These are some points that make bitcoin and fiat different: 1. Fiat is non volatile, if you kept it for a long time, the value won't change while bitcoin is changing its price from time to time. 2. If you invest in electronic money or bitcoin especifically there are bigger changes that it will profit and double you investment in a short period ublike fiat. 3. Fiat is very accessible, you can use it anywhere and anytime. There's no need to use internet. 4. Both are important and both are valuable. It's better to have them both.  People are repeatdly saying that the emergence of bitcoin and other cryptocurrency will mark the end of fiat money but in my opinion, these two methods of payment are going to be there concurrently for a very long time because in the end when a person cashes their bitcoin, they will receive cash, It depends on you whether you want to cash your bitcoin into fiat or stay with bitcoin itself and get your fiat from other places, like from your daily job. But I can say that fiat and electric money can never be seperated from because when bitcoin can't be change to fiat, it will be meaningless to have coin that has no value on it. Mean while when you have fiat and want to start buying coin,it has no value too. So I think to get both money is pretty good right now and most of them make bitcoin as their extra income In the future, bitcoin may not be converted to fiat anymore because they can use it directly to the stores or any shops to pay the items that they bought or the service that they used. Electronic money and physical money will be merged in the future and that is almost a guaranteed thing that will happen in the future because the technology will make things evolved and more convenient. Electronic money and physical money both have importance in their own ways, only that bitcoin as electronic money is not widely used yet. Like physical money bitcoin can also be used to purchase online and pay bills in selected countries. I think there's no need to argue as to which is more important or which to be deminished since both have helped people in their financial needs. Rise and fall is the rule of nature. Two centuries ago gold, silver, copper was being used as currency. These were in trade for thousands of year. They were the standard currency all across globe. However as new paper currency based economics was developed and imposed by ruling nations and banks which supported them, gold, silver currency is out of the system. Now gold and silver is reduced to the mere ornament, industrial use, store of value. With same law physical money that is paper currency will also see its due course accordingly. The technologies are evolving fast and being spread across the last strata of society. Soon majority of people will be able to get their hands on internet not as entertainment but as necessity. this will happen once cost involving technology will be affordable to them. At that time moving away from the paper currency will be a possibility. |
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Yes bitcoin can improve economy if it regulated by particular country.Than bitcoin can be used for trading purpose and people can use bitcoin as they are using fiat currency. people will want to earn more bitcoin if they legalize in country and then Per capital income will rise.
Not totally bitcoin can do a lot for our economy, even it become legalized. Because we don't pay anything to our government for this, only the exchanges have imposed fees for all bitcoin holders and investors. That's why some countries didn't support bitcoin because they can't benefit from this, unless they start collecting tax. And with this, we can help our country to improve our economy. If we see the situation of govt benefiting from the bitcoin bit differently then we could see that there are chances of benefit for govt as well. A govt does not need to totally rely on bitcoin but they could use the backend technology which is blockchain to move all the public domain data there. That is if govt decides to keep the things like land records, insurance records and various govt policies then manipulating these records will be next to impossible. Thus frauds related to these field will be less and less. When underdeveloped countries started digitizing the land record, the work was intentionally shoddy. Later to cover up the scams entire computer systems from department were burnt down. This would not have happened if they kept those records on blockchain and nodes of blockchain at geographically different location. Bitcoin transactions are irreversible and could be verified anytime in history. Once it is recorded it is done. Thus if countries allow use of bitcoin then they could get more transparency in transactions. |
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Almost everyone I talk to these days has at least heard of bitcoin its a good sign that in the next 4 years the majority of the world will be aware of bitcoin and its life changing ways.
