The Bitcoin Bubble
timothyblee.com
The Bitcoin Bubble
1–10 of 35 posts
Re: The Bitcoin Bubble
#2No bubble. While it will not take over for the dollar, it is proof of concept that it can be done.
Meanwhile, if anyone wants to offload some of those worthless BTC, I'll gladly take them off your hands right here.
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Re: The Bitcoin Bubble
#3People in the bitcoin community periodically worries about bubbles. The only thing that we can do is figure out cool stuff that you can only do with bitcoin. Other than that, people are encouraged to sell and buy things for bitcoin.
A lot of cool stuff is in the pipeline though:
1. A decentralized DNS registration system utilizing bitcoin technology. http://www.bitcoin.org/smf/index.php?topic=6017.0 There's even a 3500 BTC bounty for it: http://www.bitcoin.org/smf/index.php?topic=2072.0
2. GBSE - Global Bitcoin Stock Exchange: Utilize public key cryptography and other tech to create a bitcoin stock market. http://www.bitcoin.org/smf/index.php?topic=5947.0
3. witcoin - a micropayment social media site. http://witcoin.com
The bitcoin community has thought more about the weakness and strength of the currency, failure modes and solutions to problems more than any critics about bitcoin in the world. It's just that very few bothers writing and publish these knowledge for distribution to the wider public.
Re: The Bitcoin Bubble
#4Bitcoin doesn't have to replace the dollar, it just has to replace Paypal and some credit card business.
Re: The Bitcoin Bubble
#5The article assumes we want to pay taxes and that a significant portion of our tax dollars are spent wisely thus making taxation an advantage of the dollar.
Convincing Americans to switch to a currency other than the dollar is roughly as futile as convincing the Internet to switch to a protocol other than TCP/IP, and for the same reasons.
Meh, you don't have to convince Americans, just convince other people. Other countries are already working around the US dollar. Wasn't there a recent deal announced between Russia, China, Brazil and India for them to accept their own currencies as an alternative to US dollars for debts, loans, etc.?
Re: The Bitcoin Bubble
#6The US Dollar can be used to buy anything. Bitcoin can be used on like, a few dozen websites that support it.
Why the heck would you not use the dollar?
Re: The Bitcoin Bubble
#7The article neglects that people have to pay income taxes on however many dollars of income you make. If you hypothetically made 100% of your income in bitcoins, and conducted all your financial transactions in bitcoins, then you would have 0 tax liability and wouldn't need dollars to pay taxes.
Re: The Bitcoin Bubble
#8The article assumes we want to pay taxes and that a significant portion of our tax dollars are spent wisely thus making taxation an advantage of the dollar. Convincing Americans to switch to a currency other than the dollar is roughly as futile as convincing the Internet to switch to a protocol other than TCP/IP, and for the same reasons. Meh, you don't have to convince Americans, just convince other people. Other co…
They will take up BitCoin after losing patience with barrels of oil, cubic metres of gas, diamonds, each others' currencies, and rifle ammunition.
Re: The Bitcoin Bubble
#9Two out of the three words of the title contain buzz words (CHECK!)
Ok but seriously I don't see the "bubble" here. If this is a "bubble" what are the implications of it popping? The value is set by the people who exchange it and not by a governing authority or even, groups of people. As I understand it, that means the value can never be manipulated. Also, don't bubbles imply that there is some sort of governing body that either decreases or increases risk of such an asset? For example in the housing and tech bubble, this would largely be the SEC (among many others). People were wildly spending and loaning money because risk was largely reduced -- a combination of guaranteed government bailouts and "everyone else is doing it!". How is any risk reduced using Bitcoin? If anything isn't Bitcoin a way to prevent bubbles? I see it as real value assessment set democratically by people using the currency.
I don't see Bitcoin itself as "irrational exuberance" at all, in fact quite the opposite. It's attempting to solve a real world problem. Indeed the referring article might suggest that the analysts covering Bitcoin are acting irrationally by making claims like "government take heed, there's a new currency in town". But just as the words "Bitcoin" and "Bubble" were used to grab attention to this article, the analysts covering Bitcoin also (here- Jerry Brito) will make irrational and largely speculative claims to bring viewership.
Re: The Bitcoin Bubble
#10Bitcoin doesn't have to replace the dollar, it just has to replace Paypal and some credit card business.
But Paypal and credit cards are based on the USD, or whatever the local currency is. So, in effect, it does have to beat the dollar. Bitcoin must be advantageous enough so that people will want to use that over the standard local currency (e.g. USD). Because, you're assuming that you'd have to convert USD to Bitcoin and then spend the Bitcoins. If you received Bitcoins, you'd need to then convert them back out as dollars. When you do a credit card transaction, you don't convert the money to a different currency. With Paypal, you have the option to receive money and then spend it without adding funds or incurring transaction fees, but how many people really do that?
But, if the system is big enough, you'd be able to limit the USD Bitcoin conversions and transact more of your business in Bitcoins. However, in order for that to happen, it has a lot of currency inertia to overcome.