How and why Bitcoin will plummet in price

[Ron~Popeil]

Don't let facts get in the way of an agenda. Build your straw man, beat it, repeat ad nauseum.

[Skele]

So far, network effect is working well for bitcoin. But that doesn't mean there won't be another coin more suitable for payment gateway in the future.

Until that happens i just have to sit and wait for Bitcoin prices going vertical, when another better coin appears maybe i'm already buried in

my own mortuary business...

[fdiini]

Now that Califorina has legalized Bitcoin, it will not plummet in price.

[tee-rex]

Now that Califorina has legalized Bitcoin, it will not plummet in price.

It is still not a legal tender though.

[trader001]

Now that Califorina has legalized Bitcoin, it will not plummet in price.

It is still not a legal tender though.

Federal government can no longer stop companies from accepting bitcoin in California.

[tee-rex]

Now that Califorina has legalized Bitcoin, it will not plummet in price.

It is still not a legal tender though.

Federal government can no longer stop companies from accepting bitcoin in California.

This doesn't make bitcoin into a legal tender yet. You won't be able to pay, for example, taxes or public charges and duties with it. Don't let yourself get fooled about it.

[ThomasCrowne]

I think the author of this article was dropped on his head shortly after birth or something.  My 12 year old nephew could've written a better article.

I move that we apply QuitCoin to this entire thread and particularly that article.

[DannyElfman]

Now that Califorina has legalized Bitcoin, it will not plummet in price.

It is still not a legal tender though.

Federal government can no longer stop companies from accepting bitcoin in California.

This doesn't make bitcoin into a legal tender yet. You won't be able to pay, for example, taxes or public charges and duties with it. Don't let yourself get fooled about it.

In order for something to be legal tender, any company must be forced to accept it for payment. In the US this is only true for the Dollar as it is "Legal tender for all debts, public and private"

[pjviitas]

Now that Califorina has legalized Bitcoin, it will not plummet in price.

It is still not a legal tender though.

Federal government can no longer stop companies from accepting bitcoin in California.

This doesn't make bitcoin into a legal tender yet. You won't be able to pay, for example, taxes or public charges and duties with it. Don't let yourself get fooled about it.

In order for something to be legal tender, any company must be forced to accept it for payment. In the US this is only true for the Dollar as it is "Legal tender for all debts, public and private"

Everyone seems to forget that all currencies fail to be legal tender outside its borders.

So if all currencies are foreign currencies in most of the places on the planet what makes them so different than Bitcoin?

[tee-rex]

Now that Califorina has legalized Bitcoin, it will not plummet in price.

It is still not a legal tender though.

Federal government can no longer stop companies from accepting bitcoin in California.

This doesn't make bitcoin into a legal tender yet. You won't be able to pay, for example, taxes or public charges and duties with it. Don't let yourself get fooled about it.

In order for something to be legal tender, any company must be forced to accept it for payment. In the US this is only true for the Dollar as it is "Legal tender for all debts, public and private"

I may be mistaken about this, but are the U.S. companies (in the U.S. territory indeed) actually forced to accept the US dollar? As I know, you (as a company owner) are free what currency to choose in payment for your goods or services, and if a contract stipulates payment in, say, euros, you (as a counter-party) can't ignore this clause and pay in dollars instead.

[tee-rex]

Now that Califorina has legalized Bitcoin, it will not plummet in price.

It is still not a legal tender though.

Federal government can no longer stop companies from accepting bitcoin in California.

This doesn't make bitcoin into a legal tender yet. You won't be able to pay, for example, taxes or public charges and duties with it. Don't let yourself get fooled about it.

In order for something to be legal tender, any company must be forced to accept it for payment. In the US this is only true for the Dollar as it is "Legal tender for all debts, public and private"

Everyone seems to forget that all currencies fail to be legal tender outside its borders.

So if all currencies are foreign currencies in most of the places on the planet what makes them so different than Bitcoin?

As I see it, in most places on the planet, Bitcoin is not even considered as a foreign currency. If not directly prohibited from settling accounts in (as in China or Russia), then it is treated as digital property. Thus payment in bitcoins will be viewed as barter (which is frowned upon in most countries if not outright banned).

[Swordsoffreedom]

Let's say you have a car rental company named "Hertz" and it is willing to rent you a car for $100. Then suppose that another car rental company named "Avis" comes along and is willing to rent you a car for $90. And then yet another car rental company named "Enterprise" comes along and is willing to rent you a  car for $80. And to make matters worse, there are now hundreds of other car rental companies.

