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ShampooBanana, I've criticized others for this type of post. There's plenty to criticize about Bitcoin, can you point out at least one of the reasons you think it's similar to tulip mania? Do you think there's flaws in the code? Do you think the government will come with the usual "it funds terrorism" and shut exchanges down?
You realize tulips had no utility right? Bitcoin removes 3-5 layers of corporations taking cuts and imposing rules between buyers and sellers.
Can you take my visa card if I wanna pay you? Probably not and if you can in between you and I is the parent bank, the merchant processing company / underwriter, EMS or First Data, Visa/MC/Disc/Amex, and then authorize.net. Each takes a percentage and/or a cut of the transaction while imposing rules and deciding when or if you get your money from me.
Bitcoin cuts all that nonsense out as its both a currency and a payments platform. Can tulips do that?
All of what you are saying is true of the technology. Is bitcoin, or any other crypto for that matter, being used as a common currency? Even bitcoin proponents will admit it isn't being used as a currency, just a way to invest in the technology behind it. In that sense it's akin to Pets.com. It is a way to invest in a new technology, but to this point it has limited actual utility. So I would put it one step above tulips. Although diamonds don't really have much actual utility either, yet people still pay a lot of money for them.
All of what you are saying is true of the technology. Is bitcoin, or any other crypto for that matter, being used as a common currency? Even bitcoin proponents will admit it isn't being used as a currency, just a way to invest in the technology behind it. In that sense it's akin to Pets.com. It is a way to invest in a new technology, but to this point it has limited actual utility. So I would put it one step above tulips. Although diamonds don't really have much actual utility either, yet people still pay a lot of money for them.
People have been buying weed online for years, it's tested and been used. Bitcoin is in it's infnacy, less than 1% of 1% of internet users are using it so we're seeing not even close to the beginnings of mass adoption. I just bought some winter hats with Bitcoins the other day.
Bitcoin isn't the currency that will be used for buying things, another coin will take that place as there are better coins out there ie faster/cheaper/anonymous. That said Bitcoin was the first, its the reserve currency in the world of crypto andits more like an offshore bank account thats safe from inflation and government control more so than it is a currency
People have been buying weed online for years, it's tested and been used. Bitcoin is in it's infnacy, less than 1% of 1% of internet users are using it so we're seeing not even close to the beginnings of mass adoption. I just bought some winter hats with Bitcoins the other day.
Bitcoin isn't the currency that will be used for buying things, another coin will take that place as there are better coins out there ie faster/cheaper/anonymous. That said Bitcoin was the first, its the reserve currency in the world of crypto andits more like an offshore bank account thats safe from inflation and government control more so than it is a currency
LOL! The “reserve currency” in the world of crypto....
LOL! The “reserve currency” in the world of crypto....
Yeah....so much stability.
Your probably not involved in crypto so you probably don't get it, but the same way the Dollar is kind of the currency everything is pegged to, if you want to buy Lisk, ARK, NEM, OmiseGo, NAV, or any other altcoin you need to first buy Bitcoin to then transfer to Bittrex, Poloniex or Kracken to buy other coins so that's why I say reserve currency. Also because in the world of crypto you don't count your gains in Dollars, they are meaningless, you count your gains in Bitcoin. The goal is to accumulate more Bitcoin because at the end of the day you have to sell back to Bitcoin to get back to fiat.
ShampooBanana, I've criticized others for this type of post. There's plenty to criticize about Bitcoin, can you point out at least one of the reasons you think it's similar to tulip mania? Do you think there's flaws in the code? Do you think the government will come with the usual "it funds terrorism" and shut exchanges down?
You realize tulips had no utility right? Bitcoin removes 3-5 layers of corporations taking cuts and imposing rules between buyers and sellers.
Can you take my visa card if I wanna pay you? Probably not and if you can in between you and I is the parent bank, the merchant processing company / underwriter, EMS or First Data, Visa/MC/Disc/Amex, and then authorize.net. Each takes a percentage and/or a cut of the transaction while imposing rules and deciding when or if you get your money from me.
Bitcoin cuts all that nonsense out as its both a currency and a payments platform. Can tulips do that?
I understand. The parallel is that the value of it is currently being driven mostly by speculation, however. Did Bitcoin suddenly become widely adopted as a standard currency? Did it suddenly gain in utility? No and no. The price is being driven up purely because average joe investor is now seeing that it's been making huge gains after just learning about it's existence and wan'ts to get in on the action. Once the party stops (and it will) he'll panic at the first hiccup of a drop and sell out, causing the bubble to burst just as it did toward the end of tulip mania. Only the serious believers and long term investors will be there to hold it's value, but I don't believe for a minute that the value is going to keep going up like this ad infinitum as some do.
Quote:
Originally Posted by Thatsright19
What’s the most important attribute of a currency?
Stability.
Bitcoin is a speculative asset class. An untested one.
Yes, although "cryptocurrency" would be the asset class with Bitcoin being just one version of it.
Quote:
Originally Posted by doodlemagic
Your probably not involved in crypto so you probably don't get it, but the same way the Dollar is kind of the currency everything is pegged to, if you want to buy Lisk, ARK, NEM, OmiseGo, NAV, or any other altcoin you need to first buy Bitcoin to then transfer to Bittrex, Poloniex or Kracken to buy other coins so that's why I say reserve currency. Also because in the world of crypto you don't count your gains in Dollars, they are meaningless, you count your gains in Bitcoin. The goal is to accumulate more Bitcoin because at the end of the day you have to sell back to Bitcoin to get back to fiat.
