151–160 of 426 posts
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Agreed, it's almost like the asset has no fundamental value, and is driven completely by speculation.
I am struggling to understand what currency you would define fundamental value - Loafs of bread?
Serious question: who didn't expect this? Did anybody think that the 19K high of last week was going to be the new normal?
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They didn't know what they were buying; bits in a database. A very poorly implemented database that was - not scalable - not rare - didn't have any government backing or big institutional backing in case the price dropped from 19,000 to 11,000 - easily hackable (tether, fake trades, scam exchanges, etc) - too expensive to do a single transaction this applies to most crytocurrency
> not rare Interesting. Don't really know how crytos work, but isn't rarity is guaranteed by the BitCoin algorithm itself?
I do mobile software consulting. To give you an idea of the level of crypto currency mania: Every single one of my clients in San Francisco have some kind of slack or group chat devoted to crypto trading. I was waiting at the front desk of a client who has a floor in a fancy building downtown. Whilst waiting I overheard the end of a conversation between the door guy talking to the maintanence man: “I put in a bunch o…
They didn't know what they were buying; bits in a database. A very poorly implemented database that was - not scalable - not rare - didn't have any government backing or big institutional backing in case the price dropped from 19,000 to 11,000 - easily hackable (tether, fake trades, scam exchanges, etc) - too expensive to do a single transaction this applies to most crytocurrency
Its not a commodity it's a currency. Why does it need to be "rare"? The US dollar is also not backed by anything "rare" and hasn't been since Nixon abandoned the gold standard in 1973.
>"didn't have any government backing or big institutional backing in case the price dropped from 19,000 to 11,000"
You realize this is the exact reason it was created right? That's the whole point. It's not coincidence that bitcoin was released on the heels of the 2008 financial crisis.
It's almost like everyone was trying to get rich quick and sold when they saw some profit.
FAAAAAAHHHKKKK.... I WAS a millionaire and just maxed out my cards, rented a jet and now I am in the shitter... what do i do?
What? No 100% interest is normal. Do you want free money or not?
No don't worry about the breaking your legs part, just remember to pay it back when you're rich again.
I used to ask others in last few months, at what point would you be comfortable buying? Is it 20K, 15K, 10K, 5K, 1K, 500$, 100$, or 50$? or less? See, the story changes, what was nice months ago now is an extremely high risk. Myself, I probably woudln't buy unless it's under 100$. Even that is questionable. Reason being, blockchain is a pipedream and BTC is a dinosaur within that dream. What future BTC has but specul…
Why does price of a bitcoin matter? You can buy the equivalent of $50usd in bitcoin, and enjoy many if not all of the 'opprotunities'.
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You mean, like the US dollar ?
Like all dollars, yen, pounds, euros, silver, metal and gold? None of these things, paper or earth metals, really have any intrinsic value. You can't eat gold. You can't put euros in your car. I guess you can burn money to keep warm, which is what happened to German Marks once people lost confidence in their currency prior to WW2. The value of money is based off belief systems. When a very large scale economic or sta…
Also, why does our currency need intrinsic value? It represents a debt owed and can be exchanged for things with intrinsic value. The reason dollars, yen, pounds, euros, silver, metal and gold have value is both a social and a legal contract. Cryptocurrencies may have some social contracts that give them value but they lack the legal contract. That's why I think they are doomed unless they open themselves to regulation.
It's almost like everyone was trying to get rich quick and sold when they saw some profit.
Christmas comes early for the cynic.
This likely isn't the end of Bitcoin just as its numerous other 30%+ corrections didn't stop its rise. Whatever happens, I'll be proud to have participated in such an important new technology while avoiding the leagues of cold and timid souls who jeered from the sidelines.
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Agreed, it's almost like the asset has no fundamental value, and is driven completely by speculation.
I am struggling to understand what currency you would define fundamental value - Loafs of bread?
1. strong entity circulates and
2. wants back
is fundamentally valuable.
> American dollars have value because the US Government taxes things, like land, and if you do not pay those taxes they will send you mean letters (trust me) before resorting to other means (trust Al Capone). You pay these taxes in US dollars. You just having dollars does not make them valuable. And dollars are not valuable because they are backed by gold or silver or sea shells. What makes dollars valuable is that the government wants them back.
https://hackernoon.com/the-guns-of-bitcoin-1f779309a718
Ways to destroy the US dollar value: Destroy the US tax collecting power, or have the US ask for taxes in a different currency. If the US started collecting taxes in Euros, the value of the US dollar would disappear instantly.
The US is a strong entity and has no incentive to ruin the value of the dollar. It will not start collecting taxes in Euros. Or Bitcoin. Why would it give all that power away? More likely is that Bitcoin gets made illegal or very difficult to use. At the end of the day, if you have US-protected assets, you will have to pay US dollars to the US gov and this will continue to give USD value.
Bitcoin has no such strong-entity backing, so it has no fundamental value. Bitcoin people are obsessed with the idea that mere possession is important. It's not. Ask people with loads of marks or Zimbabwe dollars.
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> not rare Interesting. Don't really know how crytos work, but isn't rarity is guaranteed by the BitCoin algorithm itself?
there are hundreds of crytocurrencies. what makes one of them rare?