Bitcoin skeptics: "Yeah, but 80% of financial media pieces say its all a bubble!"
HODLers: Serious? Great guess we'll buy more!
Skeptics: You'll all be sorry when it crashes like the stock market did in 1929.
HODLers: Yeah, okay. Thanks for the warning, now I got to go wire some more USD so I can buy more...
I still don't understand Bitcoin. It seems to be a digital currency that can be used as a medium of exchange. The advantage over dollars appears to be secrecy--you can use it for illegal activities and for evading taxes. The value of a Bitcoin would seem to depend on what everyone using Bitcoin says it's worth. But what would cause the value of a Bitcoin be increasing rapidly? Besides a bubble?
This is just an intellectual curiosity on my part. I have no intention of investing in it.
jackslash: "The value of a Bitcoin would seem to depend on what everyone using Bitcoin says it's worth"
True of anything. Its value is what the market says its value is.
Part of the value is based on its future use in electronic transactions. Thing can be made alot cheaper than for current electronic transactions, and they can take place much faster.
The other big thing it has going for it compared to USD is predictable supply. Some people think finite supply is an advantage as well. I think that's true if it's not gunning to be the dominate world currency. If it is gunning to the dominate world currency then that's a disadvantage.
I think what is causing the latest rally is a couple of things: BTC futures coming online. That will allow larger merchants to hedge away price fluctuations which should mean more acceptance. The other thing is recent progress on the lightning network which would deal with some Bitcoins scaling problems, as well allow transaction across different crypto currencies.
@jackslash Actually the value increases as the supply shrinks as it apparently did this week the speculation was a hard fork(basically a doubling) was going to increase the supply and when that didn’t materialize the swings were all over the place, but, for now the bitcoin fans have adjusted to the supply as it stands it should show some growth and maybe even a little stability, at least until the next published event.
Can't say I agree that the Segwit2 had much affect on anything. Bitcoin was rallying into it. It caused a little short term volatility and guys like @mark94 thought they might finally be vindicated, but it didn't last long. It kept rallying afterward. So when something rallies into an expected event, expected event doesn't happen, then continues previous rally, I don't think the expected event had much to do with anything anyway.
My understanding is that the recent dip and subsequent bounce was related to the prior forked chain, Bitcoin Cash. the fears of Segwit2x didnt seem to do much.
I know very little about BC but more and more random people are starting to talk to me about it as if it is an investment opportunity. Thing is, they don't understand either. lol.
Reminds me how everyone was a Real-estate expert right before the crash in '08. I wouldn't touch it.
@FTS: yes, I think there was a rotation for a day or two from BTC to BCH. The sum of the two stayed pretty constant through it all though. And then some billionaires jumped in to buy BTC around $5600 and that was about the end of that.
SJG why don't you realize that the sooner you pull a Mia culpa to all the trash takin f about the markets you've done since you started posting, the sooner people can move on from your idiotic stance on something you've been completely wrong for so long. In the past 3 and 1/2 years you talk about a "bubble" in the markets, yet they e doubled in value(nearly).
You've got a serious credibility problem and your show of damage control is to double down on your incorrect assessment, further digging your hole of discredibility even further. Why?
Ah, @SJG talking like he is an expert, once again, on stuff he knows absolutely nothing about.
The soup floating around in @SJG's head doesn't even deserve to be called a brain.
Gas,the SJG point is pretty much moot,I doubt he will ever amount to much.But I'll tell you this much,I still get a chuckle from when you said,"Tongue punch the fartbox".
29 comments