(14-12-2017, 10:40 PM)corydorus Wrote: [ -> ]What happen when the coin truly collapse?Any contingent effect ?
Depending on how big Bitcoin gets before it collapse. If institutional investors pile in, depending on their exposure, there's no telling what kind of chain effect this will lead to.
Money created mainly for transactions. Backed by governments.
Bitcoins creating "value" out of it. But what value it does ? Will you accept bitcoins for your salary. When you sell your home ? Not transactions. Just speculation piling on and on. It will certainly fall apart.
That would be the case for gold as well. Paper money deriving value out of it then drop gold standard and they run by themselves once everyone got addicted to paper and then addiction to numbers on screen which gave birth to cryptocurrency as less and less people want paper in wallet. Not a supporter of cryptocurrency also. Just like all buddies... waiting for market to crash whichever market it will be...
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There is true value proposition in Bitcoin. It is one asset that is truly detached from any one government, and uncorrelated with anything.
It is impossible to take Bitcoin away from anybody without hacking their Wallet (which may be stored locally, encrypted, on a USB, on a piece of paper, in a chip implanted into your body, memorised etc).
In other words, no matter where you are, what state you are in, as long as you have access to the internet in some form, a secure VPN, you can access your bitcoin stash, as long as the Bitcoin Network is still active somewhere in the world.
These Guys Want to Lend You Money Against Your Bitcoin
By Olga Kharif
December 14, 2017, 1:00 PM GMT+8 Updated on December 14, 2017, 10:45 PM GMT+8
The woes of an early bitcoin investor. Until recently, people who paid virtually nothing for the virtual currency and watched it soar had only one way to enjoy their new wealth -- sell. And many weren’t ready.
Lenders on the fringe of the financial industry are now pitching a solution: loans using a digital hoard as collateral.
While banks hang back, startups with names like Salt Lending, Nebeus, CoinLoan and EthLend are diving into the breach. Some lend -- or plan to lend -- directly, while others help borrowers get financing from third parties. Terms can be onerous compared with traditional loans. But the market is potentially huge.
Bitcoin’s price hovered around $17,000 much of this week, giving the cryptocurrency a total market value of almost $300 billion. Roughly 40 percent of that is held by something like 1,000 users. That’s a lot of digital millionaires needing houses, yachts and $590 shearling eye masks.
More details in
https://www.bloomberg.com/news/articles/...-in-luxury
Gold is real and sound money, as real utility/application can be derived from it. It also has properties of money - portable, fungible, divisible, scarce, durable, has real utility value. That is why gold has been used as money for thousands of years. It has stood the test of time. Most people who aren't student of history find it hard to appreciate gold. That being said, how to valuate gold?
Bitcoin on the other hand.. Sure, agree that it is safe and secure. The same goes for digital house, digital car, digital kitties etc. I think that is what cryptocurrencies are worth. Not worth a Bitcoin might be an idiom in future.
On a more neutral note, let's see how Bitcoin performs during a economic crisis. That's when the real test comes.
In my opinion, the manner Bitcoin is going up the the past year is because it is going up (FOMO). I feel Bitcoin bugs should sell part of their gains for real assets, at least they will have a real something.
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"Most people who aren't student of history find it hard to appreciate gold."
What if everyone in the future aren't students of history? What if Asteroid mining makes Gold worthless in the future?
IMO, both gold price and bitcoin price are only victims of supply and demand, nothing less, nothing more.
(not vested in Gold or Bitcoin)
(14-12-2017, 11:17 PM)Wildreamz Wrote: [ -> ] (14-12-2017, 10:40 PM)corydorus Wrote: [ -> ]What happen when the coin truly collapse?Any contingent effect ?
Depending on how big Bitcoin gets before it collapse. If institutional investors pile in, depending on their exposure, there's no telling what kind of chain effect this will lead to.
thats right, now cryptocurrencies are worth half a trillion, that's about one third of QE3 (FED bought in about 1.6trillion USD worth for MBS and Treasuries). Maybe when it hit over a trillion and collapse, that will be something like taking away QE3 overnight/over very short term and enough to tank markets worldwide.
https://www.cryptocoinsnews.com/500-bill...milestone/
(15-12-2017, 11:10 PM)BlueKelah Wrote: [ -> ] (14-12-2017, 11:17 PM)Wildreamz Wrote: [ -> ] (14-12-2017, 10:40 PM)corydorus Wrote: [ -> ]What happen when the coin truly collapse?Any contingent effect ?
Depending on how big Bitcoin gets before it collapse. If institutional investors pile in, depending on their exposure, there's no telling what kind of chain effect this will lead to.
thats right, now cryptocurrencies are worth half a trillion, that's about one third of QE3 (FED bought in about 1.6trillion USD worth for MBS and Treasuries). Maybe when it hit over a trillion and collapse, that will be something like taking away QE3 overnight/over very short term and enough to tank markets worldwide.
https://www.cryptocoinsnews.com/500-bill...milestone/
We are now hearing exchanges willing to try them for trading. This is jin scary. If people can create bitcoins program, they surely has backdoor to print thousands of them and profit from it. There is no need to mine them. Is like banana money ..... we know how it ends.
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Not sure you are refering to Bitcoin, Cryptocurrencies or Blockchain. Many exchanges have been experimenting with Blockchain technology for awhile, including SGX. Many tech companies are trying to get in the game, including Microsoft, JD.com, Alibaba and most notably IBM.
Blockchain technology is real, and would profoundly change the way we transact in the near future. Been talking about it for a while in the IBM thread.