That is because the recent attacks from the ransomware which were asking for ransom in bitcoin. That gave bitcoin mainstream news media coverage and at same time somewhat negative publicity as well. Some have perceived bitcoin as currency used by bad people. Just like Western news media gave reputation to the ak-47, ak-51 as weapon of choice for terrorist, bitcoin is being associated as currency for hackers, crackers. Anyway good or bad laymen were introduced to the concept of bitcoin at least. As far as bitcoin being used by almost everyone by 2022 is a real long shot with a big fat chance. |
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No need to panic at least at this stage. Because the ban or warning is against the bitcoin being used as currency or mode of payment in the Indonesia. It does not mention that purchase, selling, holding of bitcoin as illegal. This gives a hope for people from the Indonesia that they could still use the bitcoin as tool or investment. Only problem is they might not be able to use bitcoin as mode of payment. It is ironic that Govt has banned a currency in a country from being used as mode of payment. However they have not made holding, purchasing, selling of currency as illegal. Till bitcoin selling, purchasing, holding is not a crime is a country one can enjoy major benefit of it. Majority of People are not using bitcoin for payment, they are using it as investment. So lets remain calm at this stage. |
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There hasn't been a country who said that bitcoin is totally "illegal" those who made some regulations are China, Usa and probably the India, but they didnt said that bitcoin is ilegal, a regulation is something completely different. Just remember that China is not killing anyone just because using bitcoins, they are only shutting down some exchanges in their countries, but nothing more.
Bitcoin is legal in most countries all around the world.
Your information about bitcoin is NOT illegal in any country needs correction (no offense). There are at least four countries which have banned bitcoin completely. Namely Bolivia, Ecuador, Bangladesh, Kyrgyzstan. * Here Bolivia banning bitcoin in 2014. * Ecuador went one step further and banned the bitcoin and all other digital crypto currencies which are decentralized by the National Assembly of Ecuador * National Bank of the Kyrgyz Republic specifically mentioned the bitcoin while imposing ban on the virtual currency in its law. * The law in the Bangladesh are very strict than above all combined as Bangladesh Bank said that "anybody caught using the virtual currency could be jailed under the country's strict anti-money laundering laws" . From above we could see that out 195 countries in the world only four have banned the bitcoin. In countries where bitcoins is not declared illegal is deemed as legal. Understanding of law is such that if something is not illegal it is considered as legal. Because we can not mention or list everything under the Sun that is legal, but we could mention what is illegal. |
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Assuming the most optimistic scenario, BTC replaces Fedwire 100%.
Over the past 4 months, BTC's blockchain volume has been roughly $1 billion dollars per day. In 2016 Fedwire sent approximately $2 trillion per day. This is an astonishingly large amount of cash and more than notes of USD notes in circulation and really makes me wonder what is going on with the banks. In order for BTC to match this volume of Fedwire transactions, its price would need to be 2000 times higher than it currently is or roughly $12,000,000.
I really don't know if this is even plausible, but an interesting hypothetical. This would make Satoshi, with his 1,000,000 BTC stash, worth $12 trillion. No wonder he's gone silent.
I suppose even just a fraction of this, like 1%, could be considered a major success, or $120,000 BTC. Could this be what people are starting to price in since there is still so much potential?
Any thoughts, critiques or other ways to value BTC are appreciated.
Total market capital of bitcoin is somewhat around 101,931,068,218 And at the same time fedwire is moving 2 trillion dollars per day. From the stats alone we see that total market capital of bitcoin is reasonable far away from what fedwire is handling on daily basis. With that said it is not entirely impossible for bitcoin to compete with fedwire within few years. Given that growth rate of bitcoin adoption is remaining same or more. More importantly other govt or at least if federal reserve finds out that bitcoin is posing serious threat to their business then situation could get bad sooner than later. However fedwire has nothing to fear about bitcoin at this stage though. The value of bitcoin which needs to increase to match up with current fedwire is doing on daily basis is huge but bitcoin is known to do wonder all along. One interesting point though by the time bitcoin is near to the 2 trillion per day, how much do you think fedwire will be handling? |
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Peter Thiel – PayPal co-founder and billionaire venture capitalist, for a long time now has been a backer of the virtual currency Bitcoin. Thiel did again indicate out the ‘real potential’ of BTC at the Investment Initiative in Riyadh, Saudi Arabia, pointing out that people are truly underestimating it.
