The gist is simple: For nearly the entire month of January Bitcoin has traded in the 900s, with minor exceptions in 1,000s. For a currency that until very recently could see 50% of its value drop in a day and not have that day stand out all too much, it has been something of a calming of the seas.
Why does it matter if Bitcoin is seeing increasing price stability? Essentially the more wild the swings in its value, the less useful Bitcoin is as a tool of commerce. This goes both ways: The more real uses there are for Bitcoin, the smaller the percentage of speculative trades in the currency; and, the smaller the changes in its price, the more people may start to accept Bitcoin as a payment option. It’s a self-reinforcing cycle.Bictoin fanboys fail to understand two important things, a month of price stability does not imply a future of price stability. There are plenty of stocks that have been stabled for months, but then start to fluctuate significantly. Projecting price stability for Bitcoin based on one month of price activity is absurd. It flies in the face of Austrian economic thinking, which says that price history does not forecast future prices. It's amateur night to think 30 days of history has major long term significance.
Indeed, when it is considered that a large chunk of Bitcoin holders bought for upside potential, they are going to get real bored if price stability does set in. They may not all sell at the same time, but to the degree there is "price stability," it will eventually develop into slow steady selling pressure of bitcoins. Thus, inherent in current price stability is the seed of future downward price action as Bitcoin fanboy boredom sets in. Hot money gets bored very quickly.
Can we call your team Anti-Bitcoin hateboys?
ReplyDeleteNow the stability is a weakness, hilarious.
Also, the bitterness can be smelled miles away.
Its like when Al Gore says that global warming is causing all the global cooling.
DeleteDo you guys just want to throw barbs at Wenzel, or do you actually have a logical argument to refute the points he made?
DeleteJack, there is nothing to refute (It is only his biased opinion). He even says that projecting the price in the future is absurd and NOT a part of Austrian economic thinking. Yet, he then turns right around and declares he knows what the future price action will be, namely down. He exposes his own bias, not ours.
DeleteYou Bitcoin haters need a heavy dose of Ego killer. Maybe when you finally take your feet out of your mouth you can swallow some humble pie and apologize to those of us who built the system of the future.
Hey Robert, still sour you never bought when you could afford some?
ReplyDeleteBtw, how are your gold holdings?
Cheers!
My gold is fine and in my possession I might add. No computer or electricity needed. Also my gold has been accepted for thousands of years and known by all countries and people. Come see me in a year and ask me this question again when your shitcoins are gone and my gold is up. You shitcoin defenders are a bunch of idiots and will lose your shirts...and I'm gonna love every minute of it because you just won't accept the inevitable.
DeleteGold holdings are doing very well. I've been holding them for more than a decade and they've performed very well.
DeleteThanks for asking!
I'm a strong bitcoin supporter and believer, but I appreciate that Bob is so critical. Most other things I read online are from Bitcoin supporters and their slavish, cult-like devotion. Bob's post help keep my feet on the ground and keep me from getting carried away by the emotion.
ReplyDeleteThat said, Bitcoin is now boring as hell without 20% intraday swings. I'm thinking of selling my stack and buying something more exciting with the profits. ;-)
Ain't it INTERESTING how the Buttcoin(R) pumpin' fanboyz don't ever have SUBSTANTIVE ARGUMENTS?!
ReplyDelete...Makes you wonder just exactly what their aim is?
Let's see, Buttcoin(R) is COMPLETELY TRACEABLE, VIA AN INDELIBLE, NIGH-INDESTRUCTIBLE LEDGER, allowing someone with massive computing resources (hellloooo, Utah!) to track every transaction, allowing it to deem any fraction of a coin from any source (helllooo, mixing services!) ILLEGAL, enabling them to seize said coins, or SHUT DOWN ANY WALLET.
How delicious it must be that the powers behind Buttcoin(R) have convinced a group of pot-fogged 'libertarians' to popularize and spread it for them!
BUTTCOIN IS A STATIST'S WET DREAM.
Your arguments are so strong that you feel the need to denigrate the name of it, Buttcoin vs. Bitcoin. You are just projecting your butt hurt onto Bitcoin. Keep howling at the moon, Bitcoin will continue without you and your Luddite friends.
DeleteYou know what, I was just thinking...I can't stand Justin Bieber but I don't go seek out Justin Bieber forums, news sites, reddit pages, etc. just so I can spend hours of my day telling Bieber fans what fools they are but the bitcoin haters do just that. They're like jilted lovers whose egos are so bruised that they have to go around preaching what a whore their ex-girlfriend was to anyone who will listen. As Confucius say, "He who sling mud, often lose ground" and the haters seem to be standing in mile deep holes right now! The good thing is, the further down they sink...the less you can hear them. Bwahahhahahahahahahahhahaha!!!!!!
ReplyDeleteConfucius also say "man who go through airport turnstile backwards going to Bangkok." which is exactly what shitcoin users will experience. You will defend it even after it's been taken over by the government or reaches zero...actually, scrath that...we won't hear a damn peep out of you then. You'll be toting some other schitzo-currency...shitcoin buyers are going to lose their shirts. "Bwahahhahahahahahahahhahaha!!!!!"
ReplyDeleteBuy GOLD.