Bitcoin exchange rate reached $100 USD per BTC • Hacker News Board

Re: Bitcoin exchange rate reached $100 USD per BTC

#91

Post by betterunix » Mon, Apr 01, 2013, 3:22 PM UTC

jwallaceparker wrote: post #78

spartango wrote: post #28

I worry that as Bitcoin's value rises, people are buying in not to use it as payment for services or goods, but simply as an investment vehicle. In principle, there's nothing wrong with this; currency trading is common and well-explored. The problem is that the value of a currency is supposed to also be somehow related to its utility in acquiring goods and services. When it is rarely used to that effect, people may r…

"The problem is that the value of a currency is supposed to also be somehow related to its utility in acquiring goods and services. When it is rarely used to that effect, people may reconsider their investment in the currency." Gold and silver stand in opposition to this statement. You can't buy groceries with gold or silver coins, but they're a fantastic store of value and time-tested investment. Furthermore, accord…

Gold and silver are not currencies anymore, except in a few highly niche places.

Re: Bitcoin exchange rate reached $100 USD per BTC

#92

Post by kaonashi » Mon, Apr 01, 2013, 3:22 PM UTC

grovulent wrote: post #42

spartango wrote: post #28

I worry that as Bitcoin's value rises, people are buying in not to use it as payment for services or goods, but simply as an investment vehicle. In principle, there's nothing wrong with this; currency trading is common and well-explored. The problem is that the value of a currency is supposed to also be somehow related to its utility in acquiring goods and services. When it is rarely used to that effect, people may r…

I'm not a bitcoin fanboy - but I see this sentiment around a lot and I'm not sure I agree with it. The claim is that the value of a currency is supposed to also be somehow related to its utility in acquiring goods and services. And if this isn't the case - then people will go off it. When was the last time someone acquired a good or service with an ounce of gold? Perhaps we shouldn't consider gold a currency? Well I'…

Gold is a commodity; same with bitcoins. Not that there's anything wrong with that, but it isn't the same thing as a currency. Gold was only ever a currency when it was stamped by the issuing authority.

Re: Bitcoin exchange rate reached $100 USD per BTC

#93

Post by stagas » Mon, Apr 01, 2013, 3:24 PM UTC

acabal wrote: post #72

I added a Bitcoin purchase option to Scribophile to test the waters. But I'm interested in a Bitcoin economy, not a USD cash alternative--the situation where a Bitcoin has its own value, not a value dependent on a different currency. For that reason, I decided to fix the price of an upgrade to 2 BTC, not peg it to the dollar like most other sites do. Unfortunately it seems like that's just not going to work at this p…

What do you expect? It will not stabilize any time soon but the fact that this is happening means there's a new player joining the game and one that needs to be taken pretty damn seriously.

Re: Bitcoin exchange rate reached $100 USD per BTC

#94

Post by nawitus » Mon, Apr 01, 2013, 3:24 PM UTC

knowaveragejoe wrote: post #61

raamdev wrote: post #30

Earlier quoted context omitted.

https://en.bitcoin.it/wiki/Trade#Material_.2F_Physical_Produ...

An impressive list in quantity, but upon closer inspection I don't see any essential goods & services. Under "consumables" there are literally no general groceries, just specialty foods. Under clothing, a bunch of niche items. It's also worth noting that nearly all of these look like to be pretty low-quality vendors.

There's lack of payment options with "essential goods & services", like groceries, but what's your point? Any new currency, especially digital, doesn't start with supermarkets, because supermarkets tend to be owned by large corporations that are not first adopters.

If bitcoin will become a major currency, it will have to have a phase where it cannot be used in general and only with a small number of companies. That's not evidence that bitcoin will not become a major currency, it's evidence that it hasn't yet, and nobody claims it has.

Re: Bitcoin exchange rate reached $100 USD per BTC

#95

Post by astrodust » Mon, Apr 01, 2013, 3:24 PM UTC

mikemoka wrote: post #70

How could the bitcoin exchange rate reverse its trend and start falling? Do you have any scenarios in mind?

A massive chain-split that erodes confidence in the perceived value of the currency.

Gold is a tangible substance. BTCs are just data and we all know how volatile that can be.

Re: Bitcoin exchange rate reached $100 USD per BTC

#96

Post by dan1234 » Mon, Apr 01, 2013, 3:25 PM UTC

balakk wrote: post #80

What would it take for somebody like Amazon or eBay to (even partially) support bitcoins? How much of a risk could it be?

Considering eBay owns PayPal[1], it's unlikely they'd want to promote any competing currency.

[1]http://news.cnet.com/2100-1017-941964.html

Re: Bitcoin exchange rate reached $100 USD per BTC

#97

Post by e1ven » Mon, Apr 01, 2013, 3:25 PM UTC

cadetzero wrote: post #82

hilko wrote: post #77

Earlier quoted context omitted.

wouldn't it be possible to link the BTC price to the going rate at MtGox, so that it always translates to around $35?

Correct, and there are merchant services set up to do exactly this.

I'm curious if you have any experience working with them, and which you'd recommend?

Re: Bitcoin exchange rate reached $100 USD per BTC

#98

Post by wwwtyro » Mon, Apr 01, 2013, 3:25 PM UTC

acabal wrote: post #72

I added a Bitcoin purchase option to Scribophile to test the waters. But I'm interested in a Bitcoin economy, not a USD cash alternative--the situation where a Bitcoin has its own value, not a value dependent on a different currency. For that reason, I decided to fix the price of an upgrade to 2 BTC, not peg it to the dollar like most other sites do. Unfortunately it seems like that's just not going to work at this p…

How about an automatically-adjusted price scheme where the price varies according to the demand? You might even automatically optimize profits this way.

Re: Bitcoin exchange rate reached $100 USD per BTC

#99

Post by nawitus » Mon, Apr 01, 2013, 3:25 PM UTC

acabal wrote: post #72

I added a Bitcoin purchase option to Scribophile to test the waters. But I'm interested in a Bitcoin economy, not a USD cash alternative--the situation where a Bitcoin has its own value, not a value dependent on a different currency. For that reason, I decided to fix the price of an upgrade to 2 BTC, not peg it to the dollar like most other sites do. Unfortunately it seems like that's just not going to work at this p…

You need to adjust the price just like you need to ajust prices for any currency. It's just that the value of 1 bitcoin changes faster than other currencies, as it's now being adopted at a quick rate.

Re: Bitcoin exchange rate reached $100 USD per BTC

#100

Post by betterunix » Mon, Apr 01, 2013, 3:26 PM UTC

GhotiFish wrote: post #83

spartango wrote: post #28

I worry that as Bitcoin's value rises, people are buying in not to use it as payment for services or goods, but simply as an investment vehicle. In principle, there's nothing wrong with this; currency trading is common and well-explored. The problem is that the value of a currency is supposed to also be somehow related to its utility in acquiring goods and services. When it is rarely used to that effect, people may r…

That may be true, but I'd wager most of the people who are buying into bitcoin for its property as a store of value will be shocked to find out bitcoins other very interesting property. The ease and low cost of transferring those bitcoins to anyone, anywhere in the world. "I can BUY things with these? Wait... I can sell things? I just need to paste a hash?!"

Then one day, some highly motivated attacker will come along and discover the other very interesting property: that the work needed to attack Bitcoin scales linearly with the work needed to use Bitcoin. As soon as a successful attack is announced publicly, faith in Bitcoin will be shaken to badly that nobody will ever want to use anything called "digital cash" for a long time.

So the real question you should be asking is, "Who would benefit from a Bitcoin failure, and could they amass that much computing power?"