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Bitcoin Businesses The Almighty Buck The Internet

A Cryptocurrency Based On a Dog Meme Is Now Worth Over $1 Billion (vice.com) 141

Earlier today, the market capitlization of dogecoin, a cryptocurrency based on a meme about a Shiba Inu dog, passed the $1 billion mark for the first time. VICE News reports: Dogecoin was created back in the early days of the cryptocurrency craze. Launched in December 2013 as somewhat of a joke, the meme-inspired coin was dubbed "the internet currency" and designed to promote a sense of community and generosity rather than simply looking to make money. It gained fame during 2014 when it was used to send the Jamaican bobsled team to the Winter Olympics in Sochi and it even sponsored a Nascar team. The currency has been in relative stasis since, and despite no software updates being released in over two years, the cryptocurrency has risen more than 400 percent in the last month -- though one dogecoin is still worth just over 1 cent.

Even Jackson Palmer, one of the founders of the coin, expressed concern about the hyperinflation of dogecoin. "It says a lot about the state of the cryptocurrency space in general that a currency with a dog on it which hasn't released a software update in over 2 years has a $1 billion+ market cap," Jackson told Coindesk.

A Cryptocurrency Based On a Dog Meme Is Now Worth Over $1 Billion

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  • by Anonymous Coward on Saturday January 06, 2018 @05:21AM (#55874473)

    It only works because people have convinced enough other people that it makes sense to invest in it. When that stops being the case it's gone overnight.

    The value is completely artificial from start to finish, there's nothing backing it, there's no massive value behind it to stabilize a run. But it exists, and people love new cons.

    • Re: (Score:2, Interesting)

      Honestly the commodity regulations make less sense in some cases. Bitcoin is definitely a commodity - it has a planned limit, with deflation thereafter because of lost coins. Ethereum on the other hand is a currency with a planned inflation rate to make up for the lost coins and to grow with the user base. What we need for cryptocurrencies to actually take off are different regulations for different things (Bitcoin under the current commodity based taxation, Ethereum and the like under currency regulatio
      • by CrankyOldEngineer ( 3853953 ) on Saturday January 06, 2018 @07:32AM (#55874729)
        No, NicknameUnavailable. Cryptocurrencies are not commodities. Commodities are physical goods or services that are largely fungible. Like wheat, copper, or oil. Cryptocurrencies are designed to be media of exchange. Their value is only in facilitating trade. (And not even very good at that, in my opinion.) They are not investment vehicles (despite what the US Treasury Dept says) and certainly not goods in the economic sense (ie, they have no instrinsic value).
        • well now, there are physical Casascius bitcoin with cute little holograms on top. They seem to have gone out of business, but I assume the readable code on top is still "good", I dunno.
          • well now, there are physical Casascius bitcoin with cute little holograms on top. They seem to have gone out of business...

            I see that a lot in stories about bitcoin, particularly around businesses that loudly announced they accept them.

            but I assume the readable code on top is still "good", I dunno.

            Nobody seems to know.

        • No, NicknameUnavailable. Cryptocurrencies are not commodities.

          Yes, ignorant-but-outspoken-CrankyOldEngineer. Cryptocurrencies are treated as commodities by the IRS. Everything I stated was based on the current and ideal legal definitions of the words used, not what you pulled out of your ass.

          • by rtb61 ( 674572 )

            Commodity https://en.wikipedia.org/wiki/... [wikipedia.org] and https://www.investor.gov/intro... [investor.gov]. They tend not to agree. You can not really claim marketing as a commodity, bitcoin worth is an illusion created by marketing because it is backed by nothing but itself. It's worth is an illusion and unfortunately for those investing in it, once the illusion collapses, so will the worth of bitcoins evaporate, held up by those trapped by it, desperate not so sell coins that are worth much less than they paid for them. Bitcoins

            • I claimed that the IRS treats all cryptocurrencies as commodities for tax purposes, learn to read and stop buttraging over the fact you didn't buy any cryptocoins. This is a site for nerds, blockchain is a cool technology, regardless if you missed the initial mining (I did, but I'm not exactly crying over it or typing furiously at people on the internet out of envy and rage like yourself.)
      • by Anonymous Coward

        Fuck off crypto-shills.

