Bitcoin?

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jk1921
Bitcoin?
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Can someone explain the media fascination with Bitcoin and why it has become something like a fad of sorts for parts of the left? Something about crypto currencies taking money out of the hands of states, etc. something, something? Is there anything to this or is it just a flash in the pan fad du jour?

Tagore2
Bitcoin is a very interesting

Bitcoin is a very interesting financial product from an economic point of view.

The bitcoin is a number resulting from a mathematical operation performed on a P2P network of computers. The complexity of this mathematical operation is regulated so that, whatever the computing power on the network, a bitcoin will always be found at the same time on average. As the power of the network increases, the difficulty of the mathematical operation to find a bitcoin increases as well.

It should be noted that the number of bitcoins that can be found per time unit is divided by 2 regularly, so there is a maximum number of bitcoins.

Thus, Bitcoin mimics the exploitation of a non-renewable resource, such as gold, and companies that calculate bitcoins are called "mining" companies.

The value of the bitcoin is determined like any commodity: by the amount of work embedded in it. However, the amount of bitcoins produced is determined in advance. Thus, the more people spend electricity, computers, programmers to look for bitcoins, the more its value increases.

If the offer of bitcoins is perfectly rigid, it is not the same for the demand. When a speculative movement emerges, the price of bitcoin rises far above its value, speculators make fabulous profits and mining companies put new and more powerful computers on the network. Then there is a "market correction", a crisis, and the bitcoin collapses brutally. Then comes a period when profits are low, and even strongly negative, waiting for the next flight. In the long run, however, the rate of profit is phenomenal.

From a general point of view, Bitcoin is a peak of financial parasitism. It was supposed to serve as money, but its absolutely enormous variability makes it unfit for this purpose. It is therefore a purely speculative object, absorbing ever increasing economic resources, and serving absolutely nothing.

Nota Bene: Bitcoin is also a market full of crooks. A significant percentage of bitcoins are won or lost by outright scam: maybe 10%. Computer hacking, police seizure, theft, Ponzi pyramids, etc. are common.

Tagore2
In addition it seems that

In addition it seems that bitcoin has some small problems related to its design flaws. Bitcoin was never planned to handle so many transactions, and the cost per transaction is currently $ 28: the network is saturated. The uncertainty is high.

Alf
speculation

From a general point of view, Bitcoin is a peak of financial parasitism. It was supposed to serve as money, but its absolutely enormous variability makes it unfit for this purpose. It is therefore a purely speculative object, absorbing ever increasing economic resources, and serving absolutely nothing.

 

This sounds quite right to me.....

jk1921
I caught a few minutes of the

I caught a few minutes of the financial report on the radio the other day and one analyst said something to the effect that the emergence of Bitcoin meant we were entering the "last phase" of the expansionary cycle and new convulsions were ahead. This didn't appear to be some quack apocalyptic economist of the Ron Paul variety, but a serious financial analyst that people in power listen to. I would have to think more about exactly what he meant and how it ties into speculation, but FWIW.

jk1921
It didn't take long for the

It didn't take long for the US media to tie crytpo currencies to nefarious Russian interests.blush

Lazarus
Crypto

https://ripple.com/insights/moneygram-use-xrp-faster-international-payments/

 

Be aware Cryptocurrency is not just Bitcoin.  Bitcoin is probably obsolete already.

 

i would not be surprised if crypto takes off massively, but equally the opposite may be the case.  Early days, don't dismiss it.

 

It is probably part of a new capitalist dynamic, robotics included.