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Author Topic: Is Lulzsec partly to blame for the bitcoin crash?  (Read 10855 times)
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June 12, 2011, 01:14:45 AM

As you know, sailing the seven proxseas is a tiring and expensive adventure, which is why we sometimes need additional cargo or booty trades... We accept the saltiest of sea currencies, also known as BitCoin.

You think the scurviest of pirates wouldn't want a treasure chest of booty? Bitcoin Booty no less?

I hoist my quart of grog toward their salty sails! Yo ho!
"This isn't the kind of software where we can leave so many unresolved bugs that we need a tracker for them." -- Satoshi
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June 12, 2011, 01:22:21 AM

Or, you know, could just be a market correction due a rapid and unsustainable growth, exacerbated by those who wish to exploit it for personal gain?

So what you're saying is that it was, infact, a bubble?
The word bubble is politically incorrect on the forums. So yes, it was a bubble.

It's only politically incorrect here because there are a lot of room-temperature-IQ speculators who don't seem to comprehend that "a bubble" is not the same as "THE bubble" - bubbles happen in other markets all the time, but because those of us who aren't day traders don't hear about bubbles unless they destroy a market we assume the worst when we hear the term. It seems that what occurred recently was, in fact, a bubble but that doesn't necessarily mean it's THE bubble that everyone fears will kill the market.

People need to understand that bitcoin isn't really any different than any other commodity. Commodities have only the value we ascribe to them. We are trading so many post-scarcity products (music, movies, pornography) at such ludicrous markups daily that it occurs to me that it should be OBVIOUS that so much in this world has only the value we ascribe to things with no inherent value.

Bitcoin bubble theorists need to both learn some basic economics and perhaps the actual definition of the economic phrase "bubble": "trade in high volumes at prices that are considerably at variance with intrinsic values"

In other words, a bubble occurs any time people are regularly paying considerably more for something than it is worth intrinsically, such as gold which has some industrial value but not so much as to merit its current lofty prices. Trade of gold as a "store of value" has increased its value purely via speculation and so it too is a "bubble" at present. Realistically it's just another rock we pull out of the ground that has some special properties (chemically inert, electrically conductive, etc.) which make it better for some tasks than other rocks.

You seem to miss out important points such as jewelry and collectors demand, apart from industrial demand.

Not to mention gold has served as a mean of value for humans for centuries, as it is shiny and beautiful and does not oxidate.

Lord Banking Families such as the Rothschilds keep only gold in their vaults for a reason you know:

Wouldn't you want to give that a big hug?

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June 12, 2011, 01:25:25 AM

Oh the Rothschilds... Haha, the Rothschilds. Such a bittersweet sight.
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June 12, 2011, 01:26:23 AM

Oh the Rothschilds... Haha, the Rothschilds. Such a bittersweet sight.
next would be Goodwin/Hitler/Jedi card/picture, sure Wink
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June 12, 2011, 01:40:38 AM

You seem to miss out important points such as jewelry and collectors demand, apart from industrial demand.

Jewelry would have limited effect on gold price if it weren't for "collectors demand" having already driven it up. There are plenty of pretty shiny metals that are corrosion-resistant and many are significantly better for the purpose than gold itself. Gold is too soft, for example, to be used in most jewelry without being alloyed with other metals.

Oh, and "collectors demand" is another way of saying "speculative value" which is another way of saying "bubble."
The intrinsic value of a baseball card is the cost of paper and ink. The intrinsic value of an old coin is the value of its metals. Any value above this is only in the mind of the investors.

Edit: The main point I'm trying to make is that gold's use in jewelry didn't make gold expensive; gold is expensive and therefore we use it in jewelry as an adornment to prove our wealth and status.
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