The amount of incorrect use of terminology like how they’re using the word ‘inflation’ makes me want to punch puppies. But I’ll just block breitbart instead so I’m never subjected to this fucking drivel again. This is the single dumbest article I’ve ever read.
I would rather read a Jezebel opinion piece on why white men are evil and they should thus let their wives have affairs with trans minorities than have to read that again. That’s how fucking dumb that article was.
I'm not a COMPLETE asshole, just like, mostly an asshole, so I'll explain why the Breitbart article is dumber than CNN telling us we're not allowed to call the Kung Flu the Wuhan Virus or ask Joe Biden about why his family gets so much money from Ukraine and China.
First off, they assert that Bitcoin's mining program 'halving' the bitcoins it spits out causes 'inflation'.
The assertion is that inflation is measured by how much money is printed, thus stating that bitcoins 'inflation rate' is 1.8% as compared to the target US rate of 2%
The assertion is that inflation is measured by how much money is printed, thus stating that bitcoins 'inflation rate' is 1.8% as compared to the target US rate of 2%
This is so incredibly wrong I am going to have an MRI to measure the number of brain cells of mine that died reading it.
FIRST OFF, inflation rate is the measure of value that is lost over a predetermined time period, in this case, annual, ie yearly.
FIRST OFF, inflation rate is the measure of value that is lost over a predetermined time period, in this case, annual, ie yearly.
Bitcoin is DEFLATIONARY, in that it GAINS in value over time. The writer knows this as he calls the coin deflationary, but obviously has NO IDEA that Deflation and Inflation are MUTUALLY EXCLUSIVE, and calls Bitcoin BOTH.
FUCKING MORON.
YOU ARE WHY WE CANT HAVE NICE THINGS.
FUCKING MORON.
YOU ARE WHY WE CANT HAVE NICE THINGS.
Here's Bitcoin's big fucking trick:
There will only ever be a set number of bitcoins on the market.
As in, eventually, the mining programs will stop spitting out coins.
'Halving' is when the program hits a predetermined threshold, it halves the number of coins it spits out.
There will only ever be a set number of bitcoins on the market.
As in, eventually, the mining programs will stop spitting out coins.
'Halving' is when the program hits a predetermined threshold, it halves the number of coins it spits out.
This constrains the supply, thus driving deflation FURTHER UP.
"Oh, but Fudge, isn't increasing the value of bitcoins good?"
No. No it is not.
Here, let me put it to you like this.
"Oh, but Fudge, isn't increasing the value of bitcoins good?"
No. No it is not.
Here, let me put it to you like this.
I have 1000 candy bars. I sell them for a buck each. However, with deflation, tomorrow they'll cost 1.02, so instead of paying 1000 dollars you'll pay 1020 dollars.
So, you want to buy them today, save yourself 20 bucks.
This is VERY SIMPLIFIED.
So, you want to buy them today, save yourself 20 bucks.
This is VERY SIMPLIFIED.
IE, its more like, the prices for 1000 candy bars rises 20 bucks over the course of a year, and instead of 1000 candy bars its millions upon millions, etc etc etc. You get the jist.
But let's dumb it back down and see what happens in a deflationary currency.
But let's dumb it back down and see what happens in a deflationary currency.
1000 candy bars, buck a piece, but its deflation, so tomorrow, it will be 980.
So you wait for tomorrow, right?
Well the day after, it'll be 960.
Then 940.
Then 920.
Eventually if you wait long enough you'll be able to buy all 1000 for just one fucking dollar.
So you wait for tomorrow, right?
Well the day after, it'll be 960.
Then 940.
Then 920.
Eventually if you wait long enough you'll be able to buy all 1000 for just one fucking dollar.
If currency were to deflate, enough people would hold off buying things that the economy would fucking collapse.
You dummies.
The entire point of inflationary currency is to spend it!
Spending it makes the grass grow, the sun shine, AND KEEPS US ALL EMPLOYED.
You dummies.
The entire point of inflationary currency is to spend it!
Spending it makes the grass grow, the sun shine, AND KEEPS US ALL EMPLOYED.
Talking about bitcoin using currency terms is DUMB, because as far as currencies go Bitcoin is a FUCKING TERRIBLE CURRENCY.
Not only that, but it is rift with flaws.
For example, the bitcoin mining program only takes into account how many coins it spit out.
Not only that, but it is rift with flaws.
For example, the bitcoin mining program only takes into account how many coins it spit out.
It doesn't care if the coins on a hard drive get tossed into a dumpster and lost forever.
That drives down the supply.
Thus driving up the 'value', a term I use with the absolute loosest definition possible in this case.
That drives down the supply.
Thus driving up the 'value', a term I use with the absolute loosest definition possible in this case.
If the bitcoin mining program was 100 coins away from its camp and the remaining 999,900 bitcoins or whatever amount that were supposed to be in circulation are all gone because they all died in a catastrophic solar flare that fried all electronics except for that computer...
It would still only spit out 100 coins.
Because the program is dumb, and made by a computer programmer that doesn't have a fucking clue how currencies work.
Because the program is dumb, and made by a computer programmer that doesn't have a fucking clue how currencies work.
"But my cousin made UMPTEEN GABILLION DOLLARS ON BITCOIN!"
Sure, and when he cashed out, because virtually no one uses bitcoins as currency, he helped create a value crash that wiped out 10x that value from everyone else's bitcoins.
Sure, and when he cashed out, because virtually no one uses bitcoins as currency, he helped create a value crash that wiped out 10x that value from everyone else's bitcoins.
And now, dumb mother fuckers like these bitcoin evangelists that you see on advertisements are trying to get you to put your money in bitcoins too, to drive up the demand for bitcoin, so that they can recover that value back, get to their sell point, and then cause another crash
Leaving the NEXT generation of dumbasses holding the bag, only for the cycle to repeat itself.
Again.
and again.
And again.
Again.
and again.
And again.
So FUCK YOU Breitbart News for pushing this shit.
With the DUMBEST ARTICLE I'VE EVER READ.
If there were any justice in the world the moron that wrote that would be banned forever from writing any articles to do with economics.
Fuck that, from writing period.
Jackass.
/end
With the DUMBEST ARTICLE I'VE EVER READ.
If there were any justice in the world the moron that wrote that would be banned forever from writing any articles to do with economics.
Fuck that, from writing period.
Jackass.
/end
