Explanation
Topic: Wall Observer BTC/USD - Bitcoin price movement tracking & discussion - page 30367. (Read 26713425 times)
January 12, 2014, 09:02:40 PM
January 12, 2014, 08:54:44 PM
CCI
January 12, 2014, 08:52:35 PM
Are we talkin' to the moon or hide yo' wife?
Red is your clue
January 12, 2014, 08:51:41 PM
↘⬇↙
➡🌕⬅
↗⬆↖
➡🌕⬅
↗⬆↖
January 12, 2014, 08:51:14 PM
Are we talkin' to the moon or hide yo' wife?
January 12, 2014, 08:48:42 PM
it will become clear in a few hours
January 12, 2014, 08:43:30 PM
January 12, 2014, 08:39:20 PM
January 12, 2014, 08:37:35 PM
That is one of the things I still don't understand. Suppose that Bitcoin is used to make payments equivalent to a total of M dollars per day, worldwide. How does one derive from that number a "base value" (market price apart from speculation) for 1 BTC in dollars?
PQ = MV.
Price of goods and services transacted * quantity of goods and services transacted
=
value of CIRCULATING money supply * velocity of money (number of times each unit turns over on average during the period in question)
PQ is the "bitcoin GDP"
M ~ 15 million for a while
V can be read from the blockchain.
Do the math.
January 12, 2014, 08:30:30 PM
Cryptocurrencies pay no dividends and have no "destructive" demand. So they have no base price to anchor the speculation, even remotely.
They have a fundamental value which is described by PQ=MV.
Destructive demand in this case means savings. Dividends in this case means deflation.
Deflation means change in price, so that is not "base value" but the very unknown variable that the market has to define.
Savings is not "destructive" because the bitcoins saved will be traded again depending on expected price. Indeed every bitcoin is always someone's "savings" except for an instant while it is being traded.
(Perhaps one may consider that bitcoins are "destroyed" temporariliy while a transaction is awaiting confirmation from the net, if they cannot be traded or used for commerce in that interval. From that "consumption" and predicted volume of commerce one may be able to compute a "base value" that does not depend on speculation, assuming that Bitcoin will be the only cryptocoin in use. However, the volume of "consumption" depends on the speed of confimation. Is that predictable?)
Savings which are never dishoarded are effectively destroyed. This manifests as low velocity relative to the total. In fact, since transactions are much more efficient, the velocity of non-hoarded coins can be expected to become large relative to inflationary currencies.
Since PQ grows as the economy grows, a productive return is realized, which is analogous to a dividend. Ownership of a non-inflationary currency is very much like owning the total market, and receiving all of its dividends, in that regard.
January 12, 2014, 08:26:38 PM
January 12, 2014, 08:26:16 PM
I opened up my fortune cookie and it read "live by the Huobi die by the Huobi - Chinese proverb".
January 12, 2014, 08:13:55 PM
*chart
goodbye cruel world!
goodbye cruel world!
is it going to break down finally?
i wana change the poll...
January 12, 2014, 08:10:57 PM
goodbye cruel world!
January 12, 2014, 08:07:54 PM
I noticed there aren't really any details about the exchange or business plans for how it intends to be successful - all you get is a link some static under construction page. All the promoters keep posting is bullish news about bitcoin itself. Duh I knew that I already - but why invest in your company? The readers might as well just invest in bitcoin itself.
Yeah the link I posted is to some cnn user created content, not a real CNN piece. Total pump and dump.
January 12, 2014, 08:05:35 PM
I noticed there aren't really any details about the exchange or business plans for how it intends to be successful - all you get is a link some static under construction page. All the promoters keep posting is bullish news about bitcoin itself (as if the revenue of overstock is the revenue of BITC.PK). Duh I knew that I already - but why invest in your company? The readers might as well just invest in bitcoin itself.
January 12, 2014, 08:04:41 PM
A very well known German news site is writing about the FIAT system and how it will crash sooner or later and about that Cryptocoins like Bitcoin is the new gold like how real gold was in the 19xx´s
http://www.welt.de/finanzen/article123780452/Der-Krieg-um-das-sichere-Geld-der-Zukunft.html
Bad translation from me but another good news for Bitcoin
Anyway, hoping for a short crash to buy more coins and get rid of my FIAT on the bank. Only FIAT I need is the FIAT to pay food and stuff.
http://www.welt.de/finanzen/article123780452/Der-Krieg-um-das-sichere-Geld-der-Zukunft.html
Bad translation from me but another good news for Bitcoin
Anyway, hoping for a short crash to buy more coins and get rid of my FIAT on the bank. Only FIAT I need is the FIAT to pay food and stuff.
January 12, 2014, 08:02:34 PM
January 12, 2014, 07:54:49 PM
I was looking through the penny stock forums the other day and saw that too. I thought about making a thread here but didn't bother. What a load of crap. A budding bitcoin exchange doesn't need any help from a public ticker from the caveat emptor pinksheets. It's a shame that penny stock pusher scum are latching to bitcoin popularity/success for their latest scams now.
It's going to be a theme for the foreseeable future.
January 12, 2014, 07:50:56 PM
I was looking through the penny stock forums the other day and saw that too. I thought about making a thread here but didn't bother. What a load of crap. A budding bitcoin exchange doesn't need any help from a public ticker from the caveat emptor pinksheets. It's a shame that penny stock pusher scum are latching to bitcoin popularity/success for their latest scams now. I hope it doesn't give bitcoin a bad name.
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