Bitcoin Forum
December 05, 2016, 12:47:14 AM *
News: To be able to use the next phase of the beta forum software, please ensure that your email address is correct/functional.
 
   Home   Help Search Donate Login Register  
Pages: [1] 2 »  All
  Print  
Author Topic: Is rampant speculation going to kill Bitcoin's credibility?  (Read 2342 times)
XX55XX
Member
**
Offline Offline

Activity: 62


View Profile
June 23, 2011, 09:46:15 PM
 #1

It won't kill the currency itself (since it's P2P software), but will all of this rampant speculation (both on my part and others) kill Bitcoin's credibility as a stable and safe store of value in the long run?

I don't see very many people seeking to buy Bitcoins, but if it happens that there are more sellers than buyers on the exchanges, then the value of Bitcoins could collapse quickly due to an imbalance in liquidity. Personally, I do not see Bitcoins as a stable store of value, and as soon as I can earn enough, I plan to sell them on the exchanges.

Is Bitcoin headed for another crash that isn't related to hacking? I mean, people are buying tons of mining equipment, and I doubt very many of them plan to hang on to their Bitcoins. They intend to turn it into cash as quickly as possible.
1480898834
Hero Member
*
Offline Offline

Posts: 1480898834

View Profile Personal Message (Offline)

Ignore
1480898834
Reply with quote  #2

1480898834
Report to moderator
1480898834
Hero Member
*
Offline Offline

Posts: 1480898834

View Profile Personal Message (Offline)

Ignore
1480898834
Reply with quote  #2

1480898834
Report to moderator
It is a common myth that Bitcoin is ruled by a majority of miners. This is not true. Bitcoin miners "vote" on the ordering of transactions, but that's all they do. They can't vote to change the network rules.
Advertised sites are not endorsed by the Bitcoin Forum. They may be unsafe, untrustworthy, or illegal in your jurisdiction. Advertise here.
1480898834
Hero Member
*
Offline Offline

Posts: 1480898834

View Profile Personal Message (Offline)

Ignore
1480898834
Reply with quote  #2

1480898834
Report to moderator
1480898834
Hero Member
*
Offline Offline

Posts: 1480898834

View Profile Personal Message (Offline)

Ignore
1480898834
Reply with quote  #2

1480898834
Report to moderator
1480898834
Hero Member
*
Offline Offline

Posts: 1480898834

View Profile Personal Message (Offline)

Ignore
1480898834
Reply with quote  #2

1480898834
Report to moderator
XX55XX
Member
**
Offline Offline

Activity: 62


View Profile
June 23, 2011, 09:47:11 PM
 #2

Delete, intended to edit my post.
CurbsideProphet
Hero Member
*****
Offline Offline

Activity: 672


View Profile
June 23, 2011, 09:50:58 PM
 #3

Personally, I do not see Bitcoins as a stable store of value, and as soon as I can earn enough, I plan to sell them on the exchanges.

That's how bubbles work, try to ride the lightning but jump off before you're left holding the bag.  It's like a giant game of hot potato.  Only with real money at stake.

1ProphetnvP8ju2SxxRvVvyzCtTXDgLPJV
elggawf
Sr. Member
****
Offline Offline

Activity: 308



View Profile
June 23, 2011, 10:07:36 PM
 #4

Personally, I do not see Bitcoins as a stable store of value, and as soon as I can earn enough, I plan to sell them on the exchanges.

That's how bubbles work, try to ride the lightning but jump off before you're left holding the bag.  It's like a giant game of hot potato.  Only with real money at stake.

... and it's good fun if it's not actually real money you're putting into it.

^_^
kiba
Legendary
*
Offline Offline

Activity: 980


View Profile
June 23, 2011, 10:11:49 PM
 #5

http://bitcoinweekly.com/articles/comic-reaction-after-dramatic-rise-of-bitcoin-s-value

Mention a bitcoin bubble, ya get a bitcoin bubble comic Wink

chad
Newbie
*
Offline Offline

Activity: 28


View Profile WWW
June 23, 2011, 10:58:43 PM
 #6

No, it will enhance and strengthen it.

http://ruxum.com
XX55XX
Member
**
Offline Offline

Activity: 62


View Profile
June 23, 2011, 11:03:03 PM
 #7

No, it will enhance and strengthen it.

Yes... by providing exchanges with an ample supply of liquidity. But what if there aren't enough buyers?
kwukduck
Legendary
*
Offline Offline

Activity: 1564


View Profile
June 23, 2011, 11:05:47 PM
 #8

If there aren't enough buyers that simply means that the world doesn't want bitcoin (or is unaware of it...)

