Resilience is the key

[flug]

As I see it, the intrinsic value of Bitcoin is its ability to store and transmit value securely. Therefore every time the Bitcoin infrastructure hits a problem  (from the blockchain forking to exchange hacks) and survives, its demonstrable value must increase too, no?

[PachucoBro]

I think you are correct with what the intrinsic value of BTC is, however... I don't believe those issues translate directly to the price of BTC at all. At least not right now.

People sell when they get scared... like when they can't access their electronic wallets on the various exchanges. That sucks and causes a few of the smaller traders to sell, thereby dropping the price momentarily.

[glub0x]

As I see it, the intrinsic value of Bitcoin is its ability to store and transmit value securely. Therefore every time the Bitcoin infrastructure hits a problem  (from the blockchain forking to exchange hacks) and survives, its demonstrable value must increase too, no?

Same analysis here.
I would add the reason that convince me to buy-in : the ability to recover from price a crash.

[PachucoBro]

As I see it, the intrinsic value of Bitcoin is its ability to store and transmit value securely. Therefore every time the Bitcoin infrastructure hits a problem  (from the blockchain forking to exchange hacks) and survives, its demonstrable value must increase too, no?

Same analysis here.
I would add the reason that convince me to buy-in : the ability to recover from price a crash.

Ummm you mean recover from a temporary 1-2 hour price dip.... right? The crash is still to come.

This will happen when atleast two of the following get off-balance and everyone starts to see it:

• too many BTC being mined by new ASIC miners
• hoarding of BTC; not spending/transferring them or exchanging them for fiat money
• not enough mainstream places to spend the BTCs
• negative media coverage preventing more people to 'buy-in' to BTC
• no media coverage of bitcoin
• higher level or length of hacking to various weakpoints of 'the BTC process'
• etc., etc.

[DigitalDoom]

As I see it, the intrinsic value of Bitcoin is its ability to store and transmit value securely. Therefore every time the Bitcoin infrastructure hits a problem  (from the blockchain forking to exchange hacks) and survives, its demonstrable value must increase too, no?

Same analysis here.
I would add the reason that convince me to buy-in : the ability to recover from price a crash.

Ummm you mean recover from a temporary 1-2 hour price dip.... right? The crash is still to come.

This will happen when atleast two of the following get off-balance and everyone starts to see it:

• too many BTC being mined by new ASIC miners
• hoarding of BTC; not spending/transferring them or exchanging them for fiat money
• not enough mainstream places to spend the BTCs
• negative media coverage preventing more people to 'buy-in' to BTC
• no media coverage of bitcoin
• higher level or length of hacking to various weakpoints of 'the BTC process'
• etc., etc.

The media is the entire key to the whole thing...as in everything!

People believe what they read in papers and see on the nightly news. The media built BTC, and the media will destroy it!

Sheeple are so easy to manipulate!

In the meantime, the big money power of this world will win again...as they always do!!

Once the ultra-wealthy have made their profits from BTC, they will cash it out then the media will begin reporting that it's a dead currency and soon after, it will be!

[flug]

The media is the entire key to the whole thing...as in everything!

The media's very powerful at shaping perceptions within the existing paradigm, but it can't stop an idea who's time has come. There have been plenty of revolutions to prove this point.

I believe that p2p technology in general and p2p currency in particular is such an idea.

[PachucoBro]

I agree... bitcoin is not going to get killed by the media.

I easily see a return to much lower pricing in the near term as in a year. But the natural mathematics behind BTC, if everyone started using it, would be that the value of 1 BTC would be very large so that there was room do divide up the limited amount of coins to denominations appropriate to be used by the masses.

[lonelyminer (Peter Šurda)]

Not resilience, antifragility. I'm working on a blog post about that.

[alexeft]

As I see it, the intrinsic value of Bitcoin is its ability to store and transmit value securely. Therefore every time the Bitcoin infrastructure hits a problem  (from the blockchain forking to exchange hacks) and survives, its demonstrable value must increase too, no?

I agree. Every time it works as expected, eg difficulty goes up or down as normal, or the block reward is halved, then it gains in value that will be translated into a higher price at some point.

[alexeft]

Not resilience, antifragility. I'm working on a blog post about that.

Post a link when you put it online Peter. I am very interested in what you have to say.

[flug]

Not resilience, antifragility. I'm working on a blog post about that.

Definition of 'Anti-Fragility'
A postulated antithesis to fragility where high-impact events or shocks can be beneficial. Anti-fragility is a concept developed by professor, former trader and former hedge fund manager Nassim Nicholas Taleb. Taleb coined the term "anti-fragility" because he thought the existing words used to describe the opposite of "fragility," such as "robustness," were inaccurate. Anti-fragility goes beyond robustness; it means that something does not merely withstand a shock but actually improves because of it.

Yes! I stand corrected.