Re:Bitcoin hits $200
by Hermel on Tuesday April 09, 2013 @07:22AM
(#5517377)
A better comparison than tulips would be silver. Tulips are a bad store of wealth (they rot, anyone can grow them, are not divisible, etc), whereas Bitcoin and silver can be stored and easily divided into smaller units. It still could be in a bubble, like silver was around 1980.
Re:Bitcoin hits $200
by jbester on Tuesday April 09, 2013 @07:43AM
(#5517446)
Not sure I buy either of the metaphors. Silver has industrial, scientific, and commercial (i.e., jewelry) applications that create demand and use the commodity. Bitcoin, on the other hand, does not. It's just used as a transitional currency.
Re:Bitcoin hits $200
by rikf on Tuesday April 09, 2013 @08:49AM
(#5517682)
It does have certain mathematical properties that make it rare. or at least harder and harder to produce as times goes on that leads to scarcity. And as we all know price = demand / supply
http://silverprice.org/charts/history/silver_all_data_o_usd....