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1 Bitcoin Worth 10 USD

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Re: 1 Bitcoin Worth 10 USD

#21

Post by pizza »

btdd wrote: post #8
pizza wrote: post #4

This won't last; is a bitcoin at least as valuable as 10 USD for people who use BTC?

SERIOUSLY, WHAT THE FUCK ARE YOU EVEN SAYING? Who are you to make a claim as to if it will last or if it won't or how valuable bitcoins are. >This won't last We have no evidence to the contrary, and in fact, bitcoin being a deflationary currency by definition means it will likely increase in value and, what's more, if you look at the trend it has been increasing in value. If you were to use a single shred of logic th…

> Who are you to make a claim as to if it will last or if it won't or how valuable bitcoins are.

A speculator, same as you. This is implied. Besides, what has who I am got to do with what I say?

> We have no evidence to the contrary, and in fact, bitcoin being a deflationary currency by definition means it will likely increase in value and, what's more, if you look at the trend it has been increasing in value. If you were to use a single shred of logic then your conclusion would be "it might or might not last", but that's hardly a useful post.

Bitcoin's a great idea, but people have been using it to make a quick buck. That's why (I think) it won't last.

> Well, since people are RIGHT NOW paying over 10 dollars for a bitcoin that indicates that yes, yes it is.

Would you buy houses because "they're a great investment" was "good advice" pre-2008? Speculators aren't using bitcoins to buy $10 worth of stuff, they're using buying bitcoins because they think they can earn more than $10 worth of dollars. So, bitcoin's success is based off of it's ability to earn dollars, not buy stuff: this is what makes it unstable.

Re: 1 Bitcoin Worth 10 USD

#22

Post by greg_bt »

polshaw wrote: post #11
btdd wrote: post #8

Earlier quoted context omitted.

SERIOUSLY, WHAT THE FUCK ARE YOU EVEN SAYING? Who are you to make a claim as to if it will last or if it won't or how valuable bitcoins are. >This won't last We have no evidence to the contrary, and in fact, bitcoin being a deflationary currency by definition means it will likely increase in value and, what's more, if you look at the trend it has been increasing in value. If you were to use a single shred of logic th…

>We have no evidence to the contrary except the previous mega-crash. >bitcoin being a deflationary uh, no, it's not yet. Masses of new bitcoins are being created every day. That is inflationary (and much more so than USD). @greg_bt: it matters little how you frame it, but the supply of bitcoins is increasing. It will gradually reduce and stop, all of which is predetermined, yes. Today it is inflationary (IIRC its abo…

I don't know if 'bitcoins are being created every day' is the right way of looking at it? Bitcoins are more discovered as opposed to created. It would be like if every USD ever was buried and people were gradually digging them out of the ground and everyone knew exactly how many were buried? The amount of bitcoins in circulation is increasing but the total amount of bitcoins that will ever exist isn't increasing at all.

Re: 1 Bitcoin Worth 10 USD

#23

Post by ghshephard »

taligent wrote: post #14

I really don't get Bitcoin. What is the point in a currency that ranges from $2 USD to $12 USD in a year ?

The value of the currency doesn't really matter to those of us who use it - It could be 1 bitcoin to 1 USD, or 1 bitcoin to 10 USD - as long as the downwards volatility is kept to a minimum.

What's problematic is when you buy something worth $50 USD with 5 Bitcoins, and the Bitcoin to USD drops before the seller can get their USD from MtGOX (or whoever their Currency Exchange house is).

The upwards volatility isn't a problem in that buyer/seller scenario. If I want to buy something worth $50 USD, and I go purchase 5 bitcoins for $50USD, and then, those bitcoins are worth $55USD by the time the purchase clears, then I only paid $50USD and the Vendor received $55 USD. Everyone comes out a winner.

Re: 1 Bitcoin Worth 10 USD

#24

Post by Symmetry »

xSwag wrote: post #15

Damnit I remember when they were less than $1 and thinking to myself "this will never take off". If I had invested $100, I could have sold today for $1K.

And I wish I had invested $10K instead of $1K in ARMH back when it was $5. It's easy to see missed financial opportunities in retrospect.

Re: 1 Bitcoin Worth 10 USD

#25

Post by NinetyNine »

taligent wrote: post #14

I really don't get Bitcoin. What is the point in a currency that ranges from $2 USD to $12 USD in a year ?

The exchange doesn't have much of an effect when most goods are priced relative to the exchange rate (many sites even automate this). The only thing the currency price represents is the relative change in market size where these coins are used.

Re: 1 Bitcoin Worth 10 USD

#26

Post by taligent »

streptomycin wrote: post #19
taligent wrote: post #14

I really don't get Bitcoin. What is the point in a currency that ranges from $2 USD to $12 USD in a year ?

Commission-free electronic transactions with anyone in the world?

So it is free to convert from USD to Bitcoin and vice versa ?

Because clearly I wouldn't want to hold anything in Bitcoin for a long period of time due to its instability.

Re: 1 Bitcoin Worth 10 USD

#28

Post by ghshephard »

polshaw wrote: post #11
btdd wrote: post #8

Earlier quoted context omitted.

SERIOUSLY, WHAT THE FUCK ARE YOU EVEN SAYING? Who are you to make a claim as to if it will last or if it won't or how valuable bitcoins are. >This won't last We have no evidence to the contrary, and in fact, bitcoin being a deflationary currency by definition means it will likely increase in value and, what's more, if you look at the trend it has been increasing in value. If you were to use a single shred of logic th…

>We have no evidence to the contrary except the previous mega-crash. >bitcoin being a deflationary uh, no, it's not yet. Masses of new bitcoins are being created every day. That is inflationary (and much more so than USD). @greg_bt: it matters little how you frame it, but the supply of bitcoins is increasing. It will gradually reduce and stop, all of which is predetermined, yes. Today it is inflationary (IIRC its abo…

To be correct, the question of whether a currency is inflationary or deflationary, is a function of both the increase in the supply of the currency, as well as growth in the economy. If the economy is growing faster than the currency, than the currency is deflationary.

Re: 1 Bitcoin Worth 10 USD

#29

Post by delluminatus »

taligent wrote: post #26
streptomycin wrote: post #19

Earlier quoted context omitted.

Commission-free electronic transactions with anyone in the world?

So it is free to convert from USD to Bitcoin and vice versa ? Because clearly I wouldn't want to hold anything in Bitcoin for a long period of time due to its instability.

It's quite cheap depending on the service. I use bitfloor, which charges some very small commission ($0.01 on a $40 deposit)

Re: 1 Bitcoin Worth 10 USD

#30

Post by pantaloons »

taligent wrote: post #14

I really don't get Bitcoin. What is the point in a currency that ranges from $2 USD to $12 USD in a year ?

The main point is that it is decentralized and (ostensibly, with enough care) anonymous. This makes it ideal for illegal transactions (drugs, gambling, weapons, contract killing, child pornography). These being incredibly inelastic goods, price fluctuations will do little to hamper continued growth of the Bitcoin.
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