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Bitcoin reaches an all-time trading high of over $33

arstechnica.com

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Re: Bitcoin reaches an all-time trading high of over $33

#51

Post by trotsky »

fourstar wrote: post #23

Can someone tell me if I should invest in this right now or not or did I miss the boat and I should just move on?

the word you meant to use is speculate, not invest.

and no, you shouldn't. there is a set of people who hold piles of bitcoins obtained when mining activity was minuscule or because they run pools, exchanges or such. The bitcoin spot price is almost entirely determined by how much this group is selling, and the general amount of demand from speculators.

While they've learned a lot about effective market control since the last time they got it up to 30 and then crashed it to 5 in an almost instant panic caused by one big seller and everyone else's fear of being left behind, it's still a fragile process.

In the end, even though BTC stands a fair chance of continuing to rise from here, you stand a strong chance of not timing the peak and holding into a big crash. Timing a speculative market you know little about, has no fundamental value floor and that's primarily driven by a small number of players is probably not the best way to try to make money.

Re: Bitcoin reaches an all-time trading high of over $33

#52

Post by kiba »

glesica wrote: post #30
downandout wrote: post #19

The fact that Bitcoin has flourished despite numerous high profile incidents of theft and fraud, the relative difficulty associated with buying and selling them, and the rather unsavory nature of many of its most popular uses today, is a testament to its long-term viability as a currency. The Bitcoin ecosystem has a long way to go before it is considered mainstream, but I believe its long-term success is almost inevi…

It says to me that there is a large amount of speculation. As a currency, Bitcoin is basically useless except for illicit transactions (which are usually pretty inefficient anyway). Would you use dollars if the value of a dollar could change by hundreds of percentage points in a few months? No one would.

According to an unscientific bitcoin community survey, only 9% used bitcoin to purchase narcotics. 53% of uses were for donation.

Re: Bitcoin reaches an all-time trading high of over $33

#53

Post by mich41 »

dhughes wrote: post #16
jasonkolb wrote: post #6

This sucks. I was just about to pick up a bunch last week at $29. Unfortunately it's not very straightforward to obtain.

What sucks is not knowing where your wallet is. I have .9 of a bitcoin somewhere transferred between a Linux PC and three different phones over two or three years. I have about $28 US somewhere.

How bitcoin is worse than cash in this regard?

Re: Bitcoin reaches an all-time trading high of over $33

#54

Post by shredfvz »

trotsky wrote: post #51
fourstar wrote: post #23

Can someone tell me if I should invest in this right now or not or did I miss the boat and I should just move on?

the word you meant to use is speculate, not invest. and no, you shouldn't. there is a set of people who hold piles of bitcoins obtained when mining activity was minuscule or because they run pools, exchanges or such. The bitcoin spot price is almost entirely determined by how much this group is selling, and the general amount of demand from speculators. While they've learned a lot about effective market control since…

Surely the BTC price couldn't have anything to do with factors external to the market participants themselves ... ?

Whenever the BTC price moves up or down, do you honestly believe "It's those blasted early adopters, at it again I tell you"

You also appear to assume, incorrectly, that early adopters are just itching to exchange out into fiat currencies, as if their eyes are glued to their computer monitors, just waiting for their lucky day to "cash out BIG" ... into fiat currency. Hmmmm

This goes without saying. As with PM investors, many Bitcoin holders see real issues with fiat currency, specifically that banks are a terrible place to put your life savings.

Re: Bitcoin reaches an all-time trading high of over $33

#55

Post by turtlepower »

kiba wrote: post #52
glesica wrote: post #30

Earlier quoted context omitted.

It says to me that there is a large amount of speculation. As a currency, Bitcoin is basically useless except for illicit transactions (which are usually pretty inefficient anyway). Would you use dollars if the value of a dollar could change by hundreds of percentage points in a few months? No one would.

According to an unscientific bitcoin community survey, only 9% used bitcoin to purchase narcotics. 53% of uses were for donation.

And yet 99% of bitcoins in circulation have traces of cocaine on them.

