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The economics of BitCoin

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Comments

  • Herzlos
    Herzlos Posts: 15,938 Forumite
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    The-Joker wrote: »
    I’m more confident in crypto than fiat

    By all means then. I ain't joining you :beer:
  • GreatApe
    GreatApe Posts: 4,452 Forumite
    The-Joker wrote: »
    I’m more confident in crypto than fiat

    A lot of the crypto bulls say that but most of them don't actually mean it
    There is a raving loon on another forum who keeps ramping bitcoins. But when was the last time he actually purchased some? At 1/20th the price.

    As for why the 20% crash today? Well if you look at the buy order side there isn't much demand for these coins. Last time I checked $100 million was enough to crash the price by $100 billion

    Most the 2000 crypto coins wont exist in five years time. Many will continue but they will become a form of gambling. Like going to the casino. But unlike the casinos where someone bets on black he doesn't think he is a genius the crypto gamblers half of them will lose and be quiet about it half of them will win and post videos and wrote blogs about how smart and great they are.
  • Malthusian
    Malthusian Posts: 11,055 Forumite
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    wn3DkZO.png
    For avoidance of doubt, I am not claiming that this is an infallible prediction of where Bitcoin's price is going. Just an illustration of why a fall in price does not in itself = buying opportunity. Sometimes prices fall for a reason.
  • chucknorris
    chucknorris Posts: 10,793 Forumite
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    GreatApe wrote: »
    But unlike the casinos where someone bets on black he doesn't think he is a genius the crypto gamblers half of them will lose and be quiet about it half of them will win and post videos and wrote blogs about how smart and great they are.


    They were just lucky to be born at the right time (I'm sure we've heard that phrase before), which was late enough to be priced out of the housing market, so they speculated on bitcoin when it was cheap.
    Chuck Norris can kill two stones with one birdThe only time Chuck Norris was wrong was when he thought he had made a mistakeChuck Norris puts the "laughter" in "manslaughter".I've started running again, after several injuries had forced me to stop
  • The-Joker
    The-Joker Posts: 718 Forumite
    The fact is fiat is expanding exponentially
    The thing about chaos is, it's fair.
  • Aegis
    Aegis Posts: 5,695 Forumite
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    The-Joker wrote: »
    The fact is fiat is expanding exponentially
    Which is not a major problem unless your goal is to sit on large quantities of a given fiat currency even through high-inflation times. Which we're certainly not in yet.
    I am a Chartered Financial Planner
    Anything I say on the forum is for discussion purposes only and should not be construed as personal financial advice. It is vitally important to do your own research before acting on information gathered from any users on this forum.
  • GreatApe
    GreatApe Posts: 4,452 Forumite
    The-Joker wrote: »
    The fact is fiat is expanding exponentially

    That's not how fiat work in advanced economies like the USA UK Japan EU etc

    The banks create money in the form of credit and debt. So yes credit is increasing but so is debt the two cancel each other out. This type of money is much better than using commodities as a medium of exchange.
  • Malthusian
    Malthusian Posts: 11,055 Forumite
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    The-Joker wrote: »
    The fact is fiat is expanding exponentially

    No it isn't. UK M4 money supply:

    EBhNlyt.png

    Do you know what "exponentially" means? It doesn't mean "lots".
  • enjoyyourshoes
    enjoyyourshoes Posts: 1,093 Forumite
    Seventh Anniversary 1,000 Posts Combo Breaker
    x squared?
    Debt is a symptom, solve the problem.
  • Aegis
    Aegis Posts: 5,695 Forumite
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    enjoyyourshoes wrote: »
    x squared?
    If you want to be technical, that would be parabolic rather than exponential.

    When I responded I just assumed it was hyperbole.
    I am a Chartered Financial Planner
    Anything I say on the forum is for discussion purposes only and should not be construed as personal financial advice. It is vitally important to do your own research before acting on information gathered from any users on this forum.
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