:08 UTC (Sat) by nix (subscriber, #2304) It's going to take a while and quite a few people getting burned on these sorts of markets before people really figure it out.įor any sort of business model that depends on micropayments then trying to base it entirely on Euro or dollars or anything else is just never going to work. if you make it safe and guaranteed then there is no limit to the amount that people will try to drive the market to excess and exploit issues. Risk is critical for discipline in the market. Why? Because it's the first time people have been able to try this stuff on a large scale. I always figured bitcoin was doomed for failure, though. Even if people limit their use of cryptocurrency simply as a way to bypass electric money transfers (transfer dollars into cryptocurrency to send, and then back again when done) and services like paypal then it has inherent value and will end up as a success. The low transaction costs are key and are the value that the money has in itself. It *has* to, because no actual financial system will accept the sort of wild west mass theft nonsense that Bitcoin, Ethereum etc have been rife with up till now.Ĭryptocurrency makes sense. If cryptocurrencies become successful enough that a significant proportion of plausible users and websites are accepting it, wel, look, the regulation will come along with it. However, precisely *because* real money is involved, piles of extra regulation would also land on Brave's desk - they're basically acting as something between a payment processor and a bank (since they store agglomerated funds while disaggregating them) and obviously that means they can't be as wild and woolly as they might otherwise like to be.īut, alas, I suspect that this is going to be their real problem: neither their likely users nor the websites they want to interact with care about this cryptocurrency stuff, they'd like to be paid / pay in actual money. The primary problem with using real currency for microtransactions is the high transaction costs at payment processors, but frankly something like Brave (a single point through which all transactions flow) can agglomerate multiple transactions into one and reduce those costs greatly. ![]()
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