Topic: Do any of the models apply? - page 2. (Read 1704 times)
I think people make the mistake of comparing this to a stock (bubble). Stocks cannot really justify massive moves because moves in a stock should reflect only the new NPV of the future ebitda given that days new announcements. Currencies trade more in these steps. Look at EU to USD or the commodity currencies against the USD. News was known for a long time but the moves are more sudden. But that does not even apply because govt can control (and actively control the supply of their currencies). So, then you look at gold (has more of a finite supply) but has a MASSIVE float. look at the gold chart from 250 to 1800 and then think about what a restricted float of gold would have done to that chart.
Bitcoins largest problem is that you cannot use it enough places in exchange for goods AND it is TOO HARD for the common man to transact in. Conquering these two problems so be the focus of everyone serious about bitcoin. If those hurdles were gone, simple demand would have pushed BTC over 1000 by now.
Bitcoins largest problem is that you cannot use it enough places in exchange for goods AND it is TOO HARD for the common man to transact in. Conquering these two problems so be the focus of everyone serious about bitcoin. If those hurdles were gone, simple demand would have pushed BTC over 1000 by now.
Its certainly interesting to read all the analysis and speculation about the future of bitcoin. "We had a bubble before" ... "Its following the trend of gold" ... "It's all speculation and hype" ... "Its a pyramid/ponzi scheme"... "Look at the trends... here is a bear trap/bull run/cow patties"
The thing I keep coming back to is that nobody has really seen anything like this before. It is the creation of a brand new currency based on a new paradigm. No more reliance on central banks or government... peer-to-peer... technologically sound. How can you really relate it to anything we have seen before?
The closest thing I can see regarding its future potential, and it was referenced in a comment I saw this morning, that the talk is not unlike people talking about personal computers in the 80s, or the Internet or WWW in the 90s. And look where they are now. This is the equivalent in currency. And if that is the case, I feel more strongly about its future than ever.
I think we are witnessing history in the making... and taking part!
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