Most Bitcoins generated are immobile

[goxed]

http://arstechnica.com/tech-policy/2012/10/78-percent-of-bitcoin-currency-stashed-under-digital-mattress-study-finds/

78 percent of Bitcoin currency stashed under digital mattress, study finds
Significantly fewer digital coins are in circulation than previously presumed.

Mathematician Dorit Ron and Adi Shamir (the "S" in the widely used RSA cryptography scheme) arrived at that finding by downloading the entire Bitcoin history and following the trail of some 180,000 transactions.

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[waspoza]

inb4 mod intervention.

[conspirosphere.tk]

That's the most rational way to use them: I learned that at my expense.
Just because 90%+ of "investing" opportunities are scams or losing propositions, and anything on sale for BTC is overpriced.
It's just due to the black market that a BTC economy exists at all.

[farlack]

That's the most rational way to use them: I learned that at my expense.
Just because 90%+ of "investing" opportunities are scams or losing propositions, and anything on sale for BTC is overpriced.
It's just due to the black market that a BTC economy exists at all.

Uh, you're wrong on that. I'm new to bitcoins, and I can see an outside perspective on why the BTC economy is still here.

And that reason is...

Faith

Faith that prices will go up and not down
Faith that people will keep going
Faith that they will get rich because more and more people pick it up


Things are not that overpriced, they're a bit more expensive, but the loops to convert back to usd is a killer. Worse than PP fees, lol..

[Ente]

That's the most rational way to use them: I learned that at my expense.
Just because 90%+ of "investing" opportunities are scams or losing propositions, and anything on sale for BTC is overpriced.
It's just due to the black market that a BTC economy exists at all.

Uh, you're wrong on that. I'm new to bitcoins, and I can see an outside perspective on why the BTC economy is still here.

And that reason is...

Faith

Faith that prices will go up and not down
Faith that people will keep going
Faith that they will get rich because more and more people pick it up


Things are not that overpriced, they're a bit more expensive, but the loops to convert back to usd is a killer. Worse than PP fees, lol..

..isn't that exactly why people use it as a "storage of wealth" or "speculation" instead of as a currency, i.e. for "real" economic stuff?

Thank you for the link! Didn't figure it's *that* Adi Shamir guy, will immediately have to read his publication on the main forum!

Ente

[bracek]

and what is the percentage of gold in actual circulation ?

[ElectricMucus]

Things are not that overpriced, they're a bit more expensive, but the loops to convert back to usd is a killer.

Interesting, you are right...

One possible explanation might be that most people payed more than they might have to obtain their bitcoins in the first place.

[Mushoz]

and what is the percentage of gold in actual circulation ?

Exactely, bitcoin is already valuable as a store of wealth, but it can be so much more.