Quote:
Originally Posted by wbatas
You'll be good, Bob. But how crazy is it that bitcoin is at ~11k?
When all you guys were talking about it a few years ago, I get frustrated thinking how I could've had some for dirt cheap. C'est la vie.
Quote:
Originally Posted by Bob148
Oui. It's downright wacky imo.
Quote:
Originally Posted by chillrob
Dutch Tulip Bubble, IMO.
The price isn't as much of an issue as liquidity. Startup companies often face this when the stock has a high price but there's no trading volume. It's great to be a paper millionaire, but at the point where dumping your stock will affect the stock price, you have to price in a premium for cashing out.
Bitcoin is supposed to be a currency. Currency is supposed to be exchanged. If most of yhe people holding Bitcoin are investors, it's not going to work as a currency, and unless it's tied to something else (e.g., the USD to the stability of the US as a country), its price can't ve set by fundamentals (that is, Bitcoin can't be underpriced or overpriced).
I argue it's not going to work as a currency anyway because of a design flaw - capping the number of Bitcoins is designed to make for good press (because as the economy grows BTC/$ will naturally grow) but eventually runs into the problem of people wanting to exchange a loaf of bread for 0.000001 BTC. It was (and is) undoubtedly good for cryptocurrency in general by raising awareness, but it's unclear to me whether Bitcoin's historical legacy will be enough to offset a newly designed, more practical cryptocurrency.