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Bitcoin Fall Extends to 25% as Fears of Crackdown Linger

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Re: Bitcoin Fall Extends to 25% as Fears of Crackdown Linger

#311

Post by GenericsMotors »

m3kw9 wrote: post #199
lkrubner wrote: post #162

Earlier quoted context omitted.

What is the P/E ratio of Bitcoin? There is none. So there is no rational basis for any price. $1 is as valid as $1 million. There is no traditional way to analyze this investment and figure out its real worth. To the limited extent that Bitcoin helps Chinese citizens out-maneuver the capital controls that the Chinese government has tried to enforce, then it could be analyzed as a shadow of the Chinese currency, but s…

Bitcoin isn’t a stock that has earnings. They are more like gold or silver. The usefulness + scarcity should determine its price. Right now people are buying because other people are buying, and a whole lot o hype

Even gold has some real-world usefulness that can drive demand as it's used in electronics manufacturing.

Re: Bitcoin Fall Extends to 25% as Fears of Crackdown Linger

#312

Post by GenericsMotors »

kinnth wrote: post #67

I always think there will only ever be 21 million bitcoins in existence ever. Ever. So what do you think is a fair price for that?

> I always think there will only ever be 21 million bitcoins in existence ever. Ever.

So what? If I launch a cryptocurrency that will only ever mine 21 coins, how does that make it magically orders of magnitude more valuable than bitcoin just because it's more scarce.

Re: Bitcoin Fall Extends to 25% as Fears of Crackdown Linger

#314

Post by andirk »

tyingq wrote: post #151

Interested in what someone with deep Bitcoin experience thinks the bottom is this time, before it starts to rebound...and why. Edit: Yes! Ggm's request below too.

My mild bitcoin experience (also invested) says: I have seen this before, and I don't care that much. I also don't know what the value of 1 BTC should be even in a booming crypto economy. I believe bitcoin and blockchain technology are the future so I bet on all of the projects I think are viable.

Re: Bitcoin Fall Extends to 25% as Fears of Crackdown Linger

#315

Post by Nursie »

ErikAugust wrote: post #111

The whole Tethers thing scares me the most: https://twitter.com/Bitfinexed/status/953398351889944576 There's $5B worth.

Quarter of a billion were created in the last three days.

This seems like a fairly frantic attempt to prop up the value on their part.

Re: Bitcoin Fall Extends to 25% as Fears of Crackdown Linger

#316

Post by blensor »

sytelus wrote: post #167

I have been trying to figure out eventual equilibrium price of BitCoin and here is one approach: Due to wealth inequality, we assume that majority of the crypto investment would be from ultra-rich. It might become quite normal for them to invest 1% of their wealth in crypto for uncorrelated diversification. In a way this is very similar to buying art which probably doesn't have much utility except among other wealthy…

Why can't we just estimate the "real" value of BTC with the amount of work that goes into operating it.

We know the hashrate, we basically know what the hardware is that does the "mining", we know the cost of the hardware and we can estimate some mean electricity cost.

The hardware has no other real use (except for heating) so there is an upfront investment the miners were willing to pay and also how much they are continually willing to invest.

This is a real world in investment that is not easy to withdraw from the Bitcoin system

Re: Bitcoin Fall Extends to 25% as Fears of Crackdown Linger

#317

Post by dagw »

fnord77 wrote: post #222
komali2 wrote: post #94

Earlier quoted context omitted.

I love bitcoin and cryptocurrency as potential solutions to problems with gov-controlled currencies (I've used crypto to buy drugs, for example). But I'm still confused why people refer to purchasing currency as an "investment." Obviously the rates are going up now, but doesn't everyone expect them to just come back down? I don't convert my USD to Yen and call it an "investment."

it's useless as a currency while speculators are making its value so volatile. The sooner this bubble pops and the get rich people go away, the better.

Once the current batch of speculators cash out, volatility settles and it starts getting used as a currency then its price will start to edge up again, bringing in a new wave of speculators who drive up volatility making it less useful as a currency and loop starts over.

Re: Bitcoin Fall Extends to 25% as Fears of Crackdown Linger

#319

Post by [deleted] »

brucephillips wrote: post #264
philipov wrote: post #262

Earlier quoted context omitted.

Writers of dictionaries are archaeologists of language. They do not prescribe the meaning of words like a programmer or mathematician. Their definitions are posterior to language. The definitions are in fact mine to make, provided they result in successful communication with people who have adopted similar definitions. Go read my original post again. I am advocating against ambiguity in language, as this serves to ob…

I'll bow out here, but I'll just point out that this is a great example of how one's adherence to their ideas makes rational conversation impossible. We can only communicate to the extent that we agree on the definitions of words, so for you to invent your own definitions, which contradict how other people use the word, as codified in dictionaries, then there's zero hope of reaching shared understanding. It would be…

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