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/biz/ - Business & Finance

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4858804 No.4858804 [Reply] [Original]

I really don't understand why anyone would actually use bitcoin as a currency. It fluctuates so wildly that you could be spending 0.01 bitcoin today (~$100) and the price will fluctuate 10% in one day, meaning either you or the seller lost money in that transaction due to the fact that 24 hrs later the value of bitcoin increased or decreased 10%. In this case somebody only lost $10 and the lucky guy got an extra $10, but for larger transactions the change in value amplifies significantly. The only way people are going to use bitcoin for anything other than hoarding is when the price stabilizes. Right now its just an investment and nothing more.

>> No.4858805

>>4858804
Even if it didn't fluctuate wildly, it's still retarded. We have credit cards, so why bother having bitcoins. As a means of electronic payments, it's horribly flawed

>> No.4858806

It's true, which is why the first thing you'll hear about btc from a normie is the price, usually.

>>4858805
Why bother with cars when we have horse carriages already?
>it's horribly flawed
Explain.

>> No.4858807

>>4858804
>As a means of electronic payments, it's horribly flawed
That's the only aspect where it isn't flawed.

>> No.4858808

>>4858805
I wanted to get beyond the regular arguments of

>it doesn't have real value
>its a bubble
>there's no point because credit cards

>>4858807
You're quoting the wrong guy. I actually agree with you

>> No.4858809

>>4858807
It is flawed
>no anonmynity
>transactions take days to confirm
>transactions cost $50 each
It's a fucking dinosaur shitcoin that needs to die and be replaced by something actually useable.

>> No.4858810

>>4858806
That's stupid reasoning. A car is an improvement on the horse carriage. A plastic card that performs electronic bank transfers and a plastic card that performs block chain coin transfers are virtually perfect substitutes. In the best case scenario, bitcoin and the current means of electronic payments are perfectly equally valid, but because credit cards came first, the cost of changing the system would be more than the benefits derived from the new system (ie 0 benefits)

>> No.4858811

1 bitcoin = 1 bitcoin
why you compare to shit tier usd

>> No.4858812

>>4858804
Bitcoin is a stock, not a currency. Maybe it will be a currency in the future, but thats unlikely, seeing how high the electricity bill is. Currently bitcoin miners spend more electricity than countries like Belgium, Austria or Denmark. This will only go up.

Its a get rich quick scheme in which all investors think they will be the ones to trick others and become millionaires, and of course most will end up holding dead stock.
The biggest victims will be the enthusiasts and anarchists who think this will be the new currency of the planet or some other foolish idealistic thing.

>> No.4858813

>>4858810
I believe he is referring to the currency itself, not the mode by which it is used, eg "crypto-curremcy is the future".

>> No.4858814

>>4858811
1 bitcoin = 0.001 pizza.
Oh wait, its now 1 bitcoin = 1500 pizzas.
Oh wait, next year it will be 1 bitcoin = 5000 pizzas.

Nice "currency". Totally not a speculative stock.

>> No.4858815

>>4858811
doesn't matter what you compare it to, it still has a value and its rate of change is unwieldy. Currency has to be at least remotely stable to be useful.

>> No.4858816

>>4858804
More people use it to hedge against it's inflation or do margin trading because it's more volatile than anything else. BTC, at least in it's current form, will never be used as an actual transactional currency for goods and services but it will be around for a long time regardless.

>> No.4858817

>>4858814
https://bitcointalk.org/index.php?topic=137.0

I bet he's beating himself up now

>> No.4858818

>>4858817
He paid $40 worth of funny money for 2 large pizzas, why would he be mad?

>> No.4858819

>>4858804
And that's why you'll stay poor forever, anon :^)

>> No.4858820

>>4858817
and you could by bitcoin during that aswell, at least he got pizza

>> No.4858821

>>4858810
Crypto changes some fundamentals on how we are able to transact. It's borderless and open for anyone to use and it doesn't require a middleman to clear your every move.
In case cryptocurrencies become widely adopted, going through a bank to do transactions will look clunky at best.

