Title: The Great Misconception Post by: San1ty on June 05, 2013, 11:27:58 AM People always seem to think that BTC is overvalued and that we are currently in the great bubble of 2013 with only one possible outcome... Down.
But allow me to warp your mind around: There is no bubble, we are actually in a great depression, the depression of FIAT! BTC isn't going up, it's FIAT that's going down! Every day your FIAT is worth a little less. BTC has decreasing inflation, FIAT has increasing inflation! Title: Re: The Great Misconception Post by: N12 on June 05, 2013, 11:35:26 AM BTC isn't going up, it's FIAT that's going down! Every day your FIAT is worth a little less. That's weird, I was under the impression that the same Bitcoin can buy 10 times more stuff than a few months before. Also weird that one USD doesn't buy me 10 less.Must be some FIAT manipulation by Bernanke or something. :D OR Gold, Silver, stocks, real estate are inflating vs. Bitcoin too. Basically, only Bitcoin in this world is stable and all other assets fluctuate agaist it! Finally we see the truth! Title: Re: The Great Misconception Post by: San1ty on June 05, 2013, 12:28:24 PM BTC isn't going up, it's FIAT that's going down! Every day your FIAT is worth a little less. That's weird, I was under the impression that the same Bitcoin can buy 10 times more stuff than a few months before. Also weird that one USD doesn't buy me 10 less.Must be some FIAT manipulation by Bernanke or something. :D OR Gold, Silver, stocks, real estate are inflating vs. Bitcoin too. Basically, only Bitcoin in this world is stable and all other assets fluctuate agaist it! Finally we see the truth! Glad you see the light my friend ;)! Title: Re: The Great Misconception Post by: Zaih on June 05, 2013, 12:33:35 PM BTC isn't going up, it's FIAT that's going down! Every day your FIAT is worth a little less. That's weird, I was under the impression that the same Bitcoin can buy 10 times more stuff than a few months before. Also weird that one USD doesn't buy me 10 less.Must be some FIAT manipulation by Bernanke or something. :D OR Gold, Silver, stocks, real estate are inflating vs. Bitcoin too. Basically, only Bitcoin in this world is stable and all other assets fluctuate agaist it! Finally we see the truth! Glad you see the light my friend ;)! Poor sarcasm detection xD Title: Re: The Great Misconception Post by: San1ty on June 05, 2013, 12:47:32 PM BTC isn't going up, it's FIAT that's going down! Every day your FIAT is worth a little less. That's weird, I was under the impression that the same Bitcoin can buy 10 times more stuff than a few months before. Also weird that one USD doesn't buy me 10 less.Must be some FIAT manipulation by Bernanke or something. :D OR Gold, Silver, stocks, real estate are inflating vs. Bitcoin too. Basically, only Bitcoin in this world is stable and all other assets fluctuate agaist it! Finally we see the truth! Glad you see the light my friend ;)! Poor sarcasm detection xD Orrr, Great reality dodging skills! (Where is your sense of humor :)) In all seriousness tho: In 2013 1 dollar buys you 1.3% less when compared with 2012. Title: Re: The Great Misconception Post by: RyNinDaCleM on June 05, 2013, 01:08:44 PM BTC isn't going up, it's FIAT that's going down! Every day your FIAT is worth a little less. That's weird, I was under the impression that the same Bitcoin can buy 10 times more stuff than a few months before. Also weird that one USD doesn't buy me 10 less.Must be some FIAT manipulation by Bernanke or something. :D OR Gold, Silver, stocks, real estate are inflating vs. Bitcoin too. Basically, only Bitcoin in this world is stable and all other assets fluctuate agaist it! Finally we see the truth! Glad you see the light my friend ;)! Poor sarcasm detection xD Orrr, Great reality dodging skills! (Where is your sense of humor :)) In all seriousness tho: In 2013 1 dollar buys you 1.3% less when compared with 2012. ...and BTC buys ~1700% more? Does not compute Title: Re: The Great Misconception Post by: San1ty on June 05, 2013, 01:35:09 PM ...and BTC buys ~1700% more? Does not compute It buys you 1700% more, but is it overvalued? Let's do a little math: How much would BTC be worth if there were as many in existence as there are dollars? Total USD around: 829000000000 Total BTC around: 11247000 829000000000 / 11247000 = 73709 BTC Price in USD: 120 Real BTC Price in USD: 120 / 73709 = 0.0016 Still overvalued? As long as that number is below 1, it's undervalued! TL;DR: It's not a bubble, It's limited edition! PS: How do you like my reality distortion field? Title: Re: The Great Misconception Post by: Odalv on June 05, 2013, 02:59:10 PM ...and BTC buys ~1700% more? Does not compute It buys you 1700% more, but is it overvalued? Let's do a little math: How much would BTC be worth if there were as many in existence as there are dollars? Total USD around: 829000000000 Total BTC around: 11247000 829000000000 / 11247000 = 73709 BTC Price in USD: 120 Real BTC Price in USD: 120 / 73709 = 0.0016 Still overvalued? As long as that number is below 1, it's undervalued! TL;DR: It's not a bubble, It's limited edition! PS: How do you like my reality distortion field? M1 represents all of the currency in the M0 money supply, plus all of the money held in checking accounts and other checkable accounts, as well as all of the money in travelers' checks. In July 2009, the M1 money supply for U.S. dollars equaled about $1,655.6 billion All told, anyone looking for all of the U.S. dollars in the world in July 2009 could expect to find around $8.3 trillion in existence. $8T / 21M = $380k/btc :-) Title: Re: The Great Misconception Post by: afbitcoins on June 06, 2013, 06:35:44 PM Since the federal reserve was established 100 years ago, the US dollar has devalued by 98%
Title: Re: The Great Misconception Post by: kokojie on June 07, 2013, 02:31:44 AM That's bull, fiat value has not went down that much.
