Bubble bitcoins... $300 -> $800 in 10 days

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Momus
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Bubble bitcoins... $300 -> $800 in 10 days

Post by Momus » Mon Nov 18, 2013 11:24 pm

Will this be a viable currency? The price will stabilize and go up steadily?

Maybe, I should buy 1 btc just in case...

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rob
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Re: Bubble bitcoins... $300 -> $800 in 10 days

Post by rob » Mon Nov 18, 2013 11:27 pm

Buy 1 so you have a story when it evaporates :D Who knows... it could be bargain at 800.... all I know is that I will buy it when it falls into an index I already own :D
| Rob | Its a dangerous business going out your front door. - J.R.R.Tolkien

Momus
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Re: Bubble bitcoins... $300 -> $800 in 10 days

Post by Momus » Mon Nov 18, 2013 11:34 pm

http://bitcoinity.org/markets
I know right... But, the chart looks ridiculous, exactly look like a bubble about to burst.

HenryPorter
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Re: Bubble bitcoins... $300 -> $800 in 10 days

Post by HenryPorter » Tue Nov 19, 2013 1:30 am

rob wrote:all I know is that I will buy it when it falls into an index I already own :D
Paradox of sorts there. Bitcoin will be a dimensionless variable thing. An index with it in it would be what kind of index again? Maybe your response was a bit /s.

I predict a bust out in bit coins down the road. Free lunches can have adverse black swans.

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Re: Bubble bitcoins... $300 -> $800 in 10 days

Post by z3r0c00l » Tue Nov 19, 2013 6:31 am

If in the future fractions of a bitcoin become popular, each coin may be worth a ton like a share of berkshire hathaway.

cjking
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Re: Bubble bitcoins... $300 -> $800 in 10 days

Post by cjking » Tue Nov 19, 2013 7:40 am

Momus wrote:Will this be a viable currency? The price will stabilize and go up steadily?
If it lasts, I think it will be the on-line equivalent of gold. i.e. usable as currency in obscure situations, but held mainly as a commodity, with a not very stable price.

I think price would only become relatively stable in the extremely unlikely event that ordinary currencies collapsed, and it became the dominant currency. In that case it wouldn't just be a tempory home for hot money.

Riverstwo
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Re: Bubble bitcoins... $300 -> $800 in 10 days

Post by Riverstwo » Tue Nov 19, 2013 8:45 am

Bernanke seems like he is ok with the Bitcoin idea:

http://qz.com/148399/ben-bernanke-bitco ... m-promise/

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3CT_Paddler
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Re: Bubble bitcoins... $300 -> $800 in 10 days

Post by 3CT_Paddler » Tue Nov 19, 2013 9:28 am

z3r0c00l wrote:If in the future fractions of a bitcoin become popular, each coin may be worth a ton like a share of berkshire hathaway.
Only Berkshire Hathaway represents a share of productive businesses that grow earnings. This is closer to investing in gold... well actually its more speculative than investing in gold. Gold has a long track record. If Bitcoin's value was a function of its utility, you would not see these wild swings.

Stonebr
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Re: Bubble bitcoins... $300 -> $800 in 10 days

Post by Stonebr » Tue Nov 19, 2013 10:06 am

I've been negative recently about the over-use of the word "bubble," but Bitcoins are a true bubble like Beanie Babies, tulip mania and the South Sea bubble. This is insanity -- popular delusions and the madness of crowds. It's quite funny.
"have more than thou showest, | speak less than thou knowest" -- The Fool in King Lear

chaz
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Re: Bubble bitcoins... $300 -> $800 in 10 days

Post by chaz » Tue Nov 19, 2013 11:16 am

Are bitcoins available at a bank?
Chaz | | “Money is better than poverty, if only for financial reasons." Woody Allen | | http://www.bogleheads.org/wiki/index.php/Main_Page

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VictoriaF
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Re: Bubble bitcoins... $300 -> $800 in 10 days

Post by VictoriaF » Tue Nov 19, 2013 11:18 am

chaz wrote:Are bitcoins available at a bank?
Can you make a hole in a bitcoin and wear it on a chain around your neck?

