Topic: How much of a bubble is this? (Read 5564 times)

You miss the point, why would people buy BTC as a currency, just so they can sell it again when they need to spend it.....and face two transaction costs and also the risk of it going down while they hold it.

You miss the point, why would people buy BTC as a currency, just so they can sell it again when they need to spend it.....and face two transaction costs and also the risk of it going down while they hold it.

It's weird that everyone keeps saying you can't buy anything with bitcoins.  As of now, you can buy most of the major currencies in the world with bitcoins.  The only people for whom that would be a problem is people like me that didn't mine them, but instead got btc by selling some of their USD.  But if I can't spend btc directly when the time comes, I'll just buy some local currency and use that instead.

As a few smart people have wisely pointed out, people are not buying Bitcoins to spend them.  I mean, how stupid do you have to be to believe that.  Let's look at it:

Scenario A:

Mary wants to buy a new TV.  That TV costs $500.  She goes to her favorite online store, types in her debit card number and her debit card is charged. TV arrives in about a week.

Total Cost:  $500
Total Time:  ~ 1 week

Scenario B:

Mary wants to buy a new TV.  That TV costs $500.  Mary also heard the hype on a new technology called Bitcoin and figured this is the best payment method for her.  So, Mary goes on Coinbase and purchases $500 worth of Bitcoin and pays 1%.  Then she waits a week.  When the Bitcoin's finally arrive, she goes to her favorite online store, only to find that they don't accept Bitcoin.  

Scenario C:

But lets assume her favorite store does take Bitcoin.    Mary wants to buy a new TV.  That TV costs $500.  Mary also heard the hype on a new technology called Bitcoin and figured this is the best payment method for her.  So, Mary goes on Coinbase and purchases $500 worth of Bitcoin and pays 1%.  Then she waits a week to get her Bitcoins.  And it's a good thing because it will take Mary at least that to figure out how to safely store her new Bitcoins and download the blockchain.  Or, maybe she just stores them on Coinbase, which is the ideal way to store Bitcoins anyway.    When the Bitcoin's finally arrive, she goes to her favorite online store, pays for the TV with her $500 worth of Bitcoins and the TV arrives in about a week.

Total Cost:  $505
Total Time:  ~ 2 weeks

Moral of the story.  GET REAL!  There is no Bitcoin "adoption" because there is almost nothing to adopt.  You can barely use them.  Cash and debit cards are FAR superior to Bitcoin's, as it relates to making everyday transactions. The day may come where this is no longer true, but that day is not today, nor any day during this bubble inflation.  The is pure speculative buying.  People are simply looking to get a high ROI.  If you believe anything contrary to that, you are delusional and I would NEVER take advice from you because you simply do not live in reality.

Anyway it is nice to have few next places to spend Bitcoins on. I was worrying the price rise is just pure speculation, but it can drive the Bitcoin useability at web shops as well

how many other threads are you going to repeat this in?

I wish I could hold my money bit I have to cash out . I invested when the coins where 120 dollars . Now I can start my dream job finally. I'm opening few webshops wich I will accept bitcoins! Thanks bitcoin to start my life

I wish I could hold my money bit I have to cash out . I invested when the coins where 120 dollars . Now I can start my dream job finally. I'm opening few webshops wich I will accept bitcoins! Thanks bitcoin to start my life

I believe that speculation solves a catch-22, notably, how do you get people on board a currency and use it, when there is nothing to use it on? Well...the speculators get on board first, whether it's driven by greed, or a dream, or whatever. But now that early speculators, or even investors that have produced large profits, have some wealth, they will begin to want to spend it. Why? Because, you have the choice of either cashing out your winnings and paying a hefty gains tax on it, or directly spending the coins into something you want.  And the market will respond by offering items for those speculators that they can pay in bitcoins directly. And we're already seeing this happen: it's cumbersome, for the most part, at least for now, but remember, you can't solve the catch-22 otherwise.

As a few smart people have wisely pointed out, people are not buying Bitcoins to spend them.  I mean, how stupid do you have to be to believe that.  Let's look at it:

Scenario A:

Mary wants to buy a new TV.  That TV costs $500.  She goes to her favorite online store, types in her debit card number and her debit card is charged. TV arrives in about a week.

Total Cost:  $500
Total Time:  ~ 1 week

Scenario B:

Mary wants to buy a new TV.  That TV costs $500.  Mary also heard the hype on a new technology called Bitcoin and figured this is the best payment method for her.  So, Mary goes on Coinbase and purchases $500 worth of Bitcoin and pays 1%.  Then she waits a week.  When the Bitcoin's finally arrive, she goes to her favorite online store, only to find that they don't accept Bitcoin.  

