Image Image Image Image Image Image Image Image Image Image Image Image

| June 24, 2018

Scroll to top

Top

Just Archives -

Up to 9K Whiskey Barrels Just Crashed to the Ground in Ky.

June 23, 2018 |

Thousands of whiskey barrels crashed into a massive heap Friday when a large section of a decades-old storage warehouse collapsed at a distillery in the heart of Kentucky bourbon country. The damaged warehouse at the Barton 1792 Distillery in Bardstown held about 18,000 barrels, and it appeared that up…
Newser

TMZ

XXXTentacion Bought Several Homes for His Family Just Weeks Before Murder

June 23, 2018 |

XXXTentacion did his best to make sure everyone in his family was well taken care of … buying many of them homes in the months leading up to his murder. Sources close to the rapper tell us his most important objective in life was to take care of…

TMZ.com

Canada Just Ended Its 95-Year Ban on Cannabis

June 20, 2018 |

Canadian lawmakers have taken the final step toward legalizing recreational marijuana—and it will become official as soon as Queen Elizabeth II’s representative signs off on it. A bill ending the country’s 95-year prohibition on cannabis passed Canada’s Senate by a vote of 52 to 29, CTV reports. After royal…
Newser

TMZ

XXXTentacion Was Finishing Florida Dream Home Just Before Murder

June 19, 2018 |

XXXTentacion was putting the finishing touches on his dream home when he was shot and killed Monday … something that was supposed to be a crowning moment of achievement.  XXX plunked down $ 1.4 million in November on the Parkland, Florida…

TMZ.com

Supreme Court Just Punted on a Major Voting Issue

June 18, 2018 |

The Supreme Court has ruled on two gerrymandering cases from Wisconsin and Maryland—but without without deciding on the broader issue of whether electoral maps can give an unfair advantage to a political party, the AP reports. The justices unanimously ruled against Wisconsin Democrats who challenged legislative districts that gave…
Newser

CNN

Shot and left for dead by the Taliban, ‘Afghanistan’s Malala’ just graduated college

June 17, 2018 |

Breshna Musazai leaned on her brother as she climbed out of her wheelchair and up the stairs of the graduation stage at the American University of Afghanistan. With polio in one leg and injuries from a Taliban attack in the other, the climb was difficult. She heard cheers from behind her.
CNN.com – RSS Channel – World

California gains just 5,500 jobs in May; unemployment stays at record-low 4.2%

June 16, 2018 |

The California economy cooled a bit in May as employers added just 5,500 net jobs. The unemployment rate held steady at a record low of 4.2%, according to data released Friday by the state’s Employment Development Department.

The numbers reflect a slowdown from April, when the state added 25,600…


L.A. Times – Business

CNN

Opinion: What just happened?

June 13, 2018 |

CNN Opinion asked a group of expert commentators to weigh in with their reactions to the historic meeting between Donald Trump and Kim Jong Un. The views expressed here are solely theirs.
CNN.com – RSS Channel – World

Bitmex to VIPs: Bitcoin Won’t Replace Fiat, Just a ‘Useful Niche,’ Enthusiasts ‘Naive’

June 11, 2018 |

Bitmex to VIPs: Bitcoin Won’t Replace Fiat, Just a ‘Useful Niche,’ Enthusiasts 'Naive'

Bitcoin Mercantile Exchange (Bitmex) released proprietary research reportedly geared toward their VIPs. Researchers find bitcoin core’s (BTC) deflationary aspects interesting for speculation and as a “payment system,” but predict it will ultimately not usurp government paper, describing the BTC phenomenon as simply a “useful niche,” and those who “think Bitcoin would result in a more prosperous economic system” as “naive.” It’s a strange position to take as a bitcoin exchange. 

Also read: Philippines’ Crypto Wallet Reaches 5 Million Users, Adds More Coins

Before Weirdly Turning, Bitmex Praises BTC’s Deflationary Aspects

In conclusion, Bitmex researchers lukewarmly laud bitcoin core’s merits, arguing how “to many, Bitcoin’s ability to decouple debt from money and thereby result in a deflationary climate without the deflationary debt spiral problem is the point, rather than a bug.” Still, Bitcoin Economics – Deflationary Debt Spiral, published recently by the exchange for its VIPs, refers to those who believe bitcoin “would result in a more prosperous economic system” as being “naive.” Piling on in this manner, they continue, “Bitcoin is a new and unique system, which is likely to cause more economic problems, perhaps unexpected or new ones.”

Bitcoin Economics – Deflationary Debt Spiral, is the final in a three part series by the Hong Kong-based Bitcoin Mercantile Exchange (Bitmex). Hot shot, risk enticed futures traders are emboldened by the exchange’s shorting ability and 100x leveraged contracts. Contracts can only be purchased and settled in bitcoin core (BTC), all without the bother of holding actual coins. Bitcoin cash, bitcoin core, ripple, ether, litecoin, cardano round out possible contract choices.

Bitmex to VIPs: Bitcoin Won’t Replace Fiat, Just a ‘Useful Niche,’ Enthusiasts 'Naive'

The report was initially released by a cranky Twitter polemicist who claimed it to be an exclusive get, designed for Bitmex’s VIPs. Days later, the exchange would publish it on their site for all to see. The report’s focus was to “examine the deflationary nature of Bitcoin and consider why this deflation may be necessary due to some of Bitcoin’s weaknesses.”

