Peer to peer digital Ponzi.

[sgravina]

Two months ago all my digital coins together were worth less than the amount of money I just made while eating a bagel.

I am now of the opinion that bitcoins are a Ponzi.  As in most of the gains are coming from new investors and not from any economic activity.

It is hard for me to conceive of enough drugs, gambling and Alpaca socks to justify all this value.  Then again if I really think about it is hard for me to believe that there are seven billion people in the world.

The network has become sentient and figured out how to get people to give it government backed money.

Like all Ponzi's I wonder: What is the network going to do with all that money?

[piramida]

Simple - once the network has all fiat money and wealth of every human depends on it's existence, it can command us to do tasks needed to extend and strengthen it's operations.

Oh wait, it already does that... Yes master, must mine more coin...

[sgravina]

and thus the BAGEL INDEX was born!! 

this is too much fun. hopefully nobody gets hurt.

OK so the bagel index (BGI) is now 13%.  Bitcoins and litecoins are growing at a rate of 13% per bagel consumed.

[tutkarz]

i dont know if you noticed but everything on earth (including earth) that holds any promise of not loosing value becomes ponzi schemes fast. My favorites are useless painting of famous artists that sells for billions $$$. I think we cant be worse and lets make biggest bubble know to human that will eat all other bubbles.

[tutkarz]

Anyone who promises bitcoin cannot lose value is a fool.

everything will loose its value sooner or later. Your bet is what will be first fiat money or bitcoin.

[oakpacific]

Bitcoin doesn't need to do what fiats have been doing, it just needs to prove it has the potential to do so.

The reason is that people have been screwed again and again by the fiat-based economy run by the government yet cannot do anything, because it was the only option. Now with Bitcoin they have a bargaining chip, with which they don't need to do away with the government, but can somehow threaten the governments to get more diligent with their work whenever they can't get off their ass to solve their problem. And people will certainly make sure to invest enough to keep their bargaining afloat.

Bitcoin is just like an opposition party of money, it may never get elected, but it must exist.

[Cluster2k]

The reason is that people have been screwed again and again by the fiat-based economy run by the government yet cannot do anything, because it was the only option. Now with Bitcoin they have a bargaining chip, with which they don't need to do away with the government, but can somehow threaten the governments to get more diligent with their work whenever they can't get off their ass to solve their problem. And people will certainly make sure to invest enough to keep their bargaining afloat.

Bitcoin is just like an opposition party of money, it may never get elected, but it must exist.

The one problem with that is all taxes have to be paid in the local government currency.  If you make a capital gain in bitcoins most governments expect you to pay capital gains profits in the local currency.  Now, with bitcoin it's quite easy to conceal your profits and as long as you don't get MtGox to send you money then all is good.  Otherwise, be careful that your government doesn't select you to make an example out of you.

[KTE]

I am now of the opinion that bitcoins are a Ponzi.  As in most of the gains are coming from new investors and not from any economic activity.

It is hard for me to conceive of enough drugs, gambling and Alpaca socks to justify all this value.  Then again if I really think about it is hard for me to believe that there are seven billion people in the world.

Common mistake is to assess market price based only on current value without taking into account estimations of future value. You shouldn't make investment decisions considering only the bubble that is the present.

[myself]

I am now of the opinion that bitcoins are a Ponzi.  As in most of the gains are coming from new investors and not from any economic activity.

As in most of the gains are coming from new investors and not from any economic activity.

new investors

investors

OP are you sure that's the correct term ?

[dg2010]

I agree. This is pure speculation and the risk is a huge correction.

[humanitee]

I fully disagree.

It doesn't take some financial wizard to look at the fundamentals and recognize that everything is on the positive.
I still think these prices are fine.

Bitcoin doesn't work the way you want it to. It was designed to deflate and deflate hard.
People want their money in something that deflates like this. There is no such thing as a "savings account" in the bank world anymore.

[GeoRW]

oh yeah, we will see single digits soon 

[myself]

I fully disagree.

It doesn't take some financial wizard to look at the fundamentals and recognize that everything is on the positive.
I still think these prices are fine.

Bitcoin doesn't work the way you want it to. It was designed to deflate and deflate hard.
People want their money in something that deflates like this. There is no such thing as a "savings account" in the bank world anymore.

versus

First ya pump, then ya dump.

[humanitee]

I fully disagree.

It doesn't take some financial wizard to look at the fundamentals and recognize that everything is on the positive.
I still think these prices are fine.

Bitcoin doesn't work the way you want it to. It was designed to deflate and deflate hard.
People want their money in something that deflates like this. There is no such thing as a "savings account" in the bank world anymore.

versus

First ya pump, then ya dump.

Dude, come on. That comment is on Litecoin, which is a fucking joke.

[myself]

I fully disagree.

It doesn't take some financial wizard to look at the fundamentals and recognize that everything is on the positive.
I still think these prices are fine.

Bitcoin doesn't work the way you want it to. It was designed to deflate and deflate hard.
People want their money in something that deflates like this. There is no such thing as a "savings account" in the bank world anymore.

versus

First ya pump, then ya dump.

Dude, come on. That comment is on Litecoin, which is a fucking joke.

so the same technology is serious business on btc but on ltc is a fucking joke

[humanitee]

so the same technology is serious business on btc but on ltc is a fucking joke

Troll post or you're ignorant. Pick one.

I can't buy anything with Litecoin besides some cookies.
I still think ASICs > GPU.

[ElectricMucus]

so the same technology is serious business on btc but on ltc is a fucking joke

Troll post or you're ignorant. Pick one.

I can't buy anything with Litecoin besides some cookies.
I still think ASICs > GPU.

Now who's mad?

[humanitee]

Not I.

Troller coaster, put your hands up when we hit this hill.

[myself]

so the same technology is serious business on btc but on ltc is a fucking joke

Troll post or you're ignorant. Pick one.

I can't buy anything with Litecoin besides some cookies.
I still think ASICs > GPU.

what did you buy whit bitcoin in 2010 ?
how was bitcoin mined in 2010 ?

[ElectricMucus]

Not I.

Troller coaster, put your hands up when we hit this hill.

I sure do.

weee!