Bitcoin breaks $200

mGrunin said:
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.
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QFT. The price of a stock is backed up by the underlying assets and the future earning power of the company it represents. E-Trade isn't even an exchange, it's just a broker and there are 58 billion other brokers eager to take its place if it were to ever implode.
 


I'm surprised myself that it went below $100 so quickly, but even more surprised that MtGox appears to be a SPOF for bitcoin.

Bitcoin has had this kind of thing happen before (not nearly as drastic though). I'm curious now if it picked up enough momentum to convince anyone that creating their own exchanges is worth the time?

It's hard to argue that bitcoin is a decentralized currency when it has such a dependency on MtGox. There would need to be many more exchanges and significantly higher distribution between them.
 
Hurr-Durr said:
QFT. The price of a stock is backed up by the underlying assets and the future earning power of the company it represents. E-Trade isn't even an exchange, it's just a broker and there are 58 billion other brokers eager to take its place if it were to ever implode.
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The exchange costs $1m a seat; i think the broker is a good alternative for most people.

The total capitalization for all stocks is in the trillions with billions of shares traded daily, so obviously you are going to have a lot of redundancy in the system in contrast to bitcoin.
 
lukep said:
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.
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Actually its not a good thing, volatility is fine in an investment but in a currency people want stability, no one wants to see their currency going up and down like a yo yo. It also discourages retailer and mainstream business from accepting it because of currency risk and lastly huge movements in the price also stop transactions from occurring, why spend bitcoins today when tomorrow they could be worth 20% more.
 
SHGDigitalMedia said:
Actually its not a good thing, volatility is fine in an investment but in a currency people want stability, no one wants to see their currency going up and down like a yo yo. It also discourages retailer and mainstream business from accepting it because of currency risk and lastly huge movements in the price also stop transactions from occurring, why spend bitcoins today when tomorrow they could be worth 20% more.
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Maybe we should regulate bitcoin/$ exchange to ensure a more stable rate!

Remember kids,government leads to prosperity!
 
cpauser said:
hmm if it was so obvious why did you buy? http://www.wickedfire.com/shooting-shit/172004-bitcoin-breaks-200-a-4.html#post2024646
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I actually agree entirely with the sentiments of guys like Kiopa_Matt; such as here. I would argue many of us went into knowing it's a "bubble" (anyone can create another crypto currency), so it was all just a tiny gamble on whether Bitcoins had peaked yet. You shouldn't perceive our bets on whether it had peaked as a belief in the system.
 
guerilla said:
Now you know how I feel.

We've now concluded that cpauser is 2x as crazy as you are.
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Coming from someone who can't understand a simple concept like how online scarcity can be valuable, please forgive me if I don't assign you as the least crazy of us three in my mind's eye.
 
mattseh said:
Maybe we should regulate bitcoin/$ exchange to ensure a more stable rate!

Remember kids,government leads to prosperity!
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If the objective of bitcoins is to be a currency in daily transactions then a stable rate will be required. If its something that people want to play with and gamble like a penny stock then that is different but it shouldn't be called a currency at that point.
 
mattseh said:
Maybe we should regulate bitcoin/$ exchange to ensure a more stable rate!
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I think some people overlook how long it takes for money to emerge and become stable. Gold was money for thousands of years. The fiat USD has been money for almost 100 years.

Both have/had huge institutional advantages that lead to their adoption.
 
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You have to love this. Mtgox opens up, BTC pushes past $100. Now Mtgox goes down and the prices drop down to $68. Who wants a currency that is so dependable on whether an exchange site is up or not?
 
Before I get slapped for being a perma-bear, keep in mind that I do own some bitcoins as well. I just do not let myself to get bias.
 
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