Bitcoin Value Sinks After Chinese Exchange Move • Hacker News Board

Re: Bitcoin Value Sinks After Chinese Exchange Move

#111

Post by BrokenPipe » Thu, Dec 19, 2013, 1:47 PM UTC

ohashi wrote: post #77

BrokenPipe wrote: post #57

Earlier quoted context omitted.

Today I've seen it back at 530 and now at 520. Who knows, I wouldn't be surprised if by EOB we're back above 600. As parent said, with Bitcoin you have to look at things in a different way since it works in a very different way than anything else we've ever seen.

But does it really? It looks like rampant speculation to me. I've seen that many times in markets.

Have you seen before a functioning globally distributed ledger system being speculated on in the markets ?

Re: Bitcoin Value Sinks After Chinese Exchange Move

#112

Post by josu » Thu, Dec 19, 2013, 2:03 PM UTC

JumpCrisscross wrote: post #53

josu wrote: post #46

Earlier quoted context omitted.

>It has built-in deflation, which makes it a great long-term store of value Besides, so far, Bitcoin has been highly inflationary. In a bit more than a year, the number of bitcoins in circulation has doubled. https://blockchain.info/charts/total-bitcoins?timespan=all&s...

> Bitcoin has been highly inflationary Inflation and deflation are not solely functions of the supply of money. They are functions of the price of money, which is a function of both supply and demand. The price of goods, which have been reasonably stable in U.S. dollar terms, have fallen in terms of Bitcoin. Thus Bitcoin is presently deflationary, not inflationary.

You are completely right. I hope I haven't mislead anybody with my comment.

Re: Bitcoin Value Sinks After Chinese Exchange Move

#113

Post by twelvechairs » Thu, Dec 19, 2013, 8:58 PM UTC

prodigal_erik wrote: post #107

twelvechairs wrote: post #17

Earlier quoted context omitted.

investment and speculation are two sides of the same coin (pardon the pun). all investment has risk. bitcoin speculation is a high risk investment. this may not be good for everyone but its an investment nonetheless.

Speculation is not investment. The difference is that investments pay dividends, and buy and hold is a viable strategy. A speculator is relying on appreciation to make flipping the asset pay off, and is screwed if they eventually need a greater fool and can't find one.

invest. "1. To commit (money or capital) in order to gain a financial return". nothing about dividends or buy and hold here. your definition seems very narrow by comparison.

Re: Bitcoin Value Sinks After Chinese Exchange Move

#114

Post by ohashi » Fri, Dec 20, 2013, 4:48 AM UTC

BrokenPipe wrote: post #111

ohashi wrote: post #77

Earlier quoted context omitted.

But does it really? It looks like rampant speculation to me. I've seen that many times in markets.

Have you seen before a functioning globally distributed ledger system being speculated on in the markets ?

Have you seen a is generally a poor argument. But one speculators cling to and try to convince others of adamantly.

Re: Bitcoin Value Sinks After Chinese Exchange Move

#115

Post by celticninja » Fri, Dec 20, 2013, 9:49 AM UTC

achughes wrote: post #79

celticninja wrote: post #45

Earlier quoted context omitted.

i love how you are telling him it was a dumb idea, when you have no idea if he sold enough at $1100 to cover his student loan, or that right now he is still in a position where he has doubled his money in a matter of months regardless of this crash. Too many people offering investment advice in hindsight round here.

Just because it worked out well in the end doesn't mean it was a good idea to begin with

It means it was a worthwhile risk that paid off.

Re: Bitcoin Value Sinks After Chinese Exchange Move

#116

Post by prodigal_erik » Sun, Dec 22, 2013, 12:45 AM UTC

twelvechairs wrote: post #113

prodigal_erik wrote: post #107

Earlier quoted context omitted.

Speculation is not investment. The difference is that investments pay dividends, and buy and hold is a viable strategy. A speculator is relying on appreciation to make flipping the asset pay off, and is screwed if they eventually need a greater fool and can't find one.

invest. "1. To commit (money or capital) in order to gain a financial return". nothing about dividends or buy and hold here. your definition seems very narrow by comparison.

I wouldn't take a definition seriously that failed to exclude lottery tickets.

Ever since Rich Dad, Poor Dad I've been careful to distinguish assets that bring income, and other forms of property and equity whose price is purely an illusion supported by speculators' predictions about other speculators' whims.