Victoria
WINNER of the 2015 Boglehead Contest. | Every joke has a bit of a joke. ... The rest is the truth. (Marat F)

chaz
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Re: Bubble bitcoins... $300 -> $800 in 10 days

Post by chaz » Tue Nov 19, 2013 11:36 am

VictoriaF wrote:
chaz wrote:Are bitcoins available at a bank?
Can you make a hole in a bitcoin and wear it on a chain around your neck?

Victoria
I want to see what I pay for!
Chaz | | “Money is better than poverty, if only for financial reasons." Woody Allen | | http://www.bogleheads.org/wiki/index.php/Main_Page

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Imperabo
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Re: Bubble bitcoins... $300 -> $800 in 10 days

Post by Imperabo » Tue Nov 19, 2013 11:47 am

Whatever arguments I've heard in favor of bitcoins don't have an answer for why it couldn't easily be replaced by other digital currencies once bitcoin has proven to be a useful concept.

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Re: Bubble bitcoins... $300 -> $800 in 10 days

Post by technovelist » Tue Nov 19, 2013 11:55 am

I still don't understand why it has any value at all other than via the "bigger fool" theory, since you can't use it for anything other than to trade it to someone else who in turn can't use it for anything other that to trade it to yet another person, and so on indefinitely.
In theory, theory and practice are identical. In practice, they often differ.

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Imperabo
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Re: Bubble bitcoins... $300 -> $800 in 10 days

Post by Imperabo » Tue Nov 19, 2013 11:57 am

technovelist wrote:I still don't understand why it has any value at all other than via the "bigger fool" theory, since you can't use it for anything other than to trade it to someone else who in turn can't use it for anything other that to trade it to yet another person, and so on indefinitely.
You're overlooking the fact that fools are an unlimited and renewable natural resource. :)

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BackInTheBlack
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Re: Bubble bitcoins... $300 -> $800 in 10 days

Post by BackInTheBlack » Tue Nov 19, 2013 12:08 pm

chaz wrote:
VictoriaF wrote:
chaz wrote:Are bitcoins available at a bank?
Can you make a hole in a bitcoin and wear it on a chain around your neck?

Victoria
I want to see what I pay for!
I don't know, I think it might take a while to tour every corporate headquarters of the companies that comprise your index funds. :mrgreen:
"Do not put your faith in what statistics say until you have carefully considered what they do not say." | | -William W. Watt

WhyNotUs
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Re: Bubble bitcoins... $300 -> $800 in 10 days

Post by WhyNotUs » Tue Nov 19, 2013 12:10 pm

Bitcoins = Beanie Babies
I own the next hot stock- VTSAX

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Ketawa
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Re: Bubble bitcoins... $300 -> $800 in 10 days

Post by Ketawa » Tue Nov 19, 2013 12:15 pm

technovelist wrote:I still don't understand why it has any value at all other than via the "bigger fool" theory, since you can't use it for anything other than to trade it to someone else who in turn can't use it for anything other that to trade it to yet another person, and so on indefinitely.
Well, the idea is that you can use it to buy things from people who would prefer to use a decentralized currency. Maybe it helps them avoid credit card fees as well. I don't really know what the advantages are, but clearly a significant number of merchants think it's worthwhile to accept them for goods/services. https://en.bitcoin.it/wiki/Trade

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VictoriaF
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Re: Bubble bitcoins... $300 -> $800 in 10 days

Post by VictoriaF » Tue Nov 19, 2013 1:03 pm

WhyNotUs wrote:Bitcoins = Beanie Babies
Tulips are prettier.

Victoria
WINNER of the 2015 Boglehead Contest. | Every joke has a bit of a joke. ... The rest is the truth. (Marat F)

BradMajors
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Re: Bubble bitcoins... $300 -> $800 in 10 days

Post by BradMajors » Tue Nov 19, 2013 1:32 pm

technovelist wrote:I still don't understand why it has any value at all other than via the "bigger fool" theory, since you can't use it for anything other than to trade it to someone else who in turn can't use it for anything other that to trade it to yet another person, and so on indefinitely.
It has the exact same properties as the dollar bills that we use.

ftobin
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Re: Bubble bitcoins... $300 -> $800 in 10 days

Post by ftobin » Tue Nov 19, 2013 1:37 pm

BradMajors wrote:It has the exact same properties as the dollar bills that we use.
The government accepts dollar bills for taxes, and parties must accept dollar bills to settle debts.

hsv_climber
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Re: Bubble bitcoins... $300 -> $800 in 10 days

Post by hsv_climber » Tue Nov 19, 2013 1:38 pm

Very good article about bitcoins:

http://america.aljazeera.com/articles/2 ... aster.html

That is the way to make money:
In December 2012, Tom, a husband and father with a heavy load of student-loan debt, applied for a $30,000 interest-free loan from a credit card company. Over the next month, he used the entire sum to buy up a hoard of the nearly five-year-old virtual currency known as Bitcoin.

