Quote:
Originally Posted by ToothSayer
Just to clear up a few misconceptions:
This is a false statement. Bitcoin has a near unlimited supply. Why? Because it competes with near identical altcoins for the same pool of interest. Including future ones that may well have superior functionality. There used to be one coin with 21 million coins. Now there are over a thousand coins with 1000x the supply. Already, this has diluted Bitcoin 50%, and it's only the beginning of the dilution. The notion of "fixed supply" is one of the great lies that Bitcoin buyers believe.
This is also a false statement. Dollars are backed "by the full faith and credit of the United States". They are backed by the output of the US economy, controlled by the taxing power of the government. Thus if you hold USD, you have an unassailable legal claim on the economic output of the United States. Vendors in the US are forced to accept it as payment for all goods. That is far more valuable and reliable than something that does indeed depend purely on psychology - Bitcoin. Bitcoin gives you a claim on nothing whatsoever. It' a digital fairycoin, a ponzi/chain letter that retains value only while people keep buying in. But unlike the USD, no one is forced to buy in by laws, and unlike the USD, it gives you no claim on anything.
Believe what you want about Bitcoin, but at least get the facts straight in your head. You have it precisely backwards on both points.
The US government also has a huge military.
