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Bitcoins and for that matter dollars are not inherently worth anything in terms of hoarding and waiting (esp dollars due to inflation.) I see speculative plays like alt currencies as small, potentially nice "wins." This however, is NOT fastlane as it is not sustainable long term. If anybody here has read Nasim Taleb you might want to look at alt currencies as "barbelling" (aka looking for black swans with a small negative downside and a large upside.) In the end, this is not why we all came to this forum. Bitcoin is a speculative dream like say the OTC markets but in the end if we win it is because somebody loses. This is not at all like the idea of CREATING VALUE for customers which is what MJ did with his limo service as described in the book. So, perhaps for now we should label these currencies as a bit of a distraction more than a future plan. You cannot grow the economy or improve the world with a trade, you can with a business.
It'd be cool to see one from where you live bounce after you buy a BTC haha.
Just as the FED can print more money, bitcoins can be seperated into smaller amounts right? That's only assuming bitcoin is the only coin out there too (I think there's 40 something?). I may be ignorant on this aspect but who knows. For BTC to be mainstream, they would have to be accepted by the free markets, just as gold and other metals have been accepted over centuries of trial and error by the world. Basically, BTC CAN be the new "MONEY" but it would have to be accepted simultaneously by everyone as the "staple" or "base" of VALUE. I see no problem in making the money in BTC and other coins as it rises and falls, but I do see trouble when a person decides to put their 401k into bitcoins you know what I mean? It's just not at that stage yet.
Also, do you mean Plus500.com? I'd have to disagree with that. BTC is not easily offered across reliable brokers. Also, BTC is traded more than the dollar? Single banks and hedge funds risk 50 million on different currencies easily to make rewards of 30k within a few minutes. I don't doubt that BTC has potential to be a game changer, but I HIGHLY doubt it is traded more than the world's major currencies. I see that around 50% of BTC is traded using the dollar. The highest volume traded on the BTC seems to be about half a billion sometime around late November(correct me if I'm wrong). 500 million to the volume traded on a single major currency in a single day is real tiny compared to the volume market makers move in the FOREX market.
That link is real fun to watch. Definitely interesting. China was behind the US in buying BTC so it's a good visual representation
Who knows, I might be trading a litecoin against a bitcoin in the forex market in 5yrs haha.
I've seen this video. He does not view bitcoins in the same category as "money" unless/until the Free Markets choose to do so. Dollars have been decreasing in value not just because of how much we print, but because other countries have been sending dollars back to us. I believe a month ago, Australia has asked for gold in place of their holdings of dollars. Technically it's the same "value" but it increases the amount of dollars flowing in JUST the US. China and (I believe) Japan have been doing transactions without the dollar as the middle man as well. So the dollar decreasing in value (to other countries as the base)? Yes. BTC increasing? Too early to tell, which is why everyone's calling it an experiment I'm guessing.
The dollar according to him is at the end or change of the 20-30yr monetary cycle, but this will remain the same for bitcoin in his terms of "currency" if the world does not choose BTC or any other cryptocurrency through trial and error. It's like I said in my other post, the free market has to choose BTC in order for it to be the "base". I have no problem with that if the world chooses to appoint BTC or other coins as the new monetary system. I just wouldn't call it a fact because it might take 5 years, it might take 50 years, or it might not happen. The only fact is that gold and perhaps silver have been in an incline since the 1960's, when they announced the Bretton Woods Fixed Gold price that was presented in that video. It's hard to beat something that's been the go to store of value for half a century. There is enough historical information to say so. BTC has indeed gone up and trucked through prices. But it has little history to back it up, hence the experiment.
http://goldratefortoday.org/gold-charts-rates-prices/
I'm sure that the BTC's can be broken down with more emphasis on the Satoshi's but I also do understand that this would be like asking shareholders of a stock to dilute their shares, which obviously is not what they want. UNFORTUNATELY, this does and has happened. So lot's of uncertainty.
I'm very neutral on this and since I trade forex, I'll probably look to buy on a hard dip
There has recently been a pattern of dips occurring at the weekends
I totally believe in buying Gold for use as a store of value. If I'm fortunate enough to continue profiting via cryptos then I'll be sure to place some of that increased value into physical Gold for safe keepings.
Perhaps this example will help you to understand why Bitcoins being broken down does not affect their value.
When you dilute stock you are generating more stocks.
Lets say you have 10 stocks at $1 each.
Then the 10 stocks rise to $10 each and they become diluted by a factor of 10.
Before Dilution.
The original 10 stocks valued at $10 each were worth $100.
After Dilution.
There are now 100 Stocks instead of 10; the 100 stocks are still worth $100 in total but now one stock is only worth $1 each!
The stock was diluted!
Bitcoin and other finite currencies DO NOT WORK LIKE THAT.
1 Bitcoin is ALWAYS 1 Bitcoin.
1 Satoshi is ALWAYS 1 Satoshi.
Running Bitcoin through the same example, you get the following outcome.
10 Bitcoins valued at $1 each
10 Bitcoins rise to a value of $10 each but they will now be split (they can't be diluted) into 10 parts.
Total value of 10 Bitcoins before being split = $100
Now there is 10 Bitcoins split into 10 parts = 10 parts of 10 bitcoins = 100 x 0.1 Bitcoins
So if 1 whole Bitcoin was worth $10 before being split into 10: 0.1 Bitcoin must be worth $1
You see the decimal place just moves to the right and the value of a whole Bitcoin stays the same.
Conclusion: Bitcoin cannot be diluted, only split. Shares can be diluted making 1 share less valuable.
"I really like Bitcoin. I own bitcoins," - President of Paypal
I'll definitely read more about it.
There's a saying that goes "everyones a genius in a bull market". Not saying it's wrong, just be careful. Thanks for the info
I like that saying and I will BEAR it in mind!
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