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Some people believe in the success of bitcoins. They bought custom hardware. This proves bitcoins are going to be a success. Circular logic at it's finest!

by polshaw 14y ago

sp332 14y ago
That's true of all commodities and currencies. Some people believe in the success of gold. They invested heavily in the future of gold. This proves gold is going to be a success. Some people believe in the success of US dollars. They invested heavily in the future of US dollars. This proves US dollars are going to be valuable. Edit: ok so to be clear, it's not just wishful thinking at work, but the fact that people are working toward making bitcoins successful and stable that makes them successful and stable.
- niggler 14y ago
  The difference is that with gold, there's an actual intrinsic demand backing it. There's a cultural demand (indian weddings) but also a real industrial use for gold. There is zero use for bitcoin outside of the financial context. The US Dollar is backed by the united states government and economy, and enough people have faith in both to confer present value and future value. There was a massive effort to introduce a new currency backed by physical silver (by the Hunt brothers), which never gained much traction despite the cash thrown at it. Right now the people investing in bitcoins are speculating that they will stay. For them to stay, there needs to be confidence that it will retain some sort of value, and the early people are at best described as speculators (no one is betting the farm on BTC).
- encoderer 14y ago
  > Some people believe in the success of US dollars. They invested heavily in the future of US dollars. This proves US dollars are going to be valuable. You realize that you're sorta making his point? US Dollars are not going to be successful because some people have "invested heavily in the future of dollars." But that's the reasoning given 2 posts up that was poked-fun at in your parent.

Some people believe in the success of bitcoins. They bought custom hardware. This proves bitcoins are going to be a success. Circular logic at it's finest!

by polshaw 14y ago

Some people believe in the success of bitcoins. They bought custom hardware. This proves bitcoins are going to be a success. Circular logic at it's finest!

sp332 14y ago

That's true of all commodities and currencies. Some people believe in the success of gold. They invested heavily in the future of gold. This proves gold is going to be a success. Some people believe in the success of US dollars. They invested heavily in the future of US dollars. This proves US dollars are going to be valuable. Edit: ok so to be clear, it's not just wishful thinking at work, but the fact that people are working toward making bitcoins successful and stable that makes them successful and stable.

niggler 14y ago
The difference is that with gold, there's an actual intrinsic demand backing it. There's a cultural demand (indian weddings) but also a real industrial use for gold. There is zero use for bitcoin outside of the financial context. The US Dollar is backed by the united states government and economy, and enough people have faith in both to confer present value and future value. There was a massive effort to introduce a new currency backed by physical silver (by the Hunt brothers), which never gained much traction despite the cash thrown at it. Right now the people investing in bitcoins are speculating that they will stay. For them to stay, there needs to be confidence that it will retain some sort of value, and the early people are at best described as speculators (no one is betting the farm on BTC).
encoderer 14y ago
> Some people believe in the success of US dollars. They invested heavily in the future of US dollars. This proves US dollars are going to be valuable. You realize that you're sorta making his point? US Dollars are not going to be successful because some people have "invested heavily in the future of dollars." But that's the reasoning given 2 posts up that was poked-fun at in your parent.