Topic: Why this is not a bubble (Read 725 times)
If we could only go back to how Facebook was back in 05' and the college days... nude photo's, pictures of keggers and beer bongs, crazy ass parties. God I must have un-tagged myself from 500 photos when they opened it up to the general public and didn't require a college email address anymore. Never will forget getting a friend request from my aunt and thinking wtf?? lol
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It's all fun and games until somebody loses an eye
Users != price
However, more users implies more utility for those who use it; the network effect, bitcoin is more useful to me when my business partner accepts it than when he does not.
It depends on how they are using it. If they are using it to replace paypal for sending transactions, and they only buy bitcoins right when they need them and cash out the bitcoins as soon as they get them, then it is true the number of users has a small effect on the price. But if they are using bitcoins to replace their savings accounts, then absolutely the number of users will affect the price, since each added person adds their own amount of savings to the money supply.
How long on average do you hold your bitcoins before selling/using them?
Users != price
Well divide 21 million Bitcoins by total number of Facebook users and you realize why users=price indeed.
Exactly... imagine 21 million users... each with 1 BTC in their wallet... BOOM... all BTC gone... (if we had all 21 million coins already)
Users != price
Well divide 21 million Bitcoins by total number of Facebook users and you realize why users=price indeed.
yup, and bitcoin is not useful at all. right? everyone just sell everything right now, it's worthless, nobody uses bitcoin. 
Well you're reading into my statement based on your preconceived notions. I said that move in Facebook was due to utility. Immediate, realized utility. This move in BTC (recent move) is by speculation of future utility, not immediate utility. I believe in the potential of BTC. 
Users != price
That was driven by utility. Just sayin'
yup, and bitcoin is not useful at all. right? everyone just sell everything right now, it's worthless, nobody uses bitcoin.
That was driven by utility. Just sayin'
Exponential rise is exactly what you should expect with revolutionary product. The Bitcoin singularity is near.
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