71–80 of 83 posts
Earlier quoted context omitted.
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?
Earlier quoted context omitted.
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.
I will definitely buy in this case, tho.
If you're trying to figure out how to buy bitcoins, check this out: http://howdoyoubuybitcoins.com/ I recommend Bitfloor at the moment because they offer free capitolone360 transfers as well as cash deposits at local banks for only 1%. If you're an accreted investor, check out http://tradehill.com/
I only see Bank of America options for deposits to Bitfloor. That entails filling out a deposit slip to Bitfloor's account at a local branch. UPDATE: PEBCAK. That's for the default "cash" tab in the UI. There are also "wire" and "CapitalOne 360 P2P" tabs. Thanks for the tip!
Earlier quoted context omitted.
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.
There have been some strong signs of an inflection point in the last couple of weeks. The FinCEN guidance was a major step forward for Bitcoin, allowing companies to start taking Bitcoin as a serious option. For example, see this announcement today, from a company that processes payments for local governments. They plan to offer bitcoin acceptance to those governments for all sorts of online payments. You might soon…
It's a subtle but important difference, because the use of non-local currencies in a transaction can trigger currency exchange gain/loss reporting requirements (in the US, at least).
This will be a fun ride until governments ban it.
This will be a fun ride until governments start auditing people for not reporting their bitcoin-denominated income.
Governments, especially governments with many international residents and companies, have long since passed foreign currency laws that require taxpayers to convert foreign currency transactions into the local currency for purposes of reporting income. Failure to report your bitcoin-denominated income can mean that the local tax authority (i.e., the IRS) has until the end of time to go after you for back taxes, penalties and interest, and even criminal sanctions (depending on the amount of underreporting).
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?
Governments already know how to deal with foreign currencies: they simply make you convert your foreign-currency-denominated income into the local currency for purposes of calculating taxable income.
> It is a privately created fiat currency, bundled together with an anonymity scheme for transactions. The anonymity scheme means there is some reason to grant one-time seigniorage to the original currency issuers. Eventually the anonymity scheme, in some form or another, will be available without the fiat currency. At that point, or more likely before then, the fiat currency will fall to near-zero in value. Hold it at your own risk. The original issuers will have kept some of their initial gains.
http://marginalrevolution.com/marginalrevolution/2011/04/the...
Essentially, the value of a bitcoin is set by the value of all worldwide transactions desired which utilize bitcoin's advantages (anonymity, security from government intervention, etc) divided by the total number of bitcoins, which is capped. However, there is nothing to stop someone from starting a competitor (perhaps with some slight improvement) which duplicates all of bitcoin's functionality and essentially inflates away bitcoin's value. In fact, it might not be crazy to suppose governments would do this on purpose.