Peter Thiel has long been one of the early proponents of Bitcoin. As early as 2013, he stated that Bitcoin has the potential to change the world. As one of the co-founders of PayPal, he recognized the ability of Bitcoin to revolutionize the monetary space. He had long held the view that monetary sovereignty’s time is limited and encrypted money would be the future. Earlier Peter Thiel did comment on how Bitcoin unlike PayPal, was really able to create a currency.
Bitcoin BTC could very well be the virtual gold of our time and replace it as a reserve currency – according to Peter Thiel. Many ‘similarities’ were compared between the two by Thiel like it is mineable and its limited supply.
“It’s like a reserve form of money, it’s like gold and it’s just a store of value. If Bitcoin ends up being the cyber equivalent of gold, it has a great potential left.”
On the other hand, Peter did not really have any enthusiastic feel about the other virtual assets and altcoins which could be discouraging for altcoin followers which have put their hopes for most part of the year on them.
While Peter Thiel is pretty bullish on the potential of Bitcoin, in Riyadh, a certain Saudi prince has a different view. Prince Alwaleed bin Talal, the richest Arab in the world, believes that Bitcoin will implode like Enron. While Bitcoin trading is allowed in Saudi Arabia, the Saudi Arabian Monetary Authority has warned people about the risks of investing in Bitcoin. The Middle East is a region teeming with billionaires and if Peter Thiel has managed to convince a few people to invest their oil-dollars in Bitcoin, the price of Bitcoin could receive a boost. http://ethereumworldnews.com/gold-yesterday-comes-bitcoin-reserve-currency/Tired of "is bitcoin is a bubble"? Now you can enjoy the wonders of "is bitcoin a reserve currency"? On a serious note, it is possible bitcoin could eventually become a reserve currency to replace gold. This paradigm could represent the natural evolution of cryptocoins with limited supply if it is established that limited supply and algorithmic based regulation are best methods to promote stability and long term value. Would be interested to know public opinion on this. Would people feel safer having bitcoin as a reserve currency than they would having fiat like the dollar or euro as reserve? Reserve currency or not that is long gone. Because many countries dont have gold backed currency. However the gold is known for its stable price history. Thus many investors find it useful when bears enter in the market. That is put money in something pumping up and when dump moment is about to start or just started move the value to the gold. Why because gold keeps price almost steady. If we look at bitcoin from that point of view then anyone can notice that person is trying to use petroleum or hydrogen gas to control the fire. Bitcoin is that pumping entity where people investing heavily. When prices starts to crumble people cash out from the bitcoin. However this status of stable currency is enjoyed by bitcoin in alt-currency world. Because same people invest in altcoins and when specific profit is earned it is converted in to the bitcoin. |
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Fiat will never be extinct because it is one if the most important thing on earth. We always use cash in our daily transaction and we can use it anytime anywhere. So cash cannot be replace by any cryptocurrency.
For the current technological platform, fiat must exist. However, in the future, as technology grows to a new height, I believe fiat can be replaced by a smart currency, which may be digital currency. of course fiat will continue to survive because every country will certainly defend each of their own local currency, time will change everything that is ancient to be very sophisticated as well as cash money, I am sure fiat will have digital currency or smart currency to replace cash money which is increasingly ancient and no longer in accordance with the needs of the times From the developed countries perspective it is possible to make such decision only when they have foolproof scenario of providing internet or some other mechanism which will make sure that digital payments transactions will remain working seamlessly. In majority of countries it is almost the case. They have majority of area have under internet coverage. Biggest problem with this situation is whenever outage is there it will be the last thing anyone wish for. Imagine a scenario where digital payment is stopped working for him or her and person is in dire need of buying medicines. This kind of situation is not observed with cash. Either you have it or not. If you have it anyone and everyone accepts it without any problem. This kind of problem gets escalated in poor or underdeveloped countries where lack of infrastructure and various taxes on using digital payment will demoralize people from using digital payment. |
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This is something which I've beleived for awhile, which is the prospect that if big governments and banks worked heavily together they'd be able to remove Bitcoin from the face of the earth. They wouldn't ban it, as that would be a tough thing to swallow for the American people as they wouldn't see a good reason to do that ( at least in my mind here) But they could just go ahead and regulate Bitcoin into oblivion, making it hard for Bitcoin businesses (buying and selling, trading, etc) to operate within their countries, or be subject to insane taxes, KYC AML and such.
