DJexs

how does bitcoin starve the beast? The bitcoin buyer has to use fiat currency to get bitcoins or mine them. It is not like people are getting paid in bitcoins, fiat currency is still needed. Even if you buy bitcoins with fiat currency and trade those for goods and services, the miner still uses your fiat currency to fund their lively hood. How can it starve what it depends on? Just like fiat money it is only as valuable as people pretend it is. There is no actual value. Before fiat money, paper money was backed by precious metals, now its a receipt debt. So how exactly does it starve it?

blacksmithsasquatch

Every transaction made in a currency compounds it's value.

deathcomesilent

It starves the stock market and the banking system. Fiat is a great part of a semi-free market. Banks and markets however, have corrupted that system of value, and undermined how the people view the dollar.

I don't think people need to abandon the dollar, they need to abandon the places that they store their dollars. Doesn't really matter if you stash cash in your mattress, gold in the floorboards, or bitcoin in your harddrive. At least that way you're not funding the murderous psychopaths in the banking system.

DJexs

How does it starve the stock market and banking system? You didn't answer anything. It still co exists just fine with those systems since all of them depend on the same thing, fiat currency. How does using bitcoin starve it exactly? The dollar and all other fiat money around the globe has absolutely no value to it and its literally a reciept for DEBT. Its not backed by precious material or anything of value. Bitcoin depends on that to operate how can it starve what it depends on? Could you be so kind to explain how it actually negatively effects any of those monetary systems?

The principle of Bitcoin focused on the suggestion to develop a means of exchange or currency that was not based on any type of government, central authority to manage. And, that currency could be transferred online with excellent rate and be come with by exceptionally reduced transactions charges.

Until you can completely take fiat currency out it doesn't damage any of those systems its just an alternative form of payment, like a debit card. Unless you are getting paid in bitcoins and using bitcoins for everything you still depend on the traditional financial system. Even if you do use bitcoins for everything all the people you trade with would have to use it too. It cant hurt the fiat money system when it is just a way to move fiat money, it depends entirely on fiat money exactly like a pre paid debit card. If there ever came a point where people could live entirely off of bitcoin then it could hurt the financial system. Until then the purpose is still decentralization. [ 1 ][ 2 ][ 3 ][ 4 ]

deathcomesilent

You are missing my point. Bitcoin was never going to be a true alternative to a currency. It was only adopted to anonymize the use of fiat.

How does it starve the stock market and banking system?

You own and store bitcoin, gold, or cash, and that is cutting off the banks and the stock market from your personal assets. Whereas buying stocks, or having a savings account is enabling the banks and the stock market with you assets. I'm not sure I can break this concept down any further, its just an applied version of the non-participation argument.

DJexs

That is ridiculous. Bitcoins don't starve the stock market anymore then keeping your money in a shoe box does. They were made as a decentralized currency not to take down the banks. Your excuse is ridiculous because you don't need Bitcoins to do what your saying and they are way less safe then investing in precious metal. Not only does precious metaks keep money from the banks (like you falsely claim is the purpose of Bitcoins) bit if society was to collapse or anything else that takes out the Internet you lost all your money.

Long story short they were made as a form of decentralized currency NOT to compete with banks. If you use them as an alternative to a bank your not very smart because there is a hundred other ways to invest your money where you receive something with intrinsic value instead of trading worthless paper for worthless, easier to lose, data.

Bitcoins were never intended for your ridiculous claims because a shoebox under your bed preforms the same task you claim(falsely) is the purpose of Bitcoins. I posted several links explaining the creation and purpose of Bitcoins. So did you not read them, did you not understand, or is ego really this fucked up and you think you know more then those who created bitcoin?