korila (OP)
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April 12, 2015, 05:10:31 PM |
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The bubble will burst sooner or later, at some point nobody will want BTC.
subprime mortgage loans seemed to be safe at that time, if they can't pay back, banks will just sell their home that's why banks gave loans to virtually everyone. But you know what happened in 2008.
BTC is backed by very weak concept mining, mining itself isn't strong enough to justify current BTC price.
BTC, only early adoptors were rewarded, and they are the ones creating bubbles, they don't care what happens to you, they already cashed enough money, so what they can do is sustain their position by creating bigger bubble.
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There are several different types of Bitcoin clients. The most secure are full nodes like Bitcoin Core, but full nodes are more resource-heavy, and they must do a lengthy initial syncing process. As a result, lightweight clients with somewhat less security are commonly used.
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Advertised sites are not endorsed by the Bitcoin Forum. They may be unsafe, untrustworthy, or illegal in your jurisdiction.
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inca
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April 12, 2015, 05:20:59 PM |
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The bubble will burst sooner or later, at some point nobody will want BTC.
subprime mortgage loans seemed to be safe at that time, if they can't pay back, banks will just sell their home that's why banks gave loans to virtually everyone. But you know what happened in 2008.
BTC is backed by very weak concept mining, mining itself isn't strong enough to justify current BTC price.
BTC, only early adoptors were rewarded, and they are the ones creating bubbles, they don't care what happens to you, they already cashed enough money, so what they can do is sustain their position by creating bigger bubble.
You won't want any btc then. Which begs the question, 'why are you posting on a bitcoin enthusiast forum?'
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RWeItc
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April 12, 2015, 05:24:49 PM Last edit: April 12, 2015, 05:35:51 PM by RWeItc |
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The bubble will burst sooner or later, at some point nobody will want BTC.
subprime mortgage loans seemed to be safe at that time, if they can't pay back, banks will just sell their home that's why banks gave loans to virtually everyone. But you know what happened in 2008.
BTC is backed by very weak concept mining, mining itself isn't strong enough to justify current BTC price.
BTC, only early adoptors were rewarded, and they are the ones creating bubbles, they don't care what happens to you, they already cashed enough money, so what they can do is sustain their position by creating bigger bubble.
You won't want any btc then. Which begs the question, 'why are you posting on a bitcoin enthusiast forum?' People can't even tell the truth to warn newbies DO NOT BUY BTC now? only perma-bull please begging buy my ponzi moon bags shits talk allowed? Bitcoin is sinking down to $0, stay away from it or get financial ruin! if you have to invest then invest something else. Any one suggest you to buy now is selling ponzi to you.
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eizh
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April 12, 2015, 05:25:06 PM |
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Last I checked, there are no bogus credit ratings or loss-socializing regulations that hide Bitcoin's risk. It floats freely on the market.
Someone's bitter about buying high.
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korila (OP)
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April 12, 2015, 08:35:36 PM |
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Fannie Mae went from 19 cents to $6.35 between 2011 and 2014. A whopping 3000% oh yeah USA government pumped money to save those companies. BTC? who is going to save us? Satoshi? probably not lol
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pereira4
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April 12, 2015, 11:11:03 PM |
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The bubble will burst sooner or later, at some point nobody will want BTC.
subprime mortgage loans seemed to be safe at that time, if they can't pay back, banks will just sell their home that's why banks gave loans to virtually everyone. But you know what happened in 2008.
BTC is backed by very weak concept mining, mining itself isn't strong enough to justify current BTC price.
BTC, only early adoptors were rewarded, and they are the ones creating bubbles, they don't care what happens to you, they already cashed enough money, so what they can do is sustain their position by creating bigger bubble.
Jesus christ. Yeah let's ignore everything that makes Bitcoin unprecedented and let's compare it to some shitty financial product. You guys need to get better with your shit tier FUD.
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Nrcewker
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Building my own Dreams!
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April 13, 2015, 04:06:43 AM |
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I agree "The bubble will burst sooner or later"
but doubt whether is bitcoin bubble?
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CreationLayer
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April 13, 2015, 04:22:15 AM |
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Bitcoin is not like the subprime bubble. It is more akin to a third world currency that has high volatility.
The problem with the subprime mortgage crisis is that the structure of repackaging large lots of mortgages into complex derivatives had little underlying value because the increase in issuing risky mortgages inherently meant they had less value than suggested. Simple math would have shown that many of the loans would be defaulted on, and the value would evaporate. It was a disaster all the way up.
Bitcoin however, derives value directly from the market being backed by a monetary value, and supply and demand. Yes we have seen steady decline from our $1200 peak, but the type of implosion of subprime was in a matter of weeks or months and completely destroyed companies as the value evaporated.
The question is not whether Bitcoin is a bubble or not, it is how do we derive Bitcoin's value and is that justifiable. Currently it is more a speculative insturment like small currencies, or commodities, so it's completely in the hands of traders. In order for Bitcoin to avoid volatility it will need to increase market cap so that 1 million dollar orders can't dump the market. Until then it's easily manipulated.
