Topic: The Collapse of Bitcoin Price and Why You Shouldn't Care - page 3. (Read 5002 times)

That was because people went from mining NMC to mining BTC there isn't anything they can just switch to since bitcoin is the king of the hill. Abolishing mining takes longer than just switching but lets suppose we get a fully classical symmetric bubble in that case difficulty will just lag behind a little like it did during the hyperbolic rise.
Not that big of a deal. At the most transactions would take twice as long to get confirmations.

BTW: Your post even implied that we were already at this, nearly impossible to happen point, which is again b.s.

Paragraph breaks are your friend.  As would be a coherent logical structure.  But no matter, the substance of your post is worse than the style.

What "economic definition of money" are you talking about?  Medium of exchange?  Check.  Unit of account?  Check.  Store of value?  Check.

Sending to another address is enough.  What more do you want?  Are you sad that you can't draw a mustache on George?

Apparent ≠ true.

The doomsday scenario where miners all just disappear is just as silly when you say it as it was when the other dozen folks said it.

I have a very good idea of bitcoin's economic value, and how to take advantage of it.  But my ideas aren't mine alone, so if you haven't seen them elsewhere, I suspect the problem is that you have a different view, and you are unable to imagine a different view.

Anything that I didn't address directly was baseless conjecture, unless I missed a valid point buried in that wall of text.

Oh, and namecoin isn't bitcoin.  Just FYI.

Oh, you're right.  My mistake.  People will continue spending money on mining so they can buy fewer bitcoins than they could if they just spent that money on bitcoins directly.  It's not like we saw such a failure happen before on some other crypto-currency like namecoin or anything...

that's bullshit.

Bitcoin is effectively a fiat token with some hard money properties.  It does not meet any economic definition of a money.  It's not even a commodity.  The only thing you can do with a bitcoin is send it to another bitcoin address. It's becoming apparent to more and more people that bitcoin is merely a fad among a few geeks that just like to play with it, and that it was/is misunderstood by tens/hundreds of thousands of people (and continues to be misunderstood by most that remain in the community) to be something most people would value.  This is what caused it's large price increase into the $30s when people expected the mainstream attention to result in bitcoin catching on.  (It hasn't yet, and most likely won't, and is currently teetering on the brink of a catastrophic collapse where the price becomes too low to make mining profitable, resulting in extremely slow block generation/confirmations, which will make it even worse as a form of payment, thereby hurting it's value and price further.)  I have yet to see a single bitcoin developer (or anyone, whether inside or outside the bitcoin community, for that matter) express accurate understanding of bitcoin's economic value and how to take advantage of it.  Eventually most bitcoin users will find that, at least in it's current form, the only value of bitcoin to them is to try to acquire as much profit as they can in terms of government fiat currency and/or other goods from bitcoin before it collapses to whatever price those few bitcoin geeks will pay for them.

Don't you think that anyone possessing 30k BTC would more likely have mined them early on?
Do you really think there is someone spent half a million USD to buy them?

That sounds even more ridiculous but don't let me interrupt you circle jerking  

its cheaper to buy than it is to mine not everybody is here for to turn a quick buck. some of us here understand the value of the bitcoin distinct form the price of btc to paper money. 

if you base the value of BTC in USD or some other centralized government regulated paper currency you are missing the point.

The only thing holding up the bitcoin price is somebody who has bought thousands of bitcoins on the way down from $30. This moron has bought so many bitcoins trying to maintain the price that he has no choice but to keep throwing more money to protect the value of his total bitcoins. He can't sell any coins now because that will just drop the price when he is the only one really buying.

He is so desparate that he put up over a 30,000 bitcoin bid wall on mt. gox at the 4.45-4.50 range. This is his last efforts to protect a fall into the 3's.

The same forces are in play that will keep bitcoin falling, like you say inflation, or so many new coins coming into the market everyday. Why buy when you can just mine. Most people into this currency are computer geeks who will just mine for their coins not buy them.

 

...but you should sell your coin.

Bitcoin is inflating wildly right now, almost as much as it deflated back in May.  The hash rate will keep going down, but at the same time, the difficulty will always be decreasing so net rewards for miners will probably not diminish in the extreme.

People are pulling out, and the people left mining will be the ASICs and large scale GPU farms in locations with cheap electricity.  They won't be making much, but they will be making some and that will be enough.

The next big jump in bitcoin price will probably not occur until the currency actual deflates -- that is, when block size shrinks to 25 BTC/block some time next year.  This is also granted the currency survives this long, but as long as the infrastructure is up and trading is still profitable to the trading companies and the traders it will be.  Until then, we will be in freefall until we hit some kind of equilibrium.

This is probably obvious to most people, but if you're just hopping aboard now and haven't figured things out -- bitcoin is inflationary in the near term, deflationary in the long term.

(It should be noted that if you haven't been paying attention either, TBX mining is exploding because it effectively utilizes the CPU cycles from mining rigs, the currency is secure long as lolcust doesn't dump his 7m TBX into the market, and because of effective programming from both Artforz and lolcust.  Hop on if you want.)