Re:Thoughts on Bitcoin
by pinarsezer on Sunday December 01, 2013 @03:04PM
(#6828994)
> The fact that the few merchants willing to accept bitcoin generally convert to dollars right away suggest an underlying lack of faith in bitcoin—or at least a problem with the volatility.
Few merchants accept gold either. Yet gold reserves in the world amount to US $8.2 trillion in value.
Edit: removed part on volatility
Given the choice I think they will not have a problem in picking gold instead of bitcoins. Gold has some history behind it, and compared to bitcoins is more liquid and less volatile.
(volatile for about 3000 years - do you mean available?)
Re:Thoughts on Bitcoin
by fragsworth on Sunday December 01, 2013 @04:33PM
(#6829442)
> Gold has some history behind it
"It has history behind it" really seems like a fallacy to me. Many things had histories and were replaced, or changed dramatically, due to new technologies. Horses, swords, aluminum, newspapers...
I see Bitcoin being a very realistic threat to the high price of gold.
Its not a lack of faith l, it's lack off trade acceptance. If merchants accept bitcoin they need to convert back to dollars because that's what their business calls for. In other words, if they could pay their bills with bitcoin, then bitcoins would flow back and forth without an issue, removing your suggestion that this is about lack of faith.