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I'm far from bullish on Bitcoin, but this article strikes me as irrational nonsense. Why is the fact that Bitcoin is volatile today proof that it will always b

I'm far from bullish on Bitcoin, but this article strikes me as irrational nonsense. Why is the fact that Bitcoin is volatile today proof that it will always be volatile? There's no secondary analysis, just reiteration of this one axiom as if it were an irrefutable fact. The whole article sounds like someone in finance making their bet against Bitcoin and being really loud about it in hopes that everyone else will agree and it becomes a self-fulfilling prophecy.

InclinedPlane 14y ago
Isn't the onus on bitcoin to prove its stability? All anyone needs to do is say "hey, bitcoin is not a suitable currency right now, don't use it". There is no contractual requirement for them to review the long-term potential of bitcoin, they aren't bitcoin salesmen. If bitcoin boosters can't make a strong enough case for the currency to override the objections of the moment then that's on them.
- NewAccnt 14y ago
  Bitcoins stability is enforced by the market, not a single controlling party (large holders manipulating the market excepted, but their ability to do so has a hard limit). This is a mathematical fact that can be proven with a scientific proof. Contemporary currencies on the other hand are veiled in secrecy in process, and the market simply accepts them as stable for the benefit of society, which is taken advantage of regularly by those who control those currencies.
  - danjumasule 14y ago
    Dear Mister NewAccnt My name is Danjuma Sule, one of the sons of major Gen Gumel Danjuma Sule, The late Nigeria's former minister of mines and power in the regime of the late former Nigeria's military Head of state, Gen Sanni Abacha. When my father died he left me an inheritance of 1302422.34343422 bitcoins. Unfortunately bitcoin exchanges are not yet set up in Nigerian currency and I am in need of a young techno wizard with a bank account denominated in US dollars to assist me in gaining access to my inheritance. It is on this basis I am seeking for assistance. Your percentage is negotiable. Please note; your age and profession doesn't really matter in this transaction. Waiting for your immediate response and bank account specifics. Regards, Danjuma Sule
    - NewAccnt 14y ago
      My Lovely Danjuma, I would be happy to assist in this transfer. Please deposit the funds in the attached bitcoin wallet. I believe the trivial nature of this exchange should only necessitate a small fee, 1% would be quite generous, would you agree? To confirm, Please deposit said funds into the following account, where I can convert to USD smoothly for the benefit of all. At which point converting said funds to USD cheque to be mailed, free of charge of course, is a trivial matter with my local branch. Be sure to reply inline with your address! Your dearest partner, NewAccnt Att: 1HB5XMLmzFVj8ALj6mfBsbifRoD4miY36v
  - dragontamer 14y ago
    The market is doing such a good job at stabilizing BTC prices. </sarcasm> There's a reason why modern currencies are not controlled purely by the market. The past few months of BTC have proven that.
    - NewAccnt 14y ago
      I guess you're not planning on sharing that reason and you expect me to let my imagination run wild for the benefit of your argument?
- baddox 14y ago
  > Isn't the onus on bitcoin to prove its stability? You mean its future stability. It's empirically unstable right now, and I don't think many people will deny that. But you seem to be talking about burden of proof for future events, which seems pointless.
  - InclinedPlane 14y ago
    How do you go from "A: bitcoins aren't a suitable currency today" to "B: bitcoins will be a suitable currency tomorrow" without going through a point where someone somewhere argues that bitcoins will be stable in the future? And if there's no good argument that bitcoins will inevitably become a stable currency, then why bother with bitcoins ever?
    - baddox 14y ago
      I don't think anyone should be arguing that bitcoin will inevitably become stable, but I also don't think anyone should be arguing that bitcoin will inevitably always be unstable. I find it odd to claim a null hypothesis either way.
- dasil003 14y ago
  But that's not what the article says. This sentence seems to summarize the thesis: > This level of volatility, along with the difficulty of buying Bitcoins in the first place, and the substantial security risks, is what will stop Bitcoin from being a true alternative to state currencies He is clearly predicting the future of Bitcoin here, all the while willfully missing the point that of course something that is truly a new form of money and can't be understood strictly by existing economic models is going to first see uptake driven by speculators and can only hope to become something akin to traditional currency much further down the line. To your question, yes the onus is on bitcoin to prove its stability, but not through rhetoric. It will either happen or not in due time.
hkmurakami 14y ago
Bloomberg blogs are only slightly better than Forbes article with respect to their credulity. (and I've read Bloomberg News practically every day for the last two years...)

