Author Topic: Satoshi Forest  (Read 1553 times)

AZRedhawk44

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Satoshi Forest
« on: October 11, 2013, 02:26:49 PM »
http://bitcoinmagazine.com/6939/seans-outpost-announces-satoshi-forest/

Weird.

9-acre homeless shelter in Florida, funded entirely through charitable contributions... in BitCoin and only BitCoin.

Mortgage financed in BitCoin.  Not converted to USD... paid in BitCoin.

I wonder how the tax situation is structured?
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AJ Dual

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Re: Satoshi Forest
« Reply #1 on: October 11, 2013, 03:07:42 PM »
I'm just trying to wrap my head around how you structure a mortgage when the currency has a (somewhat) known fixed deflationary structure built into it...

 ???

However, I like anything in general that tries to push BTC further into the "real (FRN dominated) world" so to speak.  =)
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AZRedhawk44

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Re: Satoshi Forest
« Reply #2 on: October 11, 2013, 03:11:33 PM »
Yeah, the idea of paying 20 BitCoin a month for the next 15 years kinda scares me, since I think the BC are going to be nudging towards the $1000 mark in the next year or two, and even higher in 5-10 years.
"But whether the Constitution really be one thing, or another, this much is certain - that it has either authorized such a government as we have had, or has been powerless to prevent it. In either case, it is unfit to exist."
--Lysander Spooner

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drewtam

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Re: Satoshi Forest
« Reply #3 on: October 11, 2013, 03:38:16 PM »
Yeah, the idea of paying 20 BitCoin a month for the next 15 years kinda scares me, since I think the BC are going to be nudging towards the $1000 mark in the next year or two, and even higher in 5-10 years.

Isn't this the quintessential explanation of why deflationary environments are so bad for an economy?

deflation -> depressed borrowing -> depressed construction -> job loss -> more bankruptcy / defaults on debt -> deflation
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AZRedhawk44

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Re: Satoshi Forest
« Reply #4 on: October 11, 2013, 03:54:50 PM »
Depends on if your economy is built around long-term debt, or short and mid-term productivity rewards.
"But whether the Constitution really be one thing, or another, this much is certain - that it has either authorized such a government as we have had, or has been powerless to prevent it. In either case, it is unfit to exist."
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AJ Dual

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Re: Satoshi Forest
« Reply #5 on: October 11, 2013, 05:38:24 PM »
Isn't this the quintessential explanation of why deflationary environments are so bad for an economy?

deflation -> depressed borrowing -> depressed construction -> job loss -> more bankruptcy / defaults on debt -> deflation

Well, one way of looking at it, it's all just gambling, this just reverses the way it goes.

When you take out a mortgage on a home, you're gambling that the value of your home will increase over time ahead of inflation. The bank is gambling that the interest and fees they get from you will earn them more money than inflation eats into the principle etc.

Perhaps a Bitcoin mortgage has some sort of fixed reduction in the payments/interest over time that accounts for expected deflation. Or maybe they just front-load the principle, unlike the traditional mortgage, or other financing like a car loan that front-loads the interest.

(don't even know if that makes sense, just a random idea pulled from thin air...)
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drewtam

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Re: Satoshi Forest
« Reply #6 on: October 11, 2013, 09:56:44 PM »
If you can figure out a mutually beneficial financing method for economies in long term deflation, you could make a lot of money. Not just in Bitcoin, but Yen as well.
I’m not saying I invented the turtleneck. But I was the first person to realize its potential as a tactical garment. The tactical turtleneck! The… tactleneck!