Deflation, as a matter of course, occurs when the value of money increases. In the modern West, at least, this concept has largely been only theoretically known. And then crypto. And then bitcoin. Cursory surveys, and perhaps the reader’s own experience, revealed during 2017 the tension many bitcoiners faced. Used to government tickets eventually and methodically losing value through inflation, a bargain cut between court economists and the first to receive newly printed paper meant every incentive in the average person’s experience pointed to spending. Spend those tickets before they lose more value.

Fundamentally Different

The opposite was evident for most of last year. And this third report by Bitmex takes into consideration long held beliefs about money in this respect. “Critics have argued that history has taught us that a finite monetary supply can be a poor economic policy, resulting in or exacerbating, economic crashes. Either because people are unwilling to spend appreciating money or because the real value of debt increases, resulting in a highly indebted economy. Bitcoin proponents are often called ‘economically naive,’ for failing to have learnt these economic lessons of the past,” researchers explain.

Bitmex believes economics, when it comes to bitcoin core, are “fundamentally different” from anything preceding. “There may be unique characteristics about Bitcoin, which make it more suited to a deflationary policy,” they argue. “Alternatively, limitations or weaknesses in Bitcoin could exist, which mean that too much inflation could have negative consequences not applicable to traditional forms of money.” Bitmex to VIPs: Bitcoin Won’t Replace Fiat, Just a ‘Useful Niche,’ Enthusiasts 'Naive'

Deflation’s bad rap in the United States, for example, can be attributed to Irving Fisher’s appraisal of causes and exacerbation of the Great Depression of 1929. And the Bitmex part three meditation presents his arguments well as a chain of consequences where hoarding, or as crypto enthusiasts understand, hodling, only served to severely worsen the problem, according to Fisher. Yet, “maybe Fisher’s view on inflation was correct for the economy in the 20th century, however by 2150 technology may have fundamentally changed to such an extent that another inflation policy may be more appropriate for society,” they contend.

Turning from mere description, Bitmex researchers hit upon a rather novel concept: bitcoin is not a debt based currency, the kind government paper all over the world is. That is a fundamental difference, and it follows economies would behave differently should something like bitcoin core take hold. In a bitcoin based, deflationary economy, an economic downturn’s “impact of increases in the real value of debt could be less significant than one may think. This could make the deflationary debt spiral argument less relevant in a Bitcoin based economy,” they note.  

A Cynical, Dismissive Way to View Bitcoin’s Potential

Given BTC’s deflationary aspects, its being so fundamentally different, and how traditional economic theory is at a loss to grapple with it, Bitmex would seem to hold the coin in high esteem. No, not really. Not at all, in fact. Very near the report’s end, VIPs are given the candid, unvarnished truth as the exchange sees it. Bitcoin core is a speculative plaything, an interesting project to perhaps make some interim profit if one is positioned well.

“Much of this discussion focuses on the economics of Bitcoin, assuming Bitcoin is widely adopted, such that the inflationary dynamics have an impact on society,” the report tantelizes. Curiously, the report doesn’t account for BTC’s notorious problems as a functioning currency in terms of block size, mempool congestion, and transaction fees – a debate lived out along side BTC by bitcoin cash (BCH). Researchers do not believe BTC will be widely adopted.  

Bitmex to VIPs: Bitcoin Won’t Replace Fiat, Just a ‘Useful Niche,’ Enthusiasts 'Naive'

“In our view [wide BTC adoption] is an unlikely outcome and perhaps should be considered even more unlikely by Bitcoin’s critics. In our view, Bitcoin may satisfy a useful niche, that of making both censorship resistant and digital payments, but it’s unlikely to become the main currency in the economy. Therefore the debate about Bitcoin’s deflationary nature should be considered as largely irrelevant anyway. Hence, it is therefore somewhat odd that some critics use this as an argument against Bitcoin,” thereby negating almost the entirety of the previous report findings.

The last thought left with readers is a cynical, just-in-case principle: “if one thinks these economic problems associated with deflation have a remote chance of being relevant, like the critics indirectly imply, that would mean Bitcoin has a significant chance of becoming widely adopted and hugely successful. In that case, perhaps the sensible thing to do is buy and ‘HODL’.”

What do you think about Bitmex’s research? Let us know in the comments. 


Images via the Pixabay, Bitmex.


Verify and track bitcoin cash transactions on our BCH Block Explorer, the best of its kind anywhere in the world. Also, keep up with your holdings, BCH and other coins, on our market charts at Satoshi’s Pulse, another original and free service from Bitcoin.com.


This is an Op-ed article. The opinions expressed in this article are the author’s own. Bitcoin.com does not endorse nor support views, opinions or conclusions drawn in this post. Bitcoin.com is not responsible for or liable for any content, accuracy or quality within the Op-ed article. Readers should do their own due diligence before taking any actions related to the content. Bitcoin.com is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any information in this Op-ed article.

The post Bitmex to VIPs: Bitcoin Won’t Replace Fiat, Just a ‘Useful Niche,’ Enthusiasts ‘Naive’ appeared first on Bitcoin News.

Bitcoin News

CNN

This Mexican candidate had just vowed to tackle crime. Then a gunman shot him dead.

June 10, 2018 |

The Mexican congressional candidate had just left a debate hall where he addressed public security in his northern state. He walks over to a person holding a phone and poses for a picture. In a matter of seconds, a man walks up from behind and shoots him in the head, killing him before walking off.
CNN.com – RSS Channel – Regions – Americas