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To me this press effort always seems like just people who already have bitcoins trying to get buyers to raise the price of the currency.

by gte910h 16y ago

lawnchair_larry 16y ago
I really doubt the true goal is to raise the value of bitcoins already held. I don't think "forex" speculators take a serious interest in bitcoin yet, but rather, those using it would like to see wider adoption so that they can actually buy things with it. A current problem is that it is highly volatile and fairly illiquid. Most adopters have a genuine interest in the success of an alternative currency rather than trying to profit from the situation. I downloaded the client and checked out the forums. Although I don't have any BTC myself, I would like to see something like this succeed. However, I have low hopes that it will not get tagged with propaganda about drug dealers, terrists, and child pornography (I can't believe the article implied that already!), and probably made illegal like online poker. Visa/Mastercard will refuse to process payments for exchangers, who will later be indicted as money launderers.
- vessenes 16y ago
  There are many, many bitcoin speculators. I know because I was one, sort of. Large bitcoin holders currently have in excess of $250k in BTC value, much of it purchased at $.02/BTC -$.05/BTC originally. There are a few people making their daily living trading, generating and exchanging BitCoins. Just the top of the iceberg, I imagine. The payment problems are exactly as you describe. Interestingly, it would definitely be possible to run an above-board US-based exchange for BTC; it's called a money transfer business, and they're regulated in a specific way. Getting fully registered and compliant is likely around $1mm USD. When the BitCoin economy gets big enough, expect someone to try this. I have no idea if it will succeed, though.
  - jsavimbi 16y ago
    You don't need a US-based exchange for BTC, per se, as other currencies are traded on the open market and the brokers simply relay quotes to their customers via feeds they receive rom the banks. If the banks saw the potential to make money off of trading BTC, they'd make it happen.
    - quanticle 16y ago
      You don't need a US based exchange, but changing bitcoin into a foreign currency and then turning that foreign currency into dollars would probably incur enough in transaction fees to be unprofitable, especially if you're changing large amounts of currency on a regular basis.
      - jsavimbi 16y ago
        If you read into what Forex is you'd discover that what you're speculating about actually happens, for pure profit, many many times over on a daily basis.
bonzoesc 16y ago
I'd call it as people who already have bitcoins trying to raise the value of the currency. The difference is that while I could use 1 BTC to buy 80¢ of US currency or a hundreds of them to buy drugs or something, I'd find it much more valuable to use them to buy coffee, food, and beer locally.
sgornick 16y ago
This "press effort"? The HN post is for an article in Time's Techland blog.

To me this press effort always seems like just people who already have bitcoins trying to get buyers to raise the price of the currency.

by gte910h 16y ago

To me this press effort always seems like just people who already have bitcoins trying to get buyers to raise the price of the currency.

lawnchair_larry 16y ago

I really doubt the true goal is to raise the value of bitcoins already held. I don't think "forex" speculators take a serious interest in bitcoin yet, but rather, those using it would like to see wider adoption so that they can actually buy things with it. A current problem is that it is highly volatile and fairly illiquid. Most adopters have a genuine interest in the success of an alternative currency rather than trying to profit from the situation. I downloaded the client and checked out the forums. Although I don't have any BTC myself, I would like to see something like this succeed. However, I have low hopes that it will not get tagged with propaganda about drug dealers, terrists, and child pornography (I can't believe the article implied that already!), and probably made illegal like online poker. Visa/Mastercard will refuse to process payments for exchangers, who will later be indicted as money launderers.

vessenes 16y ago
There are many, many bitcoin speculators. I know because I was one, sort of. Large bitcoin holders currently have in excess of $250k in BTC value, much of it purchased at $.02/BTC -$.05/BTC originally. There are a few people making their daily living trading, generating and exchanging BitCoins. Just the top of the iceberg, I imagine. The payment problems are exactly as you describe. Interestingly, it would definitely be possible to run an above-board US-based exchange for BTC; it's called a money transfer business, and they're regulated in a specific way. Getting fully registered and compliant is likely around $1mm USD. When the BitCoin economy gets big enough, expect someone to try this. I have no idea if it will succeed, though.
- jsavimbi 16y ago
  You don't need a US-based exchange for BTC, per se, as other currencies are traded on the open market and the brokers simply relay quotes to their customers via feeds they receive rom the banks. If the banks saw the potential to make money off of trading BTC, they'd make it happen.
  - quanticle 16y ago
    You don't need a US based exchange, but changing bitcoin into a foreign currency and then turning that foreign currency into dollars would probably incur enough in transaction fees to be unprofitable, especially if you're changing large amounts of currency on a regular basis.
    - jsavimbi 16y ago
      If you read into what Forex is you'd discover that what you're speculating about actually happens, for pure profit, many many times over on a daily basis.

bonzoesc 16y ago

I'd call it as people who already have bitcoins trying to raise the value of the currency. The difference is that while I could use 1 BTC to buy 80¢ of US currency or a hundreds of them to buy drugs or something, I'd find it much more valuable to use them to buy coffee, food, and beer locally.

sgornick 16y ago

This "press effort"? The HN post is for an article in Time's Techland blog.