Bitcoin Price Soars Above $9

[xj0hnx]

Some people sell sh*t. Farmers buy it and put it in their fields, but it doesn't mean it's a valid currency.

They aren't buying shit, they're buying goods, like computer hardware, probably some drugs, and services.

 

[Doppel]

They aren't buying shit, they're buying goods, like computer hardware, probably some drugs, and services.

Yes, people who have no idea how currencies work or are engaged in the greater fool theory of investing. Do you any way to defend how it wouldn't end up in a deflationary spiral?

 

[Dissipate]

Some people sell sh*t. Farmers buy it and put it in their fields, but it doesn't mean it's a valid currency.
This is really your retort to this thing's inevitability as a deflationary spiral if it ever became popular? That really nulls the math behind it?

Why hasn't Silk Road succumbed to this 'deflationary spiral'? According to your theory, people won't buy weed on Silk Road because next week the weed will be cheaper. Yet Silk Road is still doing millions in business a month.

BTW, Bitcoin is open source. You can fork it anytime and make your own currency that won't end up in a 'deflationary spiral'. You could call it InflatoCoin or something and have it inflate forever.

 

[Doppel]

Why hasn't Silk Road succumbed to this 'deflationary spiral'? According to your theory, people won't buy weed on Silk Road because next week the weed will be cheaper. Yet Silk Road is still doing millions in business a month.

http://en.wikipedia.org/wiki/Silk_Road? Or are you talking about weed? Am I right to guess that more weed is being created all the time thus filling the demand? How the heck is this related to Bitcoin with a maximum cap on quantity?! Weed is also a consumable product. I fail to see how it's meaningful here at all.

Simple Math is not a theory. I've already given links about the deflationary spiral and some simple math distilling down the whole thing showing how Bitcoin could never be more than a passing fad (people who fall into the graphic in the third post). Are you capable of deconstructing the math or merel giving irrelevant anecdotes?

BTW, Bitcoin is open source. You can fork it anytime and make your own currency that won't end up in a 'deflationary spiral'. You could call it InflatoCoin or something and have it inflate forever.

Doppel: It would end in a deflationary spiral
Dissipate: But you don't need to worry about that; you can just create your own one!

---------------

The value of Bitcoins has gone up massively, then crashed, now doubled again. Further, it's inevitable that were it ever to gain a real foothold all users of it would be embraced by a deflationary spiral. Inevitably. Yep, these are the markers of a great alternative currency :thumbsup:

 

[Itchrelief]

Oh god, this shit all over again. I won't partake in this just for the single fact that if it ever becomes accepted in the mainstream, the inventor suddenly becomes richer than Bill Gates. Smells fishy to me, even disregarding all of the other macroeconomic problems.

 

[halik]

What's going on here?



http://www.reuters.com/article/2012/04/01/traders-bitcoin-idUSL6E8ET5K620120401

They're all people in their IT departments...

 

[halik]

They are divisible to something like 10 decimal places. It's really rather arbitrary whether it's 21M or 21 quadrillion.

You clearly don't grasp the idea of deflation. Earning real return at zero risk is very bad, just ask Japan.

 

[Doppel]

Bump for more lols.

In the last two weeks these have gone up in value to $15. http://bitcoincharts.com/markets/mtgoxUSD.html

It's like pretending a penny stock for a failing company could be a valid currency.