Topic: One opportunity no one in Bitcoin universe talks about - page 3. (Read 6151 times)

Sorry but your math is incorrect. The price can be infinitely high and if the float is infinitely small, the amount of money to move the market higher is infinitely small.

The amount of money it takes to move the market is related to the float x market price, not price alone. Learn how markets really work.

What you forget is as I had already explained upthread the market cap is not the same as the amount of money invested:


The market cap is based on the last clearing price.

Also it is a not a scaling equation because it doesn't consider externalities. If tomorrow all the world's wealth moved into Bitcoin under the assumption that the price must rise proportionally to the relative wealth invested, this would mean that the majority of the world's population would become destitute given the power law distribution of money. This is simple math.

You simply can't have the Bitcoin asset go to $10 million (under the false conditions of that false assumption stated above) without killing several billion people.

That is why you must have derivatives if you realistically want to scale in the world's wealth.


You don't have a clue what you are talking about.


You believe all the propaganda you've been fed without actually having any knowledge about how things work.

Derivatives don't cause collapse, it is corrupt banks selling derivatives rated AAA that actually contains sub-prime crap in them. It is corruption that causes collapse. It is too much leverage that causes collapse principally.  It is derivatives with leverage where all the risk is held by a too-big-to-fail single entity that causes collapse.

I was advocating derivatives with 100% margin and decentralized presumably owned by a plethora of participants.

Derivatives are absolutely essential and have been used since money was invented.

I'm afraid you have not created anything. Bitcoin was made by the (pseudonym/group)Satoshi Nakamoto, we've just started using it.

Thank you for articulating that -- as I definitely did not have the patience to do so.

And honestly, I think OP knows this to be true,
so you have to question his motivations with these posts.

It can be construed as a death threat. Be careful with your words. They can be construed as a crime.

Nobody forced you to read my words. Elevating that to wishing someone dead is insane.

Except that's not what he did.  If the dollar price grows, it takes more dollars to proportionally move the market.  That's a fact of mathematics, not a logical error.

It also very clearly answers your original post.  Bitcoin *can* handle more money.  As more people realize the usefulness of the protocol, more people will utilize it.  In order for that added value to go into the system, since the supply is fixed, the price must rise.  It's a very easy to understand feedback loop.  The more valuable it is, the more people use it, and the higher the price goes.

Fixed supply + increased demand = higher price

It's really that simple.  Derivatives are not a way to increase liquidity.  The price already accounts for that.  If somebody *really* wants to sell, then they will be willing to take a slight hit in order to do so, which means they will sell for less than market price, which will simultaneously drive the price down as well as meet their liquidity demands.

Derivatives are players outside the market making outside bets with other outside actors about the market.  That has nothing to do with Bitcoin or its liquidity, although it might impact it substantially if the derivatives market balloons like derivatives markets always seem to do...  Derivatives en masse are one of the core problems with modern finance and banking.  They *must* necessarily cause collapse.  Because they don't actually bring value to the system.  So when one side has to pay the other -- well that value doesn't actually exist, so the REAL economy of value gets shaken up.  Obviously a real economy of sound money will survive that disturbance, since with sound money you can't just print more to pay the debt, so the debtor just has to default -- but the economy still suffers a quake, due entirely to pointless valueless speculation.

Just a typical sour grape: "did not plant it, did not get it (miss it), it must be sour", i'm actually enjoying seeing these morons coming here to tell us how shitty bitcoin is.

Dont you find it amusing when bitcoin was traded at 2 digits or below, we hardly see these morons?

Death threat?
Learn your vocabulary first. I've never said that I or anyone here is going to kill you or anyone for that matter.
We're just sick of the same bullshit every few days every damn week.

if its a huge opportunity, go for it! 

My idea on how to do the programmable block chain.

Derivatives are a secondary market which doesn't have to do with protocol of the coin.




 

That is my first death threat on this forum. I must be doing something right.



Yeah and that is why you may lose market share to a more astute coin which understands that price isn't the only metric of success.

Go kill yourself.
End of story.

As an investor in Bitcoin, I don't give a fat fiddler's fuck about central banks
and what they need to do with their money next year.

I WANT the price of Bitcoin to increase.

As if there are no powers that be. Why the fuck are we creating Bitcoin then?

You can short BTC in bitshares. It is a CFD backed by BTS but its effect on BTC price is still the same - someone who buys a bitBTC is someone who would have bought a BTC otherwise.

Ethereum will probably offer many more flexible BTC derivatives, but BTS is out right now.

You seem to love the word(s) "powers-that-be", 21s century much?

The powers-that-be are very much aware that this is the one feature they must not allow to come to crypto-currency decentralized and anonymously, because then they loose on their plan to keep all that $200 trillion trapped as the global implosion proceeds 2015.75.

whats new? another dumb fck making another thread " bitcoin never work"

I played around with this Bitcoin derivatives site for a while before they got shut down.

https://btct.co/

The $200 trillion looking for a home as detailed in the article linked from the first line of the OP.

You will never scale that much capital into Bitcoin if the price has to go to $10 million. We couldn't even make past $10 billion market cap and $1000 price without bubble exhale. Excruciatingly too slow, you are talking about decades, and that capital needs a home next year.

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Brouhaha. That fool again.


And his sidekick.