This isn't inflation, it's deflation.
Bitcoin price skyrockets, crashes, rinse, repeat, internet starts investing in tulips
- Thread starter tipoo
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This isn't inflation, it's deflation.
Jedeye Sniv
Banned
Yeah, I have no idea what I'm talking about. I saw a graph and it went way up, and then it leveled off.
So wait, if the value of the currency is going up, why is it called deflation? Is it because inflation is what happens to goods and services but if the currency is climbing then it's deflation?
ThoseDeafMutes
Member
If you need more dollars to buy x (value of currency decreased), its inflation. If you need less dollars to buy x, (value of currency increased) that is deflation. The confusion comes from how we talk about 'price inflation' meaning costs increased. But this occurs when the value of currency goes down.
Slayer-33
Liverpool-2
If Bitcoins were a currency, this would be deflation. Since it's just an asset, it's not.
D
Deleted member 1235
Unconfirmed Member
look at a graph on mt.gox, wait for it to be high and sell it, make yourself about 5k? (depending on day)
didn't US just rule it a currency? *
*disclaimer I did not read the ruling
ElectricBlanketFire
Member
Can someone give me a 2-3 sentence summary of how this works like you're talking to a toddler? I read the Wikipedia entry 3 times and I still have no idea.
I'm an expert
Formerly worldrevolution. The only reason I am nice to anyone else is to avoid being banned.
Dunno why it's so hard in this age with shit like MS points or Steam bucks or whatever. It's virtual currency that can be used across a variety of stores. The difference is it's an anonymous marketplace and bitcoins aren't created by funding them with cash but rather mining them from algorithms. The actual market for them though, just pretend that they were a real currency and supply and demand dictated the price.. that's it. But in this case bitcoins are actually limited to something like 20 million . And of course the market isn't backed or protected by anything so it's not the safest investment.
D
Deleted member 1235
Unconfirmed Member
machines do increasingly hard problems. when they succeed, other machines check they succeeded, if they agree a 'coin' is created.
that coin is then owned by the person that 'found' it. these coins can be bought or sold on a market. like other foreign currencies. they can also be used on a number of increasing shops.
yup. if you had backed up your 'wallet' somewhere you would still have them. bummer dude. on the bright side you probably only lost a grand or 3 .
I'm an expert
Formerly worldrevolution. The only reason I am nice to anyone else is to avoid being banned.
Here's a simple example as to why someone would buy them. I want to buy illegal guns. I know an underground supplier who has a bitcoin wallet. I buy some bitcoins for $500 from the market. I buy $1000 worth of guns and send him two coins. He can cash them out on the market for his cash or hold them to see if the value goes up. And all of this is anonymous.
Edit: fuck I meant to edit the last post not make a new reply
Coreda
Member
Bitcoin in general? It's an anonymous, decentralized peer-to-peer virtual currency network. Using an app a user creates a unique wallet file which is used to store bitcoins. Bitcoins can be made by exchanging other currencies into BTC, selling goods, or 'mining'.
Users on the network are identified by others on the network by random-looking character addresses (eg: 12c115cc8ff36a5....). These addresses are used to send bitcoins to other users. Any number of these can be randomly created for each user from a private master key that you keep safe. This allows users to change addresses and preserve anonymity over time, if they like.
Every transaction made on the Bitcoin network is recorded and saved. Everyone on the network receives a copy of these virtual receipts. This is called the block-chain, as periodically volumes of receipts are added to the chain in 'blocks'.
For more on 'mining' see my earlier post.
Buddha Beam
Banned
Now that Wall Street and the big money institutions are involved in Bit Coin, I'm quite comfortable ignoring it, although I used to kick myself for it. They're going to fuck people for their own gain, just like they do everything else eventually.
Macmanus
Member
I think I'm just going to dump $500 in LTC, ignore it for half a decade, and hope that cryptocurrency is as inevitable as it seems. Pretty low risk - high reward gamble at this point.
Fundamental ignorance on how both Wall St and cryptocurrency functions.
Fundamental ignorance on how both Wall St and cryptocurrency functions.
