Even under the shadow of Mt. Gox & Bitstamp, this will be scary huge.  Strap in, 2015 will be a wild ride if this ETF is approved. This could save the large Mining operations for awhile.  The just curious money alone will create a second bubble, remember to set your sell triggers.  Then buy back after the dust settles.

“But Mr. Luria sees Bitcoin’s wide price fluctuations as a risk for investors. Bitcoin isn’t the only commodity that trades 24 hours a day, but it does have wilder price shifts than many other assets.

“The price could decrease tremendously after the market closes, and you won’t be able to do anything about it,” Mr. Luria said.”

http://[Suspicious link removed]/vnu5HV

There will always be consistent downward pressure on bitcoin.  Big Miners have bills to pay and need to sell regardless of price.  They'll sit on what they can while they can afford to.

The current situation is a clear example of problems the bitcoin network will face in the future. Miners only continue to operate when it’s profitable. Bitcoin value will always be tied to operating costs of people, equipment, facilities & energy.

I believe in the technology to a point, but for it to be a widely accepted currency it needs to be fairly stable.  Would you accept your paycheck only in BTC at this point?  Could you survive only using it to exchange for goods & services instead of your local fiat? 

Actually it's supposed to be an alternative currency.  And it's only purpose is to hold value to trade for or "buy other stuff"

“Bitcoin was a genius invention, but its implementation became corrupted by people whose aim was to make money – not bitcoins, but dollars.” ~ BCnext 

Sit on it for a few months.  It's speculation buy low, sell high:)

Price averaging is not practical when you have no idea how high or low it can go.  As you can see by the 2014 charts, your guess is as good as anyone's.

The current situation is a clear example of problems the Bitcoin network will face in the future. Miners only continue to operate when it’s profitable. Bitcoin value will always be tied to operating costs of people, equipment, facilities & energy.

Will their be enough individuals running long term hashing power to support network transactions when mining is over?  What will their operating costs be? 

Will the system eventually transform into something centralized that will charge transaction fees to support operating costs?  Which would be very similar to the banking system that we have today but without Government backing.

You’re right,

To my knowledge Coinapult is not currently carrying any loss on the books until they commit.  They are locking BTC to a current BTC=fiat trade value.

In their Actual Locking TOS:  “After your acceptance of the quote described above, subject to these Terms, your Fixed Bitcoins will be converted into the right to receive a future amount of variable bitcoins corresponding to the quoted underlying asset or currency value (the “Variable Bitcoins”).”

What will the value of the “Variable Bitcoins” be?

Considering the current wild fluctuations in BTC, it concerns me that any company offering this service is exposing themselves to a significant risk even in a 24hr period from offer to acceptance.

Taking into account the past few months of volatility. They have to maintain significant assets to cover the extreme recent BTC price fluctuations.

Bitcoin is supposed to be a currency not a stock.

79% of what?  The high bitcoin price $1,200 to $250 = 79% decrease

I didn't declare them insolvent, I just don't trust any company offering a guaranteed BTC to $ return especially when you read the TOS.

I had a roommate from Panama that said that for enough $$$$ you could essentially do what ever you wanted as long as the right people were paid off.

Now back to my original problem with bitcoin volatility.   

To be widely accepted, bitcoin needs to settle down. People want their currency value to remain fairly stable, not fluctuate wildly like a commodity stock.  Imagine if your paycheck was paid only in bitcoins and you would gain or loose 35% of it's value week to week.  Currently you still have to convert to fiat $ to pay bills.  Would your utility company, landlord or mortgage company deal with +/- 35% weekly value fluctuations?   Would you be able to pay your rent, mortgage, car & health insurance or buy groceries? Sorry kids, we don't eat this week:(

Understood, Barış seninle olsun

Do you live in Germany or Austria?

Merhaba Erdogan, I lived in Turkey for 3 years and as economies go, you have a unfortunate base economic reference.  I remember when $1USD = 1,200,000 TL  I appreciate that you have suffered through some of the worst economic times that most people can't even imagine.  In the US the landlord or mortgage company want their money on time and on value.  They aren't interested in spending power, they want $$$.

Do you really call "Coinapult" a solution?  Do you seriously think that they really could survive holding a 79% loss on the books for over 6 months & still be able to pay commitments?
To (hedge) a 79% loss you need an alternative income source to support it.  Located in Panama, I imagine they have so many other alternate income streams, really?
I wouldn't count on them fulfilling their commitments when the BTC price fluctuates wildly.


Coinapult: TOS
Locking your Bitcoins
You may choose to “lock” a certain amount of bitcoins in accordance with these Terms (the “Fixed Bitcoins”). When you “lock” your bitcoins, you are converting your Fixed Bitcoins into the right to receive a future amount of bitcoins based upon a future offered rate. We do not offer exchange services, and you are only entitled to receive bitcoins from us as set forth in these Terms.