    • by serviscope_minor ( 664417 ) on Saturday January 06, 2018 @08:55AM (#55874919) Journal

      It only works because people have convinced enough other people that it makes sense to invest in it. When that stops being the case it's gone overnight. The value is completely artificial from start to finish, there's nothing backing it, there's no massive value behind it to stabilize a run. But it exists, and people love new cons.

      That's more or less money in a nutshell.

      Money is abstract and it's only valuable because people believe it's valuable.

      Once people stop believeing it's valuable, it stops being valuable and that's when hyperinflation happens. At that point being backed by a state or not makes little difference.

      That applies as much to "normal" money as it does to cryptocurrencies.

      • Except of course if you have no USD in the US, you cannot own real estate (Give us USD each year or it is taken away), drive a car (Give us USD each year or no license plate), or get a passport.

        Other countries also insist on being paid in your local currency.

        • Except of course if you have no USD in the US, you cannot own real estate (Give us USD each year or it is taken away), drive a car (Give us USD each year or no license plate), or get a passport.

          Other countries also insist on being paid in your local currency.

          All true, but my point still stands, because countries with similar systems have suffered hyperinflation because people have stopped believing the money has value.

          It's very easy to pay a 1,000,000,000 Zimbabwe Dollar tax bill when you have a 100 trillio

      • Once people stop believeing it's valuable, it stops being valuable and that's when hyperinflation happens. At that point being backed by a state or not makes little difference.

        You ducked the main argument with a distraction, by simply handwaving that the gov't does not matter, which is a stupid fantasy only popular among bullion sheep, well, and now crypto sheep. Of course, it is always possible for chaos to engulf the US gov't or US economy, and the USD take a beating -- but that is not saying anything everyone doesn't already know. By handwaving that everyone stops believing in, say, the USD, you are handwaving on the scale of "oh, the US gov't ceases to exist" or "oh, the zo

        • You ducked the main argument with a distraction, by simply handwaving that the gov't does not matter

          No you misunderstood very fundamentally my argument. Ultimately it's people's collective belief in the currency that matters. If the currency is an instrument of the government, then that is very heavily influenced by people's belief and trust in the government.

          Every actual currency which has undergone hyperinflation has been backed by a government.

          Somehow you managed to misinterpreted what I said as somehow

      • The USD isn't backed by a commodity but instead the entire US economy and US fiscal policy. The fed has shown a willingness to create domestic debt in order to maintain currency stability. That kind of reliability is why it's seen as the safest currency worldwide.

    • The value is completely artificial from start to finish, there's nothing backing it, there's no massive value behind it to stabilize a run

      Perhaps the same could be said about fiat currencies, since they're not backed by gold reserves anymore.

      • by arth1 ( 260657 )

        Perhaps the same could be said about fiat currencies, since they're not backed by gold reserves anymore.

        They're backed by governments with the means to enforce the currency being honoured.
        Cryptocurrency is backed by hope.

        • Still, it is the market that determines their value, just like with cryptocurrencies. Market speculation can bring down fiat currencies (and the economies attached to them) rather easily. In this case, I see no government being attached to them as an advantage and not a hindrance.
  • so scare - Concern
  • by Anonymous Coward

    All of my Doge got stolen. Such sad. So angery.

  • by bestweasel ( 773758 ) on Saturday January 06, 2018 @06:16AM (#55874567)

    Is it pronounced doggycoin, Dogecoin (as in the onetime rulers of Venice) or something else? I have to know before i invest.

    • Re: (Score:2, Funny)

      Is it pronounced doggycoin, Dogecoin (as in the onetime rulers of Venice) or something else?

      such leters many pronunciation

      wow

      TO THE MOON!

