Coinbase Is Now Selling Over $1M USD Of Bitcoin Per Month

Post by pixie_ » Fri, Feb 08, 2013, 6:27 PM UTC

jswinghammer wrote: post #28

Jd wrote: post #22

Earlier quoted context omitted.

The problem with all fiat currencies is they have no inherent value; it is all in the eye of the beholder. So what is an "appropriate" price is quite difficult to determine. Most currencies are driven by being effective monopolies wherever they are issued, so the market price remains somewhat stable. Even so, many professional economists have opined that the exchange rates even between major currencies are way too vo…

Well Bitcoin is not a fiat currency since it being defined as money is not dictated by fiat. It isn't attached to a physical good which is interesting. I'm guessing that its' value is being helped by the increasing amount of inflation in fiat currencies around the world and that the newly created money doesn't have a better home. Many people are scared of stocks and real estate so other assets become more attractive.…

Post by tocomment » Fri, Feb 08, 2013, 6:31 PM UTC

nbashaw wrote: post #40

tocomment wrote: post #35

So I just bought 2 bitcoins on Coinbase (my first purchase congrats to me!) but it's been pending for 5 days and says it will clear today. My question, is how can they lock in the price 5 days ago for me. Are they selling me the coins 5 days ago and buying it on the market today? It seems like there would be a lot of risk in doing that.

They buy your bitcoins immediately with their own funds, then when your money clears 5 days later they get reimbursed by you.

Post by Retric » Fri, Feb 08, 2013, 6:34 PM UTC

Jd wrote: post #22

unix-dude wrote: post #18

I think bitcoin is an extremely interesting concept, and the economics around it are equally interesting. I bought a tiny amount when the prices were around the $11 mark, and its insane to think of the price-shift. I made a couple bucks off the price shift, but now I'm honestly thinking that the price will fall back down. Despite serving the needs of many SR/SatoshiDice people, I dont think they're quite at the point…

The problem with all fiat currencies is they have no inherent value; it is all in the eye of the beholder. So what is an "appropriate" price is quite difficult to determine. Most currencies are driven by being effective monopolies wherever they are issued, so the market price remains somewhat stable. Even so, many professional economists have opined that the exchange rates even between major currencies are way too vo…

Post by tcgv » Fri, Feb 08, 2013, 6:42 PM UTC

cj wrote: post #26

I'm curious about the wording. Is "bought or sold $1M" equivalent to saying $500k changed hands?

Post by eitland » Fri, Feb 08, 2013, 6:51 PM UTC

unix-dude wrote: post #18

I think bitcoin is an extremely interesting concept, and the economics around it are equally interesting. I bought a tiny amount when the prices were around the $11 mark, and its insane to think of the price-shift. I made a couple bucks off the price shift, but now I'm honestly thinking that the price will fall back down. Despite serving the needs of many SR/SatoshiDice people, I dont think they're quite at the point…