Hodling hard? It’s all well and good, but I need you to do something now.

"A minute of your life could save the rest of mine. Please sign the petition for my clemency. " -Ross Ulbricht

Ross Ulbricht needs our help. If you're sitting on your butt hodling and lurking reddit all day. Not coding, not running a full node, if your contribution is nothing… Do this for Ross, because he's been one of bitcoins most important persons. If you don't care about bitcoin, sign the petition anyway. He's a good man, he's punishment is way too harsh. Take a minute. Please.


submitted by /u/givethought
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Bitcoin – The Currency of the Internet

Let’s clear this up with empirical evidence: Bitcoin doesn’t need to be spent to have value.

Why Bitcoin does not need to be spent

The world has approximately $ 700-800T in non-derivative assets. This includes real estate, equities, bonds, commodities, cash, and all the bits of stuff people use in their daily lives. The majority of those assets are not used as a payment method.

Take a look at this classic (yet flawed) infographic: https://www.marketwatch.com/story/this-is-how-much-money-exists-in-the-entire-world-in-one-chart-2015-12-18

Cash, as in the type you can hold in your hand, makes up about $ 8T

Cash, as in the type you keep in a bank account, makes up about $ 90T

That means 6 out of 7 of the world's assets are not used as a unit of account or payment method. If you consider your own assets, you will probably find a similar ratio of cash-to-other-stuff (investments, real estate, cars). In other words, 6 out of 7 units of value in the world have their value from something other than their ability to be a unit of account or be used as payment.

In order to have a large inherent value, bitcoin need only have a niche of a niche of the utility of any of the asset classes listed in that infographic. If Bitcoin can replace a small fraction of the utility of cash, gold, equities, debt, or derivatives, it will have trillions of dollars in value. It just so happens that Bitcoin and other cryptocurrencies compete in all of these asset markets. Are they better than existing assets? For certain use cases, definitely. For all use cases? Probably not. Being useful in certain use cases is enough in a mature market to justify a value for Bitcoin many times what it is.

Why Bitcoin's largest value is hodling

I bought a gold coin with my bitcoin recently, and while holding the coin, I took another coin of local currency of almost the exact same size and compared the gold coin and the currency coin. It dawned on me that both were shiny metal, and to a child would be equivalent, but it would take over 4,000 copies of the currency coin to hold the same amount of value as the gold coin.

If you reflect on this, you can see that a primary value of gold is that it is a compact and efficient way to store non-inflationary value. In this regard, Bitcoin is far more efficient. Bitcoin has no weight and is more difficult to lose or steal.

Gold justifies an $ 8T market cap, and most gold is hedl by governments in their reserves. These reserves store gold as opposed to tin or iron or oil because it is more efficient to store and transport gold than anything else physical. In this regard, if Bitcoin replaced even a fraction of world reserves, it would justify a few trillion dollars.

Furthermore, bitcoin is far more liquid than gold. If I would like to sell my gold coin right now, I will guarantee a loss because there is a spread of approximately 10%-20%. This is because shipping and storage of physical gold costs money for traders. With bitcoin, the spread can be as little as 0.01%, which is an indicator of its high liquidity.

With potentially better properties for hodling than gold and cash-like liquidity, Bitcoin is more like a savings account than gold or physical cash. If Bitcoin is truly better than a normal savings account, which I believe it is, it is likely that Bitcoin and crypto can justify $ 20T-50T market caps. In a mature market many years away, that's 100-200x current values without much usage as a payment method or unit of account.

To sum it up, it is great that Bitcoin is useful in so many ways, but don't discount what Bitcoin is best at: saving! There is a lot of demand for savings accounts in the world. Even governments need to save! Maybe one day in a few years a small government will open a savings account in Bitcoin. 🙂

submitted by /u/1ncehost
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Bitcoin – The Currency of the Internet

“I would take my salary in Bitcoin if merchants accepted it.” The way Bitcoin wins is if WE show demand for the merchants who ALREADY DO accept it. 10,000’s of merchants accept Bitcoin, but we can’t find them online. Screw another website tracking price. We need a website that facilitates trade.

If you think that this ecosystem is too big for you to make an impact, you're sadly mistaken. The guy who started Coinmarketcap.com was a college kid living in Brooklyn.

It's up to us to build the future. It's up to us to drive demand. Many merchants offer a discount for paying in Bitcoin – Fuck it, I'd gladly pay 5% more if you let me pay in Bitcoin.

Create a website. Make a little database search. Email merchants asking if they want to be listed.

Get popular, make a millino bucks no problem.

Microsoft was started in a garage. Coinmarketcap was started by a guy who bought a website domain sitting in his bedroom.

submitted by /u/GabeNewell_
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Bitcoin – The Currency of the Internet

We need to stop talking about price and start talking about adoption.

This community really needs to get its stuff together. Every day I see people losing it over the price of bitcoin going down. The price of bitcoin is tied to how many people are using it and how useful it is. The fact of the matter is that if adoption is not going up price will not either

submitted by /u/rootyboi
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Bitcoin – The Currency of the Internet

Got some real money in BTC? Make a backup of your hw wallet BEFORE you need to

Just some sane advice, this time without a horror story to make the point :0)

If you put some real money in BTC, what exactly is that amount when talking about 'real' will depend on you, we all should know to use a hw wallet.. But how many have actually tried there seed to restore their wallet? What if your wallet gets lost, broken or what ever, and you need to access your funds quick?

My advise; buy a second hw wallet form the start, check your seed on the second wallet after the first small deposit. Only then proceed with putting more money into it.

Please also store your seed and backup hw wallet safe. For me safe means both separate, in a fire proof safe.

If one is afraid of robbery, you can make a decoy wallet, on my ledger I can. Also in that case put the decoy seed as the easy to get and the true seed really hard to find, use your imagination..

If you go this way I think you need to go all the way… Don't tell your partner, kids, or for that matter anyone how much you have, or that you use such a decoy wallet. Under real pressure most will crack and start shouting things to you like "please just give them all we have" or whatever. And with you or a family member at point blank of a gun it will be hard enough to keep your sense and only give them your decoy wallet or seed.

While we're here put at least some convincing money in the decoy wallet…, with a lambo on the drive way do you think they will settle for that hundred or a thousand buck?

Are we talking about big money, that would be for investing and thus not needed to access quickly? We are putting it in several hw wallets, stored at different locations and again we haven't been bragging about the amount or these different locations. Again we have checked the seeds to work and stored these save.

To be honest I just recently made my hw backup wallet. I guess just like most I started small but after a year realized it was becoming some real money I had put in. And it does feel better now I know I have made some preparations for losing my hw wallet or worse.

Want to be your own bank? Then be it!

submitted by /u/Btcyoda
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Bitcoin – The Currency of the Internet