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Is Bitcoin defying Economics?

Discussion in 'The Economy' started by jeromanomic, 14th Apr, 2015.

  1. jeromanomic

    jeromanomic Active Member

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  2. larrylarry

    larrylarry Member

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  3. Simon Hampel

    Simon Hampel Co-founder Staff Member

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  4. larrylarry

    larrylarry Member

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    Hey Simon, I'm still learning but the idea of crypto excites me now. i intend to look into buying an amount that i am willing to lose this week, perhaps...looking at alternates like eth, dash and ripple. what about you?
     
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  5. Simon Hampel

    Simon Hampel Co-founder Staff Member

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    No - I fundamentally see holding currency of any kind (traditional or crypto) as speculation - since there is nothing intrinsic which determines the value, it's purely based on sentiment.

    If I had play money to spare and was bored, I might start looking at it from a trading point of view - but I have neither the time nor the money to dedicate to it right now.
     
  6. Big Max

    Big Max New Member

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    As a huge follower of Buffet I agree. But having said that I have bought a bunch just in case. Whilst they cannot be valued, as they produce no yield they could also go much much higher. And there are certainly dynamics in place for a massive and sustained bubble in bit coins. Perhaps even more so than gold which is also a sustained bubble. With bit coins there is a mathematical and absolute finite number that can exist. Zero storage cost. Zero tansfer cost. Infinite portability. And still very early in terms of any mainstream adoption. So I bought a bunch as a hedge against the event that we do get to 100k or 1m per coin. And also as a possible store of value if we really do get some kind of massive banking collapse or more aggressive wealth grabbing from the government or the need to escape from a country fast with funds accessible anywhere in the world that you escape to.
     
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