    • by Anonymous Coward

      Is it pronounced doggycoin, Dogecoin (as in the onetime rulers of Venice) or something else? I have to know before i invest.

      Do-ge-coin: "Do" as in dog, "ge" as in gene so sounds like gee which is also the dgy sound in kludgy, "coin" as in coin.

      Put it all together and its "dodgycoin". And that's also all you need to know before investing in it.

  • by Anonymous Coward

    What functionality or value does any cryptocurrency provide that normal cash and banks don't?

    I don't get it.

    • Re: (Score:1, Informative)

      1) it's a decentralized database 2) no banker telling you what you can do with your money + no counterparty risk. lookup up fiat money and the central banking scam.
      • by Anonymous Coward

        Bank tellers tell you what you can do with your money?

        What African shithole do you live in mate?? USAmerica?

      • by JaredOfEuropa ( 526365 ) on Saturday January 06, 2018 @08:39AM (#55874869) Journal
        1) So?
        2) Anyone can follow your transactions, not just the bank guys
        3) Counterparty risk lies with the buyer. No fraud protection
        Fiat money is hardly a scam. Central banks can and do manipulate the value of money, and generally they do so to keep inflation at healthy levels. They do not always succeed, but in general the value of your money is pretty stable when it's managed by a decent central bank.
        • Anyone can follow the transactions, but unlike banks they cannot block them.

        • 1) there are so many startups working on different blockchain products that we will have to wait and see what comes out of it 2) already answered in parallel thread - bitcoin cannot be blocked while banks do block transactions so you cannot spend anywhere you like 3) there is no counterparty risk like with a bank where you loose your money. if you need fraud protection as a buyer, you can easily pay for escrow service - paypal or other company will integrate bitcoin and provide such services.
    • Let's say I start a project. I can easily put a Dogecoin or any other crypto-currency wallet address on the website so people can make donations.

      There wouldn't be a PayPal blocking the withdrawal of funds because of "reason X", no credit card company taking their cut and no bank freezing my account.

      • Let's say I start a project. I can easily put a Dogecoin or any other crypto-currency wallet address on the website so people can make donations.

        There wouldn't be a PayPal blocking the withdrawal of funds because of "reason X", no credit card company taking their cut and no bank freezing my account.

        At least until you try converting your cryptocurrency into govt money and the exchange is "down for maintenance". The exchanges (well, *somebody*) also take a cut when you make a transfer, it's just not of the magnitude that credit card companies do.

  • NetJ (Score:5, Interesting)

    by gbjbaanb ( 229885 ) on Saturday January 06, 2018 @06:42AM (#55874633)

    I will just remind our younger readers of the dotcom boom, where tech stocks were seen as the new big thing and pumped up a bubble that eventually crashed. You can tell the top of this by looking at a tech company that was registered on the NASDAQ called NETJ.COM,

    This had all the right words in the name, "net", "J" (for Java, hot at the time) and ".com" but its description of what the company did was:

    The company is not currently engaged in any substantial activity and has no plans to engage in such activities in the foreseeable future

    and this raised several $110 million in IPO funding from ordinary investors when it floated.

    So a dog coin cryptocurrency "worth" $1bn... just same shit, different day.

    • by Anonymous Coward

      Amen.

    • Re: (Score:3, Interesting)

      by geekmux ( 1040042 )

      I will just remind our younger readers of the dotcom boom, where tech stocks were seen as the new big thing and pumped up a bubble that eventually crashed. You can tell the top of this by looking at a tech company that was registered on the NASDAQ called NETJ.COM,

      This had all the right words in the name, "net", "J" (for Java, hot at the time) and ".com" but its description of what the company did was:

      The company is not currently engaged in any substantial activity and has no plans to engage in such activities in the foreseeable future

      and this raised several $110 million in IPO funding from ordinary investors when it floated.

      So a dog coin cryptocurrency "worth" $1bn... just same shit, different day.

