4 ms·

> So, i see there will be a lot of virtual currency flying around, all of it as qualified as bitcoin (sharing similar source code) and the idea that it will all

by pyalot2 13y ago

> So, i see there will be a lot of virtual currency flying around, all of it as qualified as bitcoin (sharing similar source code) and the idea that it will all be worth 1,000 a unit (or more) forever just doesn't make sense. Do you remember the time when twitter was the new hotness? And like everybody and his aunt where building a twitter clone. I mean, it's so simple, just a list of teensy messages, how hard can it be. And we joked how the operators of twitter had like a couple servers and some louse PHP scripts to glue it all together, it was just so laughable from the outset. And most laughable of all, people where flocking to it like mad. Twitter is the remaining "twitter like" website, all the clones quietly shut their doors again and twitter went public with market cap valuation of $22 billion... I could now ask: Are you kidding me? A website where people can post 140 character messages is now worth $22 billion. Ah but the wonders of the network effect. You see the value isn't in twitter. The value is in who uses twitter. Because everybody uses it, it's valuable, and because nobody used the clones, they're not valuable.

deleted 13y ago
[deleted]
fat0wl 13y ago
i don't think network effect applies here the way many have been claiming. twitter & the like 1) were not open source 2) kept a significant user base early on while bitcoin does have a big user base, currency is a more personal thing and if people see too much volatility they'll just pick the one that is most stable, meaning without this flawed crazy dispersement scheme i, for one, do think Bitcoin is a ponzi scheme but it's a more complex one with a lot of Game Theory involved. That's whats unique about the scheme -- it guarantees the founder and early adopters a ridiculous amount of wealth, while still having the ability to satiate the greed/hope of new buyers Also people need to stop comparing this to company/stock valuations. Those are more like an estimate of a company's worth whereas in Bitcoin the figures given are always a supposed value of currency unit. Consider this -- when companies sell stock it is to fuel more work and production within the company. When a Bitcoin is sold for $600, it is so some dude can by a Playstation 4. It's not attached to lifestyle in the same way as stock/investment in companies.

by pyalot2 13y ago

deleted 13y ago

[deleted]

fat0wl 13y ago

i don't think network effect applies here the way many have been claiming. twitter & the like 1) were not open source 2) kept a significant user base early on while bitcoin does have a big user base, currency is a more personal thing and if people see too much volatility they'll just pick the one that is most stable, meaning without this flawed crazy dispersement scheme i, for one, do think Bitcoin is a ponzi scheme but it's a more complex one with a lot of Game Theory involved. That's whats unique about the scheme -- it guarantees the founder and early adopters a ridiculous amount of wealth, while still having the ability to satiate the greed/hope of new buyers Also people need to stop comparing this to company/stock valuations. Those are more like an estimate of a company's worth whereas in Bitcoin the figures given are always a supposed value of currency unit. Consider this -- when companies sell stock it is to fuel more work and production within the company. When a Bitcoin is sold for $600, it is so some dude can by a Playstation 4. It's not attached to lifestyle in the same way as stock/investment in companies.