Hyperinflation!
What are your thoughts on BitCoin?
- Thread starter aimeeandbeatles
- Start date
Hyperinflation!
You realize hyperinflation would have the currency moving in the other direction?
If it can whipsaw up 50% in can certainly whipsaw down 50%. And when that happens merchants are gonna be pissed royally and the currency might die if they decide it isn't worth the hassle.
http://money.cnn.com/2013/04/03/investing/bitcoin-price/index.html
Crezth
i knew you were a real man of the left
This reminds of the early days of BitCoin. It's hard to tell what's going to happen but the trend thus far has been that whenever it gets this high, somebody sells a huge volume and smashes the market.
Considering that there are some people out there sitting on upwards of thousands of BitCoins, I'd say this is getting more and more likely.
edit: Also, ignore Zelig. He thinks he knows everything but he don't.
I'll admit to not reading the prior post all that carefully. Although I might have been making a different point entirely.
Right, so it all averages out.
I certainly don't think I know everything - in fact, I remain willfully ignorant on many topics because I have limited time.
Crezth
i knew you were a real man of the left
Zelig said:
How's that, then?
Because they're roughly equally volatile up and down?
Mise
isle of lucy
BitCoin is in a bubble, like the housing market and gold.
Silurian
Deity
- Joined
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No it is transfering money from active traders to the inactive.
So generally from the poorer to the rich.
As Crezth pointed out there are people sitting on thousands of bitcoins that they purchased when they were less than $50. Now they are selling them off at high points in the market.
I am thinking of planting some tulips in my garden this autumn to sell next year.
That's how the real stock market works too.
Silurian
Deity
- Joined
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Oh no i got that the wrong way round
No it is transfering money from inactive traders to the active.
So generally from the poorer to the rich
No it is transfering money from inactive traders to the active.
So generally from the poorer to the rich
Lambda Ignaceae
Warlord
- Joined
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- 196
You're all wrong.
http://www.cnbc.com/id/100615508
The price is fluctuating wildly because enough idiots have got involved and now criminal gangs are taking their cut.
http://www.cnbc.com/id/100615508
The price is fluctuating wildly because enough idiots have got involved and now criminal gangs are taking their cut.
Mise
isle of lucy
Just read this thing on bitcoins: https://medium.com/money-banking/2b5ef79482cb
That's a really well-written and balanced article. Thanks for sharing.
Crezth
i knew you were a real man of the left
So what? "It all averages out" reduces the rather erm complicated question of financial everything to a matter of total value over time, which one doesn't need a math degree to see is somewhat misleading.
Mise
isle of lucy
Yeah, it really helped crystalise the dichotomy between a currency and a commodity for me. It seems to work as a currency, or as a commodity, but not as both at the same time. Basically like an artificial version of gold.
Right. I never really thought about it in these terms but it's a good way to point out why BitCoin can never possibly fulfill all the expectations it was saddled with.
I really do not understand the technology behind this, but it seems to me that if this was successful we would be asking for a catastrophe. Lets say that BitCoin took off, and a significant part of global trade was done with it. Then quantum computers take off and allows them to be cracked. Is global financial collapse a realistic consequence?