      Some odd shapes painted on a canvas, by some guy named Picasso. A used baseball, that some guy named Babe scribbled on. A beat-up old guitar strung upside-down that some weird guy named Jimi used to play with his teeth. An old book of notes by a guy named da Vinci. Old bottles of rotten grapes. Shiny rocks and yellow rocks we mine out of the ground that we melt and polish.

      The formula for value (1% subjective and 99% bullshit) was established long before the .bomb or cryptocurrency came around.

      Snapchats

      • So a dog coin cryptocurrency "worth" $1bn... just same shit, different day.

        many prospectus such IPO

        wow

        NetJ didn't do anything.

        Dogecoins is going TO THE MOON!

    • I will just remind our younger readers of the dotcom boom, where tech stocks were seen as the new big thing and pumped up a bubble that eventually crashed. You can tell the top of this by looking at a tech company that was registered on the NASDAQ called NETJ.COM,

      This had all the right words in the name, "net", "J" (for Java, hot at the time) and ".com" but its description of what the company did was:

      The company is not currently engaged in any substantial activity and has no plans to engage in such activities in the foreseeable future

      and this raised several $110 million in IPO funding from ordinary investors when it floated.

      So a dog coin cryptocurrency "worth" $1bn... just same shit, different day.

      I avoided all the garbage dotcom stocks because I didn't want to get left holding the bag when they collapsed.
      Unfortunately when they collapsed they took the whole market with them.

      During the real estate and mortgage insanity I avoided going into massive debt to buy property I couldn't afford because I didn't want to go broke when the housing market "which could never go down" collapsed.
      Unfortunately when it collapsed it crashed the economy.

      Yet again I'm avoiding a gain for the same reasons.
      Lets hope we all

    • My personal favorite from the time was a company I really wish I could remember the name of. USA Today profiled them along with 5 or 6 other start ups at the time. I can't find info on these guys on the internet, but basically 2 MBA grads from Harvard who knew almost nothing about PCs got this idea - the user would have a space type desktop with planets on it and the planets were like bookmarks where if you clicked on, say, Mars, you would go to the Amazon website. I thought it was the dumbest thing I'd
      • Same if you watch The Big Short where one chap interviewed a stripper about her real estate deals, and she revealed (fnarr!) that she had leveraged up tot he eyeballs on property as "it only goes up". He figured that was the time it was all going to crash. And then she told him she didn't have 1 property but half a dozen condos she was basically buying through debt and speculation.

    • I concur fully with your analysis ..
    • Prominent Bitcoin entrepreneurs in Finland agree that cryptocurrencies are in a Dotcom-like bubble. That means there's a lot of worthless fluff, but there's also some that you'll all be using in a few years. Or did you seriously quit using the Internet altogether after the Dotcom crash?
  • Hyperinflation (Score:2, Insightful)

    by Anonymous Coward

    That's not hyperinflation. Hyperinflation is when the currency loses value so quickly you can't print new bills with high enough numbers in time to keep up. It's the opposite to what is happening here. Dogecoin is inflationary (it doesn't have a coin cap like Bitcoin), but its value per unit growing is the opposite of inflation.

    It really bugs me when people mix this up.

  • Inflation is where your coin gets worth less and less. In this case the coin gets worth more and more. That's called "deflation", and economists and politicians want you to believe that it is incredibly bad for you if you can buy more stuff with the same money.

    Their reasoning is as follows: "if your money is going to be worth more, you'll wait before buying anything, and that's bad for the economy." Let's investigate that strange claim. Which of the following statements is true?

    "I will wait with buying food

    • Re: (Score:3, Insightful)

      by smallfries ( 601545 )

      Woot! Free money! Oh, wait... that one doesn't happen does it?

      You are missing the effect on wage rises - that they become wage drops. This is where the system breaks. If everything is 5% cheaper next year then that includes the value of your labor. Your company is getting 5% less income because the price of its products is dropping. That filters through to you...