No doubt, but the vast majority of those investing in Bitcoin right now only care about the dollar value, not the volume. The vast majority are NOT well versed in the world of crypto and that's why it's scary right now. I equate to the end of the runup to the housing crash when people with almost no assets and no stable jobs were getting home loans just because it seemed like a big no-brainer investment at the time. Those people had no business buying a home and no way would they have qualified under any real underwriting standards, and thus we saw what happened a little later...
Quote:
Originally Posted by mizzourah2006
All of what you are saying is true of the technology. Is bitcoin, or any other crypto for that matter, being used as a common currency? Even bitcoin proponents will admit it isn't being used as a currency, just a way to invest in the technology behind it. In that sense it's akin to Pets.com. It is a way to invest in a new technology, but to this point it has limited actual utility. So I would put it one step above tulips. Although diamonds don't really have much actual utility either, yet people still pay a lot of money for them.
I understand. The parallel is that the value of it is currently being driven mostly by speculation, however. Did Bitcoin suddenly become widely adopted as a standard currency? Did it suddenly gain in utility? No and no. The price is being driven up purely because average joe investor is now seeing that it's been making huge gains after just learning about it's existence and wan'ts to get in on the action. Once the party stops (and it will) he'll panic at the first hiccup of a drop and sell out, causing the bubble to burst just as it did toward the end of tulip mania. Only the serious believers and long term investors will be there to hold it's value, but I don't believe for a minute that the value is going to keep going up like this ad infinitum as some do.
Yes, although "cryptocurrency" would be the asset class with Bitcoin being just one version of it.
No doubt, but the vast majority of those investing in Bitcoin right now only care about the dollar value, not the volume. The vast majority are NOT well versed in the world of crypto and that's why it's scary right now. I equate to the end of the runup to the housing crash when people with almost no assets and no stable jobs were getting home loans just because it seemed like a big no-brainer investment at the time. Those people had no business buying a home and no way would they have qualified under any real underwriting standards, and thus we saw what happened a little later...
Exactly.
Good post, I think you made some good poitns. I think you and I disagree on crypto and the future but one thing I do agree with is what you said regarding most people in the space or at least just getting in the space now are not well versed in it ie will be the weak hands. To someone who's been in this for a few years and see it go from $30 to $1 or from $1200 to $180 your used to this. If you've been in this for a while and seen it go up thousands and pull back your used to this. When the new guy however buys in at $18000 and sees it fall to to $16000 many of them will freak out and sell and continue to drive the price down which in turn causes other peoples stop limits to hit which in turn drives it further down when in reality most of the time if you don't freak out and sell Bitcoin always seems to bounce back so I do agree things get crazier with new investors and weak hands and with the institutions planning on having a hayday shorting so things could get wild.
Good post, I think you made some good poitns. I think you and I disagree on crypto and the future but one thing I do agree with is what you said regarding most people in the space or at least just getting in the space now are not well versed in it ie will be the weak hands. To someone who's been in this for a few years and see it go from $30 to $1 or from $1200 to $180 your used to this. If you've been in this for a while and seen it go up thousands and pull back your used to this. When the new guy however buys in at $18000 and sees it fall to to $16000 many of them will freak out and sell and continue to drive the price down which in turn causes other peoples stop limits to hit which in turn drives it further down when in reality most of the time if you don't freak out and sell Bitcoin always seems to bounce back so I do agree things get crazier with new investors and weak hands and with the institutions planning on having a hayday shorting so things could get wild.
Actually, I think we are on the same page with regards to the future of crypto. I completely believe it will eventually replace fiat currency (or may even become the new global one) and become the new standard (though not necessarily Bitcoin ultimately) as all transactions become digital. I think it's a matter of "when" and not "if". I just don't think the rest of the world is ready yet, and Joe Blow investor/gambler has no idea about it nor any particular belief in it except as a hopefully lucrative investment opportunity.
Whether Joe Blow Investor understands crypto currency or blockchain technology, the question is, will Joe Blow Investor hold his purchase over the next year+? Is that a long enough or must Joe Blow be prepared to hang on for multiple years?
It appears that crypto will remain a highly volatile investment regardless of who understands it or not. Many people are getting in to BTC at the current prices which are over $15K per BTC. Some of them can and will hold on and some can't and won't. One can believe wholeheartedly in crypto currency and still end up losing $$$$ either because they got in too late/too high or they didn't sell before it crashed. That's the great unknown at play and I opine BTC and other cryptos are not for the faint of heart.
Feel free to drop a comment if you have questions, happy to chime in.
Thanks for the offer! I've managed to find some sites that made trading easier/less complicated. But I'm holding off on buying the Litecoin now. I was ready to buy when it was in the $100 range (of course, I didn't know how to buy at that time due to the complexity of the process where I was looking), but when it shot up to $300 the very next week (and I was kicking myself for not being able to buy at $100), I started reading articles predicting a correction (both for Bitcoin and Litecoin), so I held off. Of course, both dropped pretty significantly since that period. I'm still interested in buying some of these coins, but will continue to do further research and will jump in when the time feels right!
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