Bitcoin Forum

Hello,

I have understood that someone comes up with a new coin X (X may not even have a new innovation, or a big step forward). As X has no value yet, miners/pre-buyers get interested in the coin, because the difficulty is low, the coin is cheap, and it may have value in the future, no harm !
What I don't understand in this ecosystem is who buys X so X gets its value ? Whats the problem with BTC/LTC/DRK/... that some people will start buying X ? Are the people buying the coin the ones who want to profit from hording it, thus giving X value ?

Thanks !  ;D

you said it beacuse it's cheap, and buying a high amount at cheap price is better than 2 darkcoin at 0.01..

So buyers that give X value are the ones hoping it's value will go up ? I don't see how that wouldn't collapse after a while. Maybe the first buyers do profit, but eventually people start to lose money.

people want to get rich, will buy alt-coins ;D

It depends on if X is assumed to have a utility or function that may make it useful in the future
Example LTC was/is considered the Asic alternative to Bitcoin and therefore a sister coin to Bitcoin.
DRK is considered more anonymous with RC3 through its Master Nodes which allow for groupings of transactions
And then some of the other coins try different things to differentiate them so as long as people see a potential use or need for X they may be willing to purchase them.

Also some new coins are coming out now like Viacoin and Ethereum that will allow you to build applications and services using the blockchain technology. So, people are buying coins that have a utility outside of currency as well as currency coins. It's a big ecosystem out there. :)

I buy coins that I think are going to bring something to BTC's growth and acceptance.

But the truth of the matter is, the vast majority of those people end up seeing their BTC melt like a stick of butter in a microwave.

it's actually like that, it collapse after a while, a pyramid basically

I would say most people buy altcoins because they either are interested in the tech or think it's value will rise, so yes I agree.


Surely for every losing trade, there must also be a winning trade? I know some people were able to increase their BTC holdings by trading the right altcoins at the right times.

who want to be rich will buy the altcoin ;D cause altcoin can make 100X.

Greater fools (http://en.wikipedia.org/wiki/Greater_fool_theory) buy alt-coins (with no added value, e.g. technological improvement)

When I bought my first alts I did not have a clue what I was doing, and just hoped I could sell them for more than I bought them for. I just guessed which ones to buy and kept my fingers crossed. As you would expect I lost most of my money, which is no doubt typical for most newbies.

Who? Anyone that believe in becoming instantly rich from altcoins which is not possible.
Stop being greedy. This is why most people get burned here.
There are only a few (!) altcoins that are actually worth buying and have some decent features in them.

I look at an alt that is offered. Check in to it more if I like it. If I think it will rise in value I mine or buy some on exchange. Nothing is certain. You take a chance. If it goes up great if not sell at a loss. Normal speculation.

Lots of altcoins have seen their prices drop and never recover despite having new features and innovations. e.g. Datacoin, Primecoin, Riecoin, Namecoin, Qora, Myriadcoin, Vertcoin, etc.

It's zero sum, of course someone wins for every loss

I buy what I like. It usually makes me btc but some times not. It's fun to play though.  ;D