      But people don't really believe in symmetry - so they refuse wage drops in a deflationary economy. Companies go bust. Banks break. The economy impl

      • by LordKronos ( 470910 ) on Saturday January 06, 2018 @08:31AM (#55874847)

        You are missing the effect on wage rises - that they become wage drops. This is where the system breaks. If everything is 5% cheaper next year then that includes the value of your labor. Your company is getting 5% less income because the price of its products is dropping. That filters through to you...

        Yes, all these people hyping deflationary currencies miss this. And they miss the next important consequence of that. Most people have more debt than they do savings. Deflation is good for you if you have lots of savings, but not lots of debt. Most people owe $100k or more on a mortgage, but have only a few $k (if that) in savings. Deflation is a benefit for your meager savings, but is a huge hindrance for your much more sizable debt.

        When you buy a mortgage, you owe a fixed amount of currency. With inflation, over time your income tends to increase slightly year to year, and over the years the mortgage becomes a smaller and smaller part of your income, making it more and more affordable. This is great because if you buy something you can afford, you can generally count on being able to afford it until it's paid off (job loss and severe employment cut being the exception, but that will hold true for deflation also, so lets not consider that). But with deflation, it's the opposite. You get your mortgage, and the payment amount stays the same, but every year your income drops slightly, and thus every year your mortgage payment becomes a bigger and bigger portion of your income. A mortgage that is affordable when you buy it will one day become unaffordable for you.

        I don't think that's what people intend, but that is the natural consequence of a deflationary currency.

        • I'm not sure whether inflation is good or bad overall, but I don't think inflation is a benefit for those paying of a mortgage. Lenders know about inflation, so they will increase the interest on the loan to compensate for it. There's no way that inflation is going to make your debt evaporate.
          • by Jeremi ( 14640 )

            Lenders know about inflation, so they will increase the interest on the loan to compensate for it.

            Of course they can't do that on a fixed-rate loan (at least not until end of the loan's fixed rate period if it's an ARM). They try to account for that risk by making the interest rates higher on fixed-rate loans than on variable-rate loans, of course, but they have to try to thread the needle there -- if they guess too low, they could lose money in the event of unexpected inflation, or if they guess too high, their loans won't be competitive and and they'll lose business to the competition.

            TLDR; it is pos

        • by djinn6 ( 1868030 )

          Most people have more debt than they do savings. Deflation is good for you if you have lots of savings, but not lots of debt.

          And how many of them have debt because the currency is inflationary? For them, it's better to invest in a house and take on that debt than to have the money sitting around. Unfortunately, all that does for the economy is drive up housing and rent prices, which benefit the least productive bunch: land owners.

          When you buy a mortgage, you owe a fixed amount of currency. With inflation, over time your income tends to increase slightly year to year, and over the years the mortgage becomes a smaller and smaller part of your income, making it more and more affordable.

          The banks are not morons. They know money is worth less in the future, and their interest rate takes that into account. You're not getting a free ride because your currency is constantly being devalued.

          • by LordKronos ( 470910 ) on Saturday January 06, 2018 @11:02AM (#55875329)

            And how many of them have debt because the currency is inflationary? For them, it's better to invest in a house and take on that debt than to have the money sitting around.

            Uhhh, considering the average person's "financial intelligence" (there's probably a better term for it that's escaping me right now), I'm pretty sure their level of debt is not a strategic decision. People are in debt because they are careless with spending, don't plan for the future, don't foresee unexpected expenses. And that's WITHOUT having to foresee the effects of decades of deflation on their spending decisions.

            When you buy a mortgage, you owe a fixed amount of currency. With inflation, over time your income tends to increase slightly year to year, and over the years the mortgage becomes a smaller and smaller part of your income, making it more and more affordable.

            The banks are not morons. They know money is worth less in the future, and their interest rate takes that into account. You're not getting a free ride because your currency is constantly being devalued.