InclinedPlane 14y ago

Isn't the onus on bitcoin to prove its stability? All anyone needs to do is say "hey, bitcoin is not a suitable currency right now, don't use it". There is no contractual requirement for them to review the long-term potential of bitcoin, they aren't bitcoin salesmen. If bitcoin boosters can't make a strong enough case for the currency to override the objections of the moment then that's on them.

NewAccnt 14y ago
Bitcoins stability is enforced by the market, not a single controlling party (large holders manipulating the market excepted, but their ability to do so has a hard limit). This is a mathematical fact that can be proven with a scientific proof. Contemporary currencies on the other hand are veiled in secrecy in process, and the market simply accepts them as stable for the benefit of society, which is taken advantage of regularly by those who control those currencies.
- danjumasule 14y ago
  Dear Mister NewAccnt My name is Danjuma Sule, one of the sons of major Gen Gumel Danjuma Sule, The late Nigeria's former minister of mines and power in the regime of the late former Nigeria's military Head of state, Gen Sanni Abacha. When my father died he left me an inheritance of 1302422.34343422 bitcoins. Unfortunately bitcoin exchanges are not yet set up in Nigerian currency and I am in need of a young techno wizard with a bank account denominated in US dollars to assist me in gaining access to my inheritance. It is on this basis I am seeking for assistance. Your percentage is negotiable. Please note; your age and profession doesn't really matter in this transaction. Waiting for your immediate response and bank account specifics. Regards, Danjuma Sule
  - NewAccnt 14y ago
    My Lovely Danjuma, I would be happy to assist in this transfer. Please deposit the funds in the attached bitcoin wallet. I believe the trivial nature of this exchange should only necessitate a small fee, 1% would be quite generous, would you agree? To confirm, Please deposit said funds into the following account, where I can convert to USD smoothly for the benefit of all. At which point converting said funds to USD cheque to be mailed, free of charge of course, is a trivial matter with my local branch. Be sure to reply inline with your address! Your dearest partner, NewAccnt Att: 1HB5XMLmzFVj8ALj6mfBsbifRoD4miY36v
- dragontamer 14y ago
  The market is doing such a good job at stabilizing BTC prices. </sarcasm> There's a reason why modern currencies are not controlled purely by the market. The past few months of BTC have proven that.
  - NewAccnt 14y ago
    I guess you're not planning on sharing that reason and you expect me to let my imagination run wild for the benefit of your argument?
baddox 14y ago
> Isn't the onus on bitcoin to prove its stability? You mean its future stability. It's empirically unstable right now, and I don't think many people will deny that. But you seem to be talking about burden of proof for future events, which seems pointless.
- InclinedPlane 14y ago
  How do you go from "A: bitcoins aren't a suitable currency today" to "B: bitcoins will be a suitable currency tomorrow" without going through a point where someone somewhere argues that bitcoins will be stable in the future? And if there's no good argument that bitcoins will inevitably become a stable currency, then why bother with bitcoins ever?
  - baddox 14y ago
    I don't think anyone should be arguing that bitcoin will inevitably become stable, but I also don't think anyone should be arguing that bitcoin will inevitably always be unstable. I find it odd to claim a null hypothesis either way.
dasil003 14y ago
But that's not what the article says. This sentence seems to summarize the thesis: > This level of volatility, along with the difficulty of buying Bitcoins in the first place, and the substantial security risks, is what will stop Bitcoin from being a true alternative to state currencies He is clearly predicting the future of Bitcoin here, all the while willfully missing the point that of course something that is truly a new form of money and can't be understood strictly by existing economic models is going to first see uptake driven by speculators and can only hope to become something akin to traditional currency much further down the line. To your question, yes the onus is on bitcoin to prove its stability, but not through rhetoric. It will either happen or not in due time.

hkmurakami 14y ago

Bloomberg blogs are only slightly better than Forbes article with respect to their credulity. (and I've read Bloomberg News practically every day for the last two years...)