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The main problem with the bitcoin economy is that trust is fatal. It demonstrates shockingly how much trust in the regular economy is actually dependent on gov
by bayesianhorse 13y ago
The main problem with the bitcoin economy is that trust is fatal.
It demonstrates shockingly how much trust in the regular economy is actually dependent on government regulation...
- dnautics 13y agoand this loss of trust is reflected in the drop in bitcoin price from $400/btc to $600/btc since the incident.
- Guvante 13y agoCash requires complete trust and people still use it.
- svenkatesh 13y agoI guess it wouldn't follow your narrative to point out that a few months ago the price was around $1200/BTC.
- dnautics 13y agoThat preceded the public face of the Mt. Gox situation, which is what the original comment refers to. There are always small speculative bubbles here and there, it happened exactly like that 6, and 12 months prior. It's interesting how bitcoin prices are highly cyclical. I think there's going to be ONE MORE expansion, in approximately 3 months, that takes the price of btc to about 5k, although it may pop as high as 10k on its way. If for no other reason than there are often self-fulfilling prophecies in finance.
- bayesianhorse 13y agoLost trust does not mean the price has to fall. As I said, there is close to zero trust in the bitcoin economy, so a loss of the little trust isn't a big surprise. Most savy investors/bitcoin users won't have lost much money in this affair either, because they didn't trust MtGox more than some common criminal...