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Title: Resilience is the key Post by: flug on April 05, 2013, 06:22:20 PM As I see it, the intrinsic value of Bitcoin is its ability to store and transmit value securely. Therefore every time the Bitcoin infrastructure hits a problem (from the blockchain forking to exchange hacks) and survives, its demonstrable value must increase too, no?
Title: Re: Resilience is the key Post by: PachucoBro on April 05, 2013, 06:26:32 PM I think you are correct with what the intrinsic value of BTC is, however... I don't believe those issues translate directly to the price of BTC at all. At least not right now.
People sell when they get scared... like when they can't access their electronic wallets on the various exchanges. That sucks and causes a few of the smaller traders to sell, thereby dropping the price momentarily. Title: Re: Resilience is the key Post by: glub0x on April 05, 2013, 07:40:54 PM As I see it, the intrinsic value of Bitcoin is its ability to store and transmit value securely. Therefore every time the Bitcoin infrastructure hits a problem (from the blockchain forking to exchange hacks) and survives, its demonstrable value must increase too, no? Same analysis here. I would add the reason that convince me to buy-in : the ability to recover from price a crash. Title: Re: Resilience is the key Post by: PachucoBro on April 05, 2013, 07:49:02 PM As I see it, the intrinsic value of Bitcoin is its ability to store and transmit value securely. Therefore every time the Bitcoin infrastructure hits a problem (from the blockchain forking to exchange hacks) and survives, its demonstrable value must increase too, no? Same analysis here. I would add the reason that convince me to buy-in : the ability to recover from price a crash. Ummm you mean recover from a temporary 1-2 hour price dip.... right? The crash is still to come. This will happen when atleast two of the following get off-balance and everyone starts to see it:
Title: Re: Resilience is the key Post by: DigitalDoom on April 05, 2013, 07:57:16 PM As I see it, the intrinsic value of Bitcoin is its ability to store and transmit value securely. Therefore every time the Bitcoin infrastructure hits a problem (from the blockchain forking to exchange hacks) and survives, its demonstrable value must increase too, no? Same analysis here. I would add the reason that convince me to buy-in : the ability to recover from price a crash. Ummm you mean recover from a temporary 1-2 hour price dip.... right? The crash is still to come. This will happen when atleast two of the following get off-balance and everyone starts to see it:
The media is the entire key to the whole thing...as in everything! People believe what they read in papers and see on the nightly news. The media built BTC, and the media will destroy it! Sheeple are so easy to manipulate! In the meantime, the big money power of this world will win again...as they always do!! Once the ultra-wealthy have made their profits from BTC, they will cash it out then the media will begin reporting that it's a dead currency and soon after, it will be! Title: Re: Resilience is the key Post by: flug on April 05, 2013, 08:15:41 PM The media is the entire key to the whole thing...as in everything! The media's very powerful at shaping perceptions within the existing paradigm, but it can't stop an idea who's time has come. There have been plenty of revolutions to prove this point. I believe that p2p technology in general and p2p currency in particular is such an idea. Title: Re: Resilience is the key Post by: PachucoBro on April 05, 2013, 08:18:33 PM I agree... bitcoin is not going to get killed by the media.
I easily see a return to much lower pricing in the near term as in a year. But the natural mathematics behind BTC, if everyone started using it, would be that the value of 1 BTC would be very large so that there was room do divide up the limited amount of coins to denominations appropriate to be used by the masses. Title: Re: Resilience is the key Post by: lonelyminer (Peter Šurda) on April 05, 2013, 08:19:37 PM Not resilience, antifragility. I'm working on a blog post about that.
Title: Re: Resilience is the key Post by: alexeft on April 05, 2013, 08:19:53 PM As I see it, the intrinsic value of Bitcoin is its ability to store and transmit value securely. Therefore every time the Bitcoin infrastructure hits a problem (from the blockchain forking to exchange hacks) and survives, its demonstrable value must increase too, no? I agree. Every time it works as expected, eg difficulty goes up or down as normal, or the block reward is halved, then it gains in value that will be translated into a higher price at some point. Title: Re: Resilience is the key Post by: alexeft on April 05, 2013, 08:21:12 PM Not resilience, antifragility. I'm working on a blog post about that. Post a link when you put it online Peter. I am very interested in what you have to say. :) Title: Re: Resilience is the key Post by: flug on April 05, 2013, 08:28:33 PM Not resilience, antifragility. I'm working on a blog post about that. Quote Definition of 'Anti-Fragility' A postulated antithesis to fragility where high-impact events or shocks can be beneficial. Anti-fragility is a concept developed by professor, former trader and former hedge fund manager Nassim Nicholas Taleb. Taleb coined the term "anti-fragility" because he thought the existing words used to describe the opposite of "fragility," such as "robustness," were inaccurate. Anti-fragility goes beyond robustness; it means that something does not merely withstand a shock but actually improves because of it. Yes! I stand corrected. |