Bitcoin Forum

Anyone crying about the price drop more than likely will be weeded out when we get a more dramatic correction. ATM the lowest floor I saw right now was at $130. Thats nothing, and still better than 3 weeks ago. Children, calm yourselves and realize that bitcoins are, atm, a gamble and what I would consider a high risk investment until we get some kind of real stabilization. If you can't understand the simple principles of that, then you will be gone by next month. Put some hair on your baby chests. Trading is all about going balls deep, not just putting the tip in.

+1, although a little tip action can actually feel good ;)

I hear penny stocks are a fun place to invest.

Bitcoin is a currency.

In due time ;)

Indeed it is. But should your currency tomorrow all of a sudden be priced 10x its value a month a go, without a real reason -wouldn't you try to convert most of it to another before it's down to its real value?

From everything the Keynesians tell me, Bitcoin is deflationary.

So in the long run, the value will only go up.

A true Keynesian would tell you, in the long run we will be all dead.

I have strong doubts the bitcoins can really become the word's currency. If there is something we know about economy, is that deflation is poison.
If Bitcoin becomes mainstream as it is, banks will be gone. They barely pay enough to cover inflation now, which means they won't be competitive with simply hoarding the money. But with banks, there goes our industries.
Oh, and state debt would be gone the same way: no state cannot afford to pay a debt which is increasing in value instead of devaluating. Just explain me, you fine keynesian, how we will survive without the state's ability to spend in deficit (since they wouldn't be able to print as well, of course).

In the long run, I just don't see an alternative to bitcoin being outlawed -just like they are outlawing phisical cash. Or just made a thing like gold, which some hold, but mainly exists as a reserve. The essential thing is that they must make most people use numbers with no real backing, that can be inflated at will. Just because economy cannot survive otherwise.

This is what I used to think.

But people borrow at APRs dramatically above inflation, so Savings & Loans should still be workable organizations. Also, assuming a constant money supply, deflation is caused by an increase in value being traded in the economy, which means that investment will outpace deflation on average (since some money is always being spent on people's day-to-day consumption).

And finally... well, how do you know BTC won't inflate? I mean, sure, the physical number of BTC in circulation is 21 million in saecula saeculorum, but there's nothing about the Bitcoin network that prevents fractional reserve banking (which, QE3 shenanigans aside, is the "normal" mode of inflation today) other than checking accounts being less useful than they once were and the lack of an FDIC-style lender of last resort to cover the banks' butts.

The government's debt is already increasing in value - it's called the interest rate. A deflating currency just means more tax money has to be set aside to pay interest (until the budget becomes balanced).

i'd like to see any bank, ANY, match the same interest rate that Bitcoin gives me every month.  even after this "crash" i'm still far ahead of where i'd be if all my fiat were in banks.

What about everyone who bought above $170?

ha! I got my bank statement in the mail today, I had invested in a term deposit for 3 months for 4%, then I noticed - 46% withholding tax,  sonofa!

and of course inflation is like 20% despite the govt reporting it to be like 3%.

come back tomorrow when the price is above that, proudbear. edit: oh, wait it already is - $183