The Price of Bitcoin Doesn’t Matter Right Now | Wired

[stellar1]

The problem is we made a commodity out of BTC. Remember what it was originally stated to be. A software based payment system.

Then we began to realize we can't use it as we are able to use any other commodity. So we made it a commodity cum currency. We forgot we don't use commodities as currency in our real life.

To me it currently looks to be trying to become either a commodity or currency or hybrid. I think the coming time will tell us what it eventually becomes. In any case being a commodity cum currency in our times is not an easy identity to resolve. So I guess we gotta be patient and let it resolve. Which is again not easy because we fully believed in each label we gave it and tied our money and hence our greed & fear with it.

[cbeast]

The problem is we made a commodity out of BTC. Remember what it was originally stated to be. A software based payment system.

Then we began to realize we can't use it as we are able to use any other commodity. So we made it a commodity cum currency. We forgot we don't use commodities as currency in our real life.

To me it currently looks to be trying to become either a commodity or currency or hybrid. I think the coming time will tell us what it eventually becomes. In any case being a commodity cum currency in our times is not an easy identity to resolve. So I guess we gotta be patient and let it resolve. Which is again not easy because we fully believed in each label we gave it and tied our money and hence our greed & fear with it.

We all have our own optics. Some use a microscope, while others a telescope. I prefer to close my eyes, stick my hands in and build whatever sandcastles I can imagine.

[Q7]

If it matters, I wouldn't be holding on to my coins. I'm definitely for sure not going to sell it if it drops to zero and neither am I going to sell even if it hits again its all time high.

[Flashman]

Commodities as currencies were more of a problem when

i) Other countries desired them more highly and acquired a large proportion of the issued coinage through trade.

ii) they had a practical divisibility limit

iii) if valued by fiat, increasing price of commodity led to coinage being melted down.

iv) coins were debased, or clipped to steal some of the value of the commodity.

None of this applies to Bitcoin.

[MUFC]

The problem is we made a commodity out of BTC. Remember what it was originally stated to be. A software based payment system.

Then we began to realize we can't use it as we are able to use any other commodity. So we made it a commodity cum currency. We forgot we don't use commodities as currency in our real life.

To me it currently looks to be trying to become either a commodity or currency or hybrid. I think the coming time will tell us what it eventually becomes. In any case being a commodity cum currency in our times is not an easy identity to resolve. So I guess we gotta be patient and let it resolve. Which is again not easy because we fully believed in each label we gave it and tied our money and hence our greed & fear with it.

Why can it not be both a commodity and a currency hybrid? I think bitcoin is still in its very early stages so it's bound to be a wild ride for quite some time and that means there's potential for profit as a speculative investment, but it may steady and slow down eventually and could become a viable currency in the future. The best case scenario would be for a bit of instability initially but a gradual price rise (so we can make some profit) before it tapers off to become stable and usable as a currency for everyone.

[Biomech]

The problem is we made a commodity out of BTC. Remember what it was originally stated to be. A software based payment system.

Then we began to realize we can't use it as we are able to use any other commodity. So we made it a commodity cum currency. We forgot we don't use commodities as currency in our real life.

To me it currently looks to be trying to become either a commodity or currency or hybrid. I think the coming time will tell us what it eventually becomes. In any case being a commodity cum currency in our times is not an easy identity to resolve. So I guess we gotta be patient and let it resolve. Which is again not easy because we fully believed in each label we gave it and tied our money and hence our greed & fear with it.

Why can it not be bother a commodity and a currency hybrid? I think bitcoin is still in its very early stages so it's bound to be a wild ride for quite some time and that means there's potential for profit as a speculative investment, but it may steady and slow down eventually and could become a viable currency in the future. The best case scenario would be for a bit of instability initially but a gradual price rise (so we can make some profit) before it tapers off to become stable and usable as a currency for everyone.

Contrary to popular myth, money IS a commodity, regardless of its form. It is just a generally accepted commodity, rather than a specific niche. It is the grease for the bearings of commerce.

Bitcoin fills this need quite well, but it's adoption remains too small. I actually agree with the article in general, though it's definitely troubling to watch it in freefall. But overall, the general bitcoin news is positive, more adoption, more awareness... why the price did not follow is a mystery to me. The inflation is not yet too great for the rate of adoption, and there is NO better way to send a payment across borders, so both it's currency utility and payment utility are working.

Time will tell.

[MUFC]

Bitcoin fills this need quite well, but it's adoption remains too small. I actually agree with the article in general, though it's definitely troubling to watch it in freefall. But overall, the general bitcoin news is positive, more adoption, more awareness... why the price did not follow is a mystery to me. The inflation is not yet too great for the rate of adoption, and there is NO better way to send a payment across borders, so both it's currency utility and payment utility are working.

Time will tell.

I agree with you. The price collapse is indeed baffling, though I never understood why it wasn't rising either with all the continued adoption and good news of last year, though I think adoption / bitcoin's use is very small in the grand scheme of things but I think this will slowly change over time. The potential is obviously there but it just needs to catch on with the masses or get adopted by certain industries that can benefit from it.

[mrTorrio]

Still holding 120 BTC and don't care bout price. Its long-time game for sure

[FandangledGizmo]

So Bitcoin could be replaced by a blockchain offering currency stable assets, with low inflation and fast confirmation times as well additional products and services like a decentralized trading exchange. In that event most of the problems crypto currently experiences would be solved imo.

1. There is no decentralized way to keep the price of a crypto currency stable relative to fiat. The founder can promise to buy at X price but he might fail to honor it, die, spend his money elsewhere, lose his money elsewhere, etc... See PayCoin's woes. The fiat currency offered in the guarantee might also crash or cease to exist. What good, for example, is a guarantee to exchange 20 chitcoin for 20 rubles if the Ruble ceases to exist?