Title: Re: The Great Misconception Post by: lucas.sev on June 07, 2013, 02:36:42 AM Title: Re: The Great Misconception Post by: keewee on June 07, 2013, 02:40:49 AM That's bull, fiat value has not went down that much. Perhaps not, but it's a lot https://i.imgur.com/3uG2qbq.png Title: Re: The Great Misconception Post by: hlynur on June 07, 2013, 02:57:39 AM That's bull, fiat value has not went down that much. Perhaps not, but it's a lot https://i.imgur.com/3uG2qbq.png when was dollar detached from backup by gold standard? Title: Re: The Great Misconception Post by: desired_username on June 07, 2013, 04:33:05 AM I don't care much about dollars, but experiencing massive inflation on my own currency is not very nice. :S
Title: Re: The Great Misconception Post by: ask on June 07, 2013, 05:36:38 AM I am reading those posts an can't believe that people are talking only about US $. There are also other currencies:
http://worldtop10.net/top-10-currencies-in-the-world/ :) Title: Re: The Great Misconception Post by: San1ty on June 07, 2013, 10:48:07 AM Funny thing is, I'm a European myself! I just in the habit of when talking about Bitcoin valuation I always use dollars :-).
Title: Re: The Great Misconception Post by: notme on June 07, 2013, 11:15:04 AM That's bull, fiat value has not went down that much. Perhaps not, but it's a lot https://i.imgur.com/3uG2qbq.png when was dollar detached from backup by gold standard? Nixon declared our default in 1971. Prior to that, the peg was moved several times. Title: Re: The Great Misconception Post by: johnyj on June 07, 2013, 11:18:06 AM It's a common sense that empolyees never questioned the profit of the company even their salary is only 1% of the CEO's bonus
Same for money, there is no inflation since those banks pocketed all the newly printed money, for every one dollar of inflation, they pocketed 99, that's the reason even after 4x increase of money supply, there is barely some inflation. Anyway, no one cares as long as their milk price do not rise ;) Title: Re: The Great Misconception Post by: notme on June 07, 2013, 11:20:46 AM It's a common sense that empolyees never questioned the profit of the company even their salary is only 1% of the CEO's bonus Same for money, there is no inflation since those banks pocketed all the newly printed money, for every one dollar of inflation, they pocketed 99, that's the reason even after 4x increase of money supply, there is barely some inflation. Anyway, no one cares as long as their milk price do not rise ;) http://www.agweb.com/article/usda_predicts_higher_milk_prices_for_2013/ Title: Re: The Great Misconception Post by: johnyj on June 07, 2013, 11:28:12 AM It's a common sense that empolyees never questioned the profit of the company even their salary is only 1% of the CEO's bonus Same for money, there is no inflation since those banks pocketed all the newly printed money, for every one dollar of inflation, they pocketed 99, that's the reason even after 4x increase of money supply, there is barely some inflation. Anyway, no one cares as long as their milk price do not rise ;) http://www.agweb.com/article/usda_predicts_higher_milk_prices_for_2013/ A 3% increase? When there is 400% increase in money supply 8) Title: Re: The Great Misconception Post by: notme on June 07, 2013, 11:31:33 AM It's a common sense that empolyees never questioned the profit of the company even their salary is only 1% of the CEO's bonus Same for money, there is no inflation since those banks pocketed all the newly printed money, for every one dollar of inflation, they pocketed 99, that's the reason even after 4x increase of money supply, there is barely some inflation. Anyway, no one cares as long as their milk price do not rise ;) http://www.agweb.com/article/usda_predicts_higher_milk_prices_for_2013/ A 3% increase? When there is 400% increase in money supply 8) Stocks, mortgages, and bonds. Title: Re: The Great Misconception Post by: johnyj on June 07, 2013, 11:32:49 AM It's a common sense that empolyees never questioned the profit of the company even their salary is only 1% of the CEO's bonus Same for money, there is