Earlier quoted context omitted.
I wonder if it's a lot more respectable now SilkRoad is gone?
Or the many headlines about SR acted as sort of advertising.
negative news could be good PR sometimes.
Bitcoin heading towards $200, new bubble forming
71–80 of 114 posts
Re: Bitcoin heading towards $200, new bubble forming
#72I know you can sell your coin when the price is high; but can you trade quickly enough to profit from such temporary surges (buy low then sell high only a dozen hours later) ? What is the average request processing time if you want to buy, say, 10 BTC on mtgox ?
If you maintain some inventory at coinbase, you can effectively buy and sell instantly.
If you trade rarely, then buys and sells are effectively instant too, you just don't see the results of your trade for 10 days.
I believe that for verified/tier 2 customers, coinbase offers faster turnaround.
Re: Bitcoin heading towards $200, new bubble forming
#73I wonder who Satoshi is and how much he's worth now. Not many people can put on their CV that they created a new currency.
The upper bound on how many coins he's mined is roughly 1 million (the best estimates I'm aware of come from https://bitslog.wordpress.com ). So you can just interpret the current exchange rate of X as X million. On http://bitcoincharts.com/markets/currency/USD.html I see Bitstamp at $169 right now (MtGox, as pointed out here, is not a useful benchmark anymore), so that's $169m in bitcoins.
(modulo all the usual reasons it's less than $169m: the estimate should be an upper bound and so the real amount lower, he may have lost his bitcoins, you can't cash out that much without crashing the price, he'd have to pay taxes on such an enormous amount, etc etc)
Re: Bitcoin heading towards $200, new bubble forming
#74Earlier quoted context omitted.
[deleted]
Bitcoin is not a ponzi scheme. It's a technology with actual useful properties. The code is out there to see. If you don't understand why these properties are useful to so many people, I welcome you to the third world countries where you can't start selling your product to the rest of the world (even if it's a great one), because PayPal doesn't work with your country and cc processors won't let you accept cards from…
It can't be both? The declining rate of bitcoin generation certainly has ponzi-like properties. It seems like the primary motivation to mine is assuming that the value will go up as mining becomes more difficult.
Re: Bitcoin heading towards $200, new bubble forming
#75Earlier quoted context omitted.
I wonder if someone could build a new digital currency that starts let's say at 1 trillion units, and is expanded by 2 percent per year (that 2 percent being split so a slight increase happens every day, so it doesn't happen all at once, but after a year, the increase rounds up to 2 percent). The problem would be seeding it and distributing it early on. But it could still be mined much like Bitcoin, with the differen…
Freicoin takes the inflationary cryptocurrency idea: http://freico.in/ PPcoin is also slightly inflationary, although it offers you an interest rate higher than the inflation rate if you participate in the validation process (basically like mining except you "mine" with your ppcoins rather than with your cpu cycles): http://ppcoin.org Personally, I don't mind the inflation/deflation argument too much; one thing I wou…
an organization bound by contract
Bound by contract to whom? Who would enforce that contract, and in what jurisdiction?
Re: Bitcoin heading towards $200, new bubble forming
#76Earlier quoted context omitted.
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.
How do you know that that's why it's risen? Why does that not justify a 50% rise? Why does that imply the price will suddenly crash? Is this idle chat, or have you attempted to significantly short bitcoin somehow to take advantage of the financial gain from your certainty?
It's probably not just Baidu, but it definitely has something to do with chinese.
See this: http://bitcoinity.org/markets/btcchina/CNY (click 6 months and compare to USD) - the Chinese Yen volume was off the charts recently, and during the past day was approx. 40% of the USD's volume. It seems as if Chinese began buying into Bitcoin.
Re: Bitcoin heading towards $200, new bubble forming
#77I'm going to sell when I can retire on it. Which won't be for a couple orders of magnitude yet. Some of us are holding for the longest time... I apply this same logic to my startup attempts. If anyone offers me enough to retire, I'll sell with no doubts.
By that time you won't need to sell. Besides, are you seriously gonna risk your money like that? Switching back to a currency system that can be frozen/confiscated, inflated, etc.?
Re: Bitcoin heading towards $200, new bubble forming
#78Earlier quoted context omitted.
Only if that currency is the basis for your economic system, and you wish to continuously stimulate artificial demand in your economic system through continuous currency debasement. It has been theorized that though such continuous stimulus may lead to greater growth on paper, that growth is more likely to be malignant than it would be were the economy allowed to grow at a more natural rate. Furthermore, continuous i…
I guess it comes down to whether you believe people are overly conservative with their money. Inflationary currency incentivizes investment, which is useful in a world with scarcity. But if you believe enough people spend too much on luxuries, deflationary currency wins out.
What it comes down to is whether you think the increased growth from perpetually easy credit is worth the malinvestment and economic bubbles that come with it.
Re: Bitcoin heading towards $200, new bubble forming
#79I've said it before and I'm sure I'll say it again: the biggest risk to bitcoin is a government (specifically the US government) deciding that they don't like it. Barring that, its growth will likely continue.
You don't need to be a prophet to guess that. Of course they don't like it. To me, it's not even a question. The question is, what are they gonna do about it and for how long will they manage to delay Bitcoin adoption.
My thinking is along the same lines. They're tacitly accepting it now, not because they accept it, but because they think it might collapse on its own. When they realize that it's not going to go away, I'm almost certain that the government will step in somehow and try to put the kibosh on bitcoin. How long that will be is anyone's guess.
Re: Bitcoin heading towards $200, new bubble forming
#80Earlier quoted context omitted.
So take a decision now about when you'll sell, write it down, and stick to it. Mine has a 5 year timeline, or a specific value (a few orders of magnitude more than today) at which I'll sell.
If bitcoin replaces the dollar as the unit of account, currency of international trade, world reserve currency, and so on, it might be better simply to spend the bitcoins than to "sell" them.
If that ever happens, our homes are gonna be visited by flying drones. But you don't need that to happen for Bitcoin to make you rich. It could very well just stay as a high value, scarce commodity. A few whales buying in can make it happen.