Posted on Dec 29, 2017
south-korea-students-dive-into-virtual-coins-even-as-regulators-crack-down-idUSKBN1EN0D5
668
3
4
3
3
0
South Korea students dive into virtual coins, even as regulators crack down
south-korea-students-dive-into-virtual-coins-even-as-regulators-crack-down-idUSKBN1EN0D5
Posted from reuters.com
Bitcoin
Investing
Banking
Future
Technology
Posted 7 y ago
Responses: 1
0
0
0
Reminds me of the tulip market in Holland in the 1600’s (and no, I wasn’t there), the recent dot.com market in the 90’s, or the housing market in the early 2000’s.
How do you begin to value it? It’s a spec market with no asset-backing. It’s only worth what the next buyer down the line will pay for it. Even with a BS in Finance and a Master’s in Banking, I will admit that I’m not the sharpest pencil in the box, but it strikes me as nothing more than an ethereal Ponzi scheme. Someone else called it computerized fiction. The only thing driving this market is hype, the same crowd mentality that drove, well, the tulip market, the dot.com market, and the housing market. And we all know how those turned out.
Still, what do I know. It may be around for the long haul, and I may be wishing I’d jumped aboard (but probably not). And if you’re making money off Bitcoin, wonderful (although it’s down about 35% in the last week).
How do you begin to value it? It’s a spec market with no asset-backing. It’s only worth what the next buyer down the line will pay for it. Even with a BS in Finance and a Master’s in Banking, I will admit that I’m not the sharpest pencil in the box, but it strikes me as nothing more than an ethereal Ponzi scheme. Someone else called it computerized fiction. The only thing driving this market is hype, the same crowd mentality that drove, well, the tulip market, the dot.com market, and the housing market. And we all know how those turned out.
Still, what do I know. It may be around for the long haul, and I may be wishing I’d jumped aboard (but probably not). And if you’re making money off Bitcoin, wonderful (although it’s down about 35% in the last week).
(0)
(0)
Sgt Wayne Wood
Interesting thing is bitcoin never pretended to be a commodity... it’s a medium of exchange, just like any other currency.
And considering all currency is fiat currency, it has just as much behind it as say... the dollar.
It’s worth what everyone believes it is.
And considering all currency is fiat currency, it has just as much behind it as say... the dollar.
It’s worth what everyone believes it is.
(0)
(0)
MAJ Don Bigger
Fiat currency is money that at least has been declared as legal tender by a government. Bitcoin has no such imprimatur. There is, at present, a world of difference between the U. S. dollar and Bitcoin. If you don’t think so, try paying your taxes in crypto currencies and see how far that gets you.
If we had an appropriate forum, we could discuss how the value of the dollar is based on taxation and coercion.
If we had an appropriate forum, we could discuss how the value of the dollar is based on taxation and coercion.
(0)
(0)
Sgt Wayne Wood
So... we’ve been printing dollars full-time fir the last (for the sake of argument) decade. So, when you create more of a commodity & create a glut in the market the value of that commodity drops.
When i was in Japan last the exchange rate was 320 yen to the dollar. I just checked (20171229@1514) and the exchange is ~113 yen to the dollar. Is this because the yen is more valuable? Maybe the dollar has lost HALF it’s value?
And we print more. How does that stabilize? The dollar will lose more. And we sell government bonds (full faith & credit) to prop up the dollar.
Eventually THIS bubble will pop too. And the dollar will no longer be the international medium of exchange... what replaces it?
I’m betting bitcoin or something similar.
See, bitcoin has a hard-coded cap on how much can be created. No glut...
When i was in Japan last the exchange rate was 320 yen to the dollar. I just checked (20171229@1514) and the exchange is ~113 yen to the dollar. Is this because the yen is more valuable? Maybe the dollar has lost HALF it’s value?
And we print more. How does that stabilize? The dollar will lose more. And we sell government bonds (full faith & credit) to prop up the dollar.
Eventually THIS bubble will pop too. And the dollar will no longer be the international medium of exchange... what replaces it?
I’m betting bitcoin or something similar.
See, bitcoin has a hard-coded cap on how much can be created. No glut...
(0)
(0)
Read This Next
Continue with Facebook 
Continue with Google