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1 Bitcoin Worth 10 USD

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Re: 1 Bitcoin Worth 10 USD

#81

Post by bunderbunder »

ghshephard wrote: post #23
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…

Upwards volatility creates a similar problem on the other side of the transaction, though.

If BTC is rapidly rising against the dollar, then I'd rather spend dollars because I'll want to keep the BTC in my account in anticipation of further appreciation.

And, for that matter, the fact that the entire conversation is framed this way doesn't bode well for BTC as a currency. People who use a currency as a currency measure its rises and drops in value by comparing what you can buy with a given amount of the currency in the present versus what you could buy with the same amount of that currency in the past. When people measure something's value in terms of some other currency, as is the universal practice for BTC, that indicates they're thinking of it as a commodity for investment or speculation rather than a currency.

Re: 1 Bitcoin Worth 10 USD

#82

Post by greyerzer »

One problem that I have with Bitcoin is its complete dependence on the strength of its crypto. While breaking it may seem impossible at the moment, advances in computation speed and cryptanalysis may one day lead to it being broken. This would basically make Bitcoins worthless overnight.

Of course traditional currencies can be forged as well, but printing huge amounts of forged bills and bringing them into circulation involves all sorts of logistical challenges that don't apply in a digital world. Moreover, forged bills are typically not absolutely perfect and can be distinguished from genuine money, this is not possible with a purely digital currency. The fact that paper currencies can be forged is incorporated into the design of the system, whereas the Bitcoin system is based on Bitcoin's crypto being unbreakable.

Re: 1 Bitcoin Worth 10 USD

#84

Post by hollerith »

davidklemke wrote: post #52

This 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…

>in the past 2 weeks we've seen its value appreciate by 50%, something that just doesn't happen with traditional currencies

It happens with gold, which could be viewed as a traditional currency.

Re: 1 Bitcoin Worth 10 USD

#85

Post by gwillen »

technotony wrote: post #12

If you look at this data over the max range ( http://bitcoincharts.com/charts/mtgoxUSD#tgSzm1g10zm2g25zv ) then it looks a lot like the Gartner Hype cycle ( http://bit.ly/N1XCnb ). I wonder if Bitcoin is past the trough of disillusionment and ready for a serious explosion?

I'm a strong supporter of bitcoin, and I have a bunch of it, so don't get me wrong. But I suspect we may well be seeing a second big bubble here. Only time will tell.

Re: 1 Bitcoin Worth 10 USD

#86

Post by 32i4jklnflnfljk »

blhack wrote: post #79
sliverstorm wrote: post #76

Earlier 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.

google "SilkRoad Bitcoin Balance"

Re: 1 Bitcoin Worth 10 USD

#87

Post by jimktrains2 »

technotony wrote: post #12

If you look at this data over the max range ( http://bitcoincharts.com/charts/mtgoxUSD#tgSzm1g10zm2g25zv ) then it looks a lot like the Gartner Hype cycle ( http://bit.ly/N1XCnb ). I wonder if Bitcoin is past the trough of disillusionment and ready for a serious explosion?

Why use a url shortner and/or why not link directly to the article or image?

Re: 1 Bitcoin Worth 10 USD

#89

Post by hollerith »

davidklemke wrote: post #52

This 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…

>in the past 2 weeks we've seen its value appreciate by 50%, something that just doesn't happen with traditional currencies

You do not see deflation with fiat currencies because the issuers of the currency print more to counteract deflation. Gold however is prone to extended periods of deflation, and that does not prevent gold being useful as a medium of exchange and as a vehicle for investment or savings. (The reason gold stopped being used as a medium of exchange is that paper money is more convenient, not because of its vulnerability to deflation.)

If your reply to this comment is that Bitcoin cannot be compared to gold because gold has "intrinsic" value whereas Bitcoins are just an artificial construction, you do not understand monetary assets.

True, gold has probably not deflated as rapidly as Bitcoin has over the last 2 weeks. That would be because the fraction of the world's savings invested in gold is much higher than the amount invested in Bitcoins. If a greater percentage of the world's savings come to be held as Bitcoin, Bitcoin's price would probably act more like gold does now.

Re: 1 Bitcoin Worth 10 USD

#90

Post by jimktrains2 »

hollerith wrote: post #84
davidklemke wrote: post #52

This 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…

>in the past 2 weeks we've seen its value appreciate by 50%, something that just doesn't happen with traditional currencies It happens with gold, which could be viewed as a traditional currency.

To be pedantic, and to note I'm not an economist, I thought the value of gold or silver was always constant, it was the currencies based on them that inflate or deflate.
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