Buddha Beam
Banned
Macmanus
Member
Then please enlighten me how Wall St is going to fuck me out of cryptocurrency now that they're involved? Also explain how they're involved? The main exchanges are still Mt Gox and BTCe. Neither with Wall St ties. Investing in BTC or CC in general is considered extremely speculative at best. You can't wrap BTC in to a mutual fund, a hedge, an investment trust, or really any package. All they (street investors) can do is trade it like an OTC equity - just like you or me.
So please I beg you, as a financial analyst, tell me what mechanics Wall St will employ that deters you so much. Since you understand it quite well.
Fenderputty
Banned
Curious, but can bitcoins be turned into various currencies or just the dollar?
ElectricBlanketFire
Member
So in other words it's nothing like MS points or Steam bucks?
How ever many he did, I'm sure he is quite happy.
Orbis Tabula
Member
There was a mine collapse. 14 miners are trapped under a huge pile of CPUs. Help is on the way.
I'll clean up if I can keep the rubble.
he's ashamed he only bought 1
Ether_Snake
å®å®å®å®å®å®å®å®å®å®å®å®å®å®å®
The reason it goes up in price is simple; it is expected to be more broadly used in the future, some think it will be the one of the main currencies one day.
So demand would rise in the future. 700$ means nothing, you can't really judge the value without knowing how much it would be in demand in the future. It could be too high, or low. I think it's probably still low since it's not mainstream. That means bitcoin at 3k would not be surprising eventually.
So demand would rise in the future. 700$ means nothing, you can't really judge the value without knowing how much it would be in demand in the future. It could be too high, or low. I think it's probably still low since it's not mainstream. That means bitcoin at 3k would not be surprising eventually.
empty vessel
Member
Too bad for Ron Paul that most people buy bitcoins only because they want more US dollars. Virtually every post in this, or any other, bitcoin thread is about how much people want US dollars.
There was a huge jump that coincided with the bitcoin spike. Some of the same people who championed bitcoin are now doing the same for litecoin. China buys up litecoin as well (they were apparently worth $50 there yesterday? if i heard correctly.) Apparently its capabilities are a bit improved from regular btc? It seems to be sustaining around $6-7 and gets bought up when it starts to dip lower. It's not doing a whole lot but sitting there, very slowly gaining some steam....isn't this story familiar?!
Basically, if you have any faith in bitcoin surviving + growing either as a currency or as a random-as-fuck do-nothing commodity, you should be crapping your pants to buy $7 litecoins right now.
There are a couple things that still need to happen before LTC takes off, but its position purely as "second place" seems to ensure a healthy future to me. So, I've thrown in a small chunk to live or die.
and chinese people are buying BTC so they can get rid of their dollars because the dollar is too insecure.
Yeah. I don't get why some people think it could become a legitimate and popular currency when the only reason it's relevant right now is because you can make a quick buck because of its ridiculous volatility. There's a reason why the US dollar is the most popular currency around the world: stability. Why would a serious company accept paiement in bitcoins when its value can fluctuate by 30-40% in a matter of hours?
It needs stability to become legit but it also needs to be legit to gain stability. As of right now, it's like an internet stock from the dot.com bubble. It doesn't really do anything useful, but hey, you can make a 30% profit in a few days so let's buy some!
theprodigy
Member
oh my we have a true believer over here!
empty vessel
Member
What? That's ridiculous.
I don't mean en masse right at this minute.
i guess that depends on what you mean
IdreamofHIME
Member
So what can you buy with a bitcoin? Just illegal porn, guns and drugs?
I just did the calculations. Shit man....
ChainedMaster
Banned
You can also buy real money with them.
I want to know this too. I know they jumped 123% when Bitcoin hit $900 a couple days ago. Litecoin is cheap enough right now too.
Also, related:
SpectreFire
Member
Good god.I want to know this too. I know they jumped 123% when Bitcoin hit $900 a couple days ago. Litecoin is cheap enough right now too.
Also, related:
NathanMcMahon
Banned
good god indeed