Bitcoin heading towards $200, new bubble forming

Choronzon wrote: post #4

kken wrote: post #2

What is the reason? Can't find any news.

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 deflationary?

- Number of people is growing, same amount of money for the people, no new money is printed => deflationary?

vs.

- Number of people is shrinking, same amount of money for the people, no new money is printed => inflationary?

Re: Bitcoin heading towards $200, new bubble forming

#8

Post by bayesianhorse » Sat, Oct 19, 2013, 11:28 AM UTC

peteretep wrote: post #5

Why does this imply a bubble?

Because nowadays any exponential growth is called a "bubble in forming". And because all stochastic exponential process eventually crash, or "underperform", it sounds really smart to "predict" a crash months or years in advance. Especially when using non-logarithmic axes, the predictions and the crash look really impressive.

You don't, however, often see these prophets of doom profiting from their predictions, because the exact timing of crashes isn't that easy at all.

Re: Bitcoin heading towards $200, new bubble forming

#9

Post by netrikare » Sat, Oct 19, 2013, 11:32 AM UTC

peteretep wrote: post #5

Why 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.

Re: Bitcoin heading towards $200, new bubble forming

#10

Post by Semaphor » Sat, Oct 19, 2013, 11:34 AM UTC

LinaLauneBaer wrote: post #7

Choronzon wrote: post #4

Earlier 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…

But it can be regulated by the government. And if they behave responsibly that's a big feature BC doesn't have.