And no, it is not like the stock market. With the stock market there is actual information available to make informed decisions about your investments (note I said investments and not speculation).
Yep, and in the stock market a company like Apple might gain real, hard, value by taking market share from Samsung (for example).
Bitcoin doesn't do things like that, it just exists.
All Bitcoin dos is transfer money between people. Somebody buys, somebody sells. It doesn't create anything.
So... if one person cashes out and makes a million dollars profit then that means 1000 other people just got 1000 bucks poorer (or 10,000 other people got 100 bucks poorer, or whatever...)
It really is as simple as that. Nothing created, nothing destroyed, a simple redistribution of money.
The point to note is the ratio of winners to losers: For every winner there's thousands of losers.
Anybody buying Bitcoin these may think they're not one of the suckers but some very basic math proves that they are.
Life is were all the breakthroughs and technologies will appear in the next few years, and it will make everything that happened before look like cave drawings.
You'll even be able to pay for it with all those Bitcoins you own!
A trader isn't forced to accept your offers. If things are looking risky for them they can turn you away (or ask you for a ridiculous price, which is almost the same thing). All a trader needs to do is make sure the positive bets more or less cover the negative bets. If it swings too far one way then they just sell harder the other way. It more or less works out for them and volatility actually helps.
The only way the math can really fail is if some seller thinks they're so smart they can ignore the formulas and beat the system.
Honestly I am surprised that BTC has come this far. I never would have guessed it would be allowed on any of the exchanges in this direct of a fashion.
Why not? A commission is a commission. Let the fools gamble, the house never loses.
Bitcoin (in fact, all cryptocurrencies) by contrast are more like gold. They are mathematically constrained to a very well-known limited supply, about 29 million in the case of bitcoin. The supply is well known. The only variable is the demand.
Yes, we get the theory, thanks.
All money is artificial. I don't understand why this point is so hard for people to grasp. Money is worth whatever value people collectively ascribe to it.
Real money is worth what important people/organisations/countries ascribe to it.
The only people ascribing any value to Bitcoin so far are the the people who own enough to think they're going to be magically wealthy, for free.
Just in case it isn't clear: The crash will be permanent because the lucky few won't put the money back into the system. They'll keep it. The system cannot recover.
( temporary conditions like this won't last long.)
LOL!
It's not difficult math to understand:
All bitcoin can ever do is redistribute wealth (ie. somebody buys, somebody sells). That's it. There's nothing of any actual value anywhere in the system.
The total value of Bitcoin is therefore limited to how much of their savings people are willing to gamble on it. This in turn is limited by how much spare money there is out there. I don't have an exact figure for that but I know it isn't infinite.
When nobody has any money left then it will crash, permanently. Just like tulip bulbs. A lucky few will be very rich, everybody else will be poorer (or even in debt).
It's perfectly possible that the rich people are offering large sums for small quantities of Bitcoin to push up the price then dumping large quantities when everybody sees it.
Slashdot Mirror
And no, it is not like the stock market. With the stock market there is actual information available to make informed decisions about your investments (note I said investments and not speculation).
Yep, and in the stock market a company like Apple might gain real, hard, value by taking market share from Samsung (for example).
Bitcoin doesn't do things like that, it just exists.
Maybe Bitcoin goes up to $50k and today's investors will make serious money.
The price limit for bitcoin is simply the amount of money that stupid people can get their hands on.
It could go up to 50k if people can scrape enough money together to buy at that price, eg. by mortgaging their house.
How much money is still left to find? I dunno, but it's fun to watch.
Well the bitcoin network processes only 4 transactions per second. This hard limit will not let you cashout instantly.
Yep. This limit will make sure that Bitcoin crashes much harder than any other bubble in history.
If you're getting in now then you're just handing all your savings to the people who got in early.
On a plate.
With a little sprig of parsley on top.
The math isn't difficult.
All Bitcoin dos is transfer money between people. Somebody buys, somebody sells. It doesn't create anything.
So... if one person cashes out and makes a million dollars profit then that means 1000 other people just got 1000 bucks poorer (or 10,000 other people got 100 bucks poorer, or whatever...)
It really is as simple as that. Nothing created, nothing destroyed, a simple redistribution of money.
The point to note is the ratio of winners to losers: For every winner there's thousands of losers.
