Bitcoins are really becoming known due to its price and demand. But how do really Bitcoins circulate one country? Does it circulate like a real money that circulate as a tax. Can someone explain it sir?
Thank you.
Bitcoin would circulate like anything else would, presumably. Someone who has it distributes it to others via paying for goods, services, etc. That is then taken by the people who earn it and distributed to others through purchases, and so on and so forth. Technically Bitcoin is a more global and easily distributed currency, so it can take a while for it to circulate in a local area, in its current state. Technically is the operative word here. Unfortunately, cryptocurrency isn't centralised so it did not circulate the way fiat normally does at inception. Once a fiat currency starts inception, the regulating govt through central banks distribute it. Examples to banks to circulate our wages, merchants to use for trade. Minting is also centralised so all new fiat is created centrally. Issue now with bitcoin is the ones with tech to create it are hoarding. And only selling to those who eventually circulate.
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ethereum was once worth 0.001BTC which was about $0.4 if i am not mistaken about bitcoin price back then, and we are headed that way back to the real value of ETH and what it should really be worth after this huge bubble that it experienced.
i believe we are not going to see that low price but at least something around $1 or so is where we might end up eventually. but it may take some time because of the residual resistance.
Agree that eth has reached more realistic values at this point and may still continue to take a beating but the situation is only exacerbated by bitcoin speculation. Come January, ailing alts should recover at least 10% of today's fiat value, before moving firmer against bitcoin. so you can wait for better prices but you shouldn't worry if you are buying now either.
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For alt-btc pairs, probably good to short major alts if you're betting against btc to breach the new 800 wall before Christmas.
But alts on fiat? Go long on doge and eth, both of which are in slumps and due for a small correction at least in January. Stronger case when USD also corrects down at rhe same time.
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altcoin-bitcoin always corelation price if bitcoin price incraese and up , all altcoin price can down why because in hold altcoin selling to convert bitcoin and fiat money if much people selling so altcoin price can down
For that correlation to hold true we must also be able to observe sustained alt increases in value as bitcoin prices drop. When btc plummeted from >1000 to below 500$ did the alts enjoy a correlated doubling of price across the board? Alts are not direct conpetitors to btc... only alternatives.
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Thanks for the interesting responses. To clarify, I know there are a lot of bad altcoins. I was asking why good (as far as we can tell) altcoins fail, and I think there are a few examples of that. However, since there are not "boards" like in a corporation set up or even a consensual rule that altcoins should have a board addressable by the public, it's hard to know who these people are what their motives are. It would be good to know the "good" coins that have devs that are able to communicate on a weekly or even daily basis like most normal folks can.
You have to ask yourself or we have to ask ourselves what is our motivation for supporting an altcoin? If "failure" is judged by the coin's value against btc or fiat,then surely we've placed profit as prime motivation. Take the case of doge and its unhappy campers who think it's a failure or will be one. On the other hand its hardcore community still use it for its original fun, non-serious and even charitable aims. Failure? Not by a long shot.
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I have a feeling these off license shops all over europe (also the so-called evening stores) could be a good launch pad if you can convince its regulars to use bitcoin.
Crypto users aren't part of that demographic though... could you explain why the owner was interested? curious
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If you think about it, some of the larger exchanges are mirroring central banks, in the sense that they are centralising some aspects of bitcoin on smaller scales. What are some activities that exchanges do for profit that are also how banks get their income from?
1. Exchange (duh) at spreads or fees that are lower only for wealthier clients. 2. KYC or due diligence activities - and therefore, collecting and storing of confidential information. 3. Lending.
The currency may be decentralised but there will always be forces trying to exercise control over it.
