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Bitcoin plummets 32% in two days, threatens mainstream adoption

bloomberg.com

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Re: Bitcoin plummets 32% in two days, threatens mainstream adoption

#11

Post by wodenokoto »

fundament wrote: post #8
Igglyboo wrote: post #7

Earlier quoted context omitted.

Perhaps "intangible" was the wrong word. But domain names, unlike bitcoins, are actually useful for something. Bitcoins are just placeholders for value or wealth, like any other currency. The only reason they are useful is because we say a bitcoin is worth x dollars. We don't have to make an artificial distinction like that for a domain name because it is obvious what it is used for. Even if domain names were free th…

If domain names were free one guy/robot would inevitably take them all. If he couldn't sell them or be paid for the monumentally complicated service of allocating them to the world (they're "free") then in the end nobody would have any domains except him, and everyone would use a different resolution system that wasn't free. The guy's domains would be worthless. If domains were free they would have zero value. Just l…

No, if the price of domain names collapses tomorrow to zero dollars news.ycombinator.com would still point to this website. This is the intrinsic value.

Re: Bitcoin plummets 32% in two days, threatens mainstream adoption

#12

Post by deeviant »

wodenokoto wrote: post #10
deeviant wrote: post #9

Earlier quoted context omitted.

Eh, I can trade a bitcoin for +/- 200$ bucks, currently. That seems like a example of "good for something". I can also transfer currency of any type, via the internet, without interacting with a financial institution(buy bitcoin using your preferred currency, trade bitcoin, the received converts bitcoin into their preferred currency), this capability also seems like it could be "good for something". I feel like the "…

That's not what the intrinsic value argument is about. The "good for something" (as intrinsic value was put here) is the question if something is still useful if its use as a placeholder for value collapses. If the price of rice collapses, I can still eat it. If the price of cars collapses I can still drive mine to work. If the price of web domains collapses, people can still use it to visit my web page. If the price…

US Dollars have no intrinsic value either, this does not stop anybody from using them.

Talking about rice is silly, we are talking about currency. No major economies currencies are based on anything with intrinsic value.

Re: Bitcoin plummets 32% in two days, threatens mainstream adoption

#13

Post by Scoundreller »

I've always thought of it like this: Bitcoin:Cryptocurrency::Yahoo:InternetSearchEngines

Cryptocurrencies have a strong future, but I don't think Bitcoin has much of one. Yahoo had its early glory, but it declined as other search engines solved its problems.

Re: Bitcoin plummets 32% in two days, threatens mainstream adoption

#15

Post by shittyanalogy »

hellbanner wrote: post #14

I don't think cryptocurrencies long term value is in their USD amount. It's in their other features like being able to send money across the world with minimal transaction fees and certianity the transaction will not be interrupted.

If the value of bitcoin is so low that you can't buy enough of them to pay for your purchase without drastically changing the value of the currency then they're not particularly useful as a method of payment.

Re: Bitcoin plummets 32% in two days, threatens mainstream adoption

#16

Post by shittyanalogy »

Scoundreller wrote: post #13

I've always thought of it like this: Bitcoin:Cryptocurrency::Yahoo:InternetSearchEngines Cryptocurrencies have a strong future, but I don't think Bitcoin has much of one. Yahoo had its early glory, but it declined as other search engines solved its problems.

Yahoo is doing just fine

Re: Bitcoin plummets 32% in two days, threatens mainstream adoption

#17

Post by Igglyboo »

deeviant wrote: post #12
wodenokoto wrote: post #10

Earlier quoted context omitted.

That's not what the intrinsic value argument is about. The "good for something" (as intrinsic value was put here) is the question if something is still useful if its use as a placeholder for value collapses. If the price of rice collapses, I can still eat it. If the price of cars collapses I can still drive mine to work. If the price of web domains collapses, people can still use it to visit my web page. If the price…

US Dollars have no intrinsic value either, this does not stop anybody from using them. Talking about rice is silly, we are talking about currency. No major economies currencies are based on anything with intrinsic value.

Technically they do because the paper and metal cost money. Other than that, they are actually backed by something.

Re: Bitcoin plummets 32% in two days, threatens mainstream adoption

#18

Post by deeviant »

Igglyboo wrote: post #17
deeviant wrote: post #12

Earlier quoted context omitted.

US Dollars have no intrinsic value either, this does not stop anybody from using them. Talking about rice is silly, we are talking about currency. No major economies currencies are based on anything with intrinsic value.

Technically they do because the paper and metal cost money. Other than that, they are actually backed by something.

Backed by what? Faith? Confidence? You can't trade your US dollar in for gold. The note literally just says, "You must accept this for any debt(Because)".

Are we really going to go down to that intrinsic value of the paper it's printed on??? To be honest, I actually have little faith in bitcoin myself, but I can at least see the reason why it has taken off as far as it has, and it did earn me a pretty penny when I got out(I mined all my own bitcoins and just to experiment with a new technology, right from the beginning).

I just get tired of hearing extremophile arguments this way or that.

Re: Bitcoin plummets 32% in two days, threatens mainstream adoption

#19

Post by wodenokoto »

deeviant wrote: post #12
wodenokoto wrote: post #10

Earlier quoted context omitted.

That's not what the intrinsic value argument is about. The "good for something" (as intrinsic value was put here) is the question if something is still useful if its use as a placeholder for value collapses. If the price of rice collapses, I can still eat it. If the price of cars collapses I can still drive mine to work. If the price of web domains collapses, people can still use it to visit my web page. If the price…

US Dollars have no intrinsic value either, this does not stop anybody from using them. Talking about rice is silly, we are talking about currency. No major economies currencies are based on anything with intrinsic value.

You have to pay taxes in US dollars if you are an American citizen. So the intrinsic value is not getting thrown into jail. But you are right, we mostly use USD because we trust that we can always find someone who will want it.

All major fiat currencies have an army/police force backing them up. Not that long ago all major currencies were backed by gold or silver. Fiat is a very small, recent part of the history of currencies.

Talking about rice makes perfect sense in explaining intrinsic value.

If we look at major currencies that are not upheld by force we have gold and silver which have been staple currencies with intrinsic values throughout probably most of civilized history.

Other societies uses cigarettes (jails) as currency, because even non-smokers know they can easily find someone to trade with, so cigarettes become a storage of value that is not upheld by any violent force.

Re: Bitcoin plummets 32% in two days, threatens mainstream adoption

#20

Post by fundament »

wodenokoto wrote: post #11
fundament wrote: post #8

Earlier quoted context omitted.

If domain names were free one guy/robot would inevitably take them all. If he couldn't sell them or be paid for the monumentally complicated service of allocating them to the world (they're "free") then in the end nobody would have any domains except him, and everyone would use a different resolution system that wasn't free. The guy's domains would be worthless. If domains were free they would have zero value. Just l…

No, if the price of domain names collapses tomorrow to zero dollars news.ycombinator.com would still point to this website. This is the intrinsic value.

This intrinsic value isn't so intrinsic when every DNS registrar stops providing DNS services because they are unable to make money doing so.

Fat lot of good it would do for n.yc.com to "point" here if there are no more authorities to do the pointing, and everyone has moved to a different system.

There is absolutely no "intrinsic" value in a domain, other than that provided by the economic structures around it.

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