Why bitcoins are dropping, and will continue to do so - page 7.

Arrow

newbie

Activity: 14

Merit: 0

Quote from: kiwiasian on July 04, 2011, 08:08:29 PM

^Yes, that is what BTC is for. Mine it, sell it, profit REAL money and not virtual worthless currency.

*Now, all the hardcore BTC economists are going to come in and tell me about fiat currency and how bitcoins are better, amongst other things that in the end no one cares about*

Try to quote instead of putting an arrow, it's ambiguous, who are you talking to? There are two people above that post, this is what the quoting feature is for.

And it look like you are denying the market place that exploded in activity recently. More real life merchants are popping up, and people are selling random goods on these very forums. Pretending these don't exist is delusional.

bitfreak!

legendary

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electronic [r]evolution

Quote from: 5grainsilver on July 04, 2011, 07:24:09 PM

1. Investment. Nope. Not in any real amounts. Investors like security and the bitcoin is pretty much the opposite of secure. They also like secure exchanges and the bitcoin exchanges are pretty shady compared to mainstream exchanges. That is kind of an understatement really.

It may not be completely reliable, but it offers a staggering degree of potential profit. And VirWoX is very trusted. If you really want security (and the ability to use PayPal), then VirWoX is a valid choice, but the fees will probably be higher.

molecular

donator

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according to falkvinge:

1.) unlawfull trade
2.) international trade
3.) merchant trade
4.) investment (not yet released)

in that order

Arrow

newbie

Activity: 14

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Quote from: AyeYo on July 04, 2011, 08:04:04 PM

Quote from: 5grainsilver on July 04, 2011, 07:24:09 PM

And why the bitcoin value is entirely dependent on the black market.

It is simple supply and demand. Lets look at each side.

Supply:

Supplied by miners. Any serious operation NEEDS to sell to pay utilities. That creates a steady supply of bitcoins offered at market price on a regular basis.

That alone is what kills it at this point. Everyone is still using this a profit making game, which means all mined coins are getting sold off for market price.

Bottom line: almost no one wants Bitcoins for Bitcoin's sake. People want Bitcoins to sell for dollars now or later, or they want them to purchase illegal items. That's really all they're used for right now and it's unfortunate.

Yes, many new people are investing for this reason, but this isn't that bad. It gives Bitcoins a lot of press and attracts people who do want to use it.

A lot of non-internet merchants are popping up. There may only be ~10, some restaurant here, some cake shop there, but most of them just opened up, and others are bound to follow. I bet many local people will see the money saved on transactions and want to join in as well.

You can't ignore the legitimate vendors using it. A quick look at the marketplace on these forums here will show you how popular it is for legal, non-investment purposes. Being able to wire money without involving a bank, and all kinds of fees and wait times is very useful to a lot of people.

kiwiasian

full member

Activity: 168

Merit: 100

^Yes, that is what BTC is for. Mine it, sell it, profit REAL money and not virtual worthless currency.

*Now, all the hardcore BTC economists are going to come in and tell me about fiat currency and how bitcoins are better, amongst other things that in the end no one cares about*

Arrow

newbie

Activity: 14

Merit: 0

Quote from: 5grainsilver on July 04, 2011, 07:24:09 PM

Supply:

Supplied by miners. Any serious operation NEEDS to sell to pay utilities. That creates a steady supply of bitcoins offered at market price on a regular basis.

No they are introduced by miners, and supplied by miners and anyone holding Bitcoins. Supply is not a problem.

Quote

Reasons to buy.

1. Investment. Nope. Not in any real amounts. Investors like security and the bitcoin is pretty much the opposite of secure. They also like secure exchanges and the bitcoin exchanges are pretty shady compared to mainstream exchanges. That is kind of an understatement really.

Bitcoin is not intended as a get-rich-quick scheme, if it makes you money for nothing, that's great for you, if it doesn't it's not a flaw because it was never intended to.

Quote

2. To use as a transactional currency. This is the real appeal of the bitcoin. But there is no reason for someone to convert dollars to bitcoins and buy something unless it is illegal. It is inconvenient and provides zero protection against theft or fraud.

There are many reasons other than illicit goods.
They are cheaper to move. Visa and Mastercard take several percent off of each transaction that is done with them. Considering profits for most merchants is severa percent, after all expenses, eliminating Visa and Mastercard from the equation can mean saving a lot of money.

AyeYo

full member

Activity: 154

Merit: 103

Quote from: 5grainsilver on July 04, 2011, 07:24:09 PM

And why the bitcoin value is entirely dependent on the black market.

It is simple supply and demand. Lets look at each side.

Supply:

Supplied by miners. Any serious operation NEEDS to sell to pay utilities. That creates a steady supply of bitcoins offered at market price on a regular basis.

That alone is what kills it at this point. Everyone is still using this a profit making game, which means all mined coins are getting sold off for market price.

Bottom line: almost no one wants Bitcoins for Bitcoin's sake. People want Bitcoins to sell for dollars now or later, or they want them to purchase illegal items. That's really all they're used for right now and it's unfortunate.

5grainsilver

member

Activity: 69

Merit: 10

And why the bitcoin value is entirely dependent on the black market.

It is simple supply and demand. Lets look at each side.

Supply:

Supplied by miners. Any serious operation NEEDS to sell to pay utilities. That creates a steady supply of bitcoins offered at market price on a regular basis.

Demand:

Reasons to buy.

1. Investment. Nope. Not in any real amounts. Investors like security and the bitcoin is pretty much the opposite of secure. They also like secure exchanges and the bitcoin exchanges are pretty shady compared to mainstream exchanges. That is kind of an understatement really.

2. To use as a transactional currency. This is the real appeal of the bitcoin. But there is no reason for someone to convert dollars to bitcoins and buy something unless it is illegal. It is inconvenient and provides zero protection against theft or fraud.

That leaves us with a large, steady supply regardless of price, and limited demand based on black market products.

I wish I could short bitcoins.

Topic: Why bitcoins are dropping, and will continue to do so - page 7. (Read 28139 times)