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In theory, would inflation be impossible with bitcoin provided that the number of humans who are willing to exchange labour for coins always increase?
I expect a correction soon, as It happened last year. I wouldnt invest now any dollar.
I would expect the same, but I'm not in any way an economist so I'll wait and see. I also think that after the correction the price will rise again anyway.
I don't know enough about economics to judge, but is this growth sustainable and how high can it go?
All else being equal, the more people who use Bitcoin (whether as a store of value or medium of exchange), the greater the demand for it -- and therefore the higher its price, because the supply is fixed asymptotically at 21 million bitcoins. In the long run, Bitcoin's price will be positively correlated with adoption.[1] -- [1] My thoughts on this haven't changed over the past two years: http://cs702.wordpress.com/2…
I don't know enough about economics to judge, but is this growth sustainable and how high can it go?
In theory it can go 2-4 orders of magnitude higher. The value of all bitcoin now is about the value of a dozen tons of gold, or about 1% of the gold backing SPDR. Bitcoin is still minor-league, but it's knocking on the door of being significant. It will be interesting to see if any major governments freak out about bitcoin, or if any governments embrace it for, say, selling oil.
Whether or not bitcoins are currently in a commodity bubble or not is speculation, but bitcoins are no more a currency than Iron, Gold or Tulips are.
In theory commodities can go to very high heights indeed.
But how will the Federal Reserve be able to allocate new blocks of bit coins to give to one of the 12 federal reserve banks so we can fund more trillion dollar packages of spending borrowed money if all they can do is try to acquire bitcoins from other people who have them? In theory, would inflation be impossible with bitcoin provided that the number of humans who are willing to exchange labour for coins always incr…
I sold at $22 thinking the bubble was going to burst soon. Damnit. There's an understanding that a few big players have a lot of the total amount of bitcoins in circulation. This price must be extremely tempting for them to sell at. That could cause a crash like last time. I would be careful of buying at the current price.
There's also a lot of early bitcoin that has been lost entirely, which probably skews the market a little bit.
All else being equal, the more people who use Bitcoin (whether as a store of value or medium of exchange), the greater the demand for it -- and therefore the higher its price, because the supply is fixed asymptotically at 21 million bitcoins. In the long run, Bitcoin's price will be positively correlated with adoption.[1] -- [1] My thoughts on this haven't changed over the past two years: http://cs702.wordpress.com/2…
People will want to have it as an asset, not as a usable currency. Appreciating currencies are disastrous for any economy stuck with them, which is why we're no longer on the gold standard.
http://2012patriot.files.wordpress.com/2011/06/executive_ord...
I sold at $22 thinking the bubble was going to burst soon. Damnit. There's an understanding that a few big players have a lot of the total amount of bitcoins in circulation. This price must be extremely tempting for them to sell at. That could cause a crash like last time. I would be careful of buying at the current price.
Me at $24 by accident (stupid misclick on Mt. Gox, and didn't think paying the trade fee again would be worth it). Wanted to wait till $27, then the socks I bought would have been free. Free, as in, I earned them back. I do wonder from whom I stole though; these socks cost labor but I did pay the laborer. Then the price rose and I got an equal amount of euros back as I put in. Who did I steal from, the Bitcoin commun…
Earlier quoted context omitted.
There's also a lot of early bitcoin that has been lost entirely, which probably skews the market a little bit.
I feel like I should go on my old laptop and dig up my ~0.5 bitcoins. I wonder just how many bitcoins have been permanently lost already.
