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Speculations affect every currency or share. But it affects bitcoin stronger because of its low market cap. Think bitcoin as a some random micro cap manufactur
by obilgic 14y ago
Speculations affect every currency or share. But it affects bitcoin stronger because of its low market cap.
Think bitcoin as a some random micro cap manufacturing company located overseas, one news coverage and everything changes.
- robinh 14y agoNot only that, but MtGox handles over 80% of all bitcoin trade. No wonder it's plummeting; every currency would be greatly affected by something like that.
- InclinedPlane 14y agoCan you describe the mechanisms in the bitcoin system which will drive down the investment-based and speculation-based trading and drive up the currency-based trading? It seems to me that the exact opposite trend is more likely. The use of bitcoin as a currency will become increasingly swamped by speculative investments and the swings in value will only get larger and larger, not smaller.