Bitcoins

JohnRo

sorry but the dollar is set to strengthen quite heavily in the near term

All this talk of currencies strengthening is very misleading, these currencies are competing with each other in a race to the bottom. They're all heading in one direction at varying rates of decent.

Reminds me of the discussions about increasing debt and reducing deficits.

John1993_2

JohnRo wrote: »

All this talk of currencies strengthening is very misleading, these currencies are competing with each other in a race to the bottom. They're all heading in one direction at varying rates of decent.

I assume, then, that you've sensibly taken on a massiive commercial mortgage and bought some properties, at the biggest leverage level possible?

After all, if currencies are all dropping, then it's the only rational position to hold.

N1AK

hander wrote: »

This volatility is a natural part of cryptocurrencies birth, no?

No the volatility is a result of hoarding. The price of BTCs reflects the price you have to pay to persuade someone that holds them to give them to you. This isn't a new phenomena and it isn't even limited to 'currencies': Tulip Mania

Back in the 17th century speculating on tulips reached the point where a single tulip could be worth more than 10 years of professional work. When it finally crashed the value evaporated in a month.

dryhat

N1AK wrote: »

No the volatility is a result of hoarding. The price of BTCs reflects the price you have to pay to persuade someone that holds them to give them to you. This isn't a new phenomena and it isn't even limited to 'currencies': Tulip Mania

Back in the 17th century speculating on tulips reached the point where a single tulip could be worth more than 10 years of professional work. When it finally crashed the value evaporated in a month.

Is there a "yawn" smiley anywhere?

JohnRo

John1993 wrote: »

After all, if currencies are all dropping, then it's the only rational position to hold.

There's no if about it.

BoracicLint

N1AK wrote: »

No the volatility is a result of hoarding. The price of BTCs reflects the price you have to pay to persuade someone that holds them to give them to you. This isn't a new phenomena and it isn't even limited to 'currencies': Tulip Mania

Back in the 17th century speculating on tulips reached the point where a single tulip could be worth more than 10 years of professional work. When it finally crashed the value evaporated in a month.

Do you not think that the volatility can subside as Bitcoin becomes accepted as a means of currency? Germany will accept Bitcoin to pay taxes, it also allows the Chinese to overcome their capital controls and allows wealth to flow out of the country in greater volume, more and more vendors are accepting it as currency. All of these factors will surely reduce the speculation somewhat?

I still fail to see the analogy with dutch Tulips, which didn't have any of the uses of Bitcoin, or the underlying tech supporting them.

JohnRo

BoracicLint wrote: »

I still fail to see the analogy with dutch Tulips, which didn't have any of the uses of Bitcoin, or the underlying tech supporting them.

It serves some value in warning about price because the hoarders and speculators are causing some wild spikes but the analogy soon breaks down once you scratch the surface.

Of course surface is all trolls are about, every time the price spikes and falls back they pour in. It's clearly seen by them as a form of ridicule. All that really does is demonstrate ignorance and inability to address or understand the subject in any meaningful way.

As a retort to the tulip brigade and in a similar vain "bitcoin don't give a sh*t"

dryhat

I was wondering when the honey badger would surface.

vectistim

Can someone attempt to explain the benefits of a working xcoin for day to day usage?

Currently, if I want to buy something in USD I can - the bank automagically converts it for me, provides protection in case something goes wrong and in return charges me a couple of percent. That is enough for them to run the infrastructure (self-)insure against issues and make a reasonable profit, and that seems perfectly reasonable to me.

Under an xcoin system transactions are much harder to reverse - this will surely have implications for the cost of insurance by escrow services.

Under the current system in our wallets we don't keep a record of every sterling transaction that has ever taken place. If, everytime we want to do something we have to wait an age whilst the record updates it will get staggeringly tedious.

If I want to buy something in this country the bank will provide me some level of protection, give me cash back on the amount spent, and give me a month's interest free loan of the money required. What benefit will using xcoin give me over that?

Satoshi

BoracicLint wrote: »

Apologies for drifting off topic, I don't want this to turn into a Gold thread!

Its basically the same topic right?

Faith is being lost in fiat, many reasons are the same for gold and bitcoin. I am not saying bitcoin is as good as gold its just similar subject thats all.