A Bit Long
Ever wonder why the top economic minds, rich bankers, stock analysts, and generally most people don't understand virtual currency? Why they seem to be so stupid on such an easy to understand concept?
They don't play video games. They haven't experienced virtual currencies.This was really bothering me soo much that I decided to create a username on here and make this post.
You can apply this to about any game that has virtual currency, almost all of them do.
My background on virtual currencies, playing many many years of games with market places: SWG, SWTOR, Runescape, GW, GW2, Warhammer Online, Knight Online, various other games with market places.
The best example of these is Runescape.
Day 1: when Runescape 2.0 was released, almost no gold exists in the RS world. People are killing goblins for up to 10 gold coins each, thieving from low level NPCs to acquire gold.
Day 30: Low amounts of people are now at a higher thieving level to where they are bringing in substantial amounts of gold per hour compared to the original gold per hour. Easily increasing the rate of total gold brought into the game by a factor of thousands of times. People are now also converting items into gold coins with High Alchemy.
Day 60: Still only low amounts of people understand how money is generated, thus the price of 1 million RS Gold sky rockets to hundreds of dollars per million.
Day 90: Still not many people understand anything(it's still a new game), there isn't really a good place to go that defines how to make money. This is about the day somebody showed me what the heck High Alchemy is and how to profit from it. I was very very grateful to them and made easy money in the beginning. The point here is that the money was VERY EASY to make, you just had to understand what was happening.
Eventually the majority of people learned about how gold is brought into the game, tons of gold ends up in the game, price of gold goes down to roughly 80 cents per million. But notice how this is all a virtual currency, how it has no backing from anywhere, how it has no intrinsic value, no governments/game creators regulated any of this.
The free market worked out what everything was worth on it's own. To anyone who says "bitcoins are a bubble and eventually won't be worth anything and it's a scam" They haven't played any video games that had virtual currency.
Currently we are at the phase where more and more people are getting into what this is all about. This is the phase where the prices will keep going up for a little while, months or years can't say, but the overall point is that it will level off, prices WILL be lower, people WILL lose a lot of money, and people WILL be puzzled as to why it happened.
If you read this whole thing and understand you're welcome, I probably just made you understand your days of buying low and selling high are soon to come to a close.
There are tons of other coins, and tons of other coins will continue to come out. There will be an infinite supply of coins. Bitcoins won't be worth hundreds of thousands of dollars ever simply because other coins will bring the price of Bitcoins down.
You really have to be truly ignorant to make a post that only looks at one coin or a few coins. The correct way of reading virtual currency is context. So many people these days have no critical thinking skills and cannot understand the context of the situation. Not to mention that processing times for Bitcoins are extremely inefficient because they are not instant or as fast as other coins.
Remember, If FIAT MONEY < Bitcoins < another coin < another coin < another coin< something else < something else.
EVERYTHING CAN BE IMPROVED, new things replace the old, other coins have more Pros than BTC, being faster transaction time, easily divisible, more widespread,
