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Bitcoin’s Price Breaks All-Time High: Here’s Why It Happened

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Re: Bitcoin’s Price Breaks All-Time High: Here’s Why It Happened

#51

Post by ur-whale »

seibelj wrote: post #4

Here is the easiest way I can explain it: Bitcoin is a social phenomena - no government or company backs it. The only reason it has value is if people value it. Bitcoin promoters have convinced people it's a store of value, like gold except digital. As the Cult of Bitcoin spreads, it doesn't take that many new enthusiasts to push the price up, as unlike literally all other commodities on earth, the supply of bitcoin…

> The only reason it has value is if people value it

The only reason anything has value is if people value it.

Re: Bitcoin’s Price Breaks All-Time High: Here’s Why It Happened

#52

Post by mym1990 »

navaati wrote: post #16
mym1990 wrote: post #13

Earlier quoted context omitted.

The only reason anything has value is if people value it...value itself is a social phenomena, and this includes any type of monetary vehicle, whether a government backs it or not. And maybe I have been living in a fantasy world, but your comment about literally all other commodities on earth not being constrained is literally wrong. The study of economics and wealth is rooted in scarcity and the ability or inability…

> The only reason anything has value is if people value it...value itself is a social phenomena That's not totally true, certain things have a more fundamental value in that if you don't get them you die, such as food and shelter. If we were ethereal economic agents living on a free and infinite compute substrate you could say that, in the meantime the Maslow hierarchy makes certains things have intrasical value that…

I'm not going to lie, I have no idea what 'ethereal economic agents living on a free and infinite compute substrate' means. You have bested me this time.

Re: Bitcoin’s Price Breaks All-Time High: Here’s Why It Happened

#53

Post by mariodiana »

alwillis wrote: post #30
mariodiana wrote: post #24

Earlier quoted context omitted.

I would hesitate to call it "money" as well, as apart from its use in place of money, it has no value. Even paper currency is, at bottom, worth the paper it's printed on.

Even paper currency is, at bottom, worth the paper it's printed on. When Zimbabwe printed a $100,000,000,000,000 (one hundred trillion dollar bill) due to hyperinflation, the people used it for fire, because it wasn't useful for anything else. So… no, paper money has been worthless many times.

You should look up "worthless." Even kindling counts as value. Try burning Bitcoin.

Re: Bitcoin’s Price Breaks All-Time High: Here’s Why It Happened

#54

Post by mariodiana »

JoeAltmaier wrote: post #34
mariodiana wrote: post #24

Earlier quoted context omitted.

I would hesitate to call it "money" as well, as apart from its use in place of money, it has no value. Even paper currency is, at bottom, worth the paper it's printed on.

Coins are essentially worthless as well. Ok, they have a 'book value' of the (usually base) metal they're made from. But that's about it. So what has 'true value' then? Gold? It's similar to Bitcoin, in that you have to deposit it and use an exchange.

Gold has value on its own, apart from its function as money.

Re: Bitcoin’s Price Breaks All-Time High: Here’s Why It Happened

#55

Post by alwillis »

rcxdude wrote: post #49
alwillis wrote: post #41

Earlier quoted context omitted.

Good thing about Bitcoin is that it might push for next gen computers (quantum computers etc.) to break it. Bitcoin will switch to a quantum resistant encryption algorithm long before that becomes a threat.

Bitcoin couldn't even change a constant which would allow the system to actually be used for a slightly more reasonable number of transactions. Why do you think it can do a more fundamental change?

Bitcoin couldn't even change a constant which would allow the system to actually be used for a slightly more reasonable number of transactions…

Lightning took care of increasing the number of transactions Bitcoin can handle. Apparently the folks who wanted to keep the block size the same won; the Bitcoin cash is essentially worthless now. Meanwhile, Lightning is doing great: https://bitcoinvisuals.com/lightning

Why do you think it can do a more fundamental change?

Because there's $300+ billion at stake, which could be at risk with quantum computers in the future. It's already being planed for.

Re: Bitcoin’s Price Breaks All-Time High: Here’s Why It Happened

#56

Post by alwillis »

JoeAltmaier wrote: post #36
alwillis wrote: post #35

Earlier quoted context omitted.

If something were to happen to Coinbase or some attack on the network itself it could tank awfully quickly. Coinbase is just an exchange; plenty of them have come and gone since bitcoin has been around. Mt. Gox was much bigger on a percentage basis than Coinbase is now when it went out of business. There are plenty of other exchanges and other ways for people to buy and sell bitcoin [1][2]. Bitcoin is a global networ…

Ha. "went out of business" is code for "had its entire deposits embezzled". It matters not if there are other exchanges, if your bitcoins are on the next exchange to disappear without a trace. That happens enough times, the money folks will give up. Leaving it to hobbyists I suppose

if your bitcoins are on the next exchange to disappear without a trace.

Anyone with a significant amount of Bitcoin self-custodies and uses at least one hardware wallet to store their Bitcoin.

Re: Bitcoin’s Price Breaks All-Time High: Here’s Why It Happened

#57

Post by Lutzb »

davidgerard wrote: post #26
Lutzb wrote: post #25

Earlier quoted context omitted.

Ok, so I've heard that tether printing story over and over. Is there a reputable source for these claims?

Any that isn't in the crypto press. If you want Tether explained, this is the best article I've seen (I wish I'd written it). https://www.kalzumeus.com/2019/10/28/tether-and-bitfinex/ This is a year old; it's only gotten more blatant since then. The NYAG's inquiry has been slowed by COVID, but is grinding on.

Thanks that was very informative.
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