Do you think Governments could kill Bitcoin?
I don't really think they could kill Bitcoin in the way you mean it by overregulating it, though I certainly see that as a legitimate point of concern. This is what now happens in China and will likely happen in Russia too in the next few months. Bitcoin and other cryptos depend on exchanges but such exchanges like Bitfinex, which seems to get most Bitcoin trading nowadays, are registered in territories which are rather liberal in this respect. In this manner, overregulation even in the US and EU may not have the effect the governments may be looking for. Thus the answer is, no, they won't kill it by imposing insane taxes, KYC and AML policies, or whatever alongside these. Technically stopping bitcoin is not possible till the last country on earth is allowing it. We need to understand that bitcoin is a peer to peer crypto currency. All it needs is a blockchain which keeps the ledger of transactions. Here no central authority could decide what can be modified or done once transaction is done(block is mined). The way govt has been controlling the economy by threatening a person or company was with there ability to confiscate the cash and seize or froze the bank accounts. In other words govt could disable a person from using currency. And with help of other countries and organizations like InterPol they managed to force their action in other countries as well. Of course other countries also do the same. With bitcoin there is no such control available for govt. Thus they cannot kill it completely. However they could put curbs on bitcoin or crypto currency to the level that will demoralize people from using bitoin. Or they could even make it illegal to posses the coins. Or heavily tax the coins and companies which deals in bitocin. |
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BTC was around $300 3 years ago. Wonder how many people can hold BTC for more than 3 years and enjoy the amazing profit in this period  There are many users who were believing in the bitcoin and were well prepared to hold the bitcoin for long time. At that time bitcoin was actually gaining first serious traction after the mount gox incident. When it reached to the 600 dollars barrier these people became more and more serious. In fact people who invested at 500+ dollars mark were prepared to hold the coins with more determination. And soon same was proved when it reached 800 dollars and then crossed 1000 dollars. At this time people started to pull money they invested and kept pure profit that is half of coins they were holding. And there were who kept purchasing coins after coins as they managed. These are the same people who are enjoying the status of millionaires in some countries. Emerging countries like Japan which is showing one of largest amount of bitcoin trade is also showing holding bitcoin for long time. |
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Adams Smith wrote that the price of all things are equivalent to the human labor involved in their exploitation. The price of gold is determined by the cost in human labor to mine it. It can then be exchanged for another commodity which takes an equal amount of labor to create it.
Over time I have been able to find ways to place a price on stocks which I can use to evaluate what their value is to me. I can then buy and sell based on what I determine as value at any time.
I’m not a currency speculator but I also believe the US dollar is being killed. I don’t like having much of a cash position but would rather be fully invested. At this time what I see is a highly inflated value of the S&P 500. Any bonds other the very short term bonds come with too much risk tied to the Feds low interest rate policy and the increasing money supply along with quantitative easing which is placing too much fake money on the Feds balance sheet.
After many years I have developed a feel or intuition to tell me when prices are out of line. When it comes to bitcoin I am at a loss. I like the core concept of bitcoin and long term it seem like it will all work out but it’s value is another issue. I just don’t have a feel for what it’s worth in exchange for food, a house, a car, gold equivalent. It seem that it should be relatively close in value to the cost incurred by the bitcoin miners. How do I find out what the current cost is to mine bitcoins. It cost to mine a well know number kind of like the PE for a stork or index?
