Bitcoin breaks $200
- Thread starter schockergd
- Start date
It's not a commodity. It's a digital abstraction. Sugar is a commodity. Oil is a commodity. Bitcoin is a representation of an idea.
I suppose you could say that BTC are a commodity because they are units of digital anonymity that cost $X each.
I don't know if that makes any sense.
Going by that definition, everything real and virtual is a commodity.
Isn't relativism great?
Why is it that every time you speak lately, I feel the need to distance myself from the peasantry?
I know a lot of you won't believe this, but this crash is a good thing for me. I get to pick up a lot more of the thing I want.
See any of my previous posts here that contain the words "World Reserve Currency" or "petrodollar" within them somewhere and you'll understand why I'm happy now.
It may be a commodity, but a commodity of marginal utility unless you're selling drugs or other illegal services online.
Haha, fox news channel just did a story on this crash. The closing statement was "Any questions? Ask a teenager"
How can MtGox get away with the confidence part of their big homepage claim, "Trade with confidence on the world's largest Bitcoin exchange!"? I mean of all things, surely now we can see what a complete pile of shit this exchange is? How am I supposed to be confident in something that lags, succumbs to DDOS attacks and then just shuts everyone down for as long as they feel like it. Maybe if they buy a shit ton of server space, bandwidth and hire some people who actually know what the hell they're doing - all with the few mil they make per month - then I'd feel confident.
[ame=http://www.youtube.com/watch?v=WmVZgajMk1I]Fox News Channel coverage of Bitcoin crash - YouTube[/ame]
What started triggering this massive sell-off is what I mentioned last week. Many bitcoins are being held by a few individuals, and if any of them decided to sell their stake it would shake the markets. Just that happened yesterday. Huge blocks of volume were unloaded which lead to panic. This lead to many sell orders, which lead to the largest exchange freezing trades. Whenever NYSE freezes trades in a stock, do you know what happens after the open? For the few traders out here, you know what to expect.
I also love how BTC holders praise BTC for being de-centralized while exchange sites are capable of fucking over the currency harder than the Federal Reserve can fuck over the USD. I would personally choose a centralized bank that offers negatives but also positives to the currency. Exchange sites only offer negatives, and bring nothing of value to the actual currency. It also serves as an entry and exit point into the currency.
Bottom line, BTC got well ahead of itself. It was growing much quicker than it was being integrated into businesses. At the end of the day BitCoins is a currency. Currencies are meant to be used, not to be speculated upon. Once again, the greedy fucks in the world killed a potentially good idea.
I also love how BTC holders praise BTC for being de-centralized while exchange sites are capable of fucking over the currency harder than the Federal Reserve can fuck over the USD. I would personally choose a centralized bank that offers negatives but also positives to the currency. Exchange sites only offer negatives, and bring nothing of value to the actual currency. It also serves as an entry and exit point into the currency.
Bottom line, BTC got well ahead of itself. It was growing much quicker than it was being integrated into businesses. At the end of the day BitCoins is a currency. Currencies are meant to be used, not to be speculated upon. Once again, the greedy fucks in the world killed a potentially good idea.
hmm if it was so obvious why did you buy? http://www.wickedfire.com/shooting-shit/172004-bitcoin-breaks-200-a-4.html#post2024646
I was not expecting it too fall this quickly.
The exchange serve a purpose one of which is to allow laymen to easily speculate in high volume, like etrade and to redeem bitcoins for cash in marketplace setting. Others have wallets and exchange coins between each other completely bypassing mtgox.
Just digits on a screen. That's what people are buying. Virtual numbers on a bunch of computers.
It is effectively like trading MP3s, or jpgs.
You could software the same definition, but I don't think anyone would argue that software is not a commodity. You could even go a bit (teehee) further and say that software serial numbers and licenses are commodities.
dchuk had a good point too..
dchuk said:
This was one of the bigger reasons that people were drawn to bitcoins in the first place.
Just like software, its only valued at what people are willing to pay (as is everything else, usually). And perhaps just like software, it will one day be obsolete, worthless, replaced by something newer, and more relevant.
I threw a thousand dollars into it. I shit that. If I had the same believe that any of you had in these coins I would have purchased several hundred coins.
Throwing eTrade as an example is horrible since guess what? eTrade has 0% affect on the price of ANY stock. eTrade can shut their site down at any moment but the markets will not give a shit. Better example for you would be comparing Mtgox to NYSE. Which then is true, if NYSE is down the day, the markets will usually sell off a bit. The big difference is that maybe NYSE doesn't open unexpectedly once or twice a year usually do to events. Mtgox on the otherhand lags every other day.
The exchange sites such as mtgox is a completely different example. When the site is DDOSed, the price of BTC falls. If the site freezes trades, the coins drop 50%. See the difference? The fact that the currency is controlled by whether or not an exchange site is working is a ridiculous currency to begin with.