This 1st even "Islamic Crypto-Currency". Introducing AllahCoin

[Aventador]

i know how it works... im more interested in having an comparitive analysis of this bitcoin aganst a normal currency bill... protocol, solving block , decentralized is all techincal.... wht im interested here is what is the tangible stuff behind this currency.... a country note bill is all backed up with how that country is doing.. its economy , its resevres, imports exports gdp etc.. what is behind a bitcoin?

This should help:

The reason it's so hard for most people to understand Bitcoin is that most people don't really understand money. Money isn't wealth. It's an accounting system used to facilitate the exchange of wealth. (The paradox of money is that while everyone wants it, no one actually wants it - they want the stuff they can buy with it!) Many people are put off by the fact that bitcoins are "just data." But that's what ALL money is, information! More precisely, money is a means for credibly conveying information about value given but not yet received (or at least not yet received in a form in which it can directly satisfy a person's wants or needs).


To put it yet another way, money is a ledger. With fiat currencies like the dollar, that ledger is centralized. And that gives the central authority responsible for maintaining that ledger tremendous power, power that history has proven will inevitably be abused. With Bitcoin, the ledger is decentralized. And that means that no one individual or entity has the power to arbitrarily create new units (thereby causing inflation), freeze (or seize) your account, or block a particular payment from being processed. We've had decentralized money before. After all, no one can simply print new gold into existence. And the "ledger" of gold is distributed because the physical gold itself (the "accounting entries" in the metaphor) is distributed. But with gold, that decentralization comes at a heavy price (literally). The physical nature of gold makes it hugely inefficient from a transactional perspective.


Enter Bitcoin.


It is the first currency in the world that is both decentralized AND digital. It is more reliably scarce than gold, more transactionally
efficient than "modern" digital banking, and enables greater financial privacy than cash. It could certainly still fail for one reason or another, but if it doesn't, it has the potential to be very, VERY disruptive.

 

[AsifAmeer]

You are absolutely right in terms of fiat. Fiat is backed by 2 things
1. Taxation
2. Yields (or interest rates on treasuries)

These 2 properties give fiat their "intrinsic value". Theek.. ?

We all know what taxation is. Theek hai...

Lets look at what yields are. Its the return on the expected FUTURE GROWTH of that nation. Get it? Yields are just a promise that you will get WEALTH in the future. Hence, promisory notes.. And what if there is no REAL growth? Then govts default. But they dont default in typical fashion. They inflate their way out of defaults. Inflation too is a default. Govts pay you your promised returns in nominal terms which in real terms are still negative. Also, its this very concept of Yields on sovereign bonds (Tbills) that creates the whole debt-based money system and a consumer economy.. You see my point?


Now lets look at Bitcoin. Bitcoin's intrinsic value comes from its complete elimination of Counter-party risk. Remember, in case of fiat, you get yields which are a promise of growth in the future. That growth may or may not take place. Thats counter-party risk. In Bitcoin, neither you are promised anything for the future, nor can your money be inflated.
Then you have the SECURITY of the Bitcoin network - i.e. how much can you really trust that the bitcoin network (its blockchain) simply wont blow up? Thats called the HASHRATE. Here is the chart

Every passing minute, the bitcoin network gets harder and harder to break. In simple terms, this is the TRUST element.. how much can you trust the bitcoin network. Just like, Taxation giving fiat an intrinsic value, this network Hash gives the level of trust to the Bitcoin its intrinsic value.


I would want to point, to keep matters simple, use the term UTILITY instead of INTRINSIC as its a subjective scale. Did u know Imam Ghazali RA defined money as something that shouldnt have any of its own value (utility), but only reflected the value of whats being exchanged against it.

Imam Ghazali simply butchers Aristotle's argument to bits.

Anyways, I hope that helps.

i know how it works... im more interested in having an comparitive analysis of this bitcoin aganst a normal currency bill... protocol, solving block , decentralized is all techincal.... wht im interested here is what is the tangible stuff behind this currency.... a country note bill is all backed up with how that country is doing.. its economy , its resevres, imports exports gdp etc.. what is behind a bitcoin?

 

[AsifAmeer]

Very well said!

Dude my 2nd article got published on Letstalkbitcoin.com Gonna post it here soon

This should help:

The reason it's so hard for most people to understand Bitcoin is that most people don't really understand money. Money isn't wealth. It's an accounting system used to facilitate the exchange of wealth. (The paradox of money is that while everyone wants it, no one actually wants it - they want the stuff they can buy with it!) Many people are put off by the fact that bitcoins are "just data." But that's what ALL money is, information! More precisely, money is a means for credibly conveying information about value given but not yet received (or at least not yet received in a form in which it can directly satisfy a person's wants or needs).


To put it yet another way, money is a ledger. With fiat currencies like the dollar, that ledger is centralized. And that gives the central authority responsible for maintaining that ledger tremendous power, power that history has proven will inevitably be abused. With Bitcoin, the ledger is decentralized. And that means that no one individual or entity has the power to arbitrarily create new units (thereby causing inflation), freeze (or seize) your account, or block a particular payment from being processed. We've had decentralized money before. After all, no one can simply print new gold into existence. And the "ledger" of gold is distributed because the physical gold itself (the "accounting entries" in the metaphor) is distributed. But with gold, that decentralization comes at a heavy price (literally). The physical nature of gold makes it hugely inefficient from a transactional perspective.


