The Ultimate Race

[Vector]

Bitcoin is in a race - will enough stores adopt it before the attraction of its profitability dies off?

Let me ask a serious question. Raise your hand if you are in this to make a profit? How many of you are waiting for the peak, so you can sell? I would bet a majority, otherwise the growth would not be this dramatic. Common people don't care THAT much about decentralization at this point.

So unless you can begin to buy useful goods and services with Bitcoins, before the plateau and attempted sell off, Bitcoins will fail.

P.S. - to all the idealists that think people won't sell for the mere altruism of the concept, even if they stand to lose money - pray that human nature changes.

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[Vector]

P.S. - entry into the market (seemingly no public paypal, and seemingly no public  credit card) is a large barrier for many, and we're gonna start seeing the hurt of that over the next week.

My prediction is that the market topped off yesterday at ~$19.00.

[BookofNick]

I want a little of both. If I see a huge spike and I think BTC is overvalued at the time, I may sell some (and buy back later), but not all. What I've already experienced is that my initial investment pays off without having to sell any BTC. I'm starting a business, and have paid for my logo, my website, and web hosting all with 20 bitcoin. Since I bought at around $1.60, my actualized costs for all that was $30-$35.

 With the recent spike, I haven't sold any, don't see the need to. At the moment, I consider them my Internet assets. That doesn't mean I wouldn't take advantage of spikes and dips, but that's dangerous at the moment. Meaning, when bitcoin spiked to $13, I could have sold and made profit, but then they went up to $19, and might never go below 13 again. Trading in and out is likely to get you burned at this point. I buy the dips and hold, unless I actually need to buy services with them.

In my fantasy land, bitcoin spikes to $1000, I sell and buy a house

[Anth0n]

I want a little of both. If I see a huge spike and I think BTC is overvalued at the time, I may sell some (and buy back later), but not all. What I've already experienced is that my initial investment pays off without having to sell any BTC. I'm starting a business, and have paid for my logo, my website, and web hosting all with 20 bitcoin. Since I bought at around $1.60, my actualized costs for all that was $30-$35.

 With the recent spike, I haven't sold any, don't see the need to. At the moment, I consider them my Internet assets. That doesn't mean I wouldn't take advantage of spikes and dips, but that's dangerous at the moment. Meaning, when bitcoin spiked to $13, I could have sold and made profit, but then they went up to $19, and might never go below 13 again. Trading in and out is likely to get you burned at this point. I buy the dips and hold, unless I actually need to buy services with them.

In my fantasy land, bitcoin spikes to $1000, I sell and buy a house

If enough goods and services are payable in BTC, you'll never need to sell them!

[Kman54]

listen if I see a bit enough spike that I can recoup my initial investment but still keep enough in the game I'll take it out. That being said I'm in this for a gamble, if you think its a sure thing you're crazy. So being the gamble it is I'll ride it out and see what happens, nothing worse then selling early and seeing others get rich while you get cheeseburger money.

[Vector]

That's the point of this thread though.

It only makes sense to spend your BTC on goods and services if it isn't a losing investment. Right now no one really wants to use BTCs because the value is growing too fast. As soon as the value stops climbing, the altruistic crowd will buy goods and services, while the MAJORITY will sell to make their profit and leave the market.

This will be a good lesson in economics (and psychology) for all those who are heavily invested in this idea. People will make a profit, yes, but the currency will lose all appeal.

[bitcoinBull]

That's the point of this thread though.

It only makes sense to spend your BTC on goods and services if it isn't a losing investment. Right now no one really wants to use BTCs because the value is growing too fast. As soon as the value stops climbing, the altruistic crowd will buy goods and services, while the MAJORITY will sell to make their profit and leave the market.

This will be a good lesson in economics (and psychology) for all those who are heavily invested in this idea. People will make a profit, yes, but the currency will lose all appeal.

OK, fine, you are right.  Bitcoin has failed as currency.  Good.  I'm glad.

Because I like bitcoin as a value storage.  I like bitcoin as an informal value transfer system.  I like bitcoin the way it is.

I've already seen the value stop climbing, several times, its true and I sold as soon as it did.

Then I watched it drop.  A lot.  Within minutes.  Then I bought right back in. 

I've done this more than once.  And you are right, each time was an excellent lesson in economics, and psychology.

Call it a currency, call it deflationary, call it profits, or call it buttcoin. 

It will still have my appeal.

[billyjoeallen]

Let me ask a serious question. Raise your hand if you are in this to make a profit? How many of you are waiting for the peak, so you can sell? I would bet a majority, otherwise the growth would not be this dramatic. Common people don't care THAT much about decentralization at this point.

You don't seem to get it. Bitcoin is real money. Why would anyone in their right mind "cash out" into a depreciating currency?  I'm cashing out my FRNs. And I'm holding the money until I pass it on to my children.

[Vector]

You don't seem to get it. Bitcoin is real money. Why would anyone in their right mind "cash out" into a depreciating currency?  

Is this sarcasm? I can't tell.

Bitcoin is not "real money". Bitcoin is a virtual commodity gone viral. If you aren't being sarcastic, then it is you that doesn't get it. People are buying this currency, waiting for the price to go up, and sell it to make a profit. I guarantee you this is why 90% of the people have gotten into this game. It has nothing to do with decentralization.

[bitcoinBull]

It has nothing to do with decentralization.

Wow you are so right.  Too bad nobody with your brilliant insight came here earlier to wake us all up before it was too late.

It actually doesn't have anything to do with being decentralized and open source.  How could we be so ignorant to trust something that isn't a closed-source corporate-backed dot com audited behind the curtain by a third party and insured by the federal government?  Everybody knows that only legal tender is "real money".

You just made me realize that bitcoin is nothing more than a thinly-veiled pyramid scheme propped up by buzzword marketing peddled to ignorant suckers.

Thanks for the enlightenment.  I almost lost my shirt.

[hugolp]

I honestly hope that bitcoins crash a bit so the speculation frenzy dies, people is more wary of buying bitcoins just because it will go up in price and people start thinking of bitcoin more as a currency to earn through business. But I guess this phase we are seeing is inevitable.

[interfect]

<sarcasm>Sure... everyone's buying Bitcoin for Bitcoin... not its currency exchange profit.</sarcasm>

Call me when Bitcoin value plummets to 1 USD and you've still got your Bitcoins because decentralization is THAT important.

I'm keeping mine forever. I mined them, they're free money. I already cashed out enough to make my GPU I bought for games essentially free. Now I just get to watch and laugh as the price varies wildly because nobody knows how much a cryptographically secure, untraceable, unduplicatable packet of nothing is worth.

[bitcoinBull]

P.S. - entry into the market (seemingly no public paypal, and seemingly no public  credit card) is a large barrier for many, and we're gonna start seeing the hurt of that over the next week.

My prediction is that the market topped off yesterday at ~$19.00.

<sarcasm=off>

Its not too late for you change this prediction.. yet.

Of course potential profit is a big factor of bitcoin's appeal.  But that potential only comes from the decentralization and open source.. which is the basic appeal.  Why else would the early adopters have bought this virtual "funny money" back when it was $0.05 and $0.25 and decentralized among a couple dozen cryptonerds?

All those looking for a "currency" with a stable exchange rate need to look elsewhere.  Obviously, it is not going to be bitcoin.

As for the bitcoin bubble, you are more than welcome to back and do the "told you so" dance when it is 1 USD.