Bitcoin just crossed $7.00. • Hacker News Board

Re: Bitcoin just crossed $7.00.

#61

Post by csomar » Tue, Jul 10, 2012, 2:10 PM UTC

kiba wrote: post #24

csomar wrote: post #6

The reason for that is the death of Bitcoinica. Bitcoinica offered shorting, which stabilized prices at around $5. When Bitcoinica went out of business, the only way to make money on Bitcoin is to speculate its' price increase which will drive demand; which will drive its' price even more. That being said, it might be the right time to buy Bitcoins, and sell before the bubble bursts. However, for a more stable Bitcoi…

That's nonsense. Bitcoinica have virtually no effect on the market.

No it did. The shorting stabilized prices, and if you don't have any economical background, you can check out Khan Academy videos on economics.

The price of Bitcoin started to raise since Bitcoinca ended operations. Certainly, it won't skyrocket in 24 hours. It'll take many days (and maybe weeks) to visualize the trend.

Re: Bitcoin just crossed $7.00.

#62

Post by NelsonMinar » Tue, Jul 10, 2012, 2:10 PM UTC

nihilocrat wrote: post #45

Am I the only one who can't read this graph? It looks like it's rotated 90 degrees and there's no time axis so I don't see what this is representing. I don't understand what the legend for the Y axis means.

Here's a traditional market chart showing USD vs BTC since the beginning of Bitcoin. Salient features: enormous bubble a year ago, and many months of stability at $5 before the recent runup. http://bitcoincharts.com/charts/mtgoxUSD#tgSzm1g10zm2g25zv

Re: Bitcoin just crossed $7.00.

#63

Post by tatsuke95 » Tue, Jul 10, 2012, 2:10 PM UTC

Paul_S wrote: post #12

mtgx wrote: post #3

The last thing Bitcoin needs is another speculation craze based on its high value. If Bitcoin's value is growing, that's fine, let it keep growing naturally. Don't start publicizing it so it starts another speculation roller coaster, at least until the Bitcoin market is big enough to not be impacted much by speculation-based transactions.

Obviously, you are absolutely right. Then again, as much as I despise myself for it I did make a killing last time a bunch of idiots started buying them for >20$ a pop so I wouldn't mind. Taking money from speculators and giving money to geeks... I'm sure someone could spin this into something positive. I don't think it's going to hurt bitcoin, it's proven itself to withstand it and is here to stay.

>"Taking money from speculators and giving money to geeks... "

Classic fallacy. "Those rules don't apply to me!"

Guess what? You are a speculator, no better or worse than any other speculator out there, be it in gold, houses or mortgages. Sorry.

Re: Bitcoin just crossed $7.00.

#64

Post by stcredzero » Tue, Jul 10, 2012, 2:16 PM UTC

ChrisNorstrom wrote: post #59

I lost a lot of money in bitcoin. I learned a valuable lesson that's better than anything I learned in collage. 1) Easy to make, easy to lose. 2) Whatever you are thinking of doing, so is everyone else. If you're planning on outsmarting thousands of other people, just remember, they are planning to outsmart you. 3) Any market with a high volume of flippers (buys to resell and make money) vs users (actually use a prod…

5) "This time is different!" is bullshit.

There are times when it is indeed different. When Columbus landed, it was genuinely different. (Especially for the natives.) When general artificial intelligence arrives, it will also be genuinely different. (Especially for us.)

Re: Bitcoin just crossed $7.00.

#65

Post by [deleted] » Tue, Jul 10, 2012, 2:23 PM UTC

ChrisNorstrom wrote: post #59

I lost a lot of money in bitcoin. I learned a valuable lesson that's better than anything I learned in collage. 1) Easy to make, easy to lose. 2) Whatever you are thinking of doing, so is everyone else. If you're planning on outsmarting thousands of other people, just remember, they are planning to outsmart you. 3) Any market with a high volume of flippers (buys to resell and make money) vs users (actually use a prod…

[deleted]

Re: Bitcoin just crossed $7.00.

#66

Post by 286c8cb04bda » Tue, Jul 10, 2012, 2:28 PM UTC

coderdude wrote: post #58

Karunamon wrote: post #56

Earlier quoted context omitted.

Why would the IRS come knocking at your door? Take the same laws that apply to any other currency transaction and apply.

Would they/why would they, these are the questions I'm asking because I'm uncertain how these things even work. With currencies backed by nations I can see the IRS not caring, but Bitcoin isn't just "any other currency." It's a currency not made up or backed by any nation. In a way it's money out of thin air. That's what worries me.

The IRS doesn't care where your income comes from. They care that it is (1) reported, and (2) correctly valued. They have, for example, rules for reporting bartered income[1]. Barter is certainly not "any other currency" either.

[1]: http://www.irs.gov/businesses/small/article/0,,id=187904,00....

Re: Bitcoin just crossed $7.00.

#67

Post by kiba » Tue, Jul 10, 2012, 2:29 PM UTC

ChrisNorstrom wrote: post #59

I lost a lot of money in bitcoin. I learned a valuable lesson that's better than anything I learned in collage. 1) Easy to make, easy to lose. 2) Whatever you are thinking of doing, so is everyone else. If you're planning on outsmarting thousands of other people, just remember, they are planning to outsmart you. 3) Any market with a high volume of flippers (buys to resell and make money) vs users (actually use a prod…

I didn't lose too much money in bitcoin but lets just say it was money that I was saving up for braces. That was the deal I made with myself. I'm still angry that I lost, there's no point in lying, emotions will be emotions. But the way I see it, I didn't lose the money in bitcoin, I invested it in some really good "real world economics" classes at a good collage somewhere...

Bitcoin is still the best investment I ever made. That's because I realized that I can't beat the market.

Re: Bitcoin just crossed $7.00.

#68

Post by damian2000 » Tue, Jul 10, 2012, 2:30 PM UTC

morsch wrote: post #46

For further amusing reading, look at https://bitcointalk.org/index.php?topic=91661.20 User pirateat40 is running a BTC investment scheme with super-high returns (BS&T: Bitcoin Savings & Trust, a name suggested by investors). So high, that the community is split between the believers who can't resist the ROI and the non-believers who are convinced that Pirate is running a Ponzi scheme. But that's not the fun part. The…

Both those users are probably the same guy, and its an attempt to gain credibility, when he wins... ;-)

Re: Bitcoin just crossed $7.00.

#69

Post by kiba » Tue, Jul 10, 2012, 2:30 PM UTC

csomar wrote: post #61

kiba wrote: post #24

Earlier quoted context omitted.

That's nonsense. Bitcoinica have virtually no effect on the market.

No it did. The shorting stabilized prices, and if you don't have any economical background, you can check out Khan Academy videos on economics. The price of Bitcoin started to raise since Bitcoinca ended operations. Certainly, it won't skyrocket in 24 hours. It'll take many days (and maybe weeks) to visualize the trend.

Nonsense, as there were shorting tools that were available after bitcoinica shut down.

Re: Bitcoin just crossed $7.00.

#70

Post by DanBC » Tue, Jul 10, 2012, 2:34 PM UTC

jerguismi wrote: post #47

rmc wrote: post #44

Earlier quoted context omitted.

Ah so this time it's different! The battle cry of every bubble.

If the bubble keeps repeating, it is still an opportunity for speculators who can do the timing right. Personally I'm long on bitcoins, I do dollar-cost-averaging. Good way to do this is for example bitcoinbuilder.com, or 10-line python script will do the same thing.

> it is still an opportunity for speculators who can do the timing right.

Gamblers - it is still an opportunity for gamblers who can do the timing right.