Enter Bitcoin.


It is the first currency in the world that is both decentralized AND digital. It is more reliably scarce than gold, more transactionally
efficient than "modern" digital banking, and enables greater financial privacy than cash. It could certainly still fail for one reason or another, but if it doesn't, it has the potential to be very, VERY disruptive.

 

[adnan_younus]

i must admit.. i need to understand paper money bill first before i start grasping the concept of bitcoin.... like im paid using numbers in my bank account... we implicitly assume tat number is hard paper bill but in reality if every one goes to the bank to encash their salary bank will fail to give them the notes.. correct???? i need to get my basics first right before attempting to understand bitcoin from this perspective....

You are absolutely right in terms of fiat. Fiat is backed by 2 things
1. Taxation
2. Yields (or interest rates on treasuries)

These 2 properties give fiat their "intrinsic value". Theek.. ?

We all know what taxation is. Theek hai...

Lets look at what yields are. Its the return on the expected FUTURE GROWTH of that nation. Get it? Yields are just a promise that you will get WEALTH in the future. Hence, promisory notes.. And what if there is no REAL growth? Then govts default. But they dont default in typical fashion. They inflate their way out of defaults. Inflation too is a default. Govts pay you your promised returns in nominal terms which in real terms are still negative. Also, its this very concept of Yields on sovereign bonds (Tbills) that creates the whole debt-based money system and a consumer economy.. You see my point?


Now lets look at Bitcoin. Bitcoin's intrinsic value comes from its complete elimination of Counter-party risk. Remember, in case of fiat, you get yields which are a promise of growth in the future. That growth may or may not take place. Thats counter-party risk. In Bitcoin, neither you are promised anything for the future, nor can your money be inflated.
Then you have the SECURITY of the Bitcoin network - i.e. how much can you really trust that the bitcoin network (its blockchain) simply wont blow up? Thats called the HASHRATE. Here is the chart

Every passing minute, the bitcoin network gets harder and harder to break. In simple terms, this is the TRUST element.. how much can you trust the bitcoin network. Just like, Taxation giving fiat an intrinsic value, this network Hash gives the level of trust to the Bitcoin its intrinsic value.


I would want to point, to keep matters simple, use the term UTILITY instead of INTRINSIC as its a subjective scale. Did u know Imam Ghazali RA defined money as something that shouldnt have any of its own value (utility), but only reflected the value of whats being exchanged against it.

Imam Ghazali simply butchers Aristotle's argument to bits.

Anyways, I hope that helps.

 

[adnan_younus]

i want to compare bitcoin with teh barter system note bills.. e.g. if we take it ot the basics... each note bill was backed by gold or any asset... its all changed now with fractional banking and central bank printing more money... .. i completely get lost as i go deaper in the modern concept of money... need to go back to the basics and track how this is evolved

Very well said!

Dude my 2nd article got published on Letstalkbitcoin.com Gonna post it here soon

 

[AsifAmeer]

>>bill but in reality if every one goes to the bank to encash their salary bank will fail to give them the notes.. correct?
Technically Yes. The bank will default. Lekin in reality, whats happening is that when u deposit money to your bank, your bank takes that money and lends it to the Govt for 8~10% interest. The bank gets these Bond Certificates in return of that cash. But when u demand ur money back, your bank goes to this market called the REPO market, where it offers these Govt bonds to the State Bank (SBP) and the State Bank prints that cash and hands it to the bank. And your bank hands you your money back.

Banks always keep a cushion of cash on hand.. about 10% ~ 12% of total demand deposis (your checking account).

Now I want u to take a deep breath and click on this link
http://www.sbp.org.pk/ecodata/OMO-Inject-Hist.pdf

Thats the number of times State Bank has printed money and handed to banks... That column of approved amount, is the amount banks accepted..

i must admit.. i need to understand paper money bill first before i start grasping the concept of bitcoin.... like im paid using numbers in my bank account... we implicitly assume tat number is hard paper bill but in reality if every one goes to the bank to encash their salary bank will fail to give them the notes.. correct???? i need to get my basics first right before attempting to understand bitcoin from this perspective....

 

[ahaseeb]

I had close to 3700 LTC two months ago. I cashed them out :( It would have been worth around 200k while i sold them 3.6$ a piece..
Still have less than 100$ :(

 

[helendouglas]

Islamic Crypto-Currency isnt even surprising to me. Look, Canada has the Robocoin to encash your Bitcoins now. What more about in the future?​

 

[Spartacus]

I bought from here some ICO .

https://ico.savedroid.com/?ref=58e3fd9d-8339-436c-98dd-98204df1fbe7

 

[Spartacus]

I had close to 3700 LTC two months ago. I cashed them out :( It would have been worth around 200k while i sold them 3.6$ a piece..
Still have less than 100$ :(

I bought from here some ICO .

https://ico.savedroid.com/?ref=58e3f...d-98204df1fbe7

 

[Spartacus]

check it ... only some days remain to buy

https://ico.savedroid.com/?ref=58e3fd9d-8339-436c-98dd-98204df1fbe7