Re:What Bitcoin Reveals About Financial Markets
by thebokehwokeh2 on Thursday February 08, 2018 @06:10PM
(#16336407)
Bitcoin trading has, and will forever be a sham, which is sad, because its original purpose would have been world changing.
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Re:What Bitcoin Reveals About Financial Markets
by civilian on Thursday February 08, 2018 @06:13PM
(#16336418)
I don't think you understand currencies? There will always be some level of currency-to-currency trading, but the hope is that it will be minor compared to the major purpose of a currency--- using it as a easy way to exchange value. (Which I imagine is what you were referencing when you said "original purpose".)
Re:What Bitcoin Reveals About Financial Markets
by thebokehwokeh2 on Thursday February 08, 2018 @06:38PM
(#16336564)
> using it as a easy way to exchange value
This is what I was referencing. Nobody will ever use bitcoin as a means of exchange if the price of a car today is 30% less than it is tomorrow.
The most important thing with a means of transaction is the stability of its value. Bitcoin will never be stable so long as it is used as a vehicle for investment (aka a commodity).
Re:What Bitcoin Reveals About Financial Markets
by lrns_ on Friday February 09, 2018 @04:11AM
(#16338904)
"Nobody will ever use bitcoin as a means of exchange if the price of a car today is 30% less than it is tomorrow."
Yeah, that's not how it works. Most holders just spend and replenish with fiat.
"The most important thing with a means of transaction is the stability of its value. Bitcoin will never be stable so long as it is used as a vehicle for investment (aka a commodity)."
Volatility is expected to decrease over time. https://bitvol.info/index.html