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Am I the only person who doesn't understand..


Wilbur

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38 minutes ago, Wilbur said:

What determines its value Maxx? It seems to have the credibility of a pyramid scheme.  Is Warren Buffett in on it? 

What determines the value of gold? Of really anything? It all works the same way. Someone wants some of it, someone is willing to sell some of it, and the price fluctuates accordingly. Add in a bit of growth to the pool, and then, as with all things money related, a good bit of shadiness.

Tom

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38 minutes ago, Wilbur said:

What determines its value Maxx? It seems to have the credibility of a pyramid scheme.  Is Warren Buffett in on it? 

It's a trade-able commodity.  It's worth comes from what people are willing to pay for it.

It's not much different from any other currency these days.  They're not backed by gold or anything tangible like that anymore.  They have value because the market believes in their value, mostly.

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It is a pyramid scheme that will only work when traditional commodities are depressed by a buoyant economy.  Bitcoin will die a rapid death or at least a severe devaluation when the next economic collapse occurs and money flows back to metals.  Like GG said, "Don't be the last guy in". 

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3 minutes ago, Wilbur said:

It is a pyramid scheme that will only work when traditional commodities are depressed by a buoyant economy.  Bitcoin will die a rapid death or at least a severe devaluation when the next economic collapse occurs and money flows back to metals.  Like GG said, "Don't be the last guy in". 

It actually is a pretty good sign that we're are treading into the dreaded "next economic collapse" window.  Quite a few bubble markets out there, and very few brakes or controls are ready to ease us into and out of this next one.

Tom

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Bitcoin and cryptocurrencies are great for illegal activities and operations that traditional banking doesn't want to touch.  The marijuana industry, even in legal states like CO, for instance.  Banks don't want to deal with pot companies because it isn't federally legal, so you have problems if you are in that field.  You gotta find a way somehow, so you find some way, any way.

Laundering bitcoins and trading in a shady field with other shady operations rather than in traceable currencies helps when you are selling stolen goods across the globe or with the mob, drug dealers, etc.

For this reason alone, I expect that there will be wild fluctuations at some point, but that they will be propped by the shadow economy for some time in some form.

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"Bitcoin surged past $17,000 Thursday as the frenzy surrounding the virtual currency escalated just days before it starts trading on major U.S. exchanges. Bitcoin has gained more than $5,000 in just the past two days.

At the same time, there are fresh concerns about the security of bitcoin and other virtual currencies after NiceHash, a company that mines bitcoins on behalf of customers, said it is investigating a breach that may have resulted in the theft of about $70 million worth of bitcoin."

 

Actually that's almost $5,000 in one day.  It was just over $12,000 a coin yesterday.

 

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