Posted on 12/05/2013 8:17:24 AM PST by Errant
The bitcoin bubble appears to have burst as a stepped series of price crashes are underway with the price currently standing at 1074 down form 1240 barely a day earlier. A clue to its future direction can be discerned from the unfolding technical price patterns, that just as I wrote wrote in the run up to the peak of the Bitcoin bubble with the price converging on USD 1250 that the market was primed to crash and all it was waiting for was any even marginally negative news to act as trigger for increasing waves of market panics as GREED amongst the bitcoin mania hoarders turns into fear of loss of paper profits.
(Excerpt) Read more at marketoracle.co.uk ...
Haha - no need for vaults. That’s a good one.
“On my machine it would take about a year of calculations to solve the algorithm needed to generate a single bitcoin. “
I.E. It takes a year of absolute wasted CPU cycles (and more in electric bills) to produce one of these worthless pieces of crap.
Here’s a better idea. Download folding@home or SETI@home and at least provide scientifically valuable computations to posterity. Maybe your CPU cycles will be the ones that find a cure for cancer.
Value is based on supply and demand. Dirt’s not selling for more than bitcoin right now.
If you’re stuck on a desert island by yourself and need to survive, gold is worth no more to you than bitcoin or dollars. But all of them can have value on the open market based on supply and demand.
Sigh...
I have some Enron stock. Wanna buy?
(Some people never learn. You’d think they’d learn from the fiat dollar. Instead of proposing something sensible, they latch on to the fiat currency anarchists dream about. This is how it all collapses in time.)
Here’s another.
http://gonzalolira.blogspot.com/2013/12/a-calm-analysis-of-bitcoins-as-currency.html
Lacks fungibility and the source owner is traceable in each bitcoin, so they are vulnerable to future arbitrary devalueing based upon the individual owner.
What are vaults going to be needed for? Digital currencies don't use them, nor the vaunted one world currency (SDRs) they hope to implement, and the way they're printing dollars, they'll soon not be worth the storage costs.
Bitcoin is not unique. There are other digital coins trying to compete with it. Eventually, as FaceBook supplanted MySpace, something will drive Bitcoin value to zero.
There are still issues to be worked out on the growth of the chain of info recording bitcoin use history.
As long as there is no real value behind the bitcoin, except scarcity, it's just another version of tulips or beany babies or Hummel figurines.
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