I have started to buy small amounts which I plan to hold but I really don’t like the volatility. It is also difficult to invest in something when I don’t really have any history to give me a clue of somethings value. I doubt I would hold if bitcoin went over 5000. It seems to be moving a bit too fast.
About gold price determination process based on labor involved in it makes sense. Because in this situation we are expecting honesty of company or person mining the gold. Real world is working quite differently when it comes to putting a price tag. Like, this theory of value of product based on labor invested in it fells flat when applied to the diamond. nearly After a century, it is understood that diamonds are not rare at all and are found in abundance in nature. However due to monopoly of one company over the business managed to keep its prices higher than gold. Next example is very loved one, USD that is US Dollars. Cost of printing a dollar does not match with the value it holds. Major reason of USD to remain as strong is that many other countries have heavily invested in the USD and if USD looses its value those who are depending on it are doomed. It is same as when you owe someone or some bank 1 Million as house load then you care most about paying EMIs in time. However if you owe 100 Millions to the bank then bank cares about you because their 100 Million are at stake. As far as bitcoin valuation is concerned then current 49k dollars value is certainly not equivalent to efforts or cost of production. However in recent times, the price of bitcoin never much depended on the bitcoin mining cost in first place. |
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people are coming to understand that cryptocurrencies is a better form of money because they are governed by code alone, which makes the contract digital sacrosanct
"Governed by code alone, making the contract digital sancrosanct." That is a decent way of putting it. Context is where economics discussions become complicated. Many have a tendency to define terms like centralization, regulation, capitalism/socialism and crypto in absolute context. To say that capitalism is always better than socialism is an oversimplification. There are strengths and weaknesses, advantages and disadvantages in everything. You are quite right on that. Capitalism as postulated by Karl Marx classified the society into two, the bourgeois and proletariat. The formal being the individuals with access to factors of production like capital, land, enterprising or entrepreneur(ing) skills etc and are able to employ the labour of the proletariats. He assumed that these two different classes are perpetual , that is, one can not move into another class either by descending or moving from proletariat to bourgeois. However, the current politics of crptos and bitcoin has been able to prove that a no body as (proletariat ) can overnight become overtly rich. It is true that in crypto Nobody Becoming overnight rich. However that didn't stop people from launching new coins every now and then to become one. "Bitcoin is political because it cannot be controlled" is bit far fetched. Majority of government bureaucrat have no idea about crypto and those who have some are finding it difficult to wrap up their head around it. Thus there is suspicion around crypto. However in that suspicion also they find a way to tax the bitcon. For me it looks more of oxymoron. What satoshi has achieved was so great in the sense of economic break through, that people, banks, financial institutes, economists were trying for decades to build up a system which will work as ledger. This ledger would be most secure and trust will be maintained under any situation. There were attempts to build this kind of system with trust-oriented nodes in different countries however their failure were apparent when it came to maintaining security under criticial situation like some of nodes were malfunctioning or hacked. Bitcoin ledger has managed to put that missing link and build a decentralized system. |
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Why Should I Choose Bitcoin ??
It's the first question one should face while starting to deal in bitcoins and answer this will satisfies you to choose bitcoin over others. Some of the benefits that Bitcoin have over other includes :
1-Quick transactions – Bitcoin is transferred quickly over the Internet.
2-No expenses/low charges – Unlike credit cards, Bitcoin can be utilized for nothing or low costs.. This enhances revenues margins deals.
3-International installments – Bitcoin is used all over the globe; e-commerce sellers and service suppliers can easily agree to take international payments. Which uncovered new potential commercial centers for them.
4-Information is secure – As we have seen with late hacks on general retailers’ disbursement processing systems, the Internet is not generally a secure place for private information. With Bitcoin, clients don’t surrender private data.
5-Much More Easier – Bitcoin is Much more easier rather than we think.Means to say It’s Much more easier than transfering a Payment from bank account From bitcoin you can even transfer a Payment in few clicks even While listening songs.
