SIGforum.com Main Page The Lounge Bitcoin: The World’s Most Dramatic Bubble Ever? **** New story p. 6 ****
Main Page The Lounge Bitcoin: The World’s Most Dramatic Bubble Ever? **** New story p. 6 ****Go | New | Find | Notify | Tools | Reply | |
| I believe in the principle of Due Process  |
WSJ Investment manias throughout the centuries have ranged from tulips to tech stocks to housing; is bitcoin different? First it was tulips. More recently it was tech stocks and then the housing market. Lately, it’s all about bitcoin. All four share a common denominator: They suffered through financial bubbles, or bubble-like conditions. The first three ended badly. The jury is still out on what’s in store for bitcoin. Yet the more the digital currency surges, the louder the debate grows around financial bubbles, which appear to be getting bigger and riskier than ever before. Blowing Bubbles [Charts at link] Bubbles are investment manias, where prices jump so high that no fundamental analysis can rightly justify the surge. The price gains, usually sharp and quick, are typically followed by busts that tend to be just as severe. The first known financial bubble is thought to have taken place in the 17th century, when Dutch tulip prices had a spectacular rise and fall. Recently, investment manias include the dot-com bubble of the late 1990s and the housing boom and bust in the 2000s, which paved the way for the 2008 global financial crisis. Now, the debate centers on bitcoin. The digital currency topped $7,000 this month for the first time, a gain of more than 600% so far this year. Three years ago, bitcoin was at $300. Six years ago, it was at $2. In the past 15 months, bitcoin has surged almost eight times as much as the tech-heavy Nasdaq Co mposite did in the final 15 months of the dot-com bubble. Analysts at Bank of America Merrill Lynch recently warned investors that financial bubbles are getting “more bubbly” than ever before. Opinions vary on bitcoin’s sharp price moves. Bitcoin is the “very definition of a bubble,” Credit Suisse Group AG Chief Executive Tidjane Thiam said at a conference earlier this month. J.P. Morgan Chase & Co. Chief Executive Jamie Dimon called bitcoin a “fraud” that will “blow up.” Goldman Sachs Group Inc. Chief Executive Lloyd Blankfein told CNBC that “maybe bitcoin is kind of a bubble.” Evidence is mounting that the finance industry is warming to bitcoin. Goldman said last month it was considering setting up a trading operation for digital currencies. And exchange operator CME Group Inc. announced plans to begin offering a bitcoin futures contract. That would give Wall Street traders an avenue to bet on bitcoin prices and hedge against volatility, a crucial step in bitcoin’s move into institutional and retail markets. Still, if past bubbles are any indication, bitcoin’s spectacular rise won’t last forever. And when it ends, look out below. LinkThis message has been edited. Last edited by: JALLEN, Luckily, I have enough willpower to control the driving ambition that rages within me. When you had the votes, we did things your way. Now, we have the votes and you will be doing things our way. This lesson in political reality from Lyndon B. Johnson "Some things are apparent. Where government moves in, community retreats, civil society disintegrates and our ability to control our own destiny atrophies. The result is: families under siege; war in the streets; unapologetic expropriation of property; the precipitous decline of the rule of law; the rapid rise of corruption; the loss of civility and the triumph of deceit. The result is a debased, debauched culture which finds moral depravity entertaining and virtue contemptible." - Justice Janice Rogers Brown | ||
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| Knows too little about too much  |
WTF is the value of a Bitcoin? Where can you spend them? I admit, I do not understand this concept at all. RMD TL Davis: “The Second Amendment is special, not because it protects guns, but because its violation signals a government with the intention to oppress its people…” Remember: After the first one, the rest are free. | |||
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| Ignored facts still exist |
forget Bitcoin, Ethereum is where it's at   ---------------------- Let's Go Brandon! | |||
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| Member |
$300m in cryptocurrency' accidentally lost forever due to bug | |||
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| stupid beyond all belief  |
1 bitcoin = $6858 USD There are many places that take bitcoin. List of majors: https://99bitcoins.com/who-acc...tores-take-bitcoins/ There are bitcoin exchange copmanies as well. What man is a man that does not make the world better. -Balian of Ibelin Only boring people get bored. - Ruth Burke | |||
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| Big Stack |
At some point governments (including but not limited to the US) are going to drop the hammer on this. The issuance of currency is a direct matter of national sovereignty. Also, as we've seen with Bitcoin, a nationless, unregulated but accepted currency is a huge vehicle of criminal transactions. I know the US government is already investigating this. At some point they're going to have to do something. On the flip side, if they can tame the technolgy, I could see something like this being adopted by governments (US and others) as a replacement for paper currency. | |||
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| I believe in the principle of Due Process |
Do they give change? Luckily, I have enough willpower to control the driving ambition that rages within me. When you had the votes, we did things your way. Now, we have the votes and you will be doing things our way. This lesson in political reality from Lyndon B. Johnson "Some things are apparent. Where government moves in, community retreats, civil society disintegrates and our ability to control our own destiny atrophies. The result is: families under siege; war in the streets; unapologetic expropriation of property; the precipitous decline of the rule of law; the rapid rise of corruption; the loss of civility and the triumph of deceit. The result is a debased, debauched culture which finds moral depravity entertaining and virtue contemptible." - Justice Janice Rogers Brown | |||
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| Free radical scavenger  |
Here is a URL that will allow non-subscribers to read the article complete with video and graphs: https://www.wsj.com/articles/b...=article_email_share (To do this, email article to another email account. Then copy the URL here. WSJ does not really care about selected sharing and free advertisement, just don't "republish" the WSJ.) | |||
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eh-TEE-oh-clez |
That's the whole point of Bitcoin. It's decentralized and anonymous. The government might be able to attack the legit companies that run exchanges or digital banks (called wallets), but the core of the system is distributed amongst people and companies all over the world. | |||
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| eh-TEE-oh-clez |
You spend Bitcoin in fractions if you wish. I bought something like 0.64568953214584 Bitcoin the other day. | |||
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| Big Stack |
I bet it's traffic is detectable. The government could make the telecoms (cell companies, ISP, etc.) sniff it and filter it out. They could also make laws against converting it to dollars, and merchants taking it. Yes, those bans would be porous, but they might put enough pressure on transactions that it can't be a really viable substitute.