14b8PdeWLqK3yi3PrNHMmCvSmvDEKEBh3E
evolve
Hero Member
*****
Offline Offline

Activity: 700


daytrader/superhero


View Profile
June 23, 2011, 11:14:29 PM
 #9

No, it will enhance and strengthen it.

Yes... by providing exchanges with an ample supply of liquidity. But what if there aren't enough buyers?

then the price/value of BTC will drop until either:

a) someone is willing to buy
or
b) the price drops to the point that it is valueless
XX55XX
Member
**
Offline Offline

Activity: 62


View Profile
June 23, 2011, 11:18:13 PM
 #10

Well, given how slowly and predictably the Bitcoin supply grows, I suppose that too much liquidity would not be the primary problem. Unlike the Dutch Tulip bubble or more modern bubbles, the supply of the good in question is relatively fixed.

Unfortunately, speculation is not going away for the time being. But it would be interesting to see whether or now how many people are getting into this via mining, or pure speculation (by buying Bitcoins on an exchange). It seems that more people are getting in through mining rather than buying up Bitcoins by themselves.
Hunterbunter
Hero Member
*****
Offline Offline

Activity: 980


View Profile
June 23, 2011, 11:27:42 PM
 #11

Speculating on btc/usd is no different to speculating on usd/eur. If you think the USD is tanking, buy some Eur  (or AUD or whatever isn't tanking). Buy USD back when you want to cash out.

The underlying economy has the larger part to play in deciding whether a currency is about to crash or not. As long as you can buy useful things with your BTC, the BTC will be fine.
onesalt
Sr. Member
****
Offline Offline

Activity: 308


View Profile
June 23, 2011, 11:44:27 PM
 #12

I hate to break it to you all, but unfortunately, rampant speculation, the hack attacks and massive price drops have already essentially killed bitcoin from the credibility point of view. No large company will willingly use a currency if using it risks their profitability on the scale bitcoin does.
chihlidog
Newbie
*
Offline Offline

Activity: 28


View Profile
June 23, 2011, 11:50:44 PM
 #13

I hate to break it to you all, but unfortunately, rampant speculation, the hack attacks and massive price drops have already essentially killed bitcoin from the credibility point of view. No large company will willingly use a currency if using it risks their profitability on the scale bitcoin does.

Such a volatile market also has the potential for ENORMOUS gains. People have made quite tidy sums of USD from BTC. THat wont go unnoticed by investors if it continues. Rewards require risk.

Im not sure why anyone would want to, but just in case, I humbly and very gratefully accept donations at: 1Kn6NFFE4EqrhN1pgBDoBQEvSA5c3tdqhi
onesalt
Sr. Member
****
Offline Offline

Activity: 308


View Profile
June 24, 2011, 12:08:40 AM
 #14

I hate to break it to you all, but unfortunately, rampant speculation, the hack attacks and massive price drops have already essentially killed bitcoin from the credibility point of view. No large company will willingly use a currency if using it risks their profitability on the scale bitcoin does.

Such a volatile market also has the potential for ENORMOUS gains. People have made quite tidy sums of USD from BTC. THat wont go unnoticed by investors if it continues. Rewards require risk.

When you want to accept payment in btc you don't want it to arbitarily drop in value and make you essentially sell at a loss. The only thing the volatile market encourages is more speculating, rather than actual marketplaces.
chihlidog
Newbie
*
Offline Offline

Activity: 28


View Profile
June 24, 2011, 12:11:19 AM
 #15

I hate to break it to you all, but unfortunately, rampant speculation, the hack attacks and massive price drops have already essentially killed bitcoin from the credibility point of view. No large company will willingly use a currency if using it risks their profitability on the scale bitcoin does.

Such a volatile market also has the potential for ENORMOUS gains. People have made quite tidy sums of USD from BTC. THat wont go unnoticed by investors if it continues. Rewards require risk.

When you want to accept payment in btc you don't want it to arbitarily drop in value and make you essentially sell at a loss. The only thing the volatile market encourages is more speculating, rather than actual marketplaces.

I wont disagree with that. But if the speculation drives up prices, more people pay attention to bitcoin, then more people are likely to try it, use, it, and create an economy out of it. Win/win/win.

Im not sure why anyone would want to, but just in case, I humbly and very gratefully accept donations at: 1Kn6NFFE4EqrhN1pgBDoBQEvSA5c3tdqhi
cunicula
Hero Member
*****
Offline Offline

Activity: 756


Stack-overflow Guru


View Profile WWW
June 24, 2011, 12:17:04 AM
 #16

I hate to break it to you all, but unfortunately, rampant speculation, the hack attacks and massive price drops have already essentially killed bitcoin from the credibility point of view. No large company will willingly use a currency if using it risks their profitability on the scale bitcoin does.

