Re:Bitcoin Futures Could Open the Floodgates for Institution...
by darawk on Wednesday November 01, 2017 @11:06AM
(#15601802)
It's use as fuel for transactions is its application. Gold's intrinsic value is very very tiny relative to its price. Same with Bitcoin's.
Re:Bitcoin Futures Could Open the Floodgates for Institution...
by eksemplar on Thursday November 02, 2017 @02:02AM
(#15608176)
Financially that's not application though, it's a scam along the lines of your bank lending you money to invest in your bank.
You can downvote it all you want, but the value of the transaction is directly tied to the value of Bitcoin. This makes it profitable on the way up, and an outright danger in the way down because it'll prohibit you from selling your bitcoin when the value crashes.
Like I said, invest all you want, there are plenty of money to be made still, but at least be aware of the risks.
You’re right that you need to expend bitcoin to trade it, but this is more a weakness than a strength. It gives you a banking system of sorts, in that you’re guaranteed someone will handle your transaction for money. This also means that if the value of bitcoin drops then nobody will be around to do the calculations required to do transactions, making it an inherent risk.