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Value of Bitcoin "Crashes"

Posted by ryuzaki0 on from the smells-like-real-currency dept.

souravzzz writes with an update on the state of Bitcoin. Quoting the Ars Technica article: "Bitcoin, the world's first peer-to-peer digital currency, fell below $3 on Monday. That represents a 90 percent fall since the currency hit its peak in early June." That's still three times its value in April 2011.

1 of 709 comments (clear)

  1. Re:Bitcoin by goose-incarnated · · Score: 1, Redundant

    They can do what they want as long as I can get back what it says on my balance. Are you seriously this [redacted]ing stupid?

    Hmmm, how to put this...let's say TechLA put 1000 BitCoin into the BitCoin bank on Friday. Then on Sunday he withdrew 1000 BitCoin from the BitCoin bank. In other words, the BitCoin bank payed out what it said on the balance. TechLA's complaint is that he could only buy about half the stuff with that 1000 BitCoins on Sunday as he could on Friday. A similar thing can happen with other currencies. Take the United States dollar as example. One of the highest recent inflations occurred in the late 70's and early-to-mid 80's. So, suppose you put 1000 USD into a checking account in 1977. Let's ignore the Negotiable Order of Withdrawal stuff for a bit, and any service charges. Then in 1987 you could withdraw 1000 USD. However, in 1987 you could only buy about half of the stuff (actually about 0.518) with 1000 USD as you could with 1000 USD in 1977. According to some theories of economics, that change was partially caused by the change in the amount of money; and, in the United States, the amount of money is controlled by the Federal Reserve System in coordination with the various banks in the country.

    What the hell are the mods smoking? "+4 informative"? Really? In what world is a half-life of 2 days the same as a half-life of ten years? What sort of cognitive malfunction makes a person think that losing half your wealth over two days is comparable to losing half your value over ten years?

    So I would have to say, no, MareLooke isn't quite as stupid as you might have thought.

    ~Loyal

    Behold, fellow slashdotters - the Dunning-Kruger effect at work.

    (ps, Actually, you both are probably as stupid as gp thought)

    --
    I'm a minority race. Save your vitriol for white people.