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Bitcoin Circulation Hits Record High Of $14 Billion (theguardian.com)
Bitcoin, the digital currency that most people have never actually used, has hit a record value of $14 billion after jumping 5 percent on Thursday. From a report on The Guardian: The price of one bitcoin reached $875 on the Europe-based Bitstamp exchange, its strongest level since January 2014, putting the cryptocurrency on track for its best daily performance in six months. That compared with levels around $435 at the start of the year, with many experts linking bitcoin's rise with the steady depreciation of the Chinese yuan, which has slid almost 7% in 2016. Data shows the majority of bitcoin trading is done in China, so any increase in demand from there tends to have a significant impact on the price.
Wake me up when anyone actually buys stuff with bitcoin.
Beanie-babies would work just as well for currency. (maybe better).
game points that currently can be converted to currency, value of which might drop to zero by various state actions suddenly, yes
Kinda like anything other currency. Like the Deutchmark in the 30s, or currently the Venezuelan Bolivar?
All currency (including gold) is an agreement between people that something has value. Bitcoin is no different. You're under the illusion that money is real, which it isn't. It's all a collective, convenient illusion.
Con artists and marks (of various varieties).
The exchanges fake transactions, fake liquidity, then claim to have been hacked while they take off with your real money. (SFYL)
The middlemen pretend to use Bitcoin but are actually more like unregulated online payment processors (these exist mostly because Bitcoin itself doesn't work well and most users are clueless enough that pretending to use Bitcoin is good enough for them)
The 'whales' who actually have enough Bitcoin they can move the market around. They don't have to predict the market, they ARE the market, and by cycling the price they can milk cash out of a lot of idiots.
There's the enthusiasts who have just discovered the concept but haven't dug deep enough into to figure out why it doesn't work.
There are all sorts of political weirdos who think it'll survive as the currency that remains after the global economic system fails. Because after a complete global meltdown, there will still be a functioning, undivided Internet.
The greedy folk who think they can avoid taxes. Or predict the market and get rich (see 'whales' above as to why this would require a lot of luck).
It soars because people are stupid, selfish, self-deluding, and greedy. But it does not soar in a way that anyone not in at the top level of it will make any money on any real scale except by the wildest of luck.
Gold is also going up, and trust in currency is going way down.
I keep hearing about how trust in currency is going "way down." I'd really, honestly like to see a study showing how many people pay their mortgages, gas, and grocery bills entirely with Bitcoin (or gold bars). If those people (if they exist) truly don't trust the currency, then their day-to-day lives must be terrifying.
Breakfast served all day!