Why does this imply a bubble?
It doesn't.
Bitcoin heading towards $200, new bubble forming
11–20 of 114 posts
Re: Bitcoin heading towards $200, new bubble forming
#12Why does this imply a bubble?
Well, price has risen not because of businesses across the world adopting the currency but because of only Baidu saying they will accept Bitcoin. That does not justify 50% rise at all.
How do you know that that's why it's risen? Why does that not justify a 50% rise? Why does that imply the price will suddenly crash? Is this idle chat, or have you attempted to significantly short bitcoin somehow to take advantage of the financial gain from your certainty?
Re: Bitcoin heading towards $200, new bubble forming
#13Why does this imply a bubble?
It was a bubble at $100 apparently. So this must be a double bubble :)
Re: Bitcoin heading towards $200, new bubble forming
#14I'm still hesitant to sell my (smaller) stash. The probability that bitcoin will explode is fairly low, but trading a small but real possibility of becoming a millionaire against a few thousand dollars is a difficult decision :)
Re: Bitcoin heading towards $200, new bubble forming
#15What is the reason? Can't find any news.
Its inherently deflationary anyway (which is a terrible idea for a currency).
I wonder if someone could build a new digital currency that starts let's say at 1 trillion units, and is expanded by 2 percent per year (that 2 percent being split so a slight increase happens every day, so it doesn't happen all at once, but after a year, the increase rounds up to 2 percent).
The problem would be seeding it and distributing it early on. But it could still be mined much like Bitcoin, with the difference being that the total amount will never be limited. Also, it should be easier to mine them, since the (non-finite) total (1 trillion) would be a lot larger than the 21 limit for Bitcoins. Someone should also do the math for this new currency's adoption rate, so all of the 1 trillion units (adjusted with the 2 percent inflation rate) get distributed in 3-5 decades.
Basically we don't want a few thousand people to get that whole trillion within 10 years. I'd also prefer if anonymity would be built it (look to Zerocoin for that). Perhaps it shouldn't be anonymous by default, but you should be able to "switch it on"). It should also be as easy to use and as secure as possible (the clients), so normal people can use it safely on all of their devices.
Re: Bitcoin heading towards $200, new bubble forming
#16Re: Bitcoin heading towards $200, new bubble forming
#17Earlier quoted context omitted.
Its inherently deflationary anyway (which is a terrible idea for a currency).
I know too little about currencies but to me it looks like that our "real currencies" are inherently deflationary as well... At least this is how it is supposed to work - right? I mean what if governments weren't printing new money all the time? Then there would also be a limited amount of money available in a big pool... Wouldn't it depend on the growth rate of country to determine weather or not a currency is defla…
Printing money is basically intrinsic to our "real currencies" so if you remove that you have something quantitively different,effectively a new type of currency.
Technically currency is a medium of exchange and can be linked to anything,industrial production,gold,number of cows,someones else's currency etc ,so whether it is inflationary or deflationary depends on its social framework and design.
Now what is a deflationary currency inherently bad?Say I am Mr Big with my 2 million bitcoins, I can invest in your new business with a variable prospect of success or I can sit on my arse and watch the value of my money go up due to deflation,which am I more likely to do? How do you deal with exiting debits in a deflationary spiral? In deflationary systems money does not circulate and that is the death knell of commerce. But bitcoin is circulating! Well yes,but its value is due to it being traded for speculation and extralegal activities (a lot of which Im actually sympathetic to) ,not as an actual replacement currency.
Re: Bitcoin heading towards $200, new bubble forming
#18I'm still hesitant to sell my (smaller) stash. The probability that bitcoin will explode is fairly low, but trading a small but real possibility of becoming a millionaire against a few thousand dollars is a difficult decision :)
So take a decision now about when you'll sell, write it down, and stick to it. Mine has a 5 year timeline, or a specific value (a few orders of magnitude more than today) at which I'll sell.
Re: Bitcoin heading towards $200, new bubble forming
#19Earlier quoted context omitted.
Its inherently deflationary anyway (which is a terrible idea for a currency).
I know too little about currencies but to me it looks like that our "real currencies" are inherently deflationary as well... At least this is how it is supposed to work - right? I mean what if governments weren't printing new money all the time? Then there would also be a limited amount of money available in a big pool... Wouldn't it depend on the growth rate of country to determine weather or not a currency is defla…
True, but there are things that governments can do to influence how infationary/deflationary their currency is. Bitcoin by design cannot be influenced in this way. Once the production of new bitcoins end (which is guaranteed by its algorithm), then it is highly likely there will be deflation, possibly a deflationary spiral.
Re: Bitcoin heading towards $200, new bubble forming
#20I'm going to sell when I can retire on it. Which won't be for a couple orders of magnitude yet. Some of us are holding for the longest time...
I apply this same logic to my startup attempts. If anyone offers me enough to retire, I'll sell with no doubts.