How much are cryptocurrencies are used for actual exchange of goods? I.e. for actual shopping and commerce? Because it seems to me that the most prominent group of users are investors and miners; i.e. those who only buy, stack and sell crypto coins, and those who produce them. And I've read here in some past threads that it's not that easy to liquidify your crypto coins.
Cryptocurrencies are collapsing
111–120 of 122 posts
Re: Cryptocurrencies are collapsing
#112A confluence of factors: 1. China cracking down harder: https://www.nytimes.com/reuters/2018/01/16/business/16reuter... 2. South Korea cut off access to banks by cryptocurrency exchanges in December, and access to exchanges by foreign traders. As a result the prices in the country spiked, and the largest price aggregator CoinMarketCap removed Korean exchanges from the index because they were skewing the averages. Thi…
Or it could be, gasp, perhaps bitcoin was overvalued? No, anything but that.
Yes theres that, but BTC being overvalued doesn't explain the entire market dip that we are seeing now. However, it is consistent with Bitcoin's historical pattern:
Re: Cryptocurrencies are collapsing
#113Earlier quoted context omitted.
Or it could be, gasp, perhaps bitcoin was overvalued? No, anything but that.
How would you define "overvalued"? Is it the current average price compared to a very low price three months from now? What if it recovers a few weeks after that — would that change the fact that it was once "overvalued"? Valuation is not based on nothing, in vacuum. The challenge is to understand the underlying factors. The post you replied to actually tried to shed some light.
How would you define "overvalued"?
The difference between the price of bitcoin versus the price of bitcoin as it would be if it was only used as a medium of exchange rather than a speculative asset.
Re: Cryptocurrencies are collapsing
#114I went and looked at the ETH price over the full history in log view. From that perspective today's move is a typical little jiggle. https://imgur.com/13J5kkC
Same with bitcoin in log view.
Re: Cryptocurrencies are collapsing
#115Intrinsic value of Cryptocurrency is 0. Period.
So is a piece of paper with fancy printing on it that says ONE HUNDRED DOLLARS. Currency is an abstraction. It is a social contract to value something at a certain level. That contract is enforced at the highest levels in our county which is why it works so well. But make no mistake, $100 can buy stuff because only because we all agree to value it at about the same level. If the government collapses, that piece of pa…
Do you really wanna compare private company with legitimate government?
Which private company has such a power and credit backed by gigantic land & properties, all the resources from those land, super control from police, military forces?
Present value of legitimate tender is printed on it's face and legitimate government CAN force it. Never, ever confront to big brother.
Don't be childish. Grow up. If you are not humble, the market will humble you.
Re: Cryptocurrencies are collapsing
#116Earlier quoted context omitted.
People keep saying that. I wonder if they have actually read the white paper. The lightning network will only work for exchanges who will keep channels open between them. Getting a graph of every wallet connected to every other wallet is a mathematical impossibility. The lightning network is essentially instituting central banking all over again, this time with bitcoin. "Oh so you want to transfer coins quickly? Bett…
> Getting a graph of every wallet connected to every other wallet is a mathematical impossibility. Why is that remotely relevant? Why would I want my wallet 'connected' to any wallet I'm not going to transact with?
Because you might need to pay someone? How do you know beforehand all the wallets you are going to transact with? (Assuming we are talking about using it as a currency anyways)
Re: Cryptocurrencies are collapsing
#117Earlier quoted context omitted.
People keep saying that. I wonder if they have actually read the white paper. The lightning network will only work for exchanges who will keep channels open between them. Getting a graph of every wallet connected to every other wallet is a mathematical impossibility. The lightning network is essentially instituting central banking all over again, this time with bitcoin. "Oh so you want to transfer coins quickly? Bett…
This is so wrong in so many ways... Not only is the "network" part of LN referring to the ability to chain multiple channels together to make payments several hops away if needed, but why would exchanges be the only one you could transfer to? Currently on mainnet a VPN vendor is really the only major player, and it's expected that most vendors will have a lighting node, as all it requires is an always online server..…
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Re: Cryptocurrencies are collapsing
#118Earlier quoted context omitted.
People keep saying that. I wonder if they have actually read the white paper. The lightning network will only work for exchanges who will keep channels open between them. Getting a graph of every wallet connected to every other wallet is a mathematical impossibility. The lightning network is essentially instituting central banking all over again, this time with bitcoin. "Oh so you want to transfer coins quickly? Bett…
> The lightning network will only work for exchanges who will keep channels open between them. Getting a graph of every wallet connected to every other wallet is a mathematical impossibility. Transactions can be routed through multiple channels, you don't need to open a channel to every single wallet you want to transact with. That would not be a Lightning network, it would just be payment channels. > The lightning n…
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1 point by fgonzag 0 minutes ago | edit | delete [-]
I know you can chain multiple channels. I've read the paper. Anyone with a relatively basic math background can see the problems the lightning network will not work as a "decentralized" network.
So you'll end up with many hubs, and you'll have to open a channel from your wallet to a hub (or multiple hubs) if you want to be able to pay or receive payments from (insert random wallet here). These hubs will take a cut to process payments. The more hops you have between two wallets, the more fees you'll have to pay (as you'll have to pay a fee for each hop). We just turned into VISA and Mastercard.
That's without mentioning the high capital reserve requirements that hubs will be forced to have, and how easy it would be to DDOS a specific hub by abusing the nLoc timer, especially since the transaction can only be forced to close if the only pending acknowledgement is from the originating wallet. Every other hop can essentially hold off for 1 day.
Re: Cryptocurrencies are collapsing
#119Re: Cryptocurrencies are collapsing
#120Earlier quoted context omitted.
Why businesses might not use Bitcoin: 1. Bitcoin remains speculative and volatile. This will cause it to be adopted by smaller businesses that can "do things that don't scale". We won't see big businesses support mainstream crypto payments until the demand is high enough to justify the risk. 2. Bitcoin itself is a clamped network, as such the fees are very high. You can't sell Lemonade at your stand with Bitcoin if t…
3. Because US dollars work fine
Fine is fine. Secure is great.