BitcoinBug (OP)
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November 28, 2013, 09:15:29 AM |
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I think it's important to understand what is going on. This is only my opinion, but feel free to correct or add anything. IMO altcoins got popular for these reasons: - lots of newbies with regret and (incorrect) thinking in style "I missed the boat with bitcoin, what is the next big thing"
- pumps & dumps are much easier done with altcoins and on newbies
- GPU miners lost their profits when FPGAs and ASICs arrived and had to switch to something else. They suddenly became incentivized to promote altcoins
- all cryptocurrencies are currently more than 90% speculation. The network effect, that Erik Voorhees is talking about, is only semi-valid at the moment. When Bitcoin price will reach its full potential and the system becomes more like a transactional currency, network effect will cause the value to (finally) concentrate in one currency
- hype-price feedback
I see these reasons as the "perfect storm", the whole is greater than the sum of its parts. But it is also not sustainable. Newbies will learn the fundamentals, suckers from pumps & dumps will learn from their mistakes, the mining aspect will lose power (professionalization), built infrastructure will make Bitcoin more usable for day-to-day transactions. TL;DR: don't fall for altcoins, unless you really understand the reasons for owning them
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Barek
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November 28, 2013, 09:36:04 AM |
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Be especially careful with scrypt-based altcoins.
Whoever creates the first ASIC für scrypt, has the option is control the blockchain.
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XBBlade
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November 28, 2013, 09:59:46 AM |
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I think it's important to understand what is going on. This is only my opinion, but feel free to correct or add anything. IMO altcoins got popular for these reasons: - lots of newbies with regret and (incorrect) thinking in style "I missed the boat with bitcoin, what is the next big thing"
- pumps & dumps are much easier done with altcoins and on newbies
- GPU miners lost their profits when FPGAs and ASICs arrived and had to switch to something else. They suddenly became incentivized to promote altcoins
- all cryptocurrencies are currently more than 90% speculation. The network effect, that Erik Voorhees is talking about, is only semi-valid at the moment. When Bitcoin price will reach its full potential and the system becomes more like a transactional currency, network effect will cause the value to (finally) concentrate in one currency
- hype-price feedback
I see these reasons as the "perfect storm", the whole is greater than the sum of its parts. But it is also not sustainable. Newbies will learn the fundamentals, suckers from pumps & dumps will learn from their mistakes, the mining aspect will lose power (professionalization), built infrastructure will make Bitcoin more usable for day-to-day transactions. TL;DR: don't fall for altcoins, unless you really understand the reasons for owning them You can fall for altcoins, but just don't spend money on it. That's more the thing I think. There are plenty of giveaways on the internet, so if you want to experience with altcoins I suggest you do that. LTC can't be ignored tho. I think this one will be the steady 2nd. Someone described Bitcoin as gold and Litecoins as silver. I think I agree with that.
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d'aniel
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November 28, 2013, 10:50:21 AM |
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You won't convince many people to stop doing something they're currently making a bunch of money at. But unlike with Bitcoin the story driving their speculation is relatively unconvincing, so I suspect that when prices begin to stagnate or consolidate, people will get bored and nervous, and we'll see a flight to (relative) safety in bitcoin. Actually it seems like this is exactly what happened throughout the summer with litecoin. And like Erik mentioned, the alt-coins draw the bottom of the barrel speculator away from Bitcoin, creating a stabilizing effect. Unfortunately this will lead to alt-coins getting pumped up during bitcoin hype phases, but likely this stored value will "gravitate back toward the centre" during periods of consolidation. That or the cryptocurrency market will prove to be too fickle to stably contain its liquidity, and the store of value promise ("gold 2.0") dies. Something funny I noticed on Erik's reddit post. Top voted comment: A second block chain might be important for reasons yet to be ascertained. "a company for carrying out an undertaking of great advantage, but nobody to know what it is" -South Sea Company Notice the resemblance ![Tongue](https://bitcointalk.org/Smileys/default/tongue.gif) Someone described Bitcoin as gold and Litecoins as silver. I think I agree with that.
What in God's name does this even mean?
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PenAndPaper
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November 28, 2013, 10:53:18 AM |
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People think that bitcoin is unlikely to rise any more in value. 1000$ is a psychological barrier and it will not be easy to beat that. On the other hand altcoins are considered cheap and with much more potential. It's a flawed logic but can fuel speculation easily.
