Comment: So many comments, yet all miss the underlying discussion

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So many comments, yet all miss the underlying discussion

I see all sides on the bitcoin yes/no/IDC discussion. But I have yet to see the real root discussion break out. Let's begin it, shall we?

There are basic reasons that people fight against FRNs. The most common is that their value is subject to a small group of manipulators controlling it. Looking at it another way, it is subject to inflation.

Another reason is trust. People don't inherently trust the government or the banks to not use it in nefarious ways. This could include the inflation factor but it could also include tracking and stopping transactions from taking place.

Yet another reason is portability. If people can't access their wealth for a transaction, it loses value.

Let's compare FRNs (all government currencies apply here) to metals to Bitcoins to rice and bullets on all these standards.

A fiat currency is one that can be manipulated because it has a value that is decreed by the government. Therefore, the government can simply decree a change in its value.

Gold and silver are only slightly susceptible to this before the exchange market adds a margin on top of the spot price. This makes them better but not perfect. Any manipulation is by market actions of buying/selling en masse so it is by definition only temporary. Since it is a physical currency, there are physical requirements that must accompany it like storage, privacy, legality and security. For some, these are minimal tasks/risks so they hold metals in high regard.

Bitcoin cannot be manipulated by the government unless you consider them using the actual BC market in volume as a manipulation (like in metals). Keep in mind that this type of manipulation by is itself a form of market support for the the process so it still can only be a temporary issue. Beyond that, BC holds the value that always represents the exact value the market places on them. They cannot change higher or lower by decree or bank rate hikes.

Holding a Bitcoin also incurs some personal effort. One must keep track of a code, either electronically or physically or mentally, but other than traceable methods of this, there is no threat of confiscation by anyone on any amount in any form. It also carries the requirement that 'the market' validate all transactions. Currently, this is only done in electronic form (a perceived risk for some) so simple face-to-face barter is impacted. For some, the methods available as of yet hold more risk than for others and this is where most of the divide occurs in Bitcoin support.

The exchange to/from BC is however, kept as a separate service whose price is also the exact market value. This separation becomes key when their use is prolific enough that exchange is not required because this removes the last bit of margin on free transactions for a free people.

Commodities like rice or bullets can be seen as a strong competing currency in only a narrow scope. It can be easily transacted face-to-face and carries an inherent value that cannot be manipulate by government decree but it loses its convertibility and its ability to reach longer geographical distances.

So, the discussion boils down to 7 factors to compare. Here is the average of how I personally see them viewed by others over all, on a 1-10 scale. I followed it by my personal opinion (in parenthesis) of where I see the world when the SHTF. Your Mileage May Vary

Inflation:
Paper - 2 (1)
Metals - 7 (9)
Bitcoin - 9 (9)
Commodities - 9 (8)

Market Security:
Paper - 3 (2)
Metals - 7 (8)
Bitcoin - 8 (9)
Commodities - 9 (8)

Local Transaction Ease:
Paper - 9 (4)
Metals - 9 (9)
Bitcoin - 6 (8)
Commodities - 5 (3)

Long Distance Transaction Ease:
Paper - 4 (2)
Metals - 3 (1)
Bitcoin - 9 (9)
Commodities - 1 (1)

Security From Theft:
Paper - 5 (3)
Metals - 7 (6)
Bitcoin - 8 (9)
Commodities - 7 (4)

Security From Government Theft:
Paper - 3 (1)
Metals - 7 (5)
Bitcoin - 7 (9)
Commodities - 7 (6)

Security From Government Tracking:
Paper - 2 (1)
Metals - 8 (8)
Bitcoin - 9 (9)
Commodities - 9 (6)

Score Summary:
Paper Metals Bitcoin Commodities
28 .... 48 .... 56 .... 47
(14) .. (46) .. (62) .. (36)

Hopefully, I've framed the discussion correctly. I'm sure many will disagree with my scores but that's the nature of publicly stating an opinion. It's also why we're free to choose our own path. I just hope to end the arguments over definitions and labels that don't get to the real importance of what people care about. Thnx for reading.