Anybody buying Bitcoin these may think they're not one of the suckers but some very basic math proves that they are.
Yes, this is where the fleecing begins, only the wealthy make money at this point in the game
The wealthy, and the owners of the Bitcoin exchanges.
The transaction fees are about to go through the roof, methinks.
Life is were all the breakthroughs and technologies will appear in the next few years, and it will make everything that happened before look like cave drawings.
You'll even be able to pay for it with all those Bitcoins you own!
A trader isn't forced to accept your offers. If things are looking risky for them they can turn you away (or ask you for a ridiculous price, which is almost the same thing). All a trader needs to do is make sure the positive bets more or less cover the negative bets. If it swings too far one way then they just sell harder the other way. It more or less works out for them and volatility actually helps.
The only way the math can really fail is if some seller thinks they're so smart they can ignore the formulas and beat the system.
(which can happen, yes...)
Brokerages themselves could just hold a shit ton of bitcoin in their own account
LOL! Why do you think they're only trading in futures, not actual bitcoins?
If it trades hands from one user the the other within their brokerage, there's no reason to report back out to the block chain
Correct, but you can't trade arbitrary amounts that way.
Honestly I am surprised that BTC has come this far. I never would have guessed it would be allowed on any of the exchanges in this direct of a fashion.
Why not? A commission is a commission. Let the fools gamble, the house never loses.
Bitcoin (in fact, all cryptocurrencies) by contrast are more like gold. They are mathematically constrained to a very well-known limited supply, about 29 million in the case of bitcoin. The supply is well known. The only variable is the demand.
Yes, we get the theory, thanks.
All money is artificial. I don't understand why this point is so hard for people to grasp. Money is worth whatever value people collectively ascribe to it.
Real money is worth what important people/organisations/countries ascribe to it.
The only people ascribing any value to Bitcoin so far are the the people who own enough to think they're going to be magically wealthy, for free.
Just in case it isn't clear: The crash will be permanent because the lucky few won't put the money back into the system. They'll keep it. The system cannot recover.
now we live up a hill
I hope you have plenty of guns for when the riot starts.
Why? The true final price could be 100K.
True, but I'd bet against it. I'm already reading stories of people maxing out their credit cards to buy Bitcoin.
maybe you haven't noticed, but the OPPOSITE is happening.
So far, so good... right?
So how much will you bet?
( temporary conditions like this won't last long.)
LOL!
It's not difficult math to understand:
All bitcoin can ever do is redistribute wealth (ie. somebody buys, somebody sells). That's it. There's nothing of any actual value anywhere in the system.
The total value of Bitcoin is therefore limited to how much of their savings people are willing to gamble on it. This in turn is limited by how much spare money there is out there. I don't have an exact figure for that but I know it isn't infinite.
When nobody has any money left then it will crash, permanently. Just like tulip bulbs. A lucky few will be very rich, everybody else will be poorer (or even in debt).
It's math 101.
It's perfectly possible that the rich people are offering large sums for small quantities of Bitcoin to push up the price then dumping large quantities when everybody sees it.
(aka: "Pumping and Dumping")
"As economists attempt to make sense of Bitcoin"
I can assure everybody that no true economist is trying to make sense of Bitcoin.
Bitcoin con only go up for as long as people can manage to max out their credit cards, steal granny's savings, etc., to buy some.
This is not infinite.
After that it comes down. Hard. A few people will get very rich, a lot of people will get poor.
(Remember: Bitcoin only redistributes money, it doesn't ever create anything of tangible value)
Because they can use it to scam people out of $250 for 20 minutes work setting up a "website".
Being able to pretend you're an ex SEAL/green beret/whatever is a useful skill in the USA.
"Paid prioritization" isn't the problem, it's the "unpaid deprioritization" that worries us.
Don't worry. Trump will set them straight.
PS: Is FOX news you favorite channel, or do you prefer the History Channel? I can never decide.
I am comparing actual data to their dire predictions made 20 years ago and calling them on their shit. And, I will be the denier.
It's almost as if you haven't seen any of those "highest temperate ever" stories that have been appearing every month for the last couple of decades.
https://en.wikipedia.org/wiki/Historical_Jesus
From your own link: "There is no physical or archaeological evidence for Jesus. All sources are documentary, mainly Christian writings"