>> No.4858822

>>4858804

So buy when it's low and sell/spend when the value is high.

All currencies fluctuate. Speculation and arbitrage are how currencies stabilize, because their net effect is to disseminate information and introduce negative feedback into the system.

There are problems with Bitcoin but this isn't one of them.

>> No.4858823

>>4858818
Because if something you have is worth 2 pizzas today, but millions of pizzas in only a few years, why would you ever trade it if the value changes in such a short amount of time

>>4858822
Its the rate and magnitude of those changes that's the problem.

>>4858821
That's besides the point. Lets say everything else about bitcoin except the volatility in value was perfect. That's enough to make it not useful as currency.

>>4858819
I plan on it ;^)

>> No.4858824
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4858824

>>4858823
>Because if something you have is worth 2 pizzas today, but millions of pizzas in only a few years, why would you ever trade it if the value changes in such a short amount of time

Nobody knew it would be worth that much, or anything at all.
And maybe it isn't worth anything at all. In the last 10 minutes bitcoin price dropped from 20k to 16k. One person trying to sell and get actual real life money for his bits caused a HUGE drop literally just now.

>> No.4858825

>>4858804
Its meme money based on destroying gpus and wasting electricity. Ive always disliked it. Only use i see for it is for money laundering and making illegal purchases

>> No.4858826

>>4858804
regardless of what you say. 2 years ago i had £50 in btc. now i have £1100

>> No.4858827
File: 47 KB, 470x768, hmmm.jpg [View same] [iqdb] [saucenao] [google]
4858827

>>4858824
Lets compare the bitcoin value right now graph to an economy schoolbook graph of speculation market stocks.

>> No.4858828

King of China

https://www.youtube.com/watch?v=K8kua5B5K3I

>> No.4858829

>>4858804
>I really don't understand why anyone would actually use bitcoin as a currency
How else would you buy drugs anonymously? Duh

>>4858805
See above.

>> No.4858830

>>4858824
True, there was no way for him to know. But as of the past year or so, looking at that trend, would you really want to spend it rather than hoard it? This is exactly my point. Its not the value that matters but the rapid change in value which discourages spending, and makes it pointless as a currency.

>>4858826
Case and point. I'm guessing you don't plan on spending it do you?

>>4858829
Correction: as a currency for legal purchases

After-all, wasn't that the initial intention

>> No.4858831

Let the Chinese and Venezuelans buy it all up, who cares. It's a poor means of exchange and is very illiquid as an asset for the time being.

I see a future in Blockchain. People who unironically mine using free Tesla charger stations are fucking retarded.

>> No.4858832

>>4858805
Credit cards come from banks and banks are evidently not needed where we're headed. Plus, it doesn't track you like a credit card.

>> No.4858833

>>4858804
They wouldn't. Valve recently dropped Bitcoin as a form of payment because the transaction cost hit $20.

BTC is hitting record highs because it's reaching peak mainstream appeal, once the investment from the sheep slows down, the whales are going to cash out and the bubble will pop - and it's not a question of if, it's when.

>> No.4858834

>>4858831
>People who unironically mine using free Tesla charger stations are fucking retarded.

Kek. Did he ever actually go through with that? I thought it was just a proof of concept.

>> No.4858835

>>4858812
Correct as far as BTC goes. There is some value and real world use for a couple other cryptocurrencies.

>> No.4858836

>>4858835
There is real world application of the Byzantine general problem protocols they developed, but I doubt we will keep much else from this wasteful experiment.

>> No.4858837

>>4858805
>>4858829
>>4858832
What? No, spending Bitcoin is not anonymous. The appeal of Bitcoin and other crypto currency is decentralized currency, so no single entity can decide it's distribution, and not needing to put personal information that can be used to impersonate you alongside every single transaction you put on the wire.

>> No.4858838

>>4858834
I've only read about it, seems somewhat plausible no matter the veracity.

The cost of transaction of a single bitcoin keeps going on up, hence the need to make a reasonable profit on the side of the miner. Bitcoin already uses as much electricity a year as all of Morocco and transactions costs are much higher than that credit card transactions of Visa and Mastercard.