2. Fast confirmation times come at the cost of security. See all the AltCoin woes. Tons of people have lost tons of money on low hash rate "fast coins"

3. Bitcoin already has exceedingly low inflation. New coins are produced at a very modest rate that decreases over time and the total number of coins ever produced is capped.

1. BitAssets do you let you hold the value of real world assets like USD/Gold in a completely decentralized way. There is no counterparty risk, you don't have to worry about anyone's ability to pay. There is only systemic risk but the system is over-collateralised with an average of 300% collateral transparently backing the BitAssets.

http://www.bitsharesblocks.com/assets/asset?id=USD

https://www.cryptocoinsnews.com/2015-year-decentralized-bitcoin-exchange/

2. The 10 second transactions don't come at the cost of security. BitShares is more secure after 1 block (10 seconds) than Bitcoin is after 6 blocks (1 hour)

http://bitshares.org/the-value-proposition-of-bitsharesx-part-i-core-technology/

3. 10% doesn't constitute exceedingly low inflation for a currency. Even at today's CAP that's $25 million a month, most are sold immediately for fiat to cover mining expenses. In a bear market with low demand this can have an impact on price far in excess of the nominal inflation rate.

Bitcoin fills this need quite well, but it's adoption remains too small. I actually agree with the article in general, though it's definitely troubling to watch it in freefall. But overall, the general bitcoin news is positive, more adoption, more awareness... why the price did not follow is a mystery to me. The inflation is not yet too great for the rate of adoption, and there is NO better way to send a payment across borders, so both it's currency utility and payment utility are working.

Time will tell.

I agree with you. The price collapse is indeed baffling, though I never understood why it wasn't rising either with all the continued adoption and good news of last year, though I think adoption / bitcoin's use is very small in the grand scheme of things but I think this will slowly change over time. The potential is obviously there but it just needs to catch on with the masses or get adopted by certain industries that can benefit from it.

Volatilty - Businesses sell it immediately for fiat. This is price negative. The greater utility Bitcoin gains and the more it is used as a transactional currency, the more it will decline.

[Coinbuddy]

But does matter at selling 

[Biomech]

But does matter at selling 

selling and dumping are quite different. If the miners had the mentality of "it's going to be the currency of the future" we would not see these prices.

[Flashman]

But does matter at selling 

selling and dumping are quite different. If the miners had the mentality of "it's going to be the currency of the future" we would not see these prices.

However, that's more of a hobbyist mindset, mine being "I mine as much as I can afford to pay in electricity, and hodl the coins long term"

[Cryddit]

Howdy brother! I was on the Labyrinth just a bit later than that. Tachyon here

Oh, wow.  That does take me back.  I think I remember seeing your posts.  My handle back in the day was "Electric Bear".  This is kind of like meeting someone from your tiny boondocks hometown, decades later in a big city.  Weird... 

[erikalui]

The price of bitcoin definitely matters as once it was around $300 for 1 BTC and now it has reached $220 and it is decreasing even further. Many people have lost a lot by using BTC while some have gained.

[Bitcoinexp]

The price of bitcoin definitely matters as once it was around $300 for 1 BTC and now it has reached $220 and it is decreasing even further. Many people have lost a lot by using BTC while some have gained.

True. I agree. On a side note, I suppose OP should equate the internet to the ledger blockchain instead. Maybe we should think of the bitcoin as "the first webpage". Maybe, bitcoin is just the first step, the genesis of more to come. We still have time, let's just sit back and watch bitcoin and use it every now and then. 

[Honeybooboo]

The problem is we made a commodity out of BTC. Remember what it was originally stated to be. A software based payment system.

Then we began to realize we can't use it as we are able to use any other commodity. So we made it a commodity cum currency. We forgot we don't use commodities as currency in our real life.

To me it currently looks to be trying to become either a commodity or currency or hybrid. I think the coming time will tell us what it eventually becomes. In any case being a commodity cum currency in our times is not an easy identity to resolve. So I guess we gotta be patient and let it resolve. Which is again not easy because we fully believed in each label we gave it and tied our money and hence our greed & fear with it.

Why can it not be both? Bitcoin is still in its early experimental stages and people are speculating on that. I think the best case scenario for bitcoin would be to be hectic & wild initially but to level out at a later date. Speculators and believers can still make their money but that will taper off in the future when people start to use it more as a stable currency and everyone will be better off.

[erikalui]

True. I agree. On a side note, I suppose OP should equate the internet to the ledger blockchain instead. Maybe we should think of the bitcoin as "the first webpage". Maybe, bitcoin is just the first step, the genesis of more to come. We still have time, let's just sit back and watch bitcoin and use it every now and then. 

Agree as bitcoin is just the start and may be we will get to see more crypto currencies in future as bitcoins as of now are quite risky and similar to Forex or Stock markets where the price keep decreasing/increasing but is not stable.

[ViciousPlayer]

Bitcoin is a disruptive service. It is revolutionary and revolutions take time. We will all be early adopters when the time is right. Just stay focussed.

[Abbey_j]

Bitcoin is best thought of as a 5- to 10-year project, and we’re at the very early stages. An (admittedly imperfect) analogy is the early Web.

I don't think so, Bitcoin expanded into $1,000 from $10, a lot of people get involved in Bitcoin during the expansion, so we are definitely not at the early stages.

[nikona]

For one thing, there was no easy way to find things on the Web. Well, we didn’t get Google until 1998.

We had Lycos, Yahoo, Excite. Google came much later.

Yeah mate..i remember using yahoo search engine.. Way b4 Google became popular..!