If Illegal Drugs Are More Expensive Because They Are Illegal...

hilariousandco

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Quote from: Siegfried on December 18, 2013, 04:28:45 AM

Then shouldn't the effective prohibition of bitcoin in China exert some kind of upward price pressure as well?

It's only pulling the value down because of idiots panic selling. Restricting something will make them more valuable and rare in the long run. China hasn't even banned them either.

And drugs are so expensive because of the cost in safely and secretly distributing them is the most dangerous and costly aspect.

infinitybo

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If a stranger offers you drugs, take them because drugs are expensive Grin

thegolden24

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Good theory, for those in the long run but I think the hassle of getting your money back into fiat(after Chinese new year) would scare off most short term traders.

blackraven1425

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Quote from: Siegfried on December 18, 2013, 04:28:45 AM

Then shouldn't the effective prohibition of bitcoin in China exert some kind of upward price pressure as well?

If we're talking about this as an isolated factor, no but maybe. In the short term, you'd expect a large number of legitimate people to dump their holdings and tank the price. In the long run, the price may be driven up by demand, but only if it's substantially harder to get them into the country than "install Bitcoin client". If it's just as easy to use and trade them in the future as it is right now, they don't have the low supply & high demand situation necessary to artificially inflate prices.

CharlesSafety

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I am not sure if your theory is true, but I will admit to the addictive nature of bitcoins.

semaforo

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Yeah good point.

If bitcoin gives a competitive edge to shadow economy players it could drive up the demand as people working in the shadow economy struggle to get ahold of them.

Zarathustra

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Quote from: Siegfried on December 18, 2013, 04:28:45 AM

Then shouldn't the effective prohibition of bitcoin in China exert some kind of upward price pressure as well?

In the long run, yes. State terror is the reason why bitcoin was constructed; ongoing state terror against bitcoin is a main price driver for bitcoin.

Siegfried

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Then shouldn't the effective prohibition of bitcoin in China exert some kind of upward price pressure as well?

Topic: If Illegal Drugs Are More Expensive Because They Are Illegal... (Read 1200 times)