            Of course they aren't moron. Of course they figure inflation into it. On the other hand, by comparison, the average person is fairly stupid when it comes to finances. They often can't look 1 or 2 years down the road, much less 10, 20, or 30 years. They can't think about the other things that are going to happen in life, and whether they will continue to be able to afford that payment that seems reasonable today. Having a kid or 2 (possibly by accident), unexpected health complications, having to care for an elderly parent. These are not things most people will take into account when committing to buying a house.

            Inflation provides the vast majority of people with a safety net. Without inflation, a decision you make today that seems financially sound might not be such a good idea when you factor in some future unknown expenses. With inflation, the commitment you make today on buying a house isn't such a large factor in 10+ years when that new expense comes up. On the other hand, deflation is the exact opposite. A seemingly financially sound decision today does not remain financially sound 10 years from now even if no new expenses come up. So now, not only does the average person have to prepare for the unexpected, they are required to look 20-30 years down the road and plan for the expected. They have to take 20-30 years of deflation into account and realize what their income is likely to be that far away to decide if they are likely to be able to afford a house. For the vast majority of people, that's asking a hell of a lot.

            • by djinn6 ( 1868030 )

              Without inflation, a decision you make today that seems financially sound might not be such a good idea when you factor in some future unknown expenses. With inflation, the commitment you make today on buying a house isn't such a large factor in 10+ years when that new expense comes up. On the other hand, deflation is the exact opposite. A seemingly financially sound decision today does not remain financially sound 10 years from now even if no new expenses come up.

              Your future cost is going to be equally risky whether the currency is inflationary or deflationary. If it's inflationary, that cost is going to have a higher number in dollar terms. If it's deflationary, it's going to have a lower number in dollar terms. But the absolute value is going to be the same compared to your income.

              In a deflationary system, you can simply save up to protect against the risk. If you start with a satisfactory amount saved, you can be sure that amount is going to cover the risk no

        • interest rate of course must be higher than inflation or no one would lend you the money, and in a deflationary regime you could have a negative rate mortgage or mechanism to adjust the loan balance; the problem is really the the large swings in inflation caused by corrupt government debasing or otherwise stealing money to buy votes
          • by c6gunner ( 950153 ) on Saturday January 06, 2018 @11:16AM (#55875381)

            If you had a negative rate nobody would lend you the money in the first place. I mean really, you come into my bank, and tell me you want to borrow $1,000 at a -2% interest rate so that, in a year, you can pay me back $980? What kind of moron do you take me for?

            That's part of the problem with deflationary economies right there; even without a negative rate, people are unlikely to lend you money.

            If an economy is inflationary, at 2% that means my $1,000 sitting under my mattress will be worth $980 next year. So if I don't want to lose that $20 it makes sense for me to lend it to you, at say a 3% interest rate, so that I will retain the value of my money and even make a small profit.

            With a 2% deflationary economy, on the other hand, the $1,000 sitting under my mattress will be worth $1,020 next year. I don't need to lend it to you, and take the chance that you won't pay me back; I can just leave it sitting there and it will still be worth more the next year. I would have to be a total moron to risk having you run off with it AND also give you a "negative rate" which guarantees that you pay me back less than you borrowed.

            • I mean really, you come into my bank, and tell me you want to borrow $1,000 at a -2% interest rate so that, in a year, you can pay me back $980? What kind of moron do you take me for?
              We take you for a moron who does not know what is going on in the world. The EU has negative interests since 2 or 3 years.

              • It's nice of you to assume ignorance on my part, but I'm quite aware of what's been going on in the EU. Their negative interest rates were a result of the fact that the EU was absolutely desperate to try and stimulate the economy. From an individual investor point of view negative rates are absolutely retarded, and anyone with a lick of sense would never put their money into a stock or bond with a negative return. A long term negative rate just drives people to pull their money out of banks and either ho

                • It is much more complicated than 'stimulating the economy' (because obviously the evonomy is not stimulated at all).