-Hope this will help you in believing Bitcoins !
I do not agree with the first point, quick transaction, I have been doing bitcoin transactions much slower than regular currency transactions I think by Quick transaction, OP meant for global or international level transactions. If you see the transactions taking time to transfer money from one country to other country with conventional ways then bitcoin has edge. In certain situations just to transfer money from one country to the company in other country takes almost two to three days with various bank verification. Many countries have strict laws on amount of money that can be transfered out of country. For example China has yearly limit of wire transfer. The bitcoin transactions are absolutely useless if you want to purchase something over the counter or from the websites within you country. These kind of transactions are instantaneous with credit cards, debit card, internet card, netbanking, or cash. There are solution to tackle point as well, there are some companies which offer bitcoin gift card or bitcoin debit card or simply bitcoin card to let you use bitcoin for transaction, purchase any good instantly as you would do with normal card. |
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We all know that bitcoin has a decentralized structure, it has no central control and can be run by specific people. It is not impossible to happen that bitcoin will be taxed. Some other countries are already working on it since some countries governing bodies are now being alarmed by the growing tractions with regards to cryptocurrency from which they get an idea to get involved and begin having control with it.
Many Governments are putting tax on bitcoin and cryptocurrency by one way or other. For example in the UK the bitcoin is similarly treated as precious metals like platinum, gold, silver etc. So you need to pay tax accordingly. I think there is this bar upto £11,100 limit profit could made from bitcoin selling without tax. That is if you purchase and sell bitcoin in a year and make upto £11,100 then that profit is not taxable. However anything above that will be taxed. There is Israel which treats bitcoins as property and you need to pay the tax accordingly. In India bitcoins is considered as wealth and it is taxed under wealth tax section. In fact there is a section which ask whether you hold any crypto currency or not. Thus countries are finding ways to tax the bitcoin income in general. Govt loves to put tax on anything under the Sun. |
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If bitcoin had a stable price,then retailers would come forward to accept it as payment as they are very much concerned about its price volatility.Certainly,it would increase the demand for bitcoins.More countries would come forward to legalize bitcoin.
On the other hand,traders who make huge profits out of the difference in bitcoin price would not buy bitcoins as their profits would get very less.They would lose their interests in bitcoin,It may reduce the demand for bitcoin.
From the first point regarding more vendors would accepting bitcoin leading countries legalizing bitcoin is bit far fetched. With bitcoin price remaining stable then there would have fewer people in bitcoin market itself. The very traction bitcoin getting is out of its price volatile nature. And people have great amount of faith that bitcoin prices will keep on increasing as they are increasing now. Traders are will loose interest in anything which has stable price. Traders like the volatile market or asset to earn high profit. The stability is appreciated when there is dump in the market horizon. At that moment a trader will try to find stable resource to move assets. |
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many Economists in CNBC say bitcoin is burning money and they talk about many reason which not understand it
So what do you think about tha
There is no need to take these mainstream private news-entertainment media houses so seriously. It becomes apparent when person who has sufficient knowledge of a field hears their discussion/analysis. As far as bitcoin is concerned how much do their so called experts know about the crypto currency in first place? Very less. Anyone who has better understanding of what is happening around the bitcoin world, will easily recognize that these news-entertainment media channels are nothing but spreading a propaganda. Creating fear, confusion, doubt in the mind of people about bitcoin and crypto currency. There are many financial institutes and companies which have seen Bitcoin as negative force for their establishment and some as missed train by long. Thus the sour grape situation. If you want to understand about the bitcoin then focus on bitcoin forum and various threads, people who are analyzing the situation, events and their effect on bitcoin pricing. |
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Actually the future is pretty predictable, the history is showing bitcoin has made giant steps considering that is only 7 years old. I think bitcoin will keep going this way and many of us here think it will bitcoin will have a bright future so the future of bitcoin Economics will be great , no need to worry of it, bitcoin will be without a doubt toward a bright future. Investment in bitcoin as a store of value is great.