Locking Quote
Before “locking” your Fixed Bitcoins, you will obtain a quote of the locking value of the Fixed Bitcoins corresponding to the value assigned by our system to an underlying asset or currency. Coinapult will communicate a time window to accept the quote for locking your Fixed Bitcoins into Variable Bitcoins.

Actual Locking
After having received a locking value for a certain amount of Fixed Bitcoins, you may accept the quote. After your acceptance of the quote described above, subject to these Terms, your Fixed Bitcoins will be converted into the right to receive a future amount of variable bitcoins corresponding to the quoted underlying asset or currency value (the “Variable Bitcoins”). By accepting the quote, you are further authorizing Coinapult to display a Variable Bitcoin balance in your wallet corresponding to the underlying asset value of your Fixed Bitcoins at the time of the lock.



 

It’s no wonder why mainstream people are scared of bitcoin.  There’s such a mix of speculators treating BTC like a commodity investment & purists that want mainstream adoption as an everyday currency.  “News flash” it can only do one function well, it’s either a growth investment or a currency.  To attract new major venture capital investment, bitcoin needs to be volatile and have room for rapid growth.  For mainstream people to adopt it as an everyday currency, it needs to be moderately stable.

To be widely accepted, bitcoin needs to settle down. People want their currency value to remain fairly stable, not fluctuate wildly like a commodity stock.  Imagine if your paycheck was paid only in bitcoins and you would gain or loose 35% of it's value week to week.  Currently you still have to convert to fiat $ to pay bills.  Would your utility company, landlord or mortgage company deal with +/- 35% weekly value fluctuations?   Would you be able to pay your rent, mortgage, car & health insurance or buy groceries? Sorry kids, we don't eat this week:(

“Bitcoin was a genius invention, but its implementation became corrupted by people whose aim was to make money – not bitcoins, but dollars.” ~ BCnext

Bitcoin is supposed to be a currency not a stock.

Are you talking about the "Locks" service provided by Panama-based bitcoin wallet provider Coinapult?  

If so my BS meter is flashing RED.  They would have to have significant assets to cover the extreme recent BTC price fluctuations.  

There's a reason companies setup in Panama, the Fed's can't easily haul them in for fraud.  

It’s no wonder why mainstream people are scared of bitcoin.  There’s such a mix of speculators treating BTC like a commodity investment & purists that want mainstream adoption as an everyday currency.  “News flash” it can only do one function well, it’s either a growth investment or a currency.  To attract new major venture capital investment, bitcoin needs to be volatile and have room for rapid growth.  For mainstream people to adopt it as an everyday currency, it needs to be moderately stable.

To be widely accepted, bitcoin needs to settle down. People want their currency value to remain fairly stable, not fluctuate wildly like a commodity stock.  Imagine if your paycheck was paid only in bitcoins and you would gain or loose 35% of it's value week to week.  Currently you still have to convert to fiat $ to pay bills.  Would your utility company, landlord or mortgage company deal with +/- 35% weekly value fluctuations?   Would you be able to pay your rent, mortgage, car & health insurance or buy groceries? Sorry kids, we don't eat this week:(

“Bitcoin was a genius invention, but its implementation became corrupted by people whose aim was to make money – not bitcoins, but dollars.” ~ BCnext

To be widely accepted bitcoin needs to settle down. People want their currency value to remain stable, not fluctuate wildly like a commodity stock.  Imagine if your paycheck was paid only in bitcoins and you would gain or loose 30% of it's value week to week.  Could you pay your rent, mortgage, car & health insurance or buy groceries? Sorry kids, we don't eat this week:(

Like I said “Both systems have their issues”.  Many people wish that more were holding Bitcoins now to stabilize the value. People want their currency value to remain stable not fluctuate wildly like a commodity stock.  

The current situation is a clear example of problems the Bitcoin network will face in the future. Miners only continue to operate when it’s profitable. Bitcoin value will always be tied to operating costs of people, equipment, facilities & energy.

Will their be enough individuals running long term hashing power to support network transactions for free when mining is over?

Will the system eventually transform into something centralized that will charge transaction fees to support operating costs?  Which would be exactly like the banking system that we have today.

Solar is definitely the way to go if you can afford a $30,000 solar system. 

I’ve been looking into Proof of Stake altcoins like NXT.org.  Both systems have their issues but PoS doesn’t have the need for massive equipment and power requirements that Proof of Work altcoins need to function.  PoS makes more sense to me since people are invested in the currency, not the equipment & power needed to support it.