                  Anyway, at the moment you ccan ask your self: put the money into a bank and lose 1% each year due to negative interests, lend it to someone for -0.5% or no interest or +0.5% etc. or keep cash at home (or another place).

                  In other words: it is not moronic to lend money for -0.5% if you save by that another -0.5% bank interests.

                  A long term negative rate just drives people to pull their money out o

              • by ceoyoyo ( 59147 )

                Negative interest rates are tricky. The central bank may post a negative rate, but that just means the government is giving money to the commercial banks.

                The banks themselves are unlikely to actually have a negative lending rate, unless the government strong arms them into it. The banks may well *pay* negative interest though, charging you to keep your money in their bank.

                • Erm, yes it is tricky :)
                  Banks are required to deposite a part of their money at the central bank, hence are required to pay negative interest.
                  On the other hand they 'gain' from the negative interests when they hand out credits and are required to take,a part of the money from the central bank.
                  Bottom line negative interest is not even the same thing as deflation ...

        • Right now one can make a purchase in an inflationary currency like USD and put their savings in a deflationary currency like DOGE and potentially enjoy the benefits of both systems. Obviously there's great risk that despite being deflationary, DOGE may have overheated in it's exchange rate, and may lose value from this point.
        • In a deflation scenario your income does not necessarily drop. Why would it?
          Ah ... you live in the USA ... never mind then!

    • by Stanza ( 35421 )

      Is this a joke? The only example in that set holds true is food, because you might starve before it gets cheaper. I have heard many people say:

      "I will wait buying a new car, because next year it is cheaper, and my current one still works fine."

      Maybe yours doesn't work fine, but most people have a car that works, and if it doesn't, they can pay someone to repair it. The reason the phone example is better is because phones are much more noticeably improving in performance and lowering in costs than cars do

      • by PPH ( 736903 )

        "I will fully pay my mortgage this year, because of the tax cuts, my mortgage won't be deductible next year, so I'm paying it now".

        That's state and local property taxes, not the mortgage. Local taxes will no longer be deductible like they once were. Mortgages (the interest) haven't been deductible for many years. Some people handle the payment of taxes on their own. Either because they have no mortgage or their mortgage terms allow them to do so (pretty risky on the part of the mortgage company, so it's rare).

        • by ahodgson ( 74077 )

          Mortgage interest is deductible in the US. The tax reform bill halved the eligible amount.

    • "I will wait with buying food, because next year it is cheaper." "I will wait with paying my mortgage, because next year it is cheaper." "I will wait with buying a car, because next year it is cheaper." "I will wait paying for a holiday, because next year it is cheaper."

      With the exception of food, all those make sense if your currency is deflating as fast as bitcoin is (although it makes sense to sell your bitcoin if you're using it as an investment). Don't pay your mortgage, lose your 20% equity in your h

      • by PPH ( 736903 )

        Poor people owe money. They owe more money if suddenly a dollar is worth more

        Yes. But wages are 'sticky'. It's difficult to negotiate a raise during a time of inflation. So wage earners lose out in terms of real earning power. On the other hand, it's even more difficult to negotiate a wage cut during times of deflation. So, automatic raises in terms of actual wealth.

        Guess which situation the investor class fears the most.

        • Assuming all poor people keep their jobs. Of course, the sticky wage theory also says that people will lose their jobs to bring the total wages down. So some poor people are super screwed, and others are just equally screwed (cause most of their money is going to rent, long term contracts like leases and debt. All of those are also sticky.

    • Deflation must therefore be the opposite: a wealth transfer from the rich to the poor. And that's why so many economists and politicians are fighting it.

      Jesus christ where do these crypto-fetishists get their ideas from...Deflation gives existing holders of money, a greater share of societies wealth, while not having to do anything to earn it - the people who benefit the most from this transfer, are those who already hold a lot of money - i.e. the wealthy.

      If the dollar or any other major national currency switched to accepting deflation, it is a transfer of wealth to those who are already wealthy, at the expense of those who have to go out and actually ea

    • Let's investigate that strange claim. Which of the following statements is true?

