Wall Observer BTC/USD - Bitcoin price movement tracking & discussion

[gkv9]

I guess you haven´t noticed how the more the price of what is being produced (BTC)

tanks the more resources are being put into producing it ?

Have been watching and considering whatever it takes to make or ruin price of BTC... And yes, you may be right on what's being used more and more to produce more coins, but the productivity of it and supply & demand factor are 2 completely different scenarios...

And that's what I asked you to please explain me that how difficulty affects its price?

[galdur]

I guess you haven´t noticed how the more the price of what is being produced (BTC)

tanks the more resources are being put into producing it ?

Have been watching and considering whatever it takes to make or ruin price of BTC... And yes, you may be right on what's being used more and more to produce more coins, but the productivity of it and supply & demand factor are 2 completely different scenarios...

And that's what I asked you to please explain me that how difficulty affects its price?

So you´re not aware of the correlation between increased resources (hash rate) and difficulty ?

[galdur]

This is called inverse correlation

[gkv9]

This is called inverse correlation

And what about the factors that I represented? Supply and Demand? Maybe your analysis is true, but everything here is speculated and works on trust and buy/sell of these coins, if I'm not wrong on my side...

EDIT: Did you mean that the sudden decline from last year is due to the increase in the usage of highly parameter-ed mining equipments that people are using today? I believe that during those days too, people were mining and hashrates were high then too...

[galdur]

This is called inverse correlation

And what about the factors that I represented? Supply and Demand? Maybe your analysis is true, but everything here is speculated and works on trust and buy/sell of these coins, if I'm not wrong on my side...

The only way this business model makes sense for producers

is that they´re constantly short their own product. Obviously.

[macsga]

This is called inverse correlation

And what about the factors that I represented? Supply and Demand? Maybe your analysis is true, but everything here is speculated and works on trust and buy/sell of these coins, if I'm not wrong on my side...

EDIT: Did you mean that the sudden decline from last year is due to the increase in the usage of highly parameter-ed mining equipments that people are using today? I believe that during those days too, people were mining and hashrates were high then too...

Also by inverse correlation you mean the price will go to zero? Or will there be an equilibrium? Excuse my ignorance, I'm too fool to understand your theory here...

[gkv9]

The only way this business model makes sense for producers

is that they´re constantly short their own product. Obviously.

Are the producers only the hodlers of it? Who are we then, puppets?

[galdur]

The only way this business model makes sense for producers

is that they´re constantly short their own product. Obviously.

Are the producers only the hodlers of it? Who are we then, puppets?

If you constantly throw increasing production capacity at a product

that keeps falling in price you have to hedge by selling the product

short. Otherwise how can the scheme keep going ?

[galdur]

In other words, it´s some sort of a scam. A ponzi scheme if you will.

[macsga]

In other words, it´s some sort of a scam. A ponzi scheme if you will.

Ah, now it makes sense. 

[galdur]

But have fun chasing it down. Don´t let me bother you.

[gkv9]

In other words, it´s some sort of a scam. A ponzi scheme if you will.

Wow, if it's a ponzi, why are you in? Lolz, seriously man... Ok, I get your point somewhere, but even if it's a ponzi, I feel proud to say that I am a part of it...

It's been 5 years since this ^PNOZI's^ running...   It's gonna enter 6th now... You better decide whether you are in or not...    

Happy New Year Dude...

EDIT:

If you constantly throw increasing production capacity at a product

that keeps falling in price you have to hedge by selling the product

short. Otherwise how can the scheme keep going ?

+1 to the above mentioned explanation...

[macsga]

But have fun chasing it down. Don´t let me bother you.

You know how people are; chasing dreams all the time. Don't ruin it for us all fools here. You outsmart us all anyway. Thank you for your contribution anyway.

[Silverspoon]

In other words, it´s some sort of a scam. A ponzi scheme if you will.

Wow, if it's a ponzi, why are you in? Lolz, seriously man...

Because profiting from a ponzi is guaranteed, as long as you manage to get out before the rubes catch on?

[gkv9]

Because profiting from a ponzi is guaranteed, as long as you manage to get out before the rubes catch on?

I believe BTC ain't a pnozi because if it was, I don't think people are too fool to be true to put in their monies in this so-called pnozi...

There are still some places where people accept BTC to buy a coffee, ain't there?

[galdur]

Because profiting from a ponzi is guaranteed, as long as you manage to get out before the rubes catch on?

I believe BTC ain't a pnozi because if it was, I don't think people are too fool to be true to put in their monies in this so-called pnozi...

There are still some places where people accept BTC to buy a coffee, ain't there?

If Joe Sixpack suddenly had to estimate the width of Kim Kardashian´s ass

in centimeters rather than inches there would probably be a revolution in

the land. So I wouldn´t really count on them as authority.

[Silverspoon]

Because profiting from a ponzi is guaranteed, as long as you manage to get out before the rubes catch on?

I believe BTC ain't a pnozi because if it was, I don't think people are too fool to be true to put in their monies in this so-called pnozi...

There are still some places where people accept BTC to buy a coffee, ain't there?

I didn't say that bitcoin was a ponzi, just explained why a reasonable person would invest in one.  Bitcoin is more of a pyramid scheme.
Not sure what people taking BTC for coffee has to do with this.

[gkv9]

If Joe Sixpack suddenly had to estimate the width of Kim Kardashian´s ass

in centimeters rather than inches there would probably be a revolution in

the land. So I wouldn´t really count on them as authority.

I ain't counting on them as authorities, but they can just be called Contributors...

I didn't say that bitcoin was a ponzi, just explained why a reasonable person would invest in one.  Bitcoin is more of a pyramid scheme.
Not sure what people taking BTC for coffee has to do with this.

Obviously, it has to... Because it is a part too of the so-called pyramid scheme you talking about... Take Microsoft as example, they started taking BTC and yes, I do believe that for us the price of Bitcoins ain't what we wanted after bashing in all the stupid posts regarding the moons, but this is what these big guys wanted, a bit-stable environment to neither profit a lot, nor make a huge loss... Else, whilst the previous auction was held, nobody would have bought any of these...

[Silverspoon]

I didn't say that bitcoin was a ponzi, just explained why a reasonable person would invest in one.  Bitcoin is more of a pyramid scheme.
Not sure what people taking BTC for coffee has to do with this.

Obviously, it has to... Because it is a part too of the so-called pyramid scheme you talking about... Take Microsoft as example, they started taking BTC and yes, I do believe that for us the price of Bitcoins ain't what we wanted after bashing in all the stupid posts regarding the moons, but this is what these big guys wanted, a bit-stable environment to neither profit a lot, nor make a huge loss... Else, whilst the previous auction was held, nobody would have bought any of these...

Whoa there.  A ponzi is a pyramid scheme created by a malefactor.
A pyramid scheme is any scheme in which early adopters profit only if new money keeps coming in.  I don't think you want to argue that Bitcoin's price can grow without influx of new money - bitcoin doesn't produce anything other than more bitcoins and heat.

I have already explained why a rational player would invest in a pyramid scheme (buy BTC at the auction), but I'll do it again:

1. Buy BTC below market at auction.
2. Sell on exchanges at market.
3. Profit.

[klee]

http://www.marketwatch.com/story/winklevoss-bitcoin-trust-files-to-sell-201-million-shares-2014-12-31-7915121
http://www.sec.gov/Archives/edgar/data/1579346/000119312514457552/0001193125-14-457552-index.htm