If bitcoin grows in popularity is the advantage stability?

I use coinbase too!

The Ponzi scheme argument goes like this:

At the very beginning, bitcoins were easy to produce/mine. The early adopters got on and started mining bitcoins. Now it is much more difficult to do so. Since (and if) bitcoin gains popularity, the early adopters have profited by the increased market value of a single bitcoin that is a result of the "hordes" of newer people coming to value the currency.

So, the argument goes, it is _like_ a ponzi scheme in the sense that early adopters have an opportunity to cash in and it requires more and more new people to continue to increase the value of a bitcoin.

Now whether it __is__ a ponzi scheme is a little different question.

The value is subjective and varies by person, even at the same time.

You see the corn and want to make 100 meals out of it.
Someone else sees it and wants to trade it for a pig.
... etc.

FYI, the floating dollar is how the politicians have stolen half of the VALUE of the Social Security Trust fund while the Dollar value increased!

Thanks engineer. I think I'll stay on the sidelines and see what happens with this bitcoin. I think I know where the dollar is headed.

Bit coins are scarce. Why? They are based on prime numbers that are diffuse but lumpy the farther you go out on the counting number axis. The more that are found the harder it is to find the next one. Self-limiting. That said it seems MtGox rehypothecated its customers' bit coins and got into trouble as customers bailed over the last year.

The dollar and other currencies used to be pegged to gold or silver. I.E. one dollar to 1 ounce of gold. The problem was that the politicians or crooks could not change that so the made the money float so they could manipulate it to their own benefit.

Rich, at least you have serious questions. The problem is that money is infrastructure. Many people think infrastructure drives economy when it is economy that drives infrastructure. When someone creates something that people want to buy they create value. Money is a way to transfer that value. People decide what that value is in say dollars and an exchange is made. Gold has value because it is used to create things people want to buy.

I have wondered if their will be an alternative to the dollar. Since the creation of the FED the dollar has lost 97% of its value. I think one of the advantages of bitcoin is supposed to be that this should not happen. The dollar is a joke so I keep looking for other options.

Alchemists have always thought they can turn lead into gold. Governments turn a few cents worth of ink and paper into something they SAY is worth $100 in gold. The same for bitcoins.

Both bitcoins and dollars!

I established the value at 100 meals to make a point. Your point appears to throw jello at the wall and see what sticks.

Then why is the value of bitcoins varying so greatly. Because it has no intrinsic value. Can you tell me what a bushel of corn is worth today in bitcoins and what it will be next week?

You mean the dollar???

True but the amount of currency needed to buy that 100 meals has gone up steadily because the amount of currency available has increased for no reason. If an alternative like bitcoin catches on then the amount of bitcoin it takes to buy those 100 meals should stay relatively constant.

how so?

I disagree. the number of meals determined by quantity of corn is a unit measure. Its value is what can 1 meal of corn get me in trade. As well, since it is perishable, the number of meals decreases the longer it is stored.
If TSHTF, immediately some unit of gold may have less value to me than a bottle of whiskey or fresh vegetables or gallon of uncontaminated water.

Can anyone say PONZI?

If you buy a bushel of corn lets say it will make 100 meals. It does not matter what monetary value you put on that bushel, its value is still 100 meals! The money does not have value, the corn does!

yes, but it is managed by entities. The price of bitcoin varies depending on which exchange.

Money, like roads or power lines, is not the object it is just a convenient vehicle to move value from one place to another.

Yes, and what about drugs? Governments want to shut that down too-how's that working out for them?
The more govt seeks to control its operations, the higher its value-I predict.

The only people who Print (Mint) money are Governments or Crooks. Neither put up value to back their money.

One concern I had is that it is an alternative to fiat currency. If the government decides it does not want the competition they could potentially shut it down or sabotage it in some way.