That guy is saying that "Hertz" should have gone bankrupt decades ago.

Nice

I was reading it as
For purposes of argument, let’s say that a year from now Bitcoin is priced at $500. Then you want some Bitcoin, let’s say to buy some drugs.  And you find someone willing to sell you Bitcoin for about $500.

So lets say your thinking in 2011 your Silk Road and the only thing on the market and then the Black Market Reloaded comes along and then another drug exchange and another that does youtube advertising *_*.
Basically more than one can exist (- the youtube advertising one)

[LMGTFY]

Now that Califorina has legalized Bitcoin, it will not plummet in price.

It is still not a legal tender though.

Federal government can no longer stop companies from accepting bitcoin in California.

This doesn't make bitcoin into a legal tender yet. You won't be able to pay, for example, taxes or public charges and duties with it. Don't let yourself get fooled about it.

In order for something to be legal tender, any company must be forced to accept it for payment. In the US this is only true for the Dollar as it is "Legal tender for all debts, public and private"

Everyone seems to forget that all currencies fail to be legal tender outside its borders.

So if all currencies are foreign currencies in most of the places on the planet what makes them so different than Bitcoin?

...and, there are even countries where legal tender doesn't really exist. In Scotland, for example, coins are legal tender (limited amounts in most cases, but £1 and £2 coins are valid for any amount), but no bank notes have been legal tender since 1946 (Scottish bank notes, and Bank of England 10 shilling and £1 notes). There are current Scottish bank notes (issues by three commercial banks), and Bank of England notes are widely used - but none are legal tender.

I'm not sure what the situation is in Northern Ireland, but I gather it's similar - Northern Irish banks also issue their own notes, though I don't know if they're legal tender there or not.

(For the sake of completeness I should add that Bank of England notes are legal tender in England and Wales, and accepted in Scotland without question - since they enjoy the same non-legal tender status as their Scottish equivalents).

[tee-rex]

Now that Califorina has legalized Bitcoin, it will not plummet in price.

It is still not a legal tender though.

Federal government can no longer stop companies from accepting bitcoin in California.

This doesn't make bitcoin into a legal tender yet. You won't be able to pay, for example, taxes or public charges and duties with it. Don't let yourself get fooled about it.

In order for something to be legal tender, any company must be forced to accept it for payment. In the US this is only true for the Dollar as it is "Legal tender for all debts, public and private"

Everyone seems to forget that all currencies fail to be legal tender outside its borders.

So if all currencies are foreign currencies in most of the places on the planet what makes them so different than Bitcoin?

...and, there are even countries where legal tender doesn't really exist. In Scotland, for example, coins are legal tender (limited amounts in most cases, but £1 and £2 coins are valid for any amount), but no bank notes have been legal tender since 1946 (Scottish bank notes, and Bank of England 10 shilling and £1 notes). There are current Scottish bank notes (issues by three commercial banks), and Bank of England notes are widely used - but none are legal tender.

Does Scotland collect their own taxes, and if it does, what money is accepted as payment for them?

[LMGTFY]

...and, there are even countries where legal tender doesn't really exist. In Scotland, for example, coins are legal tender (limited amounts in most cases, but £1 and £2 coins are valid for any amount), but no bank notes have been legal tender since 1946 (Scottish bank notes, and Bank of England 10 shilling and £1 notes). There are current Scottish bank notes (issues by three commercial banks), and Bank of England notes are widely used - but none are legal tender.

Does Scotland collect their own taxes, and if it does, what money is accepted as payment for them?

Local authorities ("councils") collect "Council Tax" to pay for local services; they accept Scottish notes (and, presumably, though I've never tested it, Bank of England notes).

The Scottish Government has (limited - a few percentage points above the UK-wide tax rate) tax-raising powers, though to date hasn't exercised that power.

[tee-rex]

...and, there are even countries where legal tender doesn't really exist. In Scotland, for example, coins are legal tender (limited amounts in most cases, but £1 and £2 coins are valid for any amount), but no bank notes have been legal tender since 1946 (Scottish bank notes, and Bank of England 10 shilling and £1 notes). There are current Scottish bank notes (issues by three commercial banks), and Bank of England notes are widely used - but none are legal tender.