Re: Bitcoin reaches an all-time trading high of over $33

#56

Post by mtgx »

glesica wrote: post #42
eof wrote: post #38

Earlier quoted context omitted.

Well your logic is obviously flawed, because people do use bitcoins for transactions and they have changed by hundreds of percentage points. "No one" is patently false. Besides, illicit transactions are still transactions. And.. you are just plain wrong. Bitcoin is also useful for buying many completely legal things. Including a VPN that can't be linked to your identity. (Illicit you say? What about a journalist in a…

Illicit plus grey market and a few special cases. Fine, you win the Pedant's Prize for nitpicking. The point is that they don't make a good general-purpose currency. Just because they're awesome for buying drugs and secret VPNs doesn't mean very much in the grand scheme of things (most transactions, at least in the developed world, do not take place in the grey market). Also, just because some people do something doe…

What makes you think it won't become the defacto digital currency in the future, and thus a "general-purpose currency"?

You may say that's just a baseless speculation, but not any less than yours.

Re: Bitcoin reaches an all-time trading high of over $33

#57

Post by kybernetikos »

glesica wrote: post #30
downandout wrote: post #19

The fact that Bitcoin has flourished despite numerous high profile incidents of theft and fraud, the relative difficulty associated with buying and selling them, and the rather unsavory nature of many of its most popular uses today, is a testament to its long-term viability as a currency. The Bitcoin ecosystem has a long way to go before it is considered mainstream, but I believe its long-term success is almost inevi…

It says to me that there is a large amount of speculation. As a currency, Bitcoin is basically useless except for illicit transactions (which are usually pretty inefficient anyway). Would you use dollars if the value of a dollar could change by hundreds of percentage points in a few months? No one would.

Actually, with modern software bitcoins are among the easiest way to transfer money between people. I load up my phone app, point it at the relevant QR code and the money is transferred securely and quickly, usually with no transaction costs. If I want to receive money, I can just give the person my QR code (or show them on the screen of my phone) and they can give me money just as easily.

I have been wishing for my bank to give me this kind of service for a long time, but still no sign of it happening.

Re: Bitcoin reaches an all-time trading high of over $33

#58

Post by Devilboy »

mich41 wrote: post #53
dhughes wrote: post #16

Earlier quoted context omitted.

What sucks is not knowing where your wallet is. I have .9 of a bitcoin somewhere transferred between a Linux PC and three different phones over two or three years. I have about $28 US somewhere.

How bitcoin is worse than cash in this regard?

I can search my apartment and find the cash fairly reliably :)

Re: Bitcoin reaches an all-time trading high of over $33

#59

Post by kybernetikos »

mtgx wrote: post #56
glesica wrote: post #42

Earlier quoted context omitted.

Illicit plus grey market and a few special cases. Fine, you win the Pedant's Prize for nitpicking. The point is that they don't make a good general-purpose currency. Just because they're awesome for buying drugs and secret VPNs doesn't mean very much in the grand scheme of things (most transactions, at least in the developed world, do not take place in the grey market). Also, just because some people do something doe…

What makes you think it won't become the defacto digital currency in the future, and thus a "general-purpose currency"? You may say that's just a baseless speculation, but not any less than yours.

Bitcoin would make a horrible official currency for a country (inability to control the money supply, enforced deflation which discourages investment, easy for capital to flee). However, as a 'second currency' it has a lot going for it, security, fast, cheap, easy transfers between people across the world. I could see it becoming the worlds international 'second' currency.

Re: Bitcoin reaches an all-time trading high of over $33

#60

Post by yaix »

downandout wrote: post #19

The fact that Bitcoin has flourished despite numerous high profile incidents of theft and fraud, the relative difficulty associated with buying and selling them, and the rather unsavory nature of many of its most popular uses today, is a testament to its long-term viability as a currency. The Bitcoin ecosystem has a long way to go before it is considered mainstream, but I believe its long-term success is almost inevi…

> is a testament to its long-term viability as a currency.

Until governments notice they are losing control and outlaw it.

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