It would seem to me that promoting Bitcoin is a bit like hyping Hedge Funds as a can't lose proposition, or trying to do an in depth analysis of derivatives. With Hedge Funds one cannot see all it is invested in, and therefore makes false assumptions about the hidden portion of the investments. With derivatives one must make the assumption that you can derive value from betting on the value or movement of something else, which may or may not be a tangible thing and have value. It seems to me that Bitcoin is the ultimate fiat currency or bartering currency where rather than being based on the good faith and taxing power of a recognized government, it is based on the good faith and non-taxing power of some unknown individual. The unknown individual could be someone involved in a perfectly legitimate activity, or some nefarious operation you would not touch. But it more likely the later since the desire or need to remain anonymous is an underlying principle. The underlying technology is also decentralized to protect identities as I remember. And it seems like I remember one of those being hacked a year or so back and millions going down the drain. The holders of those Bitcoins could not claim losses because they were anonymous. I think I will stick to good old US currency and collect legitimately minted coins, not Bitcoin errors.
Which is the irony of someone saying to avoid fiat but then promoting digital fake money that just exists because money. There certainly is a way someone could invest in bitcoin if they want (I think it is too expensive at this point but who knows) but the whole bitcoin over fiat thing is just absurd
This rocks...for all of those spouting off how worthless is is and how great the fed and US$ is...you missed out on real profits...in your beloved US$
As I remember tulip bulbs were once proclaimed to be the ultimate currency, commanding unbelievable premiums. Perhaps Bitcoin is the 21st century version of tulip bulbs, or maybe it really is the ultimate fiat currency. Whichever it is I am staying away. I have learned in my days that slow and steady wins the race, and it does not seem to matter what race it is.
I am old, but not that old. But one of the great lessons of history is that no one ever learns anything from the great lessons of history. And that is why history repeats itself.
I agree...I don't think $2000 is sustainable for bitcoin...right now people are rushing in because they don't want to miss out...too bad they only thing they'll most likely be out is some cash...oh well
I have no idea what a sustainable price is for bitcoin. Maybe crypto currencies are the last truly supply and demand driven market. Their is currently lots of demand until someday in the future when there isn't.
Good thing the cliche mavens stopped by... too bad they're not quite as neat as telling everyone about their degrees
Just keep in mind that bitcoin is designed with a bias toward deflation rather than inflation. Of course, things don't always work the way they're designed.
I have a B.A. in Economics, but I used to take a lot of drugs. So it doesn't mean much. I don't know much about the bitcoin, but how do you know the original guy doesn't have a million of them stashed away? The record keeping has changed and is not as accurate as one might think. Originally it was supposed to be secret, now everything has to be transparent and documented. And 2, what happens if tomorrow, no one accepts them as currency? Why should anyone accept them as currency in the 1st place? Not including Silk Road Opium exports and Dial a Hooker. It seemed that the whole point of the Bit Coin was a way for criminals to exchange money without having a paper trail.
I agree. They are the ultimate fiat currency based on the credit worthiness of the issuer and trader, but since they are both anonymous there can be no regulation. I am a retired banker and we used to cuss and fuss about the regulators, but truthfully they had their place in keeping the collective monetary system sound. Somewhere, somehow I am sure there is some "smart" Wall Street guy who has figured out how to do Bitcoin derivatives. I think that would be a product based on the value of a product that cannot be accurately valued. And even more strange, there is someone who will buy them, usually Hedge Fund managers who will rake off 15% for making the investment!
Ok, but then why should anyone accept the US$ as currency when that's based on the next generation or 2 of US citizens who haven't really shown they are credit worthy either. They have all kinds of derivatives on the US$, and in my mind it's about the same.
Not even close to the same. The USD is backed by the United States government and its military power. Bitcoin is backed by nothing.
That's what we're told, but because of our deficit situation it's really based on the good faith of the next couple generations ability to pay those expenditures, and the governments ability to tax and collect from them. Maybe even use it's military power to collect if they need to?