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Re:Bitcoin Drops Below $8,000 as Cryptocurrency Pain Continues by matt_s on Friday February 02, 2018 @07:37AM (#16290049)
The tech is interesting and the ideals of a currency not aligned with a government or big bank are nice but cryptocurrencies have no real value.

Essentially, they are a verifiable ledger of anonymous people exchanging bytes. They may have paid for those bytes with a real currency, much like someone paid for tulips some time ago, or they may have won them for verifying something on the ledger.

Some people in the tulip craze actually had tulips though, right? If a cryptocurrency falls to $0 USD exchange then all that is left is a digital ledger.

"At the peak of tulip mania, in February 1637, some single tulip bulbs sold for more than 10 times the annual income of a skilled craftsworker" [1]

I wonder if time of year plays into the psychology of this.

[1] https://en.wikipedia.org/wiki/Tulip_mania

Re:Bitcoin Drops Below $8,000 as Cryptocurrency Pain Continues by jstanley on Friday February 02, 2018 @08:01AM (#16290172)
> The tech is interesting and the ideals of a currency not aligned with a government or big bank are nice but cryptocurrencies have no real value.

If it's interesting, and the ideals are nice, how does it have no value?

Re:Bitcoin Drops Below $8,000 as Cryptocurrency Pain Continues by wslh on Friday February 02, 2018 @08:12AM (#16290241)
> The tech is interesting and the ideals of a currency not aligned with a government or big bank are nice but cryptocurrencies have no real value.

If the network participants obtain an utility there is value. One example that I commented several times here in HN: I live in Buenos Aires, Argentina, and when foreign customers paid us via a wire transfer the inefficient big banks (that exist almost everywhere) calculate an exchange rate that is not very fair. Doing the same transfer by Bitcoin and converting it (100% legally) to our local currency gives us a better rate which means more profits for our company. Other examples exist but at the core what is happening is that there are financial innovations that the regulatory framework is killing and can be leveraged with these technologies. Sure, there are a lot of scammers right there but this is another topic.

Re:Bitcoin Drops Below $8,000 as Cryptocurrency Pain Continues by RestlessMind on Friday February 02, 2018 @12:58PM (#16292555)
To prevent scammers from scamming and imbibe confidence about a currency (or any store of value) in the general populations, you need regulations, security practices and insurance. All those cost money and transaction fees is one source to pay that cost.
Re:Bitcoin Drops Below $8,000 as Cryptocurrency Pain Continues by wslh on Saturday February 03, 2018 @05:18PM (#16300008)
The central dilemma is how far the regulations go to prevent innovation. Just look at the accredited investor thing in US, it is unbelievable while you can go to Las Vegas and lose everything.
Re:Bitcoin Drops Below $8,000 as Cryptocurrency Pain Continues by luke3butler on Friday February 02, 2018 @08:06AM (#16290204)
This might be beating a dead horse, but what's the difference between Bitcoin and gold then?

If gold loses its value, then it's just a heavy rock. They both take time, money, and resources to mine but neither of them have any intrinsic value.

Re:Bitcoin Drops Below $8,000 as Cryptocurrency Pain Continues by cglace on Friday February 02, 2018 @09:56AM (#16290923)
Gold has a myriad of uses outside of it being a heavy rock. If it's price were to drop substantially it's use in industry would increase substantially and we know what happens to price when demand increases.
Re:Bitcoin Drops Below $8,000 as Cryptocurrency Pain Continues by soneil on Friday February 02, 2018 @10:10AM (#16291080)
I don’t think industry is the floor you think it is. They’ll happily pay as little as they can for it.

I think the more honest measure is simply how many people have faith in it. Bitcoin and gold may be logically equivalent for this function, but a lot more people have a lot more faith in gold.

Re:Bitcoin Drops Below $8,000 as Cryptocurrency Pain Continues by cglace on Friday February 02, 2018 @12:10PM (#16292168)
Anyone will happily pay as little as possible for anything. I don't see your point.
Re:Bitcoin Drops Below $8,000 as Cryptocurrency Pain Continues by oscilloscope on Friday February 02, 2018 @08:26AM (#16290318)
Gold's been around for a lot longer— it's mythologically significant.

But as far as recent technology goes, Bitcoin's been around for a while. It's older then the iPad.

Re:Bitcoin Drops Below $8,000 as Cryptocurrency Pain Continues by matt_s on Friday February 02, 2018 @09:10AM (#16290573)
That's sort of my point. If Bitcoin and gold lose all financial value, at least with gold you have a heavy rock and to most humans, visually appealing. You can do something with that - build a house with enough of it, make jewelry out of it, forge weapons (would they be any good?)

You can't do anything with Bitcoin if is exchanging at $0 USD.

Re:Bitcoin Drops Below $8,000 as Cryptocurrency Pain Continues by luke3butler on Friday February 02, 2018 @12:09PM (#16292152)
A decentralized, distributed ledger has value as well.

Ethereum is a better example, but on the flip-side so is steel.

Re:Bitcoin Drops Below $8,000 as Cryptocurrency Pain Continues by xya3453 on Friday February 02, 2018 @09:39AM (#16290766)
The enormous value that the technology provides is anonymous, distributed consensus. It enables digital asset ownership. It enables self-organising permissionless networks. It enables humans to organise and transact without any central authority for the first time. That's the real value.
Re:Bitcoin Drops Below $8,000 as Cryptocurrency Pain Continues by cesarb on Friday February 02, 2018 @09:59AM (#16290957)
> It enables humans to organise and transact without any central authority for the first time.

Didn't that already happen before we even had central authorities?