      "I will wait with buying food, because next year it is cheaper." "I will wait with paying my mortgage, because next year it is cheaper."

      How about - I won't build a factory this year, or make other investments....it will be cheaper next year.

    • by hey! ( 33014 )

      Of course deflation is not bad for *you* if your money buys more stuff, but it's bad for people selling stuff. It also makes holding any debt -- like car loan, mortgage, or student loan -- extremely punitive. Both inflation and deflation damage the economy, but in different ways.

      Anyhow, given the way many people treat cryptocurrencies it's not entirely inappropriate to refer to this as inflation. People are taking positions in things like BitCoin beyond what they need to facilitate anonymous transactio

    • by ceoyoyo ( 59147 )

      The thing you're missing is that the majority of the money we spend is on luxuries. Food? You could probably do with less than half the food budget if you had to. Mortgage? Owning a home is a luxury. It's almost always a poor financial decision (the 2010s being a notable, and scary, exception). Buying a car? Buying a new car is a terrible financial decision, even worse than owning a house. Buying used is better, but you can probably get away with a fraction of the cost if you have to.

      A modern economy is

  • Corporations and other entities can crunch massive amounts of data that allow them to not build expensive infrastructure, and can use it as needed, rather than having dedicated servers. This is a real legitimate value, and earning the cryptocurrency is the reward for your computer doing a tiny fraction of the work. It's value goes up as more people use it. It is not some "con" as some people are claiming. Your computer and electricity are doing actual work in exchange for a valuable virtual currency.

    • by Anonymous Coward

      While it is possible to make a cryptocurrency with a useful proof of work*, most don't do this. Bitcoin wants a SHA256(SHA256(x)) result where a certain amount of LSBs are 0. Some other cryptocurrencies use other hash algorithms. In almost all cases this work has negligible value other than securing the coin.

      *) The algorithms needs to calculate something that is computationally hard as this is what a mining farm will do, but it needs to be computationally cheap to verify whether the results is correct as th

  • I foresee a serious impediment to US infrastructure due to a shortage of bridges ^_^

  • "Inu" translates to "dog", so stop saying "shiba inu dog", either say "shiba inu" (and stop there) or say "shiba dog".
  • I think this just shows the dangers of relying on market cap as the defining factor regarding the value of, well, anything...
    • by ceoyoyo ( 59147 )

      This indicates the danger of NOT paying attention to market cap. If you think buying Dodgy-coin at four cents per coin is a great deal (four cents is a lot less than $20,000!) you haven't properly evaluated the meaning of paying four cents for a 1 twenty-five billionth share of something some college students copied and pasted while high.

  • Not what proceeds it or how the fools will move on to the next SuperDuperMoGoodererCoin, those things are probably not easily predictable as there is an infinite number of 'coins'.

    But what are the death throes?

    After a blockchain has reached a certain size, does the time per transaction go up significantly if the total number of nodes and or compute rate drops below some threshold of the whole?
    Do most or all blockchains require a churn rate of compute time just to stay active?
    When all the 'coins' in any part

    • The total blockchain size has nothing to do with the speed. It requires ever-increasing storage on a computer, however.

      Not all crypto-currencies use the same mining algorithms. Some don't even require much processing power and rely on other factors.

      Not all crypto-currencies have hard limits. AFAIK Dogecoin doesn't have one, so the miners don't have any incentive to drop the coin and move to another one. The people who have been mining Dogecoin for years are now seeing their investment in time, hardware and

  • This reminds me a bit of the Flying Spaghetti Monster. Conjured up as a joke, and now people think they seriously believe in him. Here in the Netherlands there was even a lunatic who wanted to do his Ph.D. defense in Delft with a colander on his head: https://translate.google.com/t... [google.com]

  • Snake Oil South Seas Bubble ..

Steve Jobs said two years ago that X is brain-damaged and it will be gone in two years. He was half right. -- Dennis Ritchie

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