Bitcoin Forum
December 08, 2016, 08:21:38 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 2343 times)
cunicula
Hero Member
*****
Offline Offline

Activity: 756


Stack-overflow Guru


View Profile WWW
June 24, 2011, 12:46:55 AM
 #21

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.

No. What you describe is no different from speculation. You are saying that business can speculate too.
Businesses can only earn more in btc than in USD if they:
a) introduce novel online services that can't be offered at similar costs via USD/EUR/etc/ (silkroad/gambling/ and maybe remittance,webcam)
b) are large enough to influence the BTC price significantly by announcing their decision to accept BTC

But b) won't function efficiently because bitcoin currency generation is set up badly,
see here: http://forum.bitcoin.org/index.php?topic=19130.0


▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁▁
        AltCoinInternalExperts                Get Your Altcoin Promoted On Social Media       
▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔
1481185298
Hero Member
*
Offline Offline

Posts: 1481185298

View Profile Personal Message (Offline)

Ignore
1481185298
Reply with quote  #2

1481185298
Report to moderator
1481185298
Hero Member
*
Offline Offline

Posts: 1481185298

View Profile Personal Message (Offline)

Ignore
1481185298
Reply with quote  #2

1481185298
Report to moderator
1481185298
Hero Member
*
Offline Offline

Posts: 1481185298

View Profile Personal Message (Offline)

Ignore
1481185298
Reply with quote  #2

1481185298
Report to moderator
Advertised sites are not endorsed by the Bitcoin Forum. They may be unsafe, untrustworthy, or illegal in your jurisdiction. Advertise here.
1481185298
Hero Member
*
Offline Offline

Posts: 1481185298

View Profile Personal Message (Offline)

Ignore
1481185298
Reply with quote  #2

1481185298
Report to moderator
onesalt
Sr. Member
****
Offline Offline

Activity: 308


View Profile
June 24, 2011, 01:52:00 AM
 #22

Did I hear bubble?


No you cretin, rampant speculating and its near worthlessness as a currency does not mean someone mentioned bubble.
David M
Sr. Member
****
Offline Offline

Activity: 476


View Profile
June 24, 2011, 01:59:05 AM
 #23

Speculators are absolutely required to make Bitcoin a success.

Price discovery is hard enough in any market, let alone something as new and different as Bitcoin.

Consider the current market action:

They showed that $US 31 is too expensive and that $US 10 is too cheap.
onesalt
Sr. Member
****
Offline Offline

Activity: 308


View Profile
June 24, 2011, 02:00:07 AM
 #24

And the fact it repeatedly bounces between the two and the difficulty shifts every 2 weeks effect the price so much means it's terrible as a stable currency.

That and the weekend keeps repeatedly causing price crashes.
FlipPro
Legendary
*
Offline Offline

Activity: 1372



View Profile WWW
June 24, 2011, 02:08:14 AM
 #25

Speculators are absolutely required to make Bitcoin a success.

Price discovery is hard enough in any market, let alone something as new and different as Bitcoin.

Consider the current market action:

They showed that $US 31 is too expensive and that $US 10 is too cheap.
That is true , as much as we like to hate on the speculators, they do determine the true value of bitcoins in the long run.

Tweet For Coins http://uptweet.com
David M
Sr. Member
****
Offline Offline

Activity: 476


View Profile
June 24, 2011, 02:12:06 AM
 #26

And the fact it repeatedly bounces between the two and the difficulty shifts every 2 weeks effect the price so much means it's terrible as a stable currency.

The risk can be tamed with a derivatives market.  Futures or options.

I am merchant that will paying AUD$ to suppliers, so I need to buy a put or sell a futures contract to lock in the sell price of my coins.
Klestin
Hero Member
*****
Offline Offline

Activity: 494


View Profile
June 24, 2011, 02:14:43 AM
 #27

Quote from: CurbsideProphet
That's how bubbles work
...does not mean someone mentioned bubble.
Herp, derp.
QuantPlus
Sr. Member
****
Offline Offline

Activity: 280



View Profile
June 24, 2011, 02:55:32 AM
 #28

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?

BTC was never a "stable and safe store of value in the long run"...
What are you smoking, dude?

BTC with it's built-in transparently fraudulent "deflationary spiral"...
Was DESIGNED from Day One...
To form Bubbles on rampant speculation...
And eventually go to zero...
After the principals unload their coins.

There are 100s of similar scams in Pink Sheets or Venture Exchanges...
People run boiler rooms and rip people off for a living...
Right in the heart of Wall Street.

Nobody cares about people who get ripped off for being stupid...
It's perfectly legal to convince stupid people to give you their $$$.
 
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!