Bitcoin Now Worth $1B • Hacker News Board

Re: Bitcoin Now Worth $1B

#41

Post by knowaveragejoe » Thu, Mar 28, 2013, 4:27 PM UTC

guard-of-terra wrote: post #26

nlh wrote: post #6

Holy cow. It was worth $60 last time I checked (last time a story was discussed on HN). I'm not one usually to play Chicken Little, but doesn't a 50% rise in a matter of a week or two seem a bit unsettling? Unless adoption has risen similarly, which I doubt -- it's not like Amazon just announced they'll be accepting BTC. Enjoy the run, speculators. But don't get greedy -- remember the tulips...

If bitcoin price is to crash, I'll be the first one buying. Which probably means that the price is not speculative. Speculative like "I hoard" but not like "Ponzi".

That's exactly why I don't foresee an immense crash unless several large holders cash out all at once. There's no doubt tons of people chomping at the bit for the price to drop any significant amount.

Re: Bitcoin Now Worth $1B

#42

Post by tatsuke95 » Thu, Mar 28, 2013, 4:27 PM UTC

oleganza wrote: post #22

niggler wrote: post #11

Earlier quoted context omitted.

its all fun and games until people really start cashing out.

Or until people realise that many around them already have BTC or ready to accept it as payment. Then who needs dollars?

I think you seriously underestimate the demand and use of dollars.

Re: Bitcoin Now Worth $1B

#43

Post by [deleted] » Thu, Mar 28, 2013, 4:27 PM UTC

oleganza wrote: post #22

niggler wrote: post #11

Earlier quoted context omitted.

its all fun and games until people really start cashing out.

Or until people realise that many around them already have BTC or ready to accept it as payment. Then who needs dollars?

[deleted]

Re: Bitcoin Now Worth $1B

#44

Post by niggler » Thu, Mar 28, 2013, 4:27 PM UTC

knowaveragejoe wrote: post #33

celticninja wrote: post #16

Earlier quoted context omitted.

Cyprus just announced they would be taxing peoples bank accounts, the EU said that was a fair resolution for the banking crisis and other nations (greece, ireland, spain and italy) could see similar action to cope with the bank problems. Adoption as a currency has been ocurring for a while, reddit, mega, bitmit etc, adoption for investment has been ongoing, adoption out of fear of state controlled banks is another vi…

Maybe this is a misinformed question, but isn't the reason anyone is adopting it at all due to the fact they can later convert it back into actual currency?

"they can later convert it back into actual currency?"

Or final goods. Silk Road gives a final good endpoint for BTC

Re: Bitcoin Now Worth $1B

#45

Post by oleganza » Thu, Mar 28, 2013, 4:28 PM UTC

tatsuke95 wrote: post #28

jamespitts wrote: post #21

By design, the supply of new bitcoins is slowing down. If there continues to be utility for people to use bitcoins, and this usage is increasing, the value of an individual bitcoin vs. other currencies will increase (averaging out speculative action). This pattern will very likely continue until an alternative is found. Perhaps the alternative will simply be for holders to return to national currencies, perhaps it wi…

Increasing value of currency promotes hoarding, when in fact, bit coin should be promoting spending. If everyone's intention is to buy and hold bit coins,they are useless as currency and become a speculative asset.

When everyone has hoarded some bitcoins they can trade them for goods any time they run out of fiat cash or fiat cash is stolen/diluted/frozen, or some arbitrary controls are imposed (e.g. sending money to another country is not easy or cheap). The instant mobility is the true value of "hoarded" bitcoins.

Re: Bitcoin Now Worth $1B

#46

Post by mootothemax » Thu, Mar 28, 2013, 4:28 PM UTC

guard-of-terra wrote: post #26

nlh wrote: post #6

Holy cow. It was worth $60 last time I checked (last time a story was discussed on HN). I'm not one usually to play Chicken Little, but doesn't a 50% rise in a matter of a week or two seem a bit unsettling? Unless adoption has risen similarly, which I doubt -- it's not like Amazon just announced they'll be accepting BTC. Enjoy the run, speculators. But don't get greedy -- remember the tulips...

If bitcoin price is to crash, I'll be the first one buying. Which probably means that the price is not speculative. Speculative like "I hoard" but not like "Ponzi".

If bitcoin price is to crash, I'll be the first one buying.

I get the impression plenty of people might buy if the price dropped to $35 or $30.

My question is: would you then sell if the price dropped a further $5 or $10?

Re: Bitcoin Now Worth $1B

#47

Post by nym » Thu, Mar 28, 2013, 4:29 PM UTC

knowaveragejoe wrote: post #33

celticninja wrote: post #16

Earlier quoted context omitted.

Cyprus just announced they would be taxing peoples bank accounts, the EU said that was a fair resolution for the banking crisis and other nations (greece, ireland, spain and italy) could see similar action to cope with the bank problems. Adoption as a currency has been ocurring for a while, reddit, mega, bitmit etc, adoption for investment has been ongoing, adoption out of fear of state controlled banks is another vi…

Maybe this is a misinformed question, but isn't the reason anyone is adopting it at all due to the fact they can later convert it back into actual currency?

I believe the reasons are that it's A) decentralized B) portable C) easy for businesses to adopt

The liquidity part of it is a big factor, but we've had pretty good liquidity for a while if you're willing to do a bank wire or trade with someone in person.

Re: Bitcoin Now Worth $1B

#48

Post by mbreedlove » Thu, Mar 28, 2013, 4:30 PM UTC

undershirt wrote: post #20

That's a lot of money. What is this $1 billion being used for? Is this money just circulating for the sake of making more money, or is it being used to buy goods and services?

More and more places are beginning to accept Bitcoins. I frequent r/bitcoin on Reddit and there are posts, daily, about businesses that are starting to accept Bitcoin. Many online VPN services are accepting bitcoin to add another factor of anononimity. bitcoinstore.com is growing as well, they sell a wide variety of electronics.

Re: Bitcoin Now Worth $1B

#49

Post by knowaveragejoe » Thu, Mar 28, 2013, 4:37 PM UTC

whackedspinach wrote: post #9

porter wrote: post #5

This will be a fun ride until governments ban it.

That worked out so well when they banned copyright infringement.

That's completely different though. Banning the conversion of btc into real currency would be a huge problem for btc, who is going to accept btc in exchange for a product or service performed if they can't turn that btc into money to exchange with other individuals/companies? There needs to be a much wider acceptance of bitcoins by companies providing services/products over a longer period of time before banning the conversion(at least legitimate conversion) would no longer phase bitcoin.

Re: Bitcoin Now Worth $1B

#50

Post by jiggy2011 » Thu, Mar 28, 2013, 4:37 PM UTC

knowaveragejoe wrote: post #33

celticninja wrote: post #16

Earlier quoted context omitted.

Cyprus just announced they would be taxing peoples bank accounts, the EU said that was a fair resolution for the banking crisis and other nations (greece, ireland, spain and italy) could see similar action to cope with the bank problems. Adoption as a currency has been ocurring for a while, reddit, mega, bitmit etc, adoption for investment has been ongoing, adoption out of fear of state controlled banks is another vi…

Maybe this is a misinformed question, but isn't the reason anyone is adopting it at all due to the fact they can later convert it back into actual currency?

That is likely why they are buying it.

But if you are business who takes money over the internet and is sick of the banking BS and you notice that there are a lot of people out there holding these strange coins which seem to have a rising value..