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Only the strong survive |
Just another Pay Pal account. But what happens when the electricity is lost during a storm or other disaster? Here is one started by Frank Holmes...HIVE.V 41 | |||
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Fire begets Fire |
Jordan “the wolf of Wall Street” Belfort says it’s a classic pump and dump scheme. He ought to know ... "Pacifism is a shifty doctrine under which a man accepts the benefits of the social group without being willing to pay - and claims a halo for his dishonesty." ~Robert A. Heinlein | |||
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The guy behind the guy |
I question the intelligence of anyone who thinks otherwise. There's no basis for its valuation other than speculation, and it's in an unregulated and openly manipulated market. People who don't understand what that means just see the headlines pumping it and the insane growth. Get-rich-quick mode takes over and they invest. When the dump comes, the pumpers will legally walk away with all the money. | |||
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| I believe in the principle of Due Process |
So are what we think of as ordinary currencies, now that they float. These are so large now that manipulation, or a corner, etc. is awfully dificult, and fraught with risks. Luckily, I have enough willpower to control the driving ambition that rages within me. When you had the votes, we did things your way. Now, we have the votes and you will be doing things our way. This lesson in political reality from Lyndon B. Johnson "Some things are apparent. Where government moves in, community retreats, civil society disintegrates and our ability to control our own destiny atrophies. The result is: families under siege; war in the streets; unapologetic expropriation of property; the precipitous decline of the rule of law; the rapid rise of corruption; the loss of civility and the triumph of deceit. The result is a debased, debauched culture which finds moral depravity entertaining and virtue contemptible." - Justice Janice Rogers Brown | |||
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| Big Stack |
I would never invest in a currency. I'd invest in productive assets. Currencies themselves are a means of transaction that should only be held for a short time or in small quantities.
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Tinker Sailor Soldier Pie |
Screw. That. Noise. ~Alan Acta Non Verba NRA Life Member (Patron) God, Family, Guns, Country Men will fight and die to protect women... because women protect everything else. ~Andrew Klavan "Once there was only dark. If you ask me, light is winning." ~Rust Cohle | |||
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| The guy behind the guy |
I understand what you're saying, but the stability and longevity of the governments behind certain currencies provides the stability behind their value. I don't view Bitcoin as a currency. It's volatility actually prevents it from being a currency Imo. I think of it more like a commodity at this point. It's just speculation to me. If it ever settles down and gains wide acceptance, I think it could be a good currency for the globe actually. But before that happens, it will get regulated and controlled and not resemble its current form. | |||
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| I believe in the principle of Due Process |
In these markets there are two basic participants in transactions, hedgers and speculators. Hedgers are those who deal in the actual product and are trying to off load risk of price swings. Speculators are those who take the risk of price swings in hopes of profiting. Big banks, for example. I buy a bottle of Hennessey Cognac for €760 on my credit card. Hennessey wants Euro’s, my credit card is in dollars. The banks net these out every day, maybe continuously throughout the day now. There is plenty of liquidity there, not much action for speculative interest. There is some price risk, but very slight. Currency has become a very efficient market, lots of very large, very sophisticated, extremely well informed participants continuously in the market. The market is extremely large, much larger than when Soros broke the Bank of England decades ago. Investing in dollars, essentially what you do with savings accounts or CDs, has been unproductive for several decades, as the dollar gradually sinks. Luckily, I have enough willpower to control the driving ambition that rages within me. When you had the votes, we did things your way. Now, we have the votes and you will be doing things our way. This lesson in political reality from Lyndon B. Johnson "Some things are apparent. Where government moves in, community retreats, civil society disintegrates and our ability to control our own destiny atrophies. The result is: families under siege; war in the streets; unapologetic expropriation of property; the precipitous decline of the rule of law; the rapid rise of corruption; the loss of civility and the triumph of deceit. The result is a debased, debauched culture which finds moral depravity entertaining and virtue contemptible." - Justice Janice Rogers Brown | |||
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Glorious SPAM! |
Where do I store my bitcoins? In the gun safe or the spare hard drive next to the kitchen sink? When William Devane starts hawking these things I'll know ther're real | |||
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SIGforum.com Main Page The Lounge Bitcoin: The World’s Most Dramatic Bubble Ever? **** New story p. 6 ****
Main Page The Lounge Bitcoin: The World’s Most Dramatic Bubble Ever? **** New story p. 6 ****© SIGforum 2024