Quote:
Originally Posted by callipygian
That there's an amazing unresolved arbitrage opportunity in various national markets suggests that at least a significant portion of the trading volume is speculative. As a matter of fact, aside from ransomware payments, what percentage of the bitcoin talk is about how high bitcoin will go versus how often bitcoin is used?
Bitcoin's deflationary design is good in the sense that it will generate a lot of publicity as the price per bitcoin rises naturally; it may be even good for cryptocurrency in general in terms of getting people introduced to the idea of cryptocurrency. But it's also the root cause of unnecessary volatility in the price, and ultimately, unless the trading volume growth exceeds the rate of growth, it will end up as a collector's item - every owner will be a paper millionaire but unable to cash out.
Agree w first sentence; of course it's highly speculative. The 2nd sentence is odd (ransomware payment is way down the line of what BTC community is concerned with/talks about, though maybe there was a headline or two on front page of my web browser) and while I know it's prob rhetorical, searching for this "percentage" or ratio doesn't seem to indicate much about value, even if we knew the answer (which we never could obv).
Agree w first sentence of next paragraph. Agree w first half of second sentence (though I'd delete 'unnecessary', what does that even mean in this context?). The collector's item metaphor, paper millionaires unable to cash out, sounds kinda cute, though I've seen little (maybe zero) evidence to support such a simplistic scenario.
Not recognizing that BTC's further push into the mainstream (the correlation between that and trading volume) and the serious brainpower of those collaborating on ensuring BTC will thrive might be ignoring some key factors. There's also this tech/blockchain stuff that I don't really understand, but its also supposed to be important and useful. I'm from the "need it to play poker, what's this BTC all about?" camp and I've mostly been doing it wrong til a couple months ago as I previously noted, so I'm relying on indicators gleaned from those who are way smarter than I am. Cuz even though I know some things about some things, it's always been wicked hard for me to know everything about everything.
One thing I can say for certain about BTC? The nosebleed HU LHE match was/is on swcpoker.eu and they've temporarily moved down in stakes to approx. 3/600 usd.