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Yet the price keeps rising...

• gusgordon 14y ago
  Rising price doesn't mean confidence in the currency. If that were the case growth would be exponential (it's not). It should exclusively be the other way around.
  • tudorizer 14y ago
    Can you elaborate on this?
    • gusgordon 14y ago
      Ok - let's say the price of a dollar rises 10 cents. If that meant an increase in confidence, then the price would rise even more and it would go on and the price would rise really fast. In reality the price rises and some people are more confident and some are thinking that the price will drop soon and they will buy again.
• bdcravens 14y ago
  Indeed, every time a negative story comes out, proponents always talk about the MtGox price and how that indicates how strong BitCoin is. BitCoin's raison d'etre isn't for conversion to fiat currency - it's to become an alternative to fiat currency. I'd love to see a breakdown of how much has been converted into fiat currency vs. how much has been spent for goods/services. Likely, I bet it's well over 100:1. So what has happened? BitCoin is helping put more fiat currency in people's hands as it grows, which is (theoretically) being spent on iPhones and bubble gum, strengthening the value of fiat currency in general.
  • aianus 14y ago
    Even if Bitcoin fails at everything except conversion into and out of fiat currency, it's still a major win. It significantly undercuts existing services for international payments while also circumventing currency controls, AML regulations, and censorship.