no inflation since those banks pocketed all the newly printed money, for every one dollar of inflation, they pocketed 99, that's the reason even after 4x increase of money supply, there is barely some inflation. Anyway, no one cares as long as their milk price do not rise ;) http://www.agweb.com/article/usda_predicts_higher_milk_prices_for_2013/ A 3% increase? When there is 400% increase in money supply 8) Stocks, mortgages, and bonds. Exactly, these are mostly bank's holdings. Print money to support the price of my own assets, is there any business better than that? Title: Re: The Great Misconception Post by: notme on June 07, 2013, 11:39:55 AM It's a common sense that empolyees never questioned the profit of the company even their salary is only 1% of the CEO's bonus Same for money, there is no inflation since those banks pocketed all the newly printed money, for every one dollar of inflation, they pocketed 99, that's the reason even after 4x increase of money supply, there is barely some inflation. Anyway, no one cares as long as their milk price do not rise ;) http://www.agweb.com/article/usda_predicts_higher_milk_prices_for_2013/ A 3% increase? When there is 400% increase in money supply 8) Stocks, mortgages, and bonds. Exactly, these are mostly bank's holdings. Print money to support the price of my own assets, is there any business better than that? I agree. And don't forget: If we make a really bad bet, we just have to make sure everybody goes down with us and then the government will bail us out. Title: Re: The Great Misconception Post by: Odalv on June 08, 2013, 08:17:18 PM Since the federal reserve was established 100 years ago, the US dollar has devalued by 98% They call it 2% inflation. (1.02 ^ 100 = 7,25 => 86%/100 year ) expected: During 100 years $1 had to inflate into $0.14 (2% inflation) reality: $1 inflated to $0.02-$0.04 (inflation is 3.5-7 times higher ) Title: Re: The Great Misconception Post by: Jakewell on June 08, 2013, 08:32:50 PM People always seem to think that BTC is overvalued and that we are currently in the great bubble of 2013 with only one possible outcome... Down. But allow me to warp your mind around: There is no bubble, we are actually in a great depression, the depression of FIAT! BTC isn't going up, it's FIAT that's going down! Every day your FIAT is worth a little less. BTC has decreasing inflation, FIAT has increasing inflation! in the 2012 i bought the last iphone for 700 dll, and this year i can buy the new iphone for the same usd amount.. so the bubble is on bitcoin, not in the fiat.. Title: Re: The Great Misconception Post by: Odalv on June 08, 2013, 08:39:27 PM People always seem to think that BTC is overvalued and that we are currently in the great bubble of 2013 with only one possible outcome... Down. But allow me to warp your mind around: There is no bubble, we are actually in a great depression, the depression of FIAT! BTC isn't going up, it's FIAT that's going down! Every day your FIAT is worth a little less. BTC has decreasing inflation, FIAT has increasing inflation! in the 2012 i bought the last iphone for 700 dll, and this year i can buy the new iphone for the same usd amount.. so the bubble is on bitcoin, not in the fiat.. With same amount of bitcoins you can now buy $110/$5 -> 20 iphones Title: Re: The Great Misconception Post by: ktttn on June 09, 2013, 09:34:04 AM People always seem to think that BTC is overvalued and that we are currently in the great bubble of 2013 with only one possible outcome... Down. But allow me to warp your mind around: There is no bubble, we are actually in a great depression, the depression of FIAT! BTC isn't going up, it's FIAT that's going down! Every day your FIAT is worth a little less. BTC has decreasing inflation, FIAT has increasing inflation! in the 2012 i bought the last iphone for 700 dll, and this year i can buy the new iphone for the same usd amount.. so the bubble is on bitcoin, not in the fiat.. With same amount of bitcoins you can now buy $110/$5 -> 20 iphones Bitcoin is nextlevel better. We're shockingly lucky any amount of fiat can still part a bitcoin from its owner. |