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amincd
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November 28, 2013, 10:57:26 AM |
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You won't convince many people to stop doing something they're currently making a bunch of money at. But unlike with Bitcoin the story driving their speculation is relatively unconvincing, so I suspect that when prices begin to stagnate or consolidate, people will get bored and nervous, and we'll see a flight to (relative) safety in bitcoin. Actually it seems like this is exactly what happened throughout the summer with litecoin. And like Erik mentioned, the alt-coins draw the bottom of the barrel speculator away from Bitcoin, creating a stabilizing effect. Unfortunately this will lead to alt-coins getting pumped up during bitcoin hype phases, but likely this stored value will "gravitate back toward the centre" during periods of consolidation. That or the cryptocurrency market will prove to be too fickle to stably contain its liquidity, and the store of value promise ("gold 2.0") dies. Something funny I noticed on Erik's reddit post. Top voted comment: A second block chain might be important for reasons yet to be ascertained. "a company for carrying out an undertaking of great advantage, but nobody to know what it is" -South Sea Company Notice the resemblance ![Tongue](https://bitcointalk.org/Smileys/default/tongue.gif) +1 People think that bitcoin is unlikely to rise any more in value. 1000$ is a psychological barrier and it will not be easy to beat that. Exactly. This is all it is. Take a Bitcoin fork, give it a name that suggests it's something original (Litecoin or Terracoin or whatever), and drive speculation money that's looking for a 'cheaper' alternative into it. Bitcoin prices should immediately be quoted in terms of mBTC.
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AnonyMint
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November 28, 2013, 10:59:22 AM Last edit: November 29, 2013, 07:49:59 AM by AnonyMint |
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And like Erik mentioned, the alt-coins draw the bottom of the barrel speculator away from Bitcoin, creating a stabilizing effect.
Erik will eat humble pie. TL;DR: don't fall for altcoins, unless you really understand the reasons for owning them
For example you missed the point that Bitcoin and Litecoin are insecure and will fail technically.
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bryant.coleman
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November 28, 2013, 11:20:15 AM |
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I don't understand why there is so much demand for LTC. LTC-Global is closed, so is Atlantis. So the demand solely comes from speculation. Unlike the BTC, the LTC doesn't have any use as of now.
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XBBlade
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November 28, 2013, 11:44:32 AM |
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Someone described Bitcoin as gold and Litecoins as silver. I think I agree with that.
What in God's name does this even mean? That LTC is a good 2nd coin. ![Lips sealed](https://bitcointalk.org/Smileys/default/lipsrsealed.gif)
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Barek
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November 28, 2013, 11:57:29 AM |
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If people want to buy, let them. ![Cheesy](https://bitcointalk.org/Smileys/default/cheesy.gif) In fact, Litcoin are currently generated 8 times faster than Bitcoin. Fire up those graphics cards! ![Grin](https://bitcointalk.org/Smileys/default/grin.gif)
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PenAndPaper
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November 28, 2013, 12:05:06 PM |
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Someone described Bitcoin as gold and Litecoins as silver. I think I agree with that.
That someone is the guy who created litecoin. It 's only a slogan but it seems that it works in people's psychology ![Roll Eyes](https://bitcointalk.org/Smileys/default/rolleyes.gif)
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XBBlade
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November 28, 2013, 12:07:35 PM |
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Someone described Bitcoin as gold and Litecoins as silver. I think I agree with that.
That someone is the guy who created litecoin. It 's only a slogan but it seems that it works in people's psychology ![Roll Eyes](https://bitcointalk.org/Smileys/default/rolleyes.gif) Really? Why, LTC grow fast in value as well. Don't you think it's going to make it?
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PrintMule
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November 28, 2013, 12:08:25 PM |
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Be especially careful with scrypt-based altcoins.
Whoever creates the first ASIC für scrypt, has the option is control the blockchain.
