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Bitcoin exchange rate reached $100 USD per BTC

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Re: Bitcoin exchange rate reached $100 USD per BTC

#101

Post by dragontamer »

kiba wrote: post #64
dragontamer wrote: post #43

Earlier quoted context omitted.

But that is only one side of the coin. If people are hoarding BTC, then they aren't spending them on goods / services. IE: Deflationary Spiral. It becomes hard to be a merchant who accepts bitcoins, because everyone expects BTC to keep rising in prices. People who bought a domain name for 1 BTC a few weeks ago from Namecheap lost a lot of money. They should have instead "saved" that BTC. Therefore, people are discour…

But that is only one side of the coin. If people are hoarding BTC, then they aren't spending them on goods / services. Sure they are. BitPay reports 2 million dollars in sale this month. The rate of transaction is accelerating too. What you meant is "they will horde more and spend less on goods / services", but sales and transactions are clearly accelerating. How do you account for this?

https://news.ycombinator.com/item?id=5473508

I don't have to. The fact is, no one prices their goods in BTC. Its absolutely ludicrous to price goods in BTC in the current market.

I think BTC has utility as a currency for exchange however. But on that side, you don't want to be in the position of hoarding BTC. You hoard dollars, and then use BTC to transfer dollars between people. Services like Bitpay allow you to keep most of your money in hard cash.

Re: Bitcoin exchange rate reached $100 USD per BTC

#102

Post by nawitus »

acabal wrote: post #88
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?

Yeah but that's what I don't want to do--because that makes Bitcoin just a USD proxy, not a currency and economy of its own. I'm interested in BTC as its own economy, but unfortunately the price instability and tendency of most users to exchange for USD in the end makes it impossible to explore that.

Logically speaking it doesn't make bitcoin a USD proxy, a non-currency or "not-a-economy" as you claimed. Fixing the bitcoin price to another currency is a good solution when the value of 1 bitcoin is changing rapidly, as it would take a lot of work to adjust it daily. Besides, you can fix the price to the average of multiple major currencies (like average of euro, American dollar and the British pound).

Re: Bitcoin exchange rate reached $100 USD per BTC

#103

Post by morroccomole »

betterunix wrote: post #91
jwallaceparker wrote: post #78

Earlier quoted context omitted.

"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.

Money != Currency. Gold and Silver are Money. Bitcoin and USD are currencies. Huge difference.

Re: Bitcoin exchange rate reached $100 USD per BTC

#104

Post by mrb »

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 have said this multiple times in previous discussion threads, but everywhere you look, all indicators show that Bitcoin spending is increasing: https://news.ycombinator.com/item?id=5296889

Re: Bitcoin exchange rate reached $100 USD per BTC

#105

Post by eric_bullington »

nkohari wrote: post #20

Is it possible to sell short, or buy put options? I think bitcoin has potential long-term but this seems like a ridiculous speculation-fueled bubble.

It is incredibly easy to buy and sell Bitcoin options: icbit.se is just one of several reputable derivatives markets that focus on Bitcoin. So yes, if you are completely sure this is a bubble, it's easy money...right?

Re: Bitcoin exchange rate reached $100 USD per BTC

#106

Post by nawitus »

kaonashi wrote: post #92
grovulent wrote: post #42

Earlier quoted context omitted.

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.

I think it's better to think that bitcoin is a currency for some, and a commodity for others.

Re: Bitcoin exchange rate reached $100 USD per BTC

#107

Post by _k »

xhrpost wrote: post #79

Everyone keeps saying that a crash is around the corner and the current price is unsustainable, been hearing it since $40/BTC, maybe earlier. I don't completely disagree, the question I keep pondering though is, if there is a big sustained crash coming, is it from $100 to $30, or $900 to $300?

Been hearing it when it was trading at prices less than $ 1. Not sure what to think. What if it gets hacked ? What if the creator has a backdoor ?

Re: Bitcoin exchange rate reached $100 USD per BTC

#108

Post by rayiner »

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…

Something about Dutch tulips.

Re: Bitcoin exchange rate reached $100 USD per BTC

#109

Post by ef4 »

acabal wrote: post #88
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?

Yeah but that's what I don't want to do--because that makes Bitcoin just a USD proxy, not a currency and economy of its own. I'm interested in BTC as its own economy, but unfortunately the price instability and tendency of most users to exchange for USD in the end makes it impossible to explore that.

Every form of currency suffers this problem in the beginning.

There are really only two ways around it: easy convertibility into another currency that people already understand, or direct use-value of the currency commodity itself.

It's a question of social inertia. It's too early to expect people to think in BTC.

Re: Bitcoin exchange rate reached $100 USD per BTC

#110

Post by Eliezer »

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…

As ever: Bitcoin is a lovely medium of exchange, a horrible medium of account and hence a purely bubbled store of value.
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