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Confidence comes gradually. When bitcoins started, confidence was extremely low. Thus the whole bitcoin economy was worth maybe $1000. Now confidence has grown
by joelthelion 16y ago
Confidence comes gradually. When bitcoins started, confidence was extremely low. Thus the whole bitcoin economy was worth maybe $1000.
Now confidence has grown significantly, and the whole bitcoin economy is worth approximately 5 million dollars.
I wouldn't bet my life savings on it yet, but I find that already pretty good for something that has less than five years, and isn't backed by anything.
- joe_the_user 16y agoConfidence may come gradually but it can vanish very suddenly. If a number of investors have enough invested in the system that their investment become worth more to them than maintaining the bitcoin system and some event decreases the confidence in the system, then those investors will attempt to "liquidate" their holdings. Whether they succeed or fail, the impact on the system will likely be terminal since there wouldn't be any entity ready to step in and buy unwanted bitcoins.
- rmc 16y agoOr its just a bubble