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How To Use Bitcoin – The Most Important Creation In The History Of Man

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Wildy said:
Which would be good if Bitcoin didn't function on minute to minute price variations.

Interestingly it seems that there's about US$100 difference between the exchanges Bitstamp and BTCChina. I wonder if there aren't people who are currently hopping exchanges taking advantage of the price differences?
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the china ARB trade has been popular with the more sophisticated players recently http://www.reddit.com/r/Bitcoin/comments/1qzux4/biggest_btc_arbitrage_opportunity_in_btc_history/
 
AdMan said:
Nonsense. You apparently don't understand volatility.
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No, you don't.

If your plan is to buy bitcoins and hold onto them for a long time then these minute to minutes variations are irrelevant. It's the long term trend that matters.

If you only want to hold bitcoins for a short while the the opposite is the case.
 
AdMan said:
Of course there are. It's called arbitrage, and it happens in virtually any market with price differences like these. Bitcoin is no exception.
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I see, thanks.

psionl0 said:
No, you don't.

If your plan is to buy bitcoins and hold onto them for a long time then these minute to minutes variations are irrelevant. It's the long term trend that matters.

If you only want to hold bitcoins for a short while the the opposite is the case.
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Which is perfectly for say, stock, but do you really think that this is a good thing for something claiming to be a currency?
 
psionl0 said:
No, you don't.

If your plan is to buy bitcoins and hold onto them for a long time then these minute to minutes variations are irrelevant. It's the long term trend that matters.

If you only want to hold bitcoins for a short while the the opposite is the case.
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Oh, so you're a long-term holder of Bitcoins?

On what exactly are you basing your assumption that Bitcoins will be more valuable in the future than they are now?

I am a long-term holder of various stocks, and my expectations on their future worth is based on the expected growth of their underlying earnings and their dividend rates.

These growth rates can be estimated. The rates seem realistic based on how the market has performed and how it's expected to.

Can you accurately estimate the rate of increase for Bitcoin? Based on what? Just a guess that they'll keep going up?

What fundamental reasons are you using to invest in Bitcoins?
 
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Wildy said:
Which is perfectly for say, stock, but do you really think that this is a good thing for something claiming to be a currency?
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Like I said before, there are no "ortas" about bitcoin. It's all about how the market treats it.

Right now, the best use of bitcoin seems to be as a long term investment. Circumstances could change rapidly though and its ease of transferability might become a bigger consideration.
 
psionl0 said:
If the long term bitcoin chart means nothing to you then I can't explain it to you.
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What long term chart? Are you claiming there's a chart predicting Bitcoin's future value? If so, there might be a million waiting for you.
 
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ideogram said:
But I will need to pay my rent at the end of the month.

What should I buy with bitcoin, if I think the short term price hasn't bottomed out yet?
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What are you asking me for? Mhaze is the bitcoin spending specialist. I have already given my opinion on the best current use of bitcoin.
 
psionl0 said:
Since you have absolutely zero knowledge of the long term price history of bitcoin (in spite of me showing you the charts with trend lines before) I must be basing it on nothing. :rolleyes:
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Yeah, obviously.

Unless you believe past performance can accurately predict future behavior.

Again, if you think so, you should go for the million.
 
psionl0 said:
What are you asking me for? Mhaze is the bitcoin spending specialist. I have already given my opinion on the best current use of bitcoin.
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Okay. I was under the impression you and mhaze agreed. Now it appears you believe bitcoin is best used as an investment, while mhaze believes bitcoin should be used for spending. These are not the same thing, do you agree?
 
AdMan said:
Yeah, obviously.

Unless you believe past performance can accurately predict future behavior.

Again, if you think so, you should go for the million.
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The difference is that I look at the last 2 years of bitcoin prices and conclude that in 12 months time, the odds favour a higher rather than lower price for bitcoin. I wouldn't get any more specific than that since I don't have the data to do so and I would have to add too many caveats to make it meaningful.

OTOH, you take a single glance at http://preev.com and pronounce in a voice that will brook no dissent that no newcomer will ever make money buying bitcoins again.
 
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