HorseRider (OP)
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October 13, 2011, 11:42:00 AM |
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The price of bitcoin fluctuate so much, just like a stock. Only the ppl have enough money to save to survival the so called "long run", is the qualified ppl to hold the bitcoin. Otherwise, the sellers should sell the bitcoin as soon as get it, to prevent himself from exchange risks. that's what bit-pay do.
There will be two kind of ppl hold the bitcoin:
1. ppl who use bitcoin as a payment methods. for example, junkies buying drugs on Silk Road. He bought exactly 45.91btc to pay the 5 gram
LSD on mtgox, and then withdraw the money to the address he was provided to pay. the whole process was done in 1 minutes. Suppose that their are X such kind of payment made per day, and average size of the payment was Y BTC, and every process is made in 1min, these group of ppl just hold XY/1440 bitcoin for the bitcoin world. If X goes large, the holder of bitcoin increases. Even if 1m ppl start to use bitcoin as a method of payment, these group of ppl will just hold not like 10^4 bitcoins
2.ppl who buy bitcoin as an investment. every ppl are holding at least 10^2 bitcoin in this group. and this group is very large.
However, the number of 2 group of ppl is not independent. the more ppl use bitcoin as payment, the more ppl like to invest it, and ppl like to invest more bitcoin. some buyers and sellers in group 1 will be later became ppl who invest bitcoin.
The more ppl like to hold the bitcoin, the higher will be the price.
so there are 2 ways improve the price performance of the bitcoin, they are both right:
1.make bitcoin payment far far far more easy and safe than what we see right now .
2.talking to ppl to buy bitcoin as a long-term investment. risky but high potential of investment return.
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"Bitcoin: mining our own business since 2009" -- Pieter Wuille
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HorseRider (OP)
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October 13, 2011, 11:49:09 AM |
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The value of bitcoin fluctuate so much
Wrong. The value isn't determined by the exchange rates. You're confusing the two. Purchasing power is the value of Bitcoin. It seems only more and more people are accepting it. Who gives a flying granny fart what the exchange rate is? I'm actually talking about the price or the exchange rates. edited OP. |
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tsvekric
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October 14, 2011, 05:01:11 PM |
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1. ppl who use bitcoin as a payment methods. for example, junkies buying drugs on Silk Road. He bought exactly 45.91btc to pay the 5 gram
LSD on mtgox,
Unrelated, but: 5 grams of LSD would be 250 sheets (25,000 hits) of the strongest stuff out there right now - 50,000 hits of your average stuff. That's more like $80-150k. That would make a bitcoin worth thousands, and that is wishful thinking  |
Hey TeKillaSunRise, check it out
-qwe2323
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Crypt_Current
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October 14, 2011, 11:37:00 PM |
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1. ppl who use bitcoin as a payment methods. for example, junkies buying drugs on Silk Road. He bought exactly 45.91btc to pay the 5 gram
LSD on mtgox,
Unrelated, but: 5 grams of LSD would be 250 sheets (25,000 hits) of the strongest stuff out there right now - 50,000 hits of your average stuff. That's more like $80-150k. That would make a bitcoin worth thousands, and that is wishful thinking Damn, beat me to it! Plus, LSD is not typically a "junkie"'s drug. |
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jjiimm_64
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October 15, 2011, 05:08:09 AM |
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People who care only about the exchange rate are not using Bitcoin.
If you earn your Bitcoins and spend your Bitcoins, this little 'value' problem doesn't exist so much.
I would have to disagree with you on this issue. I earn my btc thru mining. I use the bitcoins to buy things only if it is much cheaper then exchanging them for usd and purchasing. |
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Grinder
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October 15, 2011, 05:21:40 PM |
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Purchasing power is the value of Bitcoin. It seems only more and more people are accepting it. Who gives a flying granny fart what the exchange rate is?
The purchasing power of bitcoin is directly related to the exchange value. If someone tries to pretend it's not they'll lose their bitcoins quickly, because they'll end up putting a too high value on either goods or bitcoins. |
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HorseRider (OP)
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October 17, 2011, 12:58:14 AM |
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Purchasing power is the value of Bitcoin. It seems only more and more people are accepting it. Who gives a flying granny fart what the exchange rate is?
The purchasing power of bitcoin is directly related to the exchange value. If someone tries to pretend it's not they'll lose their bitcoins quickly, because they'll end up putting a too high value on either goods or bitcoins. So the giant stone coins if the Yapp islanders were valuable because of their exchange value to other currencies? But the Yapp ppl mostly use the stone coins, and the USD/EURO don't exist in there daily life. Bitcoin have to be and is always competing with fiat money. fiat money is used so widely and fiat money is the accounting unit of ppl. So I guess you have to hope the Free State Project have their own community build as soon as possible, where the mostly used currency is bitcoin. |
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d.james
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October 17, 2011, 05:03:50 PM |
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Purchasing power is the value of Bitcoin. It seems only more and more people are accepting it. Who gives a flying granny fart what the exchange rate is?
The purchasing power of bitcoin is directly related to the exchange value. If someone tries to pretend it's not they'll lose their bitcoins quickly, because they'll end up putting a too high value on either goods or bitcoins. So the giant stone coins if the Yapp islanders were valuable because of their exchange value to other currencies? But the Yapp ppl mostly use the stone coins, and the USD/EURO don't exist in there daily life. Bitcoin have to be and is always competing with fiat money. fiat money is used so widely and fiat money is the accounting unit of ppl. So I guess you have to hope the Free State Project have their own community build as soon as possible, where the mostly used currency is bitcoin. It took us a really long time to replace gold/silver which were popular in the stone age, with today's fiat money. BTC sure has the potential to do the same but it will take a looooooooooooooooong time. |
You can not roll a BitCoin, but you can rollback some.  Roll me back: 1NxMkvbYn8o7kKCWPsnWR4FDvH7L9TJqGG |
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saykor
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October 17, 2011, 05:39:06 PM |
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The value of bitcoin fluctuate so much
Wrong. The value isn't determined by the exchange rates. You're confusing the two. Purchasing power is the value of Bitcoin. It seems only more and more people are accepting it. Who gives a flying granny fart what the exchange rate is? People who care only about the exchange rate are not using Bitcoin. If you earn your Bitcoins and spend your Bitcoins, this little 'value' problem doesn't exist so much. i not agree with you. The goods that is selling for a bitcoins is not a free like a bitcoins. / this is the moment to say why someone think that bitcoin is a free? to mine you buy a hardware with a real money. so bitcoin is not a free currency arrived from nothing. If I want to sell my pc for example i will need a money to pay my bills. If I sell it for a BTC i will want to exchange them to pay my bills. So I need to care for exchange rate. From other side I NOT will want to sell my pc below the exchange rate. Anyone ( maybe jjiimm_64 ) can give me a good reason why i need to do this and lose a money? first lost when sell below the exchange rate then lost in a exchange/transfer fees. |
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