5 ms·

- Bitcoin? Sounds interesting but I am not going to waste CPU cycles on it. This will never be of any real value! - Bitcoin seems to be steadily growing. Well,

- Bitcoin? Sounds interesting but I am not going to waste CPU cycles on it. This will never be of any real value! - Bitcoin seems to be steadily growing. Well, as soon as they realize it is worth nothing, it will return back to non-existency. - Yeah, this is definitely a fad. It is growing too fast. No way I am going to mine. - So, mining at home is redundant now. Well, don't picture me buying into it! It can collapse any second. - Haha, it collapsed. Good grief. No way I am buying all the leftovers. This will never recover. - Recovering? This will be temporarily. Bitcoin has no future. - A new peak? Well too late to step in, now. Just wait for the new burst. - Yet another peak!? This is the last one. Buying now would be stupid. - Bitcoin heading towards $(peak of some arbitrary rounded number), new bubble forming Every time.

M4v3R 13y ago
Very relevant - Market emotions cycle: http://cuffelinks.com.au/wp-content/uploads/AO-cycles.png http://cuffelinks.com.au/wp-content/uploads/AO-cycles.png
deleted 13y ago
[deleted]
- snitko 13y ago
  Bitcoin is not a ponzi scheme. It's a technology with actual useful properties. The code is out there to see. If you don't understand why these properties are useful to so many people, I welcome you to the third world countries where you can't start selling your product to the rest of the world (even if it's a great one), because PayPal doesn't work with your country and cc processors won't let you accept cards from other countries (fraud risk). It's not just that. It's also that you don't have to report to anyone and go through all the tedious paperwork to incorporate BEFORE you actually made a cent on your product. When you compare the ease with which you can start selling your product with Bitcoin, it's just amazing. Government regulations stifle innovation and entrepreneurship, Bitcoin let's you break free.
  - jbooth 13y ago
    It can't be both? The declining rate of bitcoin generation certainly has ponzi-like properties. It seems like the primary motivation to mine is assuming that the value will go up as mining becomes more difficult.
    - snitko 13y ago
      So? Is Gold a ponzi scheme too? I don't see a problem with the declining rate of generation because you can divide Bitcoin up to some pretty small fractions. You have to really wrap your head around deflation, you know. It's a beautiful and healthy thing, it's just that we've been told it's not.
      - jbooth 13y ago
        So you're saying it has ponzi-ish properties? Or not? If you're always incentivized to hold something and never incentivized to spend it, it becomes more of an asset than a currency. Gold is an asset, too, but it has much broader market participation in addition to being "special" as a value store due to 6,000 years of tradition. If you've got an asset with a lot of hype that's supposed to always increase in value, so you better get on board now unless you want to be a sucker, that looks a lot like a ponzi scheme to me. You can still make money on it, don't let me stop you. You're probably not going to refactor capitalism with it. Additionally, (I'm assuming you're a little young and naive here, apologies if that's not the case), additionally I'd really suggest decoupling your personal political beliefs from investment decisions with real money. It never ends well.
        snitko 13y ago
        No, I don't believe Bitcoin is a ponzi scheme at all. And I really don't think my age is relevant, you either have arguments or you don't. But let's come back to that notion of yours > If you're always incentivized to hold something and never incentivized to spend it, it becomes more of an asset than a currency." Let's say all you got is 10btc and $0 in your bank account. And you need some food. You're probably gonna decide not to starve yourself to death because being alive tomorrow is more valuable to you than having more money and being dead. Thus you are going to spend your bitcoins (either directly or by exchanging them into fiat). Now, what you probably wouldn't do is buy something you don't really need or want at the moment. And that's fine, in this case Bitcoin encourages responsible spending. Now, of course, you should understand why a deflationary currency grows long term - not speculation, but new products and services in the economy. If no one spends, then no new products and services appear, currency is not gaining in value. If it's not gaining in value anymore you have your incentives to spend back. The major differences with a deflationary currency are this: 1. No one forces you to spend (like governments inflating your money), so you make decisions on your own. 2. Deflation is an ultimate tax that rich cannot avoid. If you make money, you will inevitably share it with the rest (their money gaining in value).

M4v3R 13y ago

Very relevant - Market emotions cycle: http://cuffelinks.com.au/wp-content/uploads/AO-cycles.png http://cuffelinks.com.au/wp-content/uploads/AO-cycles.png

deleted 13y ago

[deleted]

snitko 13y ago
Bitcoin is not a ponzi scheme. It's a technology with actual useful properties. The code is out there to see. If you don't understand why these properties are useful to so many people, I welcome you to the third world countries where you can't start selling your product to the rest of the world (even if it's a great one), because PayPal doesn't work with your country and cc processors won't let you accept cards from other countries (fraud risk). It's not just that. It's also that you don't have to report to anyone and go through all the tedious paperwork to incorporate BEFORE you actually made a cent on your product. When you compare the ease with which you can start selling your product with Bitcoin, it's just amazing. Government regulations stifle innovation and entrepreneurship, Bitcoin let's you break free.
- jbooth 13y ago
  It can't be both? The declining rate of bitcoin generation certainly has ponzi-like properties. It seems like the primary motivation to mine is assuming that the value will go up as mining becomes more difficult.
  - snitko 13y ago
    So? Is Gold a ponzi scheme too? I don't see a problem with the declining rate of generation because you can divide Bitcoin up to some pretty small fractions. You have to really wrap your head around deflation, you know. It's a beautiful and healthy thing, it's just that we've been told it's not.
    - jbooth 13y ago
      So you're saying it has ponzi-ish properties? Or not? If you're always incentivized to hold something and never incentivized to spend it, it becomes more of an asset than a currency. Gold is an asset, too, but it has much broader market participation in addition to being "special" as a value store due to 6,000 years of tradition. If you've got an asset with a lot of hype that's supposed to always increase in value, so you better get on board now unless you want to be a sucker, that looks a lot like a ponzi scheme to me. You can still make money on it, don't let me stop you. You're probably not going to refactor capitalism with it. Additionally, (I'm assuming you're a little young and naive here, apologies if that's not the case), additionally I'd really suggest decoupling your personal political beliefs from investment decisions with real money. It never ends well.
      - snitko 13y ago
        No, I don't believe Bitcoin is a ponzi scheme at all. And I really don't think my age is relevant, you either have arguments or you don't. But let's come back to that notion of yours > If you're always incentivized to hold something and never incentivized to spend it, it becomes more of an asset than a currency." Let's say all you got is 10btc and $0 in your bank account. And you need some food. You're probably gonna decide not to starve yourself to death because being alive tomorrow is more valuable to you than having more money and being dead. Thus you are going to spend your bitcoins (either directly or by exchanging them into fiat). Now, what you probably wouldn't do is buy something you don't really need or want at the moment. And that's fine, in this case Bitcoin encourages responsible spending. Now, of course, you should understand why a deflationary currency grows long term - not speculation, but new products and services in the economy. If no one spends, then no new products and services appear, currency is not gaining in value. If it's not gaining in value anymore you have your incentives to spend back. The major differences with a deflationary currency are this: 1. No one forces you to spend (like governments inflating your money), so you make decisions on your own. 2. Deflation is an ultimate tax that rich cannot avoid. If you make money, you will inevitably share it with the rest (their money gaining in value).