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And that is exactly what is playing out with Bitcoin becoming a speculative investment vehicle rather than a currency.

• mrb 9y ago
  Research before talking. Bitcoins are being spent more than ever: the transaction rate keeps increasing and is roughly doubling every 18 months https://blockchain.info/charts/n-transactions?timespan=all&daysAverageString=7 https://blockchain.info/charts/n-transactions?timespan=all&d... Preemptive reply to those who think speculators cause the tx rate to increase (often an invalid comment thrown out in HN): no they don't. Speculators typically leave the coins in an exchange wallet (they are not sufficiently technically savvy or motivated to run their own wallet). Buying/selling on an exchange does NOT create a transaction on the blockchain.
  • deleted 9y ago
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  • prostoalex 9y ago
    > Speculators typically leave the coins in an exchange wallet (they are not sufficiently technically savvy or motivated to run their own wallet) Source? After the Mt. Gox disaster the recommendation I've encountered most is to have the bulk of the digital assets in your own cold wallet, and only trust the exchange with the assets you can afford to lose. Since the deposits are near instantaneous, there's really no good reason to entrust the exchange with large chunks.
  • danmaz74 9y ago
    Speculators also move coins between exchanges in search of better speculation opportunities, and to convert from and to "fiat" in those exchanges that allow it (but are worse for specularing)
    • mrb 9y ago
      90% of speculators don't do this. The process to sign up and verify is usually so arduous (because of excessive fraud) that once they are verified they trade and stay at only one exchange.