It's a gravy train with no end in sight.

>> No.4858839

>>4858804
>I really don't understand why anyone would actually use bitcoin as a currency
Uh, yea, that's why no one does

>> No.4858840

>>4858836
I thought private transactions would be an important technology for people on /g/, but I guess they're more worried about others making money off of their browsing habits than managing finances - and why would they? NEETs don't have any money to manage.

>> No.4858841

>>4858840
Private transactions of speculation stock is of no interest to any non-gambler.

>> No.4858842

>>4858838
Sounds like a good way to bring about the end of free charging.

>> No.4858843

>>4858841
BTC doesn't have private transactions. If you don't see the usefulness of private transactions, you'll forever be a poor brainlet. I await your NEET/suicide thread on /r9k/

>> No.4858844

>>4858804
It's a new currency that's starting to get adopted by governments. You should do some more reading on the subject and formulate your own opinion on whether its a wise investment.

Pro tip, don't ask 4chan for actual advice

>> No.4858845

>>4858827
>implying it's mean/normal value will be 15k
nope.

>> No.4858846

>>4858844
Where was the question in my post. Did you even bother reading it? Do you know what this thread is about? Are you aware I'm not against bitcoin but pointing out its shortcoming?

I have read up on it and formulated an opinion. How about you take the time to read it.

>> No.4858847

>>4858804
volatility is inversely correlated to maturity. once bitcoin hits $100,000 USD it will be less volatile and more liquid

>> No.4858848

Bitcoins are just the first attempt at this. I expect a more refined cryptocurrency like litecoins to take over

>> No.4858849

>>4858847
True, but how long it will take to becomes stable is anybody's guess considering its never been done before.

As a side note I hope it doesn't get that high. Nobody wants to have to express their money in scientific notation.

>> No.4858850

>>4858849
There are units of measurements for fractions of btc already in use.

>> No.4858851

>>4858819
>>4858823
>uding the smiley with the carat nose

>> No.4858852

It's an investment not a currency, why would you spend money that could be worth twice as much in the near future due to some weird reasons?

>> No.4858853

>>4858852
>bitcoin worth a gazillion dollars
>try to withdraw a few to make back your money
>bitcoin now worth $5

>> No.4858854

>>4858852
That's called speculation.

>> No.4858855

>>4858852
An investment into what though? When you buy a stock, you're saying that you believe the company has value. If bitcoin can't be used as a currency, then what value is there? It can't be valuable for its own sake.

>> No.4858856

>>4858855

It got so much publicity on TV and news, that normies see that they can make money with it, they don't care about the technology behind it or it's possibilities. It's quick money as simple as that.

>> No.4858857

>>4858804
Daily reminder that if you "invest" in Bitcoin you are investing in drug and human trafficking

>> No.4858858

>>4858804
>Right now its just an investment and nothing more.
Good Lord you found that alone?

>> No.4858859

>wanted to buy when it was nothing
>didn't buy it in the end

ayy lmao fuck me

>> No.4858860

they dont use it
how many people actually buy stuff with it
its an investment for get rich quick retards
the transaction fees are massive and the fluctuations are retarded, the more people it gets the less people want to support it

>> No.4858861

Please note - banking Jews are full force anti bitcoin this week.

>> No.4858862

>>63733217
Sent ;)

>> No.4858863

>>4858804
it's young
just like the fake-worth currencies we use in modern countries. It has to start somewhere.

>> No.4858864

>>4858809
like monero?

>> No.4858865

>>4858850
Yeah, that's because decimals already exist. But we need to make up new terminology to use BTC and it isn't going to be as simple as 0.001 BTC. It can be 0.00164 BTC etc.

>> No.4859544
File: 77 KB, 435x435, merchanthandsenhance.png [View same] [iqdb] [saucenao] [google]
4859544

>>4858805
> We have credit cards, so why bother having bitcoins.

>> No.4859601

>>4858804

Steam stopped using... :(