That which does not kill Bitcoin makes Bitcoin stronger

Re:That which does not kill Bitcoin makes Bitcoin stronger by dnautics on Wednesday February 26, 2014 @05:06PM (#7308381)

there is a much simpler reason why this is the case:

"But in a rational world this incident (might take a bit of time for the market to realize this) should actually INCREASE confidence in BTC, since a large, irresponsible player was knocked out, and the rest of the players on the field have a net higher level of responsibility (for now)."

(https://news.ycombinator.com/item?id=7295430)

I predicted that the BTC price would bounce back quickly, but I had no idea just how quickly (just wished my paycheck came in faster; I'd have bought in at 450 instead of 600).

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Re:That which does not kill Bitcoin makes Bitcoin stronger by lclarkmichalek on Wednesday February 26, 2014 @06:01PM (#7308841)

Isn't the assumption made there that the large irresponsible player was more irresponsible than the average player? Is there much evidence to suggest that? Or would we find that the average player is worse than MtGox, should they be put under the level of scrutinity that MtGox was/is?

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Re:That which does not kill Bitcoin makes Bitcoin stronger by gwern on Wednesday February 26, 2014 @06:27PM (#7309031)

I find it a bit difficult to imagine how Mtgox could be merely average in irresponsibility.

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Re:That which does not kill Bitcoin makes Bitcoin stronger by JamisonM on Wednesday February 26, 2014 @05:45PM (#7308721)

Does the elimination of a large irresponsible player actually offer any new information about how irresponsible the other actors in the market are? I don't think there is any particular reason why that would be the case, I am interested to know how.

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Re:That which does not kill Bitcoin makes Bitcoin stronger by MarkPNeyer on Wednesday February 26, 2014 @06:18PM (#7308972)

All of the irresponsible actors involved in the 2008 financial crisis were left intact. They have no incentive not to try this again.

The fall of mtgox shows that in the bitcoin world, failure will lead to death.

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Re:That which does not kill Bitcoin makes Bitcoin stronger by dublinben on Wednesday February 26, 2014 @07:14PM (#7309309)

>failure will lead to death

But not before you've made millions, and walked away with no repercussions.

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Re:That which does not kill Bitcoin makes Bitcoin stronger by dnautics on Wednesday February 26, 2014 @07:49PM (#7309479)

It does not directly, but that's not important in markets, what matters is what people believe and how much the believe it. It also helps that it's most likely true anyways.

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Re:That which does not kill Bitcoin makes Bitcoin stronger by JamisonM on Wednesday February 26, 2014 @07:55PM (#7309504)

This seems to contradict the assertion that this would be true in "rational" markets in the original quote.

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Re:That which does not kill Bitcoin makes Bitcoin stronger by dnautics on Thursday February 27, 2014 @05:33PM (#7315719)

You can rationally attempt to quantify the effects of peoples wants and desires even if those themselves are not necessarily rational. Note the difference to: "you can rationally attempt to quantify peoples' wants and desires"

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