That thing would be so expensive to make... gpu will always be in the lead there's no possible decrease in watts/gH that will justify the crazy price. If people want to buy, let them. ![Cheesy](https://bitcointalk.org/Smileys/default/cheesy.gif) In fact, Litcoin are currently generated 8 times faster than Bitcoin. Fire up those graphics cards! ![Grin](https://bitcointalk.org/Smileys/default/grin.gif) I had single HD7950 on sale, for a good price for a while, but last month or two I've decided to keep it. There were people calling me , asking for a crazy low price, trying to debate something like "nvidia card of the same level costs less , etc". I told them to buy that nvidia and leave me alone. Yesterday same people started calling me, wanting to buy my gpu (not selling anymore, lol) ![Cheesy](https://bitcointalk.org/Smileys/default/cheesy.gif) Talked with one of them about mining, hour ago, recognized him as a previous caller, so much lulz. Sold 15LTC in the summer, starting to regret a little now ![Smiley](https://bitcointalk.org/Smileys/default/smiley.gif)
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jzcjca00
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November 28, 2013, 12:29:06 PM |
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Altcoins exist because too many people think with their emotions instead of logic.
Bitcoin solves a number of critical problems -- debt-based currencies with fractional reserve banking and central bank stimulus packages serve primarily to steal from the poor to give to the rich, and abuse of currencies makes socialism possible, again primarily benefitting the looters at the expense of the producers. Bitcoin can change all that and usher in a new age of prosperity, limited government, and increased personal freedom.
Altcoins serve no useful purpose. They only distract people from the real battle being waged -- Bitcoin versus Big Brother.
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Tips much appreciated! 1PPJHDawPvjh6MEzsvXrMYLgpLmyAaNXUc
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AnonyMint
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November 28, 2013, 12:34:50 PM |
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Altcoins serve no useful purpose.
You will eat humble pie too. They only distract people from the real battle being waged -- Bitcoin versus Big Brother.
Bitcoin is helping Big Brother. You are very ignorant.
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SeanArce
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November 28, 2013, 01:03:30 PM |
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It's individuality and freedom. Those are the reasons for alt coin. People who push bitcoin and are against alt coin also worship god you would think. Destroy those who mock allah. Destroy those that mock bitcoin
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PenAndPaper
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November 28, 2013, 01:27:14 PM |
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Someone described Bitcoin as gold and Litecoins as silver. I think I agree with that.
That someone is the guy who created litecoin. It 's only a slogan but it seems that it works in people's psychology ![Roll Eyes](https://bitcointalk.org/Smileys/default/rolleyes.gif) Really? Why, LTC grow fast in value as well. Don't you think it's going to make it? For all i know if investors continue to embrace crypto currencies like that, even the shittiest alt coin will somewhat make it.
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Lauda
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Terminated.
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November 28, 2013, 01:31:57 PM |
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When will you start believing in crypto?
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"The Times 03/Jan/2009 Chancellor on brink of second bailout for banks" 😼 Bitcoin Core ( onion)
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jzcjca00
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November 28, 2013, 01:32:31 PM |
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It's individuality and freedom. Those are the reasons for alt coin. People who push bitcoin and are against alt coin also worship god you would think. Destroy those who mock allah. Destroy those that mock bitcoin
I would have guessed the opposite. To believe in a god, you must consciously suspend rational thought, as logic tells you that gods cannot exist. So believers say they "know in their heart" that God is real, implying that the heart is somehow a superior to the brain as a source of knowledge. Of course, actual knowledge comes from rational thought, not from emotion. I see no logical reason to think that altcoins serve any useful purpose. While believing in them does not require abandonment of rationality, it does require the absence of logical thought. Or maybe there is a logical reason for them I have not yet heard. My guess would be that the same people who are willing to abandon rationality to believe in a god would also likely fail to think rationally about their belief in the utility of altcoins. I don't worship Bitcoin any more than I worship computers. They are both useful tools. I see altcoins as being more like the Klingon language, an interesting amusement, but with no real useful value.
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Tips much appreciated! 1PPJHDawPvjh6MEzsvXrMYLgpLmyAaNXUc
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d'aniel
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November 28, 2013, 01:36:19 PM |
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It's individuality and freedom. Those are the reasons for alt coin. People who push bitcoin and are against alt coin also worship god you would think. Destroy those who mock allah. Destroy those that mock bitcoin
Oh don't be so shallow in your understanding of your opponents here. As I mentioned in my post above, the worry is that by demonstrating a willingness to adopt random copycats to a significant degree, "the cryptocurrency market will prove to be too fickle to stably contain its liquidity, and the store of value promise ("gold 2.0") dies." That would be a damn shame just to enrich a few additional early adopters.
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