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Thread: bitcoins

  1. #27
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    Quote Originally Posted by billg View Post
    The same could be said about the dollar only the loss is in the trillions. What is a real "dollar" anymore?
    the difference is that you still have a physical dollar to spend. it may take more of them due to inflation, etc. With bitcoin, no matter how much you have it equates to zero, since the receiver cannot cash them in. And since the receiver cant cash them for real dollars, rials, euros, leks or anything else, i dont think they'll be accepting them as a valid form of payment.

  2. #28
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    skimmed something somewhere today about a bitcoin exchange/server disappearing overnight.
    The Food Stamp Program, administered by the U.S. Department of Agriculture, is proud to be distributing the greatest amount of free meals and stamps EVER.
    Meanwhile, the National Park Service, administered by the U.S. Department of the Interior, asks us to "Please Do Not Feed the Animals". Their stated reason for this policy "... the animals become dependent on handouts and will not learn to take care of themselves."
    from an excerpt by Paul Jacob in Sun City, AZ

  3. #29
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    Quote Originally Posted by billg View Post
    The same could be said about the dollar only the loss is in the trillions. What is a real "dollar" anymore?

    That was my thought, too.

    The dollars in my wallet have no intrinsic value. They are only worth something because we all agree to use them as a means of exchange.



  4. #30
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    Quote Originally Posted by Poodle Head Mikey View Post
    OK - you made me take more looks at bitcoin.

    When bitcoin came out people seemed to think that it was the solution to the devaluing Dollar because dollars could be printed and only a limited number of bitcoins could likely ever be made. Although I never really understood why bitcoins couldn't be "printed" just as easily. A legitimate alternative to the dollar would be a good thing in some ways but bitcoin doesn't seem like it would be it.

    It actually seems more like a payment system rather than a currency. Like an international PayPal with everyone using only bitcoin. But there seems to be a big problem now in that countries are backing away from bitcoin and some are outright rejecting it. And the answer of why should be obvious: it's not regulated. And just as obviously it would have to be regulated by the governments of the world in order to be widely accepted by people in general.

    This creates the Catch-22 that the reason that the people who like bitcoin like it because . . . . it is Not regulated by any government. And if it begins to become regulated - the main people who like it will likely dump it - because then it will be just like any other regulated currency of the world.

    Bitcoin to me at this point seems like a speculative stock. Germany, France, Norway, Sweden, Korea, Vietnam, Indonesia, and some others are all opposing it to some degree. But worse is that China hates bitcoin and made sure that their banks cannot deal in bitcoin. Before those regulations were put into place China was the biggest bitcoin hubs in the world. And you know why? AnotherCatch-22 - bitcoin was popular in China because are a lot of currency controls in China. So why bitcoin advocates though the Chinese government wouldn't react negatively seems shortsighted at best. China really restricts investments as they are really against Any money leaving their country.

    So when bitcoins were purchased by Chinese people - the money effectively became invisible to the Chinese government. And they ain't having any of That ****!

    When China publicly rejected bitcoin - the price plummeted. But then very soon the bitcoin price recovered. If you look at this action on a chart - like a stock price chart - you can see a disturbing pattern. Before the China debacle about a million bitcoins a day were being exchanged. But recently, despite the price recovery; bitcoin's volume of trading is only about 50,000 per day with some days as low as 30,000. Reduced volume indicates a lack of investor interest in the investment. Typically when a high is reached with lowering volume a strong sell-off follows. Because the investor group is narrow: fewer people are interested, so one of them selling has a disproportionately large effect on the market and other investors, already nervous, tend to want to get out fast too. This tends to crash the price.

    And now recently Apple got rid of all of the bitcoin wallet apps. This is a serious blow to bitcoin as Apple is a huge player among people likely to embrace bitcoin. And also: Mt. Gox which is a large bitcoin exchange was getting so many withdrawals that they halted all withdrawals. And things like not being able to get your money when you want it back tends to panic people.

    If you like stock charts you might like to check out a bitcoin chart. Over the last two months it has formed what the chartist types call a triangle pattern. When this breaks they claim that bad things will happen to the price.

    Of course this kind of thing tends to be self-fulfilling but so what? A price drop is still a price drop. I actually like and watch for price drops as they are essentially something 'going on sale'. But buying a Yugo on sale isn't really what I am looking for. And that is about what bitcoin seems like to me. I could be wrong but I'm still betting against it. <g>

    All that being said: maybe I am also prejudiced because I am not a metals guy or a currency guy. I don't like the idea that their value is based on what seems like nothing but speculation to me. I much prefer to own a living, breathing, and dynamic company. Metals and currencies seem 'dead' to me - they don't produce anything, they don't employ anybody, nothing is improved by them. Whereas a solid company puts people to work, produces products that people want and need, it improves the world by being itself. And it also makes a profit and shares it with it's shareholders - like me. <g>
    Very well stated, Oh wise one....
    Life is too short, Behappy!
    TFMM

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