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Here's an afterthought on the future of modern money... It's important to remember that the financial elite will do everything in its power to prevent a total collapse of the imperial monetary and asset bubble. The reason is simple: if severe economic pain reaches the imperial center (say, a total collapse of confidence in the dollar via hyperinflation, etc.) the political elite will go after them. When it becomes obvious to everyone that the system is totally broken, after the elites have been saying it is basically sound, the politicians will want both to push blame away from themselves and to confiscate the wealth of the bankers to help alleviate pain. (Most likely, the bankers will have bought a lot of gold, silver and Bitcoin.) This was what happened during the Spanish Inquisition. Since then, for over 400 years, the financial elite have managed to avoid total hard landings by passing imperial power to the next country while the bubble was still holding. Of course, prolonging the bubble in this way only means an even greater bubble, creating economic distortions and, ultimately, human misery on a greater scale. Hello! It's rare to find a well thought out piece conveyed in language that is neither too technical nor too wordy. I have much to comment about but perhaps not worth fleshing out here. I will say a few things: 1. The "true" or "core" financial elite may be a tiny but powerful entity. On a wider scale, even a number of us could be considered financially more able than the vast majority of the public. You mentioned an educated public - I shall refer to this as the middle class, which we all surely are if only for our ability to discuss this here on this channel. 2. We all must realise by now that the system is indeed broken, but we are not willing to sacrifice for it to change. We want our piece of the pie, no matter how small, before it is all gone. And this is why, we knowingly want the bubble to prolong, knowing it is unlikely to burst in our lifetime. It is sad, but it is real. And I must feel that this is true for most bitcoiners out here.
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Well investing strategies are like food diets: There is no "best investment strategy" excepts the one that works best for you. Also you dont want to begin a strategy and find that you want to abandon it for some hot new trend you discovered by yourself. You dont need anything expensive all you need something comfortable that will last a long time, especially if your investment objective is for long term method.
Well said! Take a look at a few strategies if you like, and then modify or alter them to suit your style and preferences - NOT the other way around. At the end of the day, you want your money to work for you so investment should just be something you plan carefully but not stress or worry too much about over time. Never compare the strategy you are comfortable with against others too. Envy won't do you any good=)
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My investment activities in respect of Bitcoin is only in its purchase and storage. I do not invest in all sorts of dubious Bitcoin projects
That is quite safer if you ask me, because those investment projects are not always legit and in such cases you might lose some bitcoins if you invest in them, though you can earn some profits if you invest in trading but that needs understanding and learning. Yes, only few sites niw are legit, most if invddtment site now are scammed or msybe legit for a few days then once they already earned, they will immediately run. Investing is really risky. Theres so many bad people now that are just waiting for thier time to do thier bad plans especialky when it comes to money. I think once you invest your bitcoins, you should be always ready for any consequences that might happen. Its either you will gain profit or you will lose your investment, Don't forget also that legitimate and trustworthy people or projects, or at least, deemed so by you, are as equally exposed to risk as any other venture. The riskier the venture, the higher the likelihood of loss. The mistake of bitcoin investors are completely inflated expectations - for example, that profit is guaranteed or principal is safe, and that anything less than 10% a year is poor returns. That could actually depends on the amount we invested, if we invest millions and that 10% growth in a year is already significant having a decent income. But most of the investors does not have a decent capital but they want to grow their money very fast. Very true, but even in the real world, millions or billions of dollars returning even 5% annually is considered very successful. Anything more than that is understood to be used as cushion for years that will surely make losses. If bitcoiners were a bit more realistic and understood business a bit better, then they wouldn't expect passive investment to grow their capital unrealistically. Another thing with online investments: people seem to think long-term is measured in weeks and months... in the real world, a year is simply medium-term.
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its hard to trust new services but you can't tell people to do what they should/shouldn't with their money
In the city, where i live, and this city is a big Italian city, with over 500000 abitants, and multiple neiborghood, with other tousands of resident people, is the only 1 shop, that accept BTC (a computer shop) Yeah, I was just saying in another thread that even in my country, which is among the most electronic literate in Southeast Asia, there are only TWO bitcoin ATMs and both in rich neighbourhoods. Normal middle class people (not talking even about working class blue collars) can't even access easily services to buy or sell. But more direct to your topic, I guess you mean hoarding. I agree it's not good in the long term but you really can't do much about speculators who only see bitcoin as a business.
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There are two in my country but both are located near the capital city... and both in upscale neighbourhoods though I suppose that's the only type of people who would buy/sell their bits at the prices the ATMs offer. Anyway I live really far away (on an island so have to fly to reach the capital).
A little bit like the picture online too I guess, regarding who owns bitcoin =)
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The current bitcoin prices are rising, even almost become a $ 750 price. so, I feel that it takes a very long time if you wait bitcoin price dropped to $ 100, even maybe you will lose if you wait for that moment, because bitcoin prices always go up and most likely the price will be $ 1,000 bitcoin and stable
Stable is a prickly issue... especially if we're talking about bitcoin value in USD... is the USD stable? What would you say is the most stable commodity in the world? gold? It's jumped 5 times in USD value from 2000 to 2010 and then lost half the same value the following 5 years. Look long enough and there are highs and lows. Bitcoin hasn't even had a decade for us to think of a stable price.
