Re:Bitcoin Blows Past $9,000
by closeparen on Sunday November 26, 2017 @10:47PM
(#15784658)
You have to remember that many of these people are not planning on “cashing out” but on crypto becoming the new cash.
Re:Bitcoin Blows Past $9,000
by jorblumesea on Sunday November 26, 2017 @10:57PM
(#15784704)
If that were true, why does everyone talk about it in fiat currency terms? Why would it matter what price BTC is, if the goal is to just use it? Who cares, then? I don't buy that argument. It seems to be mostly fueled by greed.
What? It's a buyer seller market. By your terrible logic markets are pyramid schemes. This is upvoted?
Re:Bitcoin Blows Past $9,000
by jorblumesea on Monday November 27, 2017 @12:14AM
(#15785016)
The bitcoin is a financial asset with no ballast that people buy because they believe it will appreciate.
To liquidate your position and to make a profit you need constant inflow of new investors to keep the market going as BTC has no true value. There's no backing of any hard assets.
The revenue stream is based on new investments rather than the underlying product itself. That's a very common pyramid scheme/multi level marketing scenario.
This is very different from company stocks, as the stock unit itself is a guarantor of dividends and a small part ownership of the assets of a company. Its price is representative of the performance of the company, it is not the product itself. That company produces something (in theory), although to cash out you still need to find someone to buy it at a said price.
When suckers enter, smart money leaves.
It's a very interesting technology which will continue to exist but it's really looks like an out of control bubble. In some ways it would be better for it to implode and get the snake oil salesman and sketchy white papers out of the ecosystem.
It used to be a really cool proving ground for cutting edge technologies but now it's looking more like rampant greed, excess and arrogance.