Speculation is what happened. That is, people buying bitcoin as an "investment".
Play with the big boys and you will likely loose your shirt. Then come the threads from those in disbelief who think bitcoin must be a scam; otherwise how could they have lost their money?
Play with the big boys and you will likely loose your shirt. Then come the threads from those in disbelief who think bitcoin must be a scam; otherwise how could they have lost their money?
Bitcoin has a SEVERE problem with "exchanges" that want to try to behave as "stock markets".
What they are doing with their BTC "Future Securitized Derivative Contracts" now is:
- Punishing small buyers and all new "casual" users adopting the currency with the highest fees
- Punishing small sellers and all new "casual" and small retailers adopting (redeeming) the currency with the highest fees
- Rewarding speculative traders, leeching off of the daily spreads or ramps of the currency value with lower fees for greater churning "volumes over days" rewards
- Rewarding big, huge-trader Pharaohs for staking out far riskier out of bounds idle-preying positions, not actually expected to "exchange", that would facilitate steep uncontrollable risks to the currency value by extending sudden random ramps or slides to ludicrous and/or disastrous extremes.
- They are actually encouraging and rewarding speculation and volatility with their risky, counter-productive and suicidal, totally ignorant volume-discount fee nonsense.
This BTC future-securitized derivative-contract was intended as OUR transnational MEDIUM OF LABOUR-EXCHANGE CURRENCY not as somebody else's silly common commodity-resource share! (or wasn't it?
)Well regulating the Bitcoin future-securitized derivative-contract's currency value "automatically" is a simple trick that can easily be done through the trading (vs exchanging) fee structures. You simply punish people progressively and exponentially more through sliding fees for staking-out asks and bids further out of bounds, to negate the benefits of pump and dump, while still allowing a bit of churning reward for day-value trading and/or price reward for patient bargain-seeking bid-ask haggling.
Everything is a "scam" unless you do your homework, and find out it's perfectly legal and legitimate.
Read this: Bubbles with bitcoins
https://bitcointalksearch.org/topic/m.1832923
We are not doing anything nearly as lawless nor clearly as fraudulent as pawning off Mortgage Backed Security Future Derivative Contracts! Our contracts have real utility as a physical security.
