I really don't get Bitcoin. What is the point in a currency that ranges from $2 USD to $12 USD in a year ?
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1 Bitcoin Worth 10 USD
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Re: 1 Bitcoin Worth 10 USD
#72This is exactly the last thing BitCoin needs to be successful as a currency. After the speculative bubble last year it started to make some headway as the price remained relatively stable. Now in the past 2 weeks we've seen its value appreciate by 50%, something that just doesn't happen with traditional currencies. It's dangerously reminiscent of what happened last year and shows that the BitCoin economy is still ver…
"Now in the past 2 weeks we've seen its value appreciate by 50%" Wouldn't surprise me if it crashes again after Burning Man.
What do you think burning man has to do with this?
Re: 1 Bitcoin Worth 10 USD
#73Earlier quoted context omitted.
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.
Correct - in fact (unless you were a speculator) you wouldn't want to hold onto anything in bitcoin for more than the time required to clear a transaction.
Bitcoin seems to be more like payment method than currency.
Re: 1 Bitcoin Worth 10 USD
#74I 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…
Currency stability is useful for trade and retail. When a macbook air costs $1000 things are simple - it cost the same amount a week ago, and it'll cost just as much next week. You can plan your purchases.
If all you know is a week from now it'll cost somewhere between 50 and 500 bitcoins, that's a lot harder to plan around.
Re: 1 Bitcoin Worth 10 USD
#75Earlier quoted context omitted.
If you don't mind me asking, what do you buy with them? I know of only a few things that are only acquirable via Bitcoins, or that couldn't be acquired more cheaply using dollars.
My guess is that 99% of the non-speculative drivers for BitCoin currency are purchases from SilkRoad.
I lack the courage or foolishness to make such purchases.
Re: 1 Bitcoin Worth 10 USD
#76Earlier quoted context omitted.
"Now in the past 2 weeks we've seen its value appreciate by 50%" Wouldn't surprise me if it crashes again after Burning Man.
What do you think burning man has to do with this?
Allegedly people do a lot of drugs at Burning Man, and one of the popular uses for Bitcoins is purchasing drugs without the traceability of a credit card.
Re: 1 Bitcoin Worth 10 USD
#77Am I the only one to think Bitcoin is just a big Ponzi scheme benefiting the first users/creators who got all the first ones?
I'd bet the guys operating exchanges and mining pools have made more than the creators ever did.
Re: 1 Bitcoin Worth 10 USD
#78This is exactly the last thing BitCoin needs to be successful as a currency. After the speculative bubble last year it started to make some headway as the price remained relatively stable. Now in the past 2 weeks we've seen its value appreciate by 50%, something that just doesn't happen with traditional currencies. It's dangerously reminiscent of what happened last year and shows that the BitCoin economy is still ver…
Hopefully if/as adoption spreads, it will stabilize in value. A larger economy is less prone to manipulation.
It might make for an interesting study though, on how much stability the U.S. Treasury provides vs. an unregulated currency.
Re: 1 Bitcoin Worth 10 USD
#79Earlier quoted context omitted.
What do you think burning man has to do with this?
Allegedly people do a lot of drugs at Burning Man, and one of the popular uses for Bitcoins is purchasing drugs without the traceability of a credit card.
I think that you're dramatically overestimating the amount of drugs that people do at burning man.
On top of that: if you're bringing drugs to Black Rock City, you probably do drugs in default world anyway, and have a dealer back there for them.
Re: 1 Bitcoin Worth 10 USD
#80Earlier quoted context omitted.
Allegedly people do a lot of drugs at Burning Man, and one of the popular uses for Bitcoins is purchasing drugs without the traceability of a credit card.
I think that you're dramatically overestimating the amount of drugs that people do at burning man. On top of that: if you're bringing drugs to Black Rock City, you probably do drugs in default world anyway, and have a dealer back there for them.
I'm not estimating anything. I'm just explaining what was most likely meant by the reference to Burning Man.