Scenario C:

But lets assume her favorite store does take Bitcoin.    Mary wants to buy a new TV.  That TV costs $500.  Mary also heard the hype on a new technology called Bitcoin and figured this is the best payment method for her.  So, Mary goes on Coinbase and purchases $500 worth of Bitcoin and pays 1%.  Then she waits a week to get her Bitcoins.  And it's a good thing because it will take Mary at least that to figure out how to safely store her new Bitcoins and download the blockchain.  Or, maybe she just stores them on Coinbase, which is the ideal way to store Bitcoins anyway.    When the Bitcoin's finally arrive, she goes to her favorite online store, pays for the TV with her $500 worth of Bitcoins and the TV arrives in about a week.

Total Cost:  $505
Total Time:  ~ 2 weeks

Moral of the story.  GET REAL!  There is no Bitcoin "adoption" because there is almost nothing to adopt.  You can barely use them.  Cash and debit cards are FAR superior to Bitcoin's, as it relates to making everyday transactions. The day may come where this is no longer true, but that day is not today, nor any day during this bubble inflation.  The is pure speculative buying.  People are simply looking to get a high ROI.  If you believe anything contrary to that, you are delusional and I would NEVER take advice from you because you simply do not live in reality.

Or depreciate 20%.   

You leave out...

During those 2 weeks, bitcoin appreciates 20%

Total cost: $505
Time: 2 weeks
Left with $100 in extra bitcoins.

As a few smart people have wisely pointed out, people are not buying Bitcoins to spend them.  I mean, how stupid do you have to be to believe that.  Let's look at it:

Scenario A:

Mary wants to buy a new TV.  That TV costs $500.  She goes to her favorite online store, types in her debit card number and her debit card is charged. TV arrives in about a week.

Total Cost:  $500
Total Time:  ~ 1 week

Scenario B:

Mary wants to buy a new TV.  That TV costs $500.  Mary also heard the hype on a new technology called Bitcoin and figured this is the best payment method for her.  So, Mary goes on Coinbase and purchases $500 worth of Bitcoin and pays 1%.  Then she waits a week.  When the Bitcoin's finally arrive, she goes to her favorite online store, only to find that they don't accept Bitcoin.   

Scenario C:

But lets assume her favorite store does take Bitcoin.    Mary wants to buy a new TV.  That TV costs $500.  Mary also heard the hype on a new technology called Bitcoin and figured this is the best payment method for her.  So, Mary goes on Coinbase and purchases $500 worth of Bitcoin and pays 1%.  Then she waits a week to get her Bitcoins.  And it's a good thing because it will take Mary at least that to figure out how to safely store her new Bitcoins and download the blockchain.  Or, maybe she just stores them on Coinbase, which is the ideal way to store Bitcoins anyway.     When the Bitcoin's finally arrive, she goes to her favorite online store, pays for the TV with her $500 worth of Bitcoins and the TV arrives in about a week.

Total Cost:  $505
Total Time:  ~ 2 weeks

Moral of the story.  GET REAL!  There is no Bitcoin "adoption" because there is almost nothing to adopt.  You can barely use them.  Cash and debit cards are FAR superior to Bitcoin's, as it relates to making everyday transactions. The day may come where this is no longer true, but that day is not today, nor any day during this bubble inflation.  The is pure speculative buying.  People are simply looking to get a high ROI.  If you believe anything contrary to that, you are delusional and I would NEVER take advice from you because you simply do not live in reality.

at the end of the day, if you want to know what bitcoins true ultimate number one utility is, the one utility that makes it so that even if it had not one single other use case than it would still be valuable, this news article makes it pretty obvious.

http://autos.aol.com/article/gold-bars-hidden-car/

THIS is why bitcoin changes everything.

And what happens if when she wants to buy her TV the value of Bitcoins have crashed such that the same coins can now only buy her a pocket radio?

Moral of the story.  GET REAL!  There is no Bitcoin "adoption" because there is almost nothing to adopt.  You can barely use them.  Cash and debit cards are FAR superior to Bitcoin's, as it relates to making everyday transactions. The day may come where this is no longer true, but that day is not today, nor any day during this bubble inflation.  The is pure speculative buying.  People are simply looking to get a high ROI.  If you believe anything contrary to that, you are delusional and I would NEVER take advice from you because you simply do not live in reality.

Mary has some savings.  She can put them on the bank, and earn less than inflation, or she can put them in bitcoin, losing 1% one-time.
After a few years, Mary decides she wants to buy a TV.  In a freak occurrence, in contrasts to all previous years, bitcoin didn't return massive gains, but gained only a few percent to compensate for inflation.  Mary happily buys the TV with her bitcoin.  She then decides to receive her future paychecks in bitcoin, negating the conversion fees.