Savings is for taking advantage of new information. New information is created by profit-seekers. If you're not profit-seeking in Bitcoin, you're not adding new information to the economy.
So, to achieve the goal that @4179 is looking to achieve of merchant adoption, a (not the only,) good strategy is to make the Bitcoin economy so strong that outside actors are incentivized to join that economy.
therefore merchant adoption on its own does not create the incentive for people to save in Bitcoin. Only earning bitcoin creates that incentive! If a merchant accepts bitcoin and immediately sells it for fiat, he's not doing anything for us.
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1Abd9yJS6mrzMmj1Ni6kjQB9GqtyaNujrm VerifiedThis is incorrect. The easier a currency is to exchange for other goods, services, or currencies, the better a medium of exchange it is.
If the USD wasn't easily exchanged for other currencies, it wouldn't be as valuable around the world.
It doesn’t become easy to exchange by going door to door with bumper stickers for a retail window. It becomes easy to exchange by being better for savings than other money!
I'm not sure it's fair to characterize Steve's position as being about bumper stickers :)
But strategy is different from theory. It's one thing to say "grassroots adoption probably won't work." It's another thing to say that, in principle, any merchant that exchanges for fiat doesn't help the Bitcoin economy.
As a matter of either strategy or theory, would you claim that Amazon accepting BSV for payment wouldn't be "doing anything" for BSV, if they cashed out to fiat?
What is a strategy that you might suggest to tempt merchants to accept bitcoin for payments?
The value of money has to do with the ability of people who save with it to respond to new information coming in to the economy. People only bring in new information into the economy of the money that they profit-seek in.
If Amazon accepted BSV for payments, they would distribute new information to millions or billions of people that BSV is a worthwhile digital currency, and its value and utility would immediate shoot up.
Profits in bitcoin are new information.
You still do not get it @4179 it is a sort of abstract idea, but in fact it makes sense, when people wants to save (collect) they want to exchange whatever they have (it could be time), so by the time everyone wants your bitcoin (u rather use other means)
If I am unsure whether my BTC is worth saving for the future, I might want to see whether it's accepted now (and works) as a medium of exchange.
If it fails - or worse, if it undergoes anti-adoption - then it's a signal to not save in that currency.
I agree with you here, @4179...
This is part of my expectations about a given commodity/good and whether or not I find it valuable as money.
If I don't believe I can resell a good for something I actually want, I won't accept it in payment, unless I value it for its own use. See barter.
@24, must one profit seek in bitcoins to be adding value to the Bitcoin economy?
As in, must one seek to increase one's Bitcoin holdings to add value to the Bitcoin economy?
You can also do something nice for the other profit-seekers. You have to improve profit-seeking for somebody, not necessarily yourself.
Actually, I take that back because anything that would be "doing something nice for the other profit-seekers" could be profitably combined with buying more hashpower and earning more tx fees.
This is incorrect. USD is easily exchanged but holds no value. The reason the Dollar has value is because a group of powerful people mandated (Proclaimed) USD as the Reserve Currency. That is the only reason it holds value. Bretton Woods.
Well said.
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