Smart Money has left the building… Have you?

[molecular]

The true believers in bitcoin should be buying up all the bitcoins they can while they're this cheap.  There is no asterisk on Bitconica's buy side, and anyway, true believers would use their own cash to reaffirm their convictions.

I'm pretty much out of cash from all the affirming of my convictions in the past.

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[Oldminer]

i am prepared to buy at 2.5 again... not buying before 3

Hang in there..you may see it sooner rather than later...

[BTConomist]

The true believers in bitcoin should be buying up all the bitcoins they can while they're this cheap.

It’s never about the faith in bitcoin, because as a currency, BTC can rock, big time!
It’s all about the mechanics of bitcoin; and your idea of BTC value just doesn’t fit the bill.

[BTConomist]

OK, bees, who dares to buy couple Ks, say at $4.99/BTC? (It's a steal, if you ask me.)

[BTConomist]

I don't know what it is about bees, but after you annihilate their hive in search of that sweet honey, some of them still linger around for hours/days as if it will magically reappear.

[BTConomist]

Supply and demand for bitcoins does not give BTC its value.
But supply and demand for goods/services denominated in BTC does.

P.S. Don't make me pull out the wizard hat again... Your honey is fake!

Then what makes the exchange rate go up when dollars flow into the market/decline when they go out?

I wasn't referring to the exchange rate.

[Bro]

I'm still in the building

uber smart money stays in the building, bitch

What’s with the hate? I merely provide the insight on perishable gold.
[/quote

no hate
I left the building too

[Qoheleth]

OK, bees, who dares to buy couple Ks, say at $4.99/BTC? (It's a steal, if you ask me.)

Don't have the scratch, but if I did, it'd be a no-brainer. There's enough ask depth for me to turn around and sell it all on Mt. Gox, and make a tidy profit when I do it!

[brunoshady]

YAY

[brunoshady]

yay

[BTConomist]

Supply and demand for bitcoins does not give BTC its value.
But supply and demand for goods/services denominated in BTC does.

P.S. Don't make me pull out the wizard hat again... Your honey is fake!

Then what makes the exchange rate go up when dollars flow into the market/decline when they go out?

I wasn't referring to the exchange rate.

You referred to the value of Bitcoin, which can be expressed, even if only by proxy, by the exchange rate. From the standpoint of making quantitative decisions about the 'value' of Bitcoin the exchange rate has to be considered. This is affected by supply and demand.

When it comes to currencies, don't the exchange rates follow the value?
Without the latter, it's about BZZZZ, BZZZZ, BZZZZ... GOLD, GOLD, GOLD!!!

[arepo]

 

EDIT: pps bear market signalled by the Chaikin Money Flow going negative for the first time since early December, and a huge crash (+/- crossover) in the Chaikin Oscillator (momentum of the Accumulation/Distribution Line) these past 2-3 days.

i think we are ...sslipping into pessimisssm...

or are we still in denial that our own rampant speculation caused the volatility?

bear market ahead, folks

[SkRRJyTC]

 

EDIT: pps bear market signalled by the Chaikin Money Flow going negative for the first time since early December, and a huge crash (+/- crossover) in the Chaikin Oscillator (momentum of the Accumulation/Distribution Line) these past 2-3 days.

i think we are ...sslipping into pessimisssm...

or are we still in denial that our own rampant speculation caused the volatility?

bear market ahead, folks

Ive been pessimistic.  BTC trading services suck.

[BTConomist]

When it comes to currencies, don't the exchange rates follow the value?
Without the latter, it's about BZZZZ, BZZZZ, BZZZZ... GOLD, GOLD, GOLD!!!

In this case the 'value' as I think you mean it is interdependent with the exchange rate. A higher volume of exchange, with a higher exchange rate is accommodative of a larger set of 'purchases' than a lower volume of exchange with a lower exchange rate. A lower exchange rate makes Bitcoin less valuable because the maximum size of purchase that can be made is limited by the liquidity of currency exchange as a whole. A higher exchange rate, with more exchange volume can accommodate larger purchases without causing a crisis of liquidity, this makes Bitcoin more valuable on the basis of it's utility as a currency.

An exchange rate is merely an expression of one currency's value relative to that of other currencies.

But when it comes to BTC-denominated commercial transactions, BTC's value is still nonexistent (or near zero).

[zby]

I know I've created one of this bearish threads myself - but the saturation of this forum by them now reached the point where they are starting to be a good contrarian indicator.

[BTConomist]

An exchange rate is merely an expression of one currency's value relative to that of other currencies.

But when it comes to BTC-denominated commercial transactions, BTC's value is still nonexistent (or near zero).

To say an exchange rate is merely an expression of one currency's value relative to that of other currencies is nothing but tautology, it completely ignores the mechanics of how the exchange rate gets to be that way. If you have any interest at all in quantitative finance that is not something you get to ignore.

What mechanics does it ignore?

Are you trying to point out that an exchange rate can be used to speculate on the future value of a currency? Because I don't discount that.

My main point about BTC is that it's no gold — it's perishable gold (it's value decays when it is being hoarded).

[miscreanity]

My main point about BTC is that it's no gold — it's perishable gold (it's value decays when it is being hoarded).

Where's the expiration date that erodes the stored value?

[BTConomist]

My main point about BTC is that it's no gold — it's perishable gold (it's value decays when it is being hoarded).

Where's the expiration date that erodes the stored value?

When it comes to BTC, there's no such thing as a stored value.

BTC has a "carry forward" value, which decays when hoarded. But that's something I will discuss at some future date.

Right now, I just want me some real honey... Where are the real honey bees at?! I can already smell that $4.00 hive... If only it was up on the trees.

[notme]

My main point about BTC is that it's no gold — it's perishable gold (it's value decays when it is being hoarded).

Where's the expiration date that erodes the stored value?

When it comes to BTC, there's no such thing as a stored value.

BTC has a "carry forward" value, which decays when hoarded. But that's something I will discuss at some future date.

Right now, I just want me some real honey... Where are the real honey bees at?! I can already smell that $4.00 hive... If only it was up on the trees.

So what are the "accounting periods", blocks maybe?  Why does that mean value decays?

[BTConomist]

For purposes of use as a currency Bitcoin is superior to gold.

In order for gold to be transmitted it either requires an abstraction layer, which adds cost to the transaction, or it has to be transported physically, which also adds to the cost of transacitons. As well, an abstraction layer also makes gold vulnerable to fractionalization.

No argument here, if we stick with "use as a currency" as premise.