It will be very intersting to see, if the ASICs are mass delivered and the price crashed hard so that they can not make back the electricity, what will people do?  

My localbitcoins sell ad are on, but did not receive any buy order recently

There is a projection that FED is going to tighten, means many institutional traders' available USD will be reduced, they have to liquidate on exchange. Same thing happens on gold and silver market now

Current crash (together with gold) just proved that now FED is going to tighten, institutional traders' free money is flowing out of bitcoin exchange

At least currently bitcoin appears to be no difference than those speculative commodities. I'm providing bitcoin-only sale with a fixed bitcoin price, but unless lots of people are doing it, the value will still be heavily affected by exchange

Exactly, but this trust is established by the law enforcement of government, that's also one of the reason that people can not barely trust the math and network behind bitcoin, since there are no powerful entity behind it

So people will have better life being a euro maker, not a lens maker

A few people sitting there making money without doing any real work, and let the others slaughter each other(competition) to chase for those money, is there any good reason for that?

Bitcoin is not fiat money system, no one can change the coin supply and fundamentals, but exchange is different, if you don't take control, a couple of institutional traders could take the control. I think that some kind of cushion is need to avoid violent shock in the price

I would rather see bitcoin price rise by 10-25% each month (following the difficulty rise), instead of a 2000% jump followed by a 75% dive. No matter how much times you have increased in value, a 100% drop will put you back to 0, and this could happen if the panics are large enough, especially when there is possibility to short the coin

Bitcoin holders and miners are essentially the central banks of bitcoin economy. Their action affect the money supply of the whole system

If they don't sell any coins mined, means no money supply increase, it will stop the sell off of bitcoin and increase the price stability

If they sell a lot of coins, means increase the money supply on the market, which will stop the crazy rally of the bitcoin price

And it is even better if they have built some reserve, they could step in to buy coins to support the price when it falls too fast and sell coins when it rises too fast

If majority of miners and holders act in a coordinated way, they are effectively doing what FED is doing: Ensure the price stability of the currency, so that business get more confident in using bitcoin

In one word: A distributed money supply buffer to stablize the price. It won't affect the long term trend of bitcoin but will provide better short and mid term price stablility

Some true market believers might think this is not necessary, but high volatility in bitcoin price will hurt business confidence

What do you think?

I think OP are really smart to realize this, actually the bitcoin holders and miners are the central banks of bitcoin economy, if they never sell any coins, means no money supply increase, it will stop the sell pressure and increase the price stability. Of course if they have built some reserve that's even better, they could step in to buy coins to support the price and sell coins when it rises too fast

Today's economy development is always a ponzi style development, driven by one after one bubble, government and central bank need bitcoin to save them from the current mess, they have no better options, because they have been on the current route for too long time. Things will unfold in 3-4 years time

With traditional bubbles, they have a difficult situation: If they print too much money, there is a risk of inflation, and they have to tighten the money supply, which cause the bubble to burst. But they don't have this worry for bitcoin, since when they tighten the money supply and reduce the available fiat money, people will just directly spend bitcoin, so there won't be mass liquidation of bitcoins, bubble just shrinked. And due to limited supply, the volatility for bitcoin is always high, so people are all well prepared for the risk, this also reduce the impact when FED tightens. Longterm wise this bubble can last for hundreds of years and becomes the biggest driven power for world economy

To simplify it:

Gold coin: you first work (dig out the gold), and then you spend the gold coin. Because your work is already done, so the gold coin is debt free -- it contains all the cost to produce it

Debt based fiat money: You first take out a loan, then you spend the money, and then you work to payback the loan

Notice the sequence here: If you first work to create money, and then spend the money, the money contains value already, no one use this money will be debt laiden

But if the money is a loan, then you need to work to payback that loan + interest, but your future income is not guaranteed due to continuously increased productivity, more and more automation/robot and less and less job opportunity, so you might run into a default

From risk point of view, the first case is 100% risk free and the second case is gambling on the future income, which is a variable no one can be sure in advance

There are more serious problem in the second case, because if all the money is created this way, due to interest, your future income must increase exponentially in order to payback those loans, means all the production and consumption must also increase exponentially, which is not possible in the long run

Exactly, actually the people who want to get coins are increasing, current buying power vacuum is temporary, caused by lots of investment money went into ASIC device pre-orders, those investors believe that investing in ASIC will bring them better return than directly buy coins

After mass delivery from many ASIC vendors, they will discover that the return for ASIC devices are much worse than buying coins directly and many of them will buy coins instead

Take BFL for example, at price of $5 last year, you could buy 260 coins with the pre-order money for a single, but even if you received the single now, you might never mine 260 coins out of it, due to fast rising difficulty

This is coin redistribution that increase the degree of decentralization

Of course it will help, it is the money backed by debt created today's problem. When money is backed by gold, every piece of money is already paid, you are free to do anything with it. But when money is backed by debt, you must spend all those money in order to pay back the debt, and even if you spend all of them, you still can not pay back your debt, since there is interest

It's same everywhere, but before 1971 fiat money were backed by gold, so they were not printed out of nothing

It's like a magic: you built the second floor of a house and removed the first floor, and the second floor just floated in air. But for how long will it float there?

Central banks successfully controlled the society through a fact: People want to earn money.  Since the money has universal equivalence property, it is the hub of all product/service exchange. If there are many other ways to exchange product/service, then central banks won't gain much control and their money printing won't work. And Central banks try their best to make the value of fiat money appears to be stable for 99% of people

Back to the topic, Portugal was using escudo which is also freely printed by their central bank, how come they were willing to give up this right to ECB? I guess maybe their central bank get some hidden benefits joining the ECB

Utility is not necessary the trust, if you bring a gold bar or silver ingot into a supermarket you could not buy anything with it, even on internet it does not work

That's the interesting thing, we all know that the bitcoin's supply never changes during this 4 years period, so its price should be more or less stable, but it is the value of USD appreciating quickly now against all the assets, since FED hinted that they are going to reduce the USD supply later this year

But people's mind has already fixed on USD, they regard the USD the standard of value, just like people regard earth is the center of the universe and the sun should be moving around the earth  

This is a very interesting quesion since when people sell bitcoin for USD, it means they trust USD more than bitcoin

So why do people trust in fiat money, which is created out of nothing by the central banks?

Is it because they have no knowledge about money creation, or because their ignorance about the financial, or their respect/fear about the government enforcement?

One accept fiat money is because all the other merchant also accept fiat money as a payment medium, once this tradition established, it seldom changes

But this is only one reason, another reason might be that they regard fiat money as a safenet, backed by the government. Look at the FDIC rules, it just want to calm people from withdrawing their savings from banks and it worked very well

I think some kind of insurance should be built around bitcoin, to give people more confidence to handle the bitcoin. Saying this is backed by mathematics and network just scared most of them

Interesting slogan!

This is actually a very good question: Why do people trust in USD, which is created out of nothing by the central bank?

Is it just people's ignorance or their fear about the military power of the US government/law enforcement?

I'm also with you on the global currency idea, but it should be some kind of honest money, not something you borrow from ECB, which they printed out of nothing

It's like ECB saying: Join me, borrow money with low interest from me (because they are created by me out of nothing), and if you can't return it, you must cut your government spending so that I can lend you more