Does Scotland collect their own taxes, and if it does, what money is accepted as payment for them?

Local authorities ("councils") collect "Council Tax" to pay for local services; they accept Scottish notes (and, presumably, though I've never tested it, Bank of England notes).

The Scottish Government has (limited - a few percentage points above the UK-wide tax rate) tax-raising powers, though to date hasn't exercised that power.

Thanx for the info. Could we then consider Scottish and Bank of England notes as legal tender (even if the notion is not formally defined)? To me, legal tender in the first place is what government accepts as payment for the taxes and duties it imposes on their citizens.

[LMGTFY]

...and, there are even countries where legal tender doesn't really exist. In Scotland, for example, coins are legal tender (limited amounts in most cases, but £1 and £2 coins are valid for any amount), but no bank notes have been legal tender since 1946 (Scottish bank notes, and Bank of England 10 shilling and £1 notes). There are current Scottish bank notes (issues by three commercial banks), and Bank of England notes are widely used - but none are legal tender.

Does Scotland collect their own taxes, and if it does, what money is accepted as payment for them?

Local authorities ("councils") collect "Council Tax" to pay for local services; they accept Scottish notes (and, presumably, though I've never tested it, Bank of England notes).

The Scottish Government has (limited - a few percentage points above the UK-wide tax rate) tax-raising powers, though to date hasn't exercised that power.

Thanx for the info. Could we then consider Scottish and Bank of England notes as legal tender (even if the notion is not formally defined)? To me, legal tender in the first place is what government accepts as payment for the taxes and duties it imposes on their citizens.

Probably - Scottish (and Northern Irish) notes seem to me to be, in effect, IOUs for Bank of England notes. My understanding was that "legal tender" applied to debts, so if I have a meal in a restaurant and settle up afterwards - the restaurant can't refuse my payment if I offer legal tender (obviously restaurants in Scotland are more concerned with receiving payment in any form than with the legal niceties ). I don't know at what point my Council Tax obligations become a "debt" - when I've paid in cash I've been paying in advance - but it's certainly a duty or obligation (or, at least, regarded as such by our city fathers...)

[tee-rex]

...and, there are even countries where legal tender doesn't really exist. In Scotland, for example, coins are legal tender (limited amounts in most cases, but £1 and £2 coins are valid for any amount), but no bank notes have been legal tender since 1946 (Scottish bank notes, and Bank of England 10 shilling and £1 notes). There are current Scottish bank notes (issues by three commercial banks), and Bank of England notes are widely used - but none are legal tender.

Does Scotland collect their own taxes, and if it does, what money is accepted as payment for them?

Local authorities ("councils") collect "Council Tax" to pay for local services; they accept Scottish notes (and, presumably, though I've never tested it, Bank of England notes).

The Scottish Government has (limited - a few percentage points above the UK-wide tax rate) tax-raising powers, though to date hasn't exercised that power.

Thanx for the info. Could we then consider Scottish and Bank of England notes as legal tender (even if the notion is not formally defined)? To me, legal tender in the first place is what government accepts as payment for the taxes and duties it imposes on their citizens.

Probably - Scottish (and Northern Irish) notes seem to me to be, in effect, IOUs for Bank of England notes. My understanding was that "legal tender" applied to debts, so if I have a meal in a restaurant and settle up afterwards - the restaurant can't refuse my payment if I offer legal tender (obviously restaurants in Scotland are more concerned with receiving payment in any form than with the legal niceties ). I don't know at what point my Council Tax obligations become a "debt" - when I've paid in cash I've been paying in advance - but it's certainly a duty or obligation (or, at least, regarded as such by our city fathers...)

But what if it is made known to you before you take a meal that the restaurant won't accept what is "legal tender" there, will you be able to insist on paying the "debt" with it alluding to its being a legal tender?

[triox]

For those still interested, this has been discussed on Bob Murphy's blog:

http://consultingbyrpm.com/blog/2013/12/a-bit-of-silliness.html

http://consultingbyrpm.com/blog/2013/12/yet-more-on-tyler-cowen-on-bitcoin.html

and here:
http://elidourado.com/blog/tyler-vs-tyler-on-cryptocurrency-network-externalities/

[kerafym]

We need constantly infusion of "new" money to keep the price going up.

China, India and many countries are out of the question. Wall Street and pension fund are our last hope to pump it to new high.