It would be ignorance to expect the same growth rate will be maintained by the bitcoin in the future as well. At certain point in the future there will be maturity in price swings and market will try to remain somewhat stable. In the initial stage of any commodity, stock launch its performance remains dynamic. Over the period of time it gets the stability. Same would happen with bitcoin as well. As years go by it will get more momentum along with the stability. It is important to understand that with the momentum increase sooner or later countries, banks, govt will try to keep some kind of tap on bitcoin to control its swing. Also as larger chunk of populous is attracted towards the crypto, rate may remain on upward direction but not with same percentage. The growth may become in arithmetic proportion from geometric proportion. |
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What are the things to do to succeed in trade? What are you doing to make your business bigger?
How can we make more money?
In general sense of the trade and not specific to the crypto, you need to learn basic of that trade/market. How market moves, who moves it, how often significant other factors come in to the picture. Find out what other business depends you trade and vice versa. Learn about them. Now apply same principles in the crypto currency trade as well. This includes the bitcoin and alt-currency as well. First understand what is crypto currency, how they work. Then about the bitcoin and its mining. Check about the bitcoin price manipulation, influences, outer forces. For example, few months ago price hike was touching all time high because of expected acceptance of bitcoin securities from winkeslov brothers. However that didn't work. Price correction was observed, however prices never plummeted to their original value. I mean if prices were raised from 8k USD to 1200, 1300k dollars range then the price correction was observed around 1100 dollars. Not the 8k dollars range. Once you get comfort with the bitcoin market trading, then try your hands with the alt-coint. This would be venturing into second principle of dependent business. Use above principle of understanding and learning bitcoin to alt-currency. Just don't trust them for too long. Use it to increase your bitcoin stash. |
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Why Is Bitcoin's Value So Volatile? I am confused to buy bitcoin now when it's value is too high.
In broader terms, Bitcoin or for that matter the alt-crypto markets are unrestricted, uncontrolled, without any regulations. The kind of regulations stock market puts on to curb the market manipulations. The regulations like upper circuit, lower circuit etc etc. Limits on how much percent of a stock could be purchased by one entity/company. In bitcoin there are no such restrictions. If you have money you could purchase bitcoins with that amount. One with enough bitcoins could literally create pumps and dumps at will. This kind of manipulation is pretty common in the bitcoin world. However stock market or commodity exchanges do not work like that. There are grave punishment for these kind of manipulations. End result is unrestricted market having free run to all giving the volatile nature. One notable exception was mt. gox incident where a bot from that exchange single handedly manipulated the majority of bitcoin prices and crashed in due coarse. At that time it is major bitcoin exchange and there were no plethora of bitcoin exchanges we see like today. |
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Hi guys, I just want to know your views and opinion about the difference in Electronic Money (Bitcoin and others) and the Physical Money. Many people now a days are still confuse about the existence of the Bitcoin and how it differ from our Physical Money that we are using to buy necessity. I hope we could share and learn from each other.  1. Bitcoin is not an Electronic Money. Bitcoin is a crypto currency. 2. Physical money you are referring is known as hard cash. From OPs post it seems that differences between crypto currencies and fiat currency is expected. To move in that direction, fiat currency is also used in electronic form (credit cards, debit cards, meal cards etc etc) [ credit cards were being used way before internet came into existence. Thus difference between electronic money and internet money], internet form (netbanking, online credit card payments) etc , hard cash, and much more. Tokens like cheques, demand drafts implemented from the banks in normal. Crypto currency are different in a sense that they are peer to peer direct cash system. There is decentralized systems of blockchain which is verifying all transactions and keeping the ledgers.. The each system which is part of blockchain has a copy of ledger maintained by other nodes. The physical or fiat currency can be printed as much you want. That is not the case. If a crypto is premined or decided that predecided amount then that amount is not being altered. |
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