Anyone know the current ratio...
(USD price of cloud computing power to generate 1 BTC) / (USD offering bid for 1 BTC)
...?
The Bitcoin Bubble
21–30 of 35 posts
Re: The Bitcoin Bubble
#22Two out of the three words of the title contain buzz words (CHECK!) Ok but seriously I don't see the "bubble" here. If this is a "bubble" what are the implications of it popping? The value is set by the people who exchange it and not by a governing authority or even, groups of people. As I understand it, that means the value can never be manipulated. Also, don't bubbles imply that there is some sort of governing body…
There were bubbles long before government got involved in the market, in fact such bubbles are why the government is involved in the market now. The primary problem with bitcoins as it stands now is that there is no oversight so any sort of price manipulation possible is legal.
Re: Bubbles - Such as? Let me be more specific. If I shall quote wikipedia - "It could also be described as a trade in products or assets with inflated values" Doesn't Bitcoin set to eliminate inflated values? With no central authority controlling the amount of currency available or loaned at certain rates then valuation becomes absolute, no?
Re: Manipulation - I'm not sure I understand how the value of the currency can be manipulated. If the value is directly set by the end user then it's impossible to manipulate.
Re: The Bitcoin Bubble
#23The US Dollar can be used to buy anything. Bitcoin can be used on like, a few dozen websites that support it. Why the heck would you not use the dollar?
There are far more restrictions on dollars if you want to transfer them electronically, because ultimately you need to route them through large financial institutions.
Re: The Bitcoin Bubble
#24The author has given some good reasons why Bitcoin won't become the new global currency, but there's a lot of space between global domination and fizzling out of existence.
Consider probably the most well-known alternative currency, the Ithaca Hour (http://www.ithacahours.org/), which has been going strong for decades now, but has no pretenses of expanding beyond its narrow geographic niche.
Re: The Bitcoin Bubble
#25Would it be possible to have the concept of a Bitcoin with backing done by commodities?
Re: The Bitcoin Bubble
#26It’s a very cute classroom project – but to really be accepted means the government will have it’s hands on the flow, revenue and taxes from said bitcoin just as with the dollar bill. So besides this being anything more than a social experiment – its about as smart as buying POGS if people remember those things...
Hey man, the value of my Beanie Baby collection can only go up.
Re: The Bitcoin Bubble
#27The article assumes we want to pay taxes and that a significant portion of our tax dollars are spent wisely thus making taxation an advantage of the dollar. Convincing Americans to switch to a currency other than the dollar is roughly as futile as convincing the Internet to switch to a protocol other than TCP/IP, and for the same reasons. Meh, you don't have to convince Americans, just convince other people. Other co…
Oh, you mean like IPv6
Re: The Bitcoin Bubble
#28Would it be possible to have the concept of a Bitcoin with backing done by commodities?
no, that wouldn't make any sense
Re: The Bitcoin Bubble
#29It’s a very cute classroom project – but to really be accepted means the government will have it’s hands on the flow, revenue and taxes from said bitcoin just as with the dollar bill. So besides this being anything more than a social experiment – its about as smart as buying POGS if people remember those things...
Hey man, the value of my Beanie Baby collection can only go up.
FWIW, unlike Pogs or Beanie Babies or Cabbage Patch Kids, does have built-in scarcity. If they do become some crazy fad, the manufacturer can't ramp up production which ultimately only servers to devalue all BitCoins.
But yeah, for now I'd basically think of them as something like baseball cards or comic books.
Re: The Bitcoin Bubble
#30All of the author's arguments are null when you consider that cash registers, phones, your bank, etc. IS a computer so issues of convenience don't really hold up. I don't think it will be that long until my local cooperative bank enables withdrawals from my BitCoin account on my Visa. When you can store your money in an safe and transparent system like BitCoin or a currency controlled by a shadowy Federal Reserve, which would you pick?