How has bitcoin price mostly stabilized if it is essentially a worthless security with zero intrinsic value? Definitely surprising
How has bitcoin price mostly stabilized if it is essentially a worthless security with zero intrinsic value? Definitely surprising
What intrinsic value does paper fiat have?
Drugs and other nefarious items
The underlying blockchain security is the value. If bitcoin proves qto be secure over the long haul, you will see a the dawning of a new protocol used by my not just currency
umm wrote:
What intrinsic value does paper fiat have?
Not a whole lot. It’s the medium of exchange which loses its purchasing power over time due to inflation, which is why it’s best kept somewhere in something with intrinsic value earning some sort of return over time
Your answer: MANIPULATION
$6,000 turd tulips wrote:
How has bitcoin price mostly stabilized if it is essentially a worthless security with zero intrinsic value? Definitely surprising
A lot of buyers were speculators who thought the price would keep rising rapidly. A lot of them got scared and sold. Many others were forced to sell, having bought in order to speculate. But many people believe it will be worth a lot over a longer time frame. These people would be willing to keep holding even if the price collapses. They will never tire of pointing out that this has happened several times before.
My counter-argument is that for it to stabilise at $20,000, let alone the $100,000-$1m that some people talk about, will require much bigger flows, and there is no reason to believe these will be forthcoming.
B chayne wrote:
The underlying blockchain security is the value. If bitcoin proves qto be secure over the long haul, you will see a the dawning of a new protocol used by my not just currency
The holes are already showing. 51% attacks and a mounting number of stolen coins. There is nothing special about bitcoin, the price is currently being propped up by those with too much invested and too much left to still lose.
B chayne wrote:
The underlying blockchain security is the value. If bitcoin proves qto be secure over the long haul, you will see a the dawning of a new protocol used by my not just currency
Blockchain technology and Cryptocurrencies are two different things. Blockchain is real and will be useful across many applications. Bitcoin, and the other 1600 or so cryptos, are in the words of Warren Buffet, RAT POISON. There is no intrinsic value, it is a commodity at this point, not a currency. Who is to say it will ever become a currency, and at what price? The fans say it will be valuable as only a certain number of coins can be "mined". In some countries the electricity cost required to mine a single coin is greater than the value of the coin. Even the current $6K per coin is nothing more than a prop created by the maniacal rush to own this vapor. The people that bought it for a buck years ago and sold last year at this time are laughing all the way to the bank. This will not end well for the crypto crowd.
It costs roughly $6,000 to mine one bitcoin depending on local electricity prices. With bitcoin futures trading available, the no arbitrage pricing theory will drive the price of one bitcoin to the cost that it takes to produce one bitcoin as arbitrageurs will step into the market for risk free profits if the price of bitcoin deviates significantly from the cost that it takes to mine one bitcoin.
Compare the date that bitcoin futures started trading with the time bitcoin prices started falling for evidence.
The value is in their being a bigger sucker. Or perhaps criminal who likes its anonymity properties.
Meanwhile, as others say, Government Fiat simply forces you to join their Ponzi Scheme.