However, look at the Euro it's seem a major decrease in value because of QE and it's a major world currency, does this mean the Euro is a bubble or the inflationary economic models of existing systems are riddled with problems. The one thing Bitcoin does have as an advantage over other currencies, is it's like gold it can only be found so fast, and there is only so much of it.
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Fabrizio89
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April 13, 2015, 05:13:00 AM |
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You may be right, but it surely wasn't subprime
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Bejkn
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April 13, 2015, 05:41:52 AM |
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so far, bitcoin is useless for me, but I think it eventually would be useful
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korila (OP)
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April 13, 2015, 06:20:13 AM |
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USD = PRIME
BTC = SUBPRIME
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futureofbitcoin
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April 13, 2015, 06:25:19 AM |
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USD = PRIME
BTC = SUBPRIME
APPLES = ORANGES AIRPLANES = FUDGE BARS I still can't understand why, despite there being 10000000 legitimate, logical, coherent reasons and arguments why bitcoin might fail, these guys choose to make ridiculously flawed comparisons, without any logic whatsoever. It's as if they want to tell the world "I'm an idiot".
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CreationLayer
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April 13, 2015, 09:51:51 AM |
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If Bitcoin fails it's because there is lack of demand, or reasonable use cases. It's not going to be because the actual math collapses, which is essentially what happened with complex mortgage derivatives. It is often said the math was so complex on purpose so that only a few could understand the actual valuation. Obviously some people became filthy rich off trading against and or flipping this PoS's.
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Amph
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April 13, 2015, 10:40:25 AM |
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current price isn't a bubble at all, it's a correction price and a steady grow from the last year, people should keep in mind that the 1200 peak is no where near reflecting the real btc value at that time, it was only caused by willy bot, mtgox and other crap like that
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randy8777
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April 13, 2015, 11:12:03 AM |
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you can't speak of a bubble with current price. you can't expect something to only go up. as with everything bitcoin will have a good period and a lesser period. the real bubble might come if wallstreet decide to jump in.
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ElectricMucus
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April 13, 2015, 11:17:48 AM |
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The bubble will burst sooner or later, at some point nobody will want BTC.
subprime mortgage loans seemed to be safe at that time, if they can't pay back, banks will just sell their home that's why banks gave loans to virtually everyone. But you know what happened in 2008.
BTC is backed by very weak concept mining, mining itself isn't strong enough to justify current BTC price.
If miners can't pay they will just sell their ASICs.... wait a minute. You are right, It's a very similar mechanism at work here... just that homes have some intrinsic base value because of universal demand (everybody needs to live at some place).
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Q7
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April 13, 2015, 11:47:28 AM |
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Then how do you justify all the infrastructure build around it including the payment system that businesses have adopted thus far. Never mind about miners, if a few drop out, I'm very sure there will be others willing to fill up the gap. So in this scenario how does a chain reaction or total collapse possible? Subprime mortgage crisis actually escalated to a level driven mainly by recession happening almost at the same time. One foreclosure leads to another and bad debts basically cause one bank to fail followed by another. In this scenario, I can't find any similarity if you decide to compare that to a few miners exiting?
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ElectricMucus
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April 13, 2015, 12:04:13 PM |
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Then how do you justify all the infrastructure build around it including the payment system that businesses have adopted thus far. Never mind about miners, if a few drop out, I'm very sure there will be others willing to fill up the gap. So in this scenario how does a chain reaction or total collapse possible? Subprime mortgage crisis actually escalated to a level driven mainly by recession happening almost at the same time. One foreclosure leads to another and bad debts basically cause one bank to fail followed by another. In this scenario, I can't find any similarity if you decide to compare that to a few miners exiting?
It's more about what ASICs are supposed to be worth. If many miners exit at the same time their machines can become essentially worthless, making it impossible for them to re-coup any value except for their mined and not yet sold Bitcoins. At some point difficulty adjustment will catch up making it slightly profitable to use the machines again, but only if Bitcoin prices don't plunge along with it.
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johnyj
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April 13, 2015, 12:05:10 PM Last edit: April 13, 2015, 12:19:52 PM by johnyj |
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The problem only exists for people who use USD to measure value. When you use house or bitcoin to measure value, it is USD swing wildly against house and bitcoin, shows that USD is still highly demanded when facing financial uncertainty The root of the question: Why people believe in some numbers created out of thin air instead of something created with true resources like electricity and labor? The belief in USD's value has become a religion that aliens could never understand
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ElectricMucus
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April 13, 2015, 12:27:31 PM |
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The problem only exists for people who use USD to measure value. When you use house or bitcoin to measure value, it is USD swing wildly against house and bitcoin, shows that USD is still highly demanded when facing financial uncertainty The root of the question: Why people believe in some numbers created out of thin air instead of something created with true resources like electricity and labor? The belief in USD's value has become a religion that aliens could never understand Because statism, deal with it.
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