Keep in mind that Gold has a bell shaped distribution curve while bitcoin has an arithmetic progression. This increases the network effect but limits the potential market share since people who would normally be on top of the bell shaped curve (the vast majority) will just get an minuscule amount.
Do you remember where you learned gold has bell shaped distribution? What exactly do you mean by arithmetic progression? How could you possibly know how bitcoins are distributed throughout the community? (sorry if I sound harsh, I just want to know) |
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In a sense Bitcoin has something of a product which given time will spark competition, it has a significant advantage because it is the first of it's kind but once saturation kicks in it won't grow anymore. Bitcoins potential is limited, I would say about as big as paypal is now, which is quite substantial. But it will not reach to the realm of major national currencies or get as important as credit cards.
The reason is that not so many people are at all interested in the concept of a limited currency base. In theory it could work for them even if they aren't into it, but in case of bitcoin there aren't any measures taken to make that a possibility.
I think golds market cap of 9 trillion argues against the limited interest in a limited currency base. I think bitcoin has an enormous potential. Guess we'll have to disagree on this one. EDIT: I remembered the numbers incorrectly. The 9 trillion stands for the amount of gold traded in a year. ( http://www.visualcapitalist.com/the-silver-series-investment-part-3) |
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I'll be happy to print this out and eat it if I'm wrong. I'd actually like to see that too. To quote almost every post in this thread: I want to see pics and vids of this as proof !  Can not take pictures because it is invisible ASIC - Stealth ASIC - Miracle of Chinese electronics. Faster than the speed of light  We have to trust their words because words are more important than the photos, Similarly to faith in god (I am atheist) People, I wasn't talking about pics and vids of the ASIC, check my quote: I want to see camosoul eat a piece of forum-print-out A promise is a promise .... |
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short answer: its backed by production costs
No. You have it backwards. No one would be mining for anything if it didn't have value in the first place. hear hear (I would add something of substance to this discussion, but the quoted explanation is obvious enough for me...) |
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2) What is to prevent the judges from colluding with the claimant and taking as much money as possible?
The judges money is limited as per my OP. Nothing stops the claimant from paying the judges outside of the insurance system. They just give him an anonymous bitcoin address . |
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Some novelty? Hell, most people have never heard about it. I think network safety, wallet safety, governmental and banking acceptance and merchant adoption are currently way more important for bitcoin pricing than monetary inflation is. (Although inflation avoidance is a mayor underlying cause of using bitcoin in the first place).
It's 4 years old. HTML5 and google chrome are about 4 years old. HTML5 has much more adoption going for it but it's a standard not an application. Chrome is pretty much at market saturation. I would place Bitcoin somewhere between those two in terms of novelty decay rate. It's got elements of both, it is neither just an application nor a standard and has elements of both. Downloading and using google chrome doesn't put your savings at risk. Buying a decent chunk of bitcoins does. It's normal that one gets adopted faster than the other. Furthermore, Chrome is 1 piece of software. Bitcoin needs a network of miners, merchants, software, payment processors etc, and they rely on each other to become more useful. Its a positive-feedback thing that needs to grow little by little (but exponentially). Oh and I don't think Bitcoin has the potential for governmental & banking acceptance.
They don't need to accept it per se (although that would be awesome), just not attack it... |
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Some of the same factors that drive the price of bitcoin also drive the price of silver, so never is possible.
then how is this possible: - bitcoin early 2012: $6, early 2013: $15: +150%
- silver early 2012: $28, early 2013: $30: +7%
There seems to be some other factors. Like BTC being something new for example? Novelty decays quickly, on the Internet faster than everywhere else. There is still some novelty left so Bitcoin surpassing silver is certainly possible, if it happen it will be sooner than later but that is far from certain. novelty? Hell, most people have never heard about it. I think network safety, wallet safety, governmental and banking acceptance and merchant adoption are currently way more important for bitcoin pricing than monetary inflation is. (Although inflation avoidance is a mayor underlying cause of using bitcoin in the first place). |
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How informative is this data? I mean, Bitpay says it has over 2000 merchants right?
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The comments too are epic fail. The girl that tought it was only a Good Wife thing, the girl who is "little scared", lol  Seem like pretty normal reactions to me. I was "a little scared" when I did my first transactions too... |
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I'll be happy to print this out and eat it if I'm wrong. I'd actually like to see that too. To quote almost every post in this thread: I want to see pics and vids of this as proof ! |
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Right, because Europeans, Chinese and Indian people (especially those last two) all hate gold....  we're just not as obsessed as you  Who said I am American? |
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ah always those Americans with their gold.
Right, because Europeans, Chinese and Indian people (especially those last two) all hate gold.... |
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Lack of new fiat going into the exchanges does change the circumstances but how on earth can you derive 'Economics no longer apply' from that? The market is still the market and the circumstances are known creating opportunities to those who want (for instance by keeping some fiat on the exchanges specifically for the purpose) to take advantage of the lack of buying pressure from new money for themselves.
Exactly, if a pattern becomes very predictable in trading, people will take notice and anticipate on it, so it will disappear again. |
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If only if only..
.... I had 100k coins too? |
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If your total savings amount is something you could regain pretty easily and you don't need it, sure, you could bet with everything.
Otherwise, I personally wouldn't do it. The risk for it to become worthless is too big imho. Of course, its a decision everyone has to make for him/herself.
EDIT: I think my answer sounded too positive, I generally wouldn't recommend anyone to go all-in on bitcoins.
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Make a bet Proudhon - I'll bet you 10 btc we continue the climb next week
I'll bet he will not bet. I am sure if you and I bet for 100 BTC that he won't bet for 10 BTC, I might come out in favor (following some pm's of course) . |
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Wow the first address all ones, very strange.
The guy is showing off, knowing people will look at it, wouldn't be surprised if he had more in other addresses. Can't blame him  |
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I figured everything out when I took a walk this afternoon.  When new participants flood their dollars in Bitcoin exchange, the price of bitcoin goes up, hoarders who spread the hypes dump their coins and make their profit, in a colletive and indirect way. You can't see the individual who snaped away your money as a newbie. This is nature of bitcoin exchange as a tool of ponzi scheme. The hypers work in a team that no one exposes his face as a schemer. Is this a ponzi scheme? simple and clear yes, a subtle hidden and intricate one. Who rescues bitcoin? The feature that a bitcoin can be divided more than a million times which eliminates scarcity. That's why a ponzi scheme works fine with other designated commodity but doesn't work with bitcoin. Hypers and schemers are doomed because they cannot drive the market in the same way as they do with other investment to beat the average return on investment. So, bubbles exist everywhere, a ponzi scheme has no chance to work with bitcoin if the owners of 51% of the coins are basically lucid. no |
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IMO, everything valueable in the world will always develope into a ponzi like scheme, but I call it crowd behavior
Take housing for example, as soon as the stable and continuously rising price has fall into the eyes of the mass, more and more capital will flow into the houses, and this process will eventually strengthen itself and suck in more and more capital, but at certain point of time, the available capital will be limited by the banks, sooner or later it will hit a brake and the fall will also strengthen itself
It's like a wave, it is a part of the nature
Dude, you are talking about bubbles, not Ponzi schemes Holliday just put up an excellent post laying out Ponzi schemes, pyramides schemes etc. a few posts back: read it ! |
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