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This price fluctuations will not end until the destiny of Bitcoin has been decided, either fail and drop to zero or succeed and rise probably well above 1000 do
by danbruc 12y ago
This price fluctuations will not end until the destiny of Bitcoin has been decided, either fail and drop to zero or succeed and rise probably well above 1000 dollars. It's kind of remarkable that it did not die within the first 5 years if you consider all the small and big disasters but in my opinion Bitcoin is still in is infancy and it is far from clear where the journey will end. Compared with other means of payment Bitcoin still plays no important role at all - its still a very nerdy thing only a tiny fraction of people know about and the hand full of opportunities to do something meaningful with your Bitcoins besides speculating with them is not even a drop in the ocean of the world's economy.
- sunir 12y agoThe fluctuations will never end unless bitcoin itself ends. Its nature prevents a dampening force like a central bank to control wild price swings.
- danbruc 12y agoWouldn't mass adoption help? If the market capitalization was for example 10,000 times the current one, it seems to me it would be quite hard to move the market as much as it happened in the past.
- sunir 12y agoNo because it is a deflationary currency. Gold also had huge fluctuations. Silver too. The counter argument (google "bitcoin deflationary") is that people won't hold Bitcoin because it is a payment system but I think that is ridiculous because the whole notion of bitcoin is that it is fungible property. Empirical reality obviously demonstrates people are hoarding bitcoins. Bitcoins are more like the condominium market. You can make more condos but a diminishing number more a year. You can buy condos speculatively and not inhabit them (eg buy bitcoins and not spend them). Condo prices are also an unstable market. (Not to mention lots of interesting organized crime stories.)