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And to say I almost bought litecoin yesterday.... (not because I believe in it long-term, but for short term trading)
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Why are you comparing regular models with Bitcoin? Why is this a bubble and not a mass adoption somewhere on Earth? What are the differences? How do you know now there are just people rushing in and not wider bitcoin usage?
Usage where and for what? I'm open to that notion but I have no news of such possibility. For what use are they being adopted that I'm unaware of? Take-out food? Hard for us to guess what you are aware of, right? By the way, after the dutch and german sites of lieferservice.de and thuisbezorgd.nl, the french, brittish and belgian versions of the site now also accept bitcoin. |
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Are you going somewhere with these arguments? What is the point?
I guess the point is that the price of 600 is simply unsustainable for Bitcoin, and not a lot of people understand this. Or, 600 is sustainable as long as you have 2 million dollars daily of new investments in Bitcoin. man, you guys sound like experts in the 90ies figuring out that mobile phones will never take off since they use to much energy.  Have I ever said bitcoin wouldn't take off? |
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Bitcoin would never get to such a price point (and the electrical power would get more expensive).
Exactly. This, however, makes some statements about Bitcoin look idiotic. In a link in this thread a couple of days ago, a guy on TV said "Bitcoin price could go to million dollars" Well, it could, as long as you are prepared to have up to 3 billion USD daily usage of electrical power to run such a network. I'm just trying to wrap my head around where these daily electrical power usage numbers are coming from...are you implying that 100,000,000 more people will start mining and the price of electricity will quadruple? I haven't done the numbers, but in an efficient market, the profit margin on bitcoin mining should be low. Thus mining costs (purchase of equipment + electricity (+ other overhead ?)) should be only slightly below the profit (amount of bitcoins mined * bitcoin price). |
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But as noted by 600 watt, gold storage and transportation costs money too.
Yes, but this cost of gold will not be passing trough the exchanges (on the sell side as well) and push the price down, like the cost of Bitcoin will. As long as miners have costs that can't be paid in Bitcoins, a sizable chunk of that daily $2 million must pass trough exchanges, pushing the price down. If you can't see this effect on the price today, that does not mean that the effect is not there. And this effect, this downward pressure on the price is directly connected to the price of Bitcoin. The higher the Bitcoin price, the stronger the downward pressure on the Bitcoin price. Are you going somewhere with these arguments? What is the point? |
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It is completely like gold but better.
Gold does not have a price point at which all the electrical power generated in the world is used by gold. Bitcoin has such a price point. Dude electricity is irrelevant. Maintenance cost is relevant. For gold that cost is way higher (anti-counterfeiting measures, transporting, anti-scraping measures, storing, securing) than Bitcoin mining which also accomplishes all these things better. People that keep focusing on electricity truly don't get it. Do yourself a favour and read the articles by Erik Voorhees I linked. I don't think electricity is irrelevant. The faster and higher bitcoin goes up in price, the more electricity will be consumed in these "high btc inflation" times. If bitcoin reaches $100k overnight, the resulting mining activity (and energy consumption) will be huge, and largely for nothing, because past a certain point the increased security is just overkill. But I guess that is the price to pay for the new monetary system. |
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It is completely like gold but better.
Gold does not have a price point at which all the electrical power generated in the world is used by gold. Bitcoin has such a price point. Bitcoin would never get to such a price point (and the electrical power would get more expensive). |
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You do realize there is this thing going on that is called "gold mining"?
If all gold mining in the world stopped, gold would still be useful, so it can function with "zero cost". Not so with Bitcoin, Bitcoin will always have costs to keep it running, and this cost is an almost direct function of its price on the exchanges. For now, due to inflation. How about when miners have to survive on transaction fees alone? If most transactions would occur off-chain, wouldn't that strongly reduce the operating costs? (I am having a hard time predicting how this will evolve.) But as noted by 600 watt, gold storage and transportation costs money too. |
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hey its "virtual gold"
Bitcoin is not like gold at all, in the aspect that gold does not have price check built in the same way Bitcoin has. Bitcoin network uses electrical power, and this power has cost. At 600, around 2 million usd daily, can pass trough exchanges pushing the price down. So, we need 2 million daily just to keep the Bitcoin price at the same level. So, 2 million of fresh sucker money daily. You do realize there is this thing going on that is called "gold mining"? |
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What the hell is causing that spread? It's not just Gox too, China is even higher. We still live in the wild west!  FBI likes Stamp to liquidate their coins . jk |
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Compared to a bank account, the rates atm are crazy high. Bitfinex is not a bank, by far! This should be reflected in risk/reward terms. Yup, I agree completely. |
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Is it just me or do the comments on this article have a much different tone compared to prior ZH bitcoin articles?
Yes, resistance is getting weaker. Less trolls. |
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Even holding coins is a trading strategy...  I'm playing a weak (but safer) strategy by holding USD and lending them out - however the returns are MUCH worse than expected and also MUCH worse than through the previous rally. This is not really fun any more and USD lenders (the main reason Bitfinex is popular in the first place) get screwed big time again and again as more and more money shows up and is lent out at laughable rates compared to what traders make on these loans. I really would like to see an audit promised or done asap by the way... It's all relative I guess. Compared to a bank account, the rates atm are crazy high. Compared to the rates that you could get last bubble, they are really low now. Compared to just being all-in on bitcoin, lenders are getting chump change. |
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From bloomberg: "The Department of Justice and Securities and Exchange Commission are telling a U.S. Senate committee that Bitcoins are legitimate financial instruments, boosting prospects for wider acceptance of the virtual currency. Representatives from the agencies told the U.S. Senate Committee on Homeland Security and Governmental Affairs ahead of a hearing today that the digital money offers benefits and carries risks, like any other online-payment system, according to letters they released before the meeting." http://www.bloomberg.com/news/2013-11-18/u-s-agencies-to-say-bitcoins-offer-legitimate-benefits.htmlAs ridiculously high (and ridiculously fast as we got there), this is astoundingly good news. If the US Government gives Bitcoin a go ahead, we can bump up our mass adoption plans. Depends a bit on how industry-killing the regulations are or not. |
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Lost 1600 coins during the april crash, I behaved like a pig and was slaughtered. Ima go back to crying in between taking bites out of this cookie dough tube  Ouch. Tell me you kept some... Still have about that much left, it's nearly time for $1000 a night hookers and scarface like piles of blow... Oh and also forgot about the 649btc that pirate stole... oh the stupidity  You poor poor millionaire, I really feel for you ... |
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We think bitcoin is a great and legitimate instrument. ... Now, in order to protect the citizens, we will be providing bitcoin-licences to shops that want to accept bitcoins for the low low price of $10k / month.  |
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crap its only been 1 month of this for me no wonder everyone on here is insane
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wow, looks like I missed some excitement.
Get back to driving the rocket. Also take Humantee with you. Sure thing boss .  |
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