i think you are confusing fractional reserve banking with the [us] federal reserve bank
+1 |
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Or maybe by then Bitcoin will have succeeded in its mission of destroying all fractional reserve currencies .
Bitcoin can be combined with fractional reserve banking. It's monetary base inflation to infinity that it kills. |
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I think the trend for 'blockchain' is much more awesome. These are people who are actually (trying to) understand bitcoin, not just buying on a fad.
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13.5 + 52 = 65.5 by year end
I wouldn't be surpriced.
Bitcoin was up 288% in 2012 which means a target price of $50 in 2013 is achievable. Repeat after me: Past performance does not guarantee future results. Repeat after me: I took this quote out of context. Repeat after me: I can double my bitcoin by playing S.DICE Repeat after me: I can lose all my bitcoin by playing S.DICE Repeat after me: Repeat after me Repeat after me: I need to quote this for no reason Repeat after me: have to stop to smoke ganja Repeat after me: I'm wasting my precious time in pointless stuff. Repeat after me: PROOF OF LURK Repeat after me: Usenet called, it wants its cascades back. Repeat after me: I am building a giant-ass pyramid. |
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You are not the only one that has been fooled by this market...
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If you sold some coins just prior to the biggest jump in months, raise your hands   |
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You are the one with the name freemoney maybe you should tell us.  Maybe not by doing nothing, but very little. Early adapter mines thousands and hoards. Does next to nothing and gets rich. That is an unjust system. LTC adoption will change it. How is LTC different in this regard? Do you think litecoin is more fair? The average person has not heard about bitcoin, let alone litecoin. Think the people mining litecoin now are not early adopters just the same? Aren't they going to be rich for doing nothing just the same should litecoin become successful? |
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I think the title of your post is misleading/rubbish. 'Volatility', as far as you can determine it by year over year changes has been much lower for big mac than for bitcoin.
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The Bitcoin market cap is usually quoted as every BTC currently in existence times the current market price. This is not true because the majority of BTC were never traded for currency. Even worse during a rally the supply dries up because people do not want to risk having the price surpass their ask significantly.
And how is this different than stocks? You can't really compare it with stocks. Owners of a company's stocks or other securities, actually have a claim on the company's assets, some of which are always physical (larger percentage for an airline as an example, smaller percentage for a software firm, and so on). Even if stock goes to zero, there is always some recoverable value. This is why, when companies have substantial physical assets (plants, equipment, inventory, etc.) their stock cannot go to zero. Someone will buy them before that. Debt changes the variables, but even if the company defaults, some debt is recoverable. "Market capitalization" in that context is a useful metric when compared to the actual asset base of the balance sheet, to gauge whether a stock is richly or poorly priced (and in the case of things like FB as an example, to try and justify it  ). Owning bitcoins (which is a very vague term anyway, the "owning" part I mean) does not represent a claim on anything of value. If their price ever goes to zero, we probably won't even talk about it with anyone anymore. So, terms like "market cap" have no meaning when talking about BTC, but for a different reason, IMO, than what the OP suggested. There are many more differences between bitcoins and securities, such as what happens if the grid shuts down for a while... I was mainly referring to the price discovery mechanism being the same. Whether the asset in question is of a different nature is not that important imho. And BTW, Spiff, nice to see you here :-). KAFA 4 ever ;-).
I am afraid you have mistaken me with one of my alter egos. I don't know what KAFA is. |
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While we're at it. Can someone explain to me how hedging works in general? If you hedge against a bad outcome of a bet/gamble, doesn't that hedge also anihilate the good outcome?
I believe the term "hedging" is also used for strategies in which you make sure that your loss never exceeds a certain amount ( for example in case of a short), but I am no expert. |
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Relevant chart:  I own a airplane ?? Sweeet !!!! |
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you might say i have a funny way to hedge.. but if i win the bet i will get 3BTC + buy back below 15 maybe even below 10 fuck that would be sweet  Doesn't a hedge work the opposite way of the main gamble? Yes, I believe this is called 'doubling down' instead . I said same thing before, Adam has got some cute interpretations of certain financial terminologies. Indeed  |
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USD just lost 20% of its value in the past week.
I hope you realize this is wrong... |
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you might say i have a funny way to hedge.. but if i win the bet i will get 3BTC + buy back below 15 maybe even below 10 fuck that would be sweet Doesn't a hedge work the opposite way of the main gamble? Yes, I believe this is called 'doubling down' instead . |
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The Bitcoin market cap is usually quoted as every BTC currently in existence times the current market price. This is not true because the majority of BTC were never traded for currency. Even worse during a rally the supply dries up because people do not want to risk having the price surpass their ask significantly.
And how is this different than stocks? |
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in two words: zero-sum
Yes, zero-sum game between currencies. They are connected tanks. Bitcoin monetary base in USD is 300M, fed monetary base is 2800 B . I am not saying it's gonna shift in one clear go, but it is obvious that there is still quite some potential left |
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I thought there would be pizza   It's amazing how just looking at a picture can induce a craving for a certain type of food. Yeah, now I want a part of that big-ass pizza too ! |
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Reddit has 43 million users.
Say 1 % understand cryptography, that is 430 000 users
Say 1 % understand money systems, that is 4300 users
Say 1 % have the means, that is 43 users
Say 1 % have the guts, that is 0.43 user.
Shit lets round that to 100 new bitcoin users.
Not bad for a single day
You are making a lot of assumptions. The fact of the matter is that as bitcoin gains traction, fewer people will feel the need to know the underlying processes of how it works in order to trust the fact that it works. Instead, they will just be relying on the fact that many people already use it, and trust that these people have already looked into it. Herd-like behavior might be dumb at times, but at other times it is greatly time-efficient. EDIT: just as some proof: you say only 1% understand money systems, but I am sure 99.9% use money.... . |
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Wow! We are NOWHERE NEAR the top of this bull run.
I have watched and traded commodities futures markets for several years and have never seen a new high posted straight after such a massive sell-off, let alone one that ripped the price down 15%!
All that has happened today is that several big holders of bitcoin called a top at $26 and took their profits. Turns out that they burned their coins too soon. The main trend is intact.
Yes, I was baffled ! You think you know something about human psychology and the market, and then the market just takes you for a spin... |
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I don't think we'll jump right back though. Some hot heads just got cooled. Guess it will take people at least a week or so to recover from the cold splash.
Wow, guess who was wrong. |
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