Such a volatile market also has the potential for ENORMOUS gains. People have made quite tidy sums of USD from BTC. THat wont go unnoticed by investors if it continues. Rewards require risk.

How can The ENORMOUS gains be captured by businesses that enter the bitcoin economy? If they can't, then how is this sustainable?

▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁
        AltCoinInternalExperts                Get Your Altcoin Promoted On Social Media       
▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔
Electrongolf
Full Member
***
Offline Offline

Activity: 139

What's Your Gig?


View Profile WWW
June 24, 2011, 12:21:27 AM
 #17

I hate to break it to you all, but unfortunately, rampant speculation, the hack attacks and massive price drops have already essentially killed bitcoin from the credibility point of view. No large company will willingly use a currency if using it risks their profitability on the scale bitcoin does.

Such a volatile market also has the potential for ENORMOUS gains. People have made quite tidy sums of USD from BTC. THat wont go unnoticed by investors if it continues. Rewards require risk.

When you want to accept payment in btc you don't want it to arbitarily drop in value and make you essentially sell at a loss. The only thing the volatile market encourages is more speculating, rather than actual marketplaces.

Price volatility is a huge factor in Bitcoin becoming accepted. I think it's useless to think about wide acceptance until our own community has some sort of economy.

Maybe we don't have the goods and services to support this currency. If this is the case, it will be difficult for this to take off.

The only option might be to create a virtual economy. Something similar to Second Life, where BTC will always have value. In this economy you can buy real estate, build things to sell. It allows everyone to participate in the economy. In the real world this is not the case.

Crazy idea, but I think it could work.

chihlidog
Newbie
*
Offline Offline

Activity: 28


View Profile
June 24, 2011, 12:22:05 AM
 #18

I hate to break it to you all, but unfortunately, rampant speculation, the hack attacks and massive price drops have already essentially killed bitcoin from the credibility point of view. No large company will willingly use a currency if using it risks their profitability on the scale bitcoin does.

Such a volatile market also has the potential for ENORMOUS gains. People have made quite tidy sums of USD from BTC. THat wont go unnoticed by investors if it continues. Rewards require risk.

How can The ENORMOUS gains be captured by businesses that enter the bitcoin economy? If they can't, then how is this sustainable?

THere are a few answers, however what I think youre asking is how do I expect a business to accept BTC as payment when they dont really know what the relative value will be tomorrow?

It's a chicken and egg question. Until a significant number of businesses accept BTC, speculation will of course drive the market. In that time, the value could go up in the extreme way we've seen in the last month. A business could still profit by accepting BTC as payment, speculating that they will increase in value.

Im not sure why anyone would want to, but just in case, I humbly and very gratefully accept donations at: 1Kn6NFFE4EqrhN1pgBDoBQEvSA5c3tdqhi
chihlidog
Newbie
*
Offline Offline

Activity: 28


View Profile
June 24, 2011, 12:23:50 AM
 #19

I hate to break it to you all, but unfortunately, rampant speculation, the hack attacks and massive price drops have already essentially killed bitcoin from the credibility point of view. No large company will willingly use a currency if using it risks their profitability on the scale bitcoin does.

Such a volatile market also has the potential for ENORMOUS gains. People have made quite tidy sums of USD from BTC. THat wont go unnoticed by investors if it continues. Rewards require risk.

When you want to accept payment in btc you don't want it to arbitarily drop in value and make you essentially sell at a loss. The only thing the volatile market encourages is more speculating, rather than actual marketplaces.

Price volatility is a huge factor in Bitcoin becoming accepted. I think it's useless to think about wide acceptance until our own community has some sort of economy.

Maybe we don't have the goods and services to support this currency. If this is the case, it will be difficult for this to take off.

The only option might be to create a virtual economy. Something similar to Second Life, where BTC will always have value. In this economy you can buy real estate, build things to sell. It allows everyone to participate in the economy. In the real world this is not the case.

Crazy idea, but I think it could work.

As has been stated in these forums, the best chance an average joe has to get btc going is to deal in them. I have several items for sale on the private market and am accepting BTC as payment for them. Its a risk but the best I can do to support the idea.

Im not sure why anyone would want to, but just in case, I humbly and very gratefully accept donations at: 1Kn6NFFE4EqrhN1pgBDoBQEvSA5c3tdqhi
Klestin
Hero Member
*****
Offline Offline

Activity: 494


View Profile
June 24, 2011, 12:32:40 AM
 #20

Did I hear bubble?
Pages: [1] 2 »  All
  Print  
 
Jump to:  

Sponsored by , a Bitcoin-accepting VPN.
Powered by MySQL Powered by PHP Powered by SMF 1.1.19 | SMF © 2006-2009, Simple Machines Valid XHTML 1.0! Valid CSS!