The $30,000 amounted to the combined value of Tom's retirement and savings accounts. If Bitcoin failed, he would have to declare bankruptcy or wipe out his nest egg. But after reading news articles, Tom had become fascinated with Bitcoin's potential. Something clicked. He bought as many as he could, as fast as he could.

"This is not a leap of faith. I have done my research. I feel the projects surrounding Bitcoin right now are revolutionary," Tom (not his real name) wrote in an anonymous post on Reddit. "Perhaps I will go to my grave in debt. Perhaps not. That is part of the fun of this little experiment."

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3CT_Paddler
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Re: Bubble bitcoins... $300 -> $800 in 10 days

Post by 3CT_Paddler » Tue Nov 19, 2013 4:50 pm

Ketawa wrote:clearly a significant number of merchants think it's worthwhile to accept them for goods/services. https://en.bitcoin.it/wiki/Trade
How do you define significant? I see a bunch of links to tiny niche websites. The number of websites isn't a measure of significance... the volume as a percentage of total online sales measures significance. And as best I can tell on forums like BitcoinTalk.org, a large majority is simply hoarding their coins...

Maybe it does become significant in the next couple of years, but right now its a tiny, tiny portion of the US online marketplace.

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VictoriaF
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Re: Bubble bitcoins... $300 -> $800 in 10 days

Post by VictoriaF » Tue Nov 19, 2013 5:12 pm

I tried to translate bitcoin into Russian, but Google translate returned bitcoin.

Victoria
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Ged
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Re: Bubble bitcoins... $300 -> $800 in 10 days

Post by Ged » Tue Nov 19, 2013 5:22 pm

Imperabo wrote:
technovelist wrote:I still don't understand why it has any value at all other than via the "bigger fool" theory, since you can't use it for anything other than to trade it to someone else who in turn can't use it for anything other that to trade it to yet another person, and so on indefinitely.
You're overlooking the fact that fools are an unlimited and renewable natural resource. :)
The supply of fools is not unlimited, as this marvelous seminar on exponential growth demonstrates.

https://www.youtube.com/watch?v=F-QA2rkpBSY

This is why all bubbles have limits.

I would not be surprised if bitcoins were one day a subject of an addition to the marvelous book "Extraordinary Popular Delusions and The Madness of Crowds ".

Until then I'm going to hold to my theory that they are a very creative social engineering project aimed at making someone rich, much like, but more original than the various schemes I see in my inbox on a daily basis.

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Epsilon Delta
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Re: Bubble bitcoins... $300 -> $800 in 10 days

Post by Epsilon Delta » Tue Nov 19, 2013 5:23 pm

VictoriaF wrote:I tried to translate bitcoin into Russian, but Google translate returned bitcoin.

Victoria
Did you notice Google thinks "bitcoin" is Irish? And it has no examples of bitcoin being used in English.

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VictoriaF
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Re: Bubble bitcoins... $300 -> $800 in 10 days

Post by VictoriaF » Tue Nov 19, 2013 5:26 pm

Epsilon Delta wrote:
VictoriaF wrote:I tried to translate bitcoin into Russian, but Google translate returned bitcoin.

Victoria
Did you notice Google thinks "bitcoin" is Irish?
No. But now I will be looking for coins with red hair, freckles and fiery temper.

Victoria
WINNER of the 2015 Boglehead Contest. | Every joke has a bit of a joke. ... The rest is the truth. (Marat F)

sgrabiner
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Re: Bubble bitcoins... $300 -> $800 in 10 days

Post by sgrabiner » Tue Nov 19, 2013 7:48 pm

Also went from $900 to $600 in one day.

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