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Bitcoin's use will never be for that. The current system used for day to day shopping works perfectly. The banks and the payment processors that are established are all giving efficiency and convenience to their users so Bitcoin has no place in it. Where Bitcoin thrives and will thrive more is in the black market and online dark markets simply because the banks do not serve that space.
So basically you think that bitcoin is only good if you are a gambler, tax evader or black market user? I do not consider it only good. It is a really excellent tool for doing illegal stuff online. Have you seen the interest from ransomware using hackers? It is increasing. I will not be astonished if we find out that different terrorist groups are using Bitcoin as a tool for value transfer. Ransomware is natural evolution of cyber crime, it is not because bitcoin was invented we have this problem - it is the the other way around. Blaming BTC for ransomware is like blaming RSA encryption schemes or any other encryption method - because thanks to them our files can be targeted... Cryptocurrency is a just a catalyst for every cyber crime but it is too late to back off, if not BTC they would be using LTC, ETH, XMR or Dash - it doesn't matter. Scare tactics and economic propaganda seem to be working as these misconceptions are still pervasive - even within the crypto community it seems. If you think about it, BTC is actually NOT an excellent tool for doing stuff online - not when you have to go through the trouble of washing your bits a billion times (and believe me, the most dogged Tom, Dick or Harry can still trace back your bitcoins). Doing fiat with corrupt bank officials is still the choiciest and easiest way for criminal activity. You can't "fix" the blockchain.
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The Chinese are wise. A huge bottleneck in gold supply is coming up, and the market prices are going to zoom up very soon. Anyway, investing in gold is much better than investing in the Chinese Yuan (which is no better than toilet paper).
Wiser than you think... the doomsday theories about what happens when China decides to dump all their USD reserves... and now stockpiling gold. They're good at reading the future and China is always thinking 50 years ahead and not 10 or 20. That's why they're also the only ones risking everything to develop Africa before the boom happens on that continent. The Yuan is also actively devalued by the Chinese themselves.
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If bitcoin died tomorrow it would only realistically be because it has been replaced or had a hard fork consensus.
In the unlikely scenario it just died through some catastrophic electronic wipeout, that's a different story. Depends if we can restore our coins. i don't know how that works out.
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See? It won't take long for capitalism to nudge over the free decentralised principles of crypto.
A pity as this move will exclude even more people from crypto trading. Anyone else doing the same for doge?
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Coin 1: Bitcoin Why: - Heading towards mainstream adoption - Lightning network in 2017 - Most advanced coin - No IPO/ICO 100% fair distribution Coin 2: Litecoin Why: - Development is moving at a very fast pace - Might go up with bitcoin if it goes up - No IPO/ICO 100% fair distribution - Remains strong as ever after more than 5 years of operation Coin 3: Peercoin Why: - Development has picked up a lot with projects such as peerassets, peerticker, V0.6 protocol update etc. - Running for more than 4 years - Oldest POS coin - No IPO/ICO 100% fair distribution Coin 4: Dogecoin (Yes im serious) ![Grin](https://bitcointalk.org/Smileys/default/grin.gif) Why: - Running for almost 3 years - Strong community - Gets people used to crypto - Has some adoption as a tipping currency Coin 5: Counterparty Why: - Running for almost 3 years - Assets on bitcoin are booming as result counterparty value is rising - Has real life utility with projects like foldingcoin giving counterparty value Except for counterparty, agree that these alts are going to be around and strong in 2017. Doge is always dear to me, I just like its playful theme. But as investments? I couldn't say I'd feel strongly about any except bitcoin itself.
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A hundred per cent mass adoption, complemented by gradual release of hoarded bitcoins into the market. Price should really not matter if bitcoin never needed to be converted to fiat.
Example in a closed economy, a currency can always be worth 1 loaf of bread no matter how the outside world values that currency.
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I haven't been scammed in bitcoins... I think if you gamble with hyip and investment schemes then you really have to expect to get scammed at some point as you are participating in blatant scams.
You do realise those schemes are scams right?
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