Bitcoin Forum

Probably this topic belongs to the general discussion board, but I decided to post it here since I want to discuss what it means under a speculative point of view, not the news per se.

I was a registered user of the exchange Buttercoin, but actually I never used it; anyway today I received an email saying that they are closing. First of all, they are quite clear about the fact that there is nothing shady behind their decision and they are still 100% secure and solvent, anyone having funds can easily withdraw them. They decided to shut down because, quoting the email


I have always been a long term bull since I believe in the importance of Bitcoin's technology, and I have to say that Buttercoin shutting down because of low interest among investors is pretty surprising and quite frightening, expecially now that the situation is stagnating and the daily "excuse" is that investors are jumping aboard but are working behind the scenes.
It is important to note that some of the investors behind Buttercoin were Google Ventures and other big people, people you would not expect to just "lose interest" in something like Bitcoin.

Excitement among tech startup people is a lot higher than the regular people out there who might use their products. I think they're overestimating how many crypto users there are right now. Netagio was another that closed due to lack of interest from actual customers.

Exchanges must be a bitch to run and make money from. Only a small hard core would use it multiple times a week. The rest might make one trade on occasion and that's only a fraction of a per cent for the owners. You gotta spend vast amounts on security and pleasing The Man let alone gain the trust of your customers.

It would be a worry if an established exchange shut down for lack of interest. This is another example of VC money going up in smoke without having gained traction.

 

Buttercoin.  Stupid name.  No one used them.  'Nuff said.

Now tell me that either Coinbase or BitPay are closing up shop, and I'll start to get worried.

BTC exchanges have high volume of BTC exchanging hands but BTC market places do not.  It shows that BTC is being used predominantly for speculation/trading...  And of course hoarding.  

I cannot see how the BTC economy can thrive at this point if the people use the currency to mostly hoard or speculate.  Which of course we all are guilty of.

Nobody would do business with a butthurt company called Buttcoin.

I don't know much about Buttercoin, but with a name like that, it almost seems like it was something they wanted to have fail but wanted to benefit from in some way. I think a company called "A$$Fuq" would have a similar shot at success.

Bottom line and aside from that name...  this will make bitcoin look bad once again.  And all the haters will have a field day. 

Agree and nothing really surprising in this statement. Bitcoin is purely speculative asset atm and until proven otherwise by really massive adoption, which we lack for now. We are here some enthusiasts at Bitcointalk, but outside world see bitcoin quite differently and what counts are hard facts (development) not just purely speculative news who is gonna adopt Bitcoin next.

You know what else is pretty stagnant about Bitcoin?  Development.
With all the talk of "revolutionary, disruptive technology," Bitcoin hasn't changed much in 6 years.  And now, with Bitcoin Foundation  effectively bankrupt (http://cointelegraph.com/news/113873/bitcoin-foundation-is-effectively-bankrupt) & 2.7TPS limit still in place, who'll pay for development?

Well the name was a bad choice, people would assume it was an alt-coin exchange
Right now the market is held and stimulated by Coinbase and Bitpay which have acquired signifcant market share
Wealth can only be created if you can find people to scale your company with you

Too much cocaine and crack same as TBF.
Can't even keep a website running for a year or two with nearly 2 million $$$. These have shown to be miserable business-people. Just stay away from those involved in this debacle in the future.

Holy crap, the people involved in Buttercoin went through $2m in crack in like a year? This is so weird. I guess they were already started with the crack smoking when they chose the name Buttercoin? Do VCs set aside money for dental bills?

So nobody treated Buttercoin seriously because of the name
But people sent millions $ and BTC to MagicalTux  and his Magic: The Gathering Online .

in other words "Buttercoin is shit and no one from Silicon Valley wants to invest in our product"

There are record breaking amounts of money being poured into 21 INC and others, this sounds like a bunch of FUD

http://www.cnbc.com/id/102493458

Funny how that infrastructure is built, hyped and then disassembled and packed up again. Of course all this comes from bad bear market which in turn comes from high inflation supply of coins to which none of these nutjobs around here would admit. Bitcoin could have been a raging success ... if they only would have gotten the supply right.... (!)

it is not about supply, it is about the adoption. For now we still lack massive adoption, and rely only on the speculative forces that may push price up or down as it pleases.

Wait a year then. The halving is near.

Dude are you aware this is a gift for us that missed the initial boat? we can still get btc due the surpluss of generated coins which is temporal, in a year or 2 the gap will close and then people that didn't get BTC now will CRY.

You mean CRY of HAPPINESS?  ;D

Buttercoin tried to build it's business on bitcoin the currency.
21 INC tries to build it's business on the blockchain technology.

Please try to understand the difference. If someone uses the base of the blockchain technology to their own needs, then it doesn't give any more value to bitcoin the currency, then to any other blockchain based cryptocurrency.
The only thing that raises bitcoin the currency value is inflow of new greater fools.

When I first heard of Mt Gox I didn't know how it got its name, it was merely an unusual name to me. It took months before I heard it stood for Magic The Gathering Online Exchange. Conversely, I immediately thought Buttercoin sounded like a stupid name as soon as I heard it.

Mt Gox had a chance to gain business partly because it was only after people got used to trading on it that they realized Mt Gox was an acronym for a stupid name.

Another Bitcoin business made possible by Bitcoiners' ignorance :)

Buttercoin,well no surprise to anyone it failed

without going into the business,the name, is wrong on so many levels ;D

Well, let's be clear here.  Mt Gox was a GREAT name for the original company business model: trading playing cards... and the software would have probably handled all 5 trades per hour just fine too!  ;D

Ummm I still don't get what they actually did that was supposed to add value to rather buy Bitcoin somewhere else. Apart from a silly name I don't think limiting your customer base in such a way doesn't make sense in my opinion.