Bitcoin - Part 2

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Roger Ramjets said:
Why we might need to burst the Bitcoin bubble


Don't worry Jay, we won't need to burst the Bitcoin bubble - it's already doing that all by itself. A few 'whales' (less than 1% of all wallets) hold 55%, and 42% of them have been HODLing since the peak. Eventually they will realize that the only sensible thing to do is pull out - and when they do...
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Satoshi Nakamoto got behind the Bitcoin with the intention to fight central authority's control over money, which had led to the financial crisis of 2008.
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Herein lies the fundamental flaw with the bitcoin concept. Central bank authority didn’t cause the 2008 crisis the inherent instability of a poorly regulated market caused it. Central bank authority stepped into stabilize the situation and order was gradually restored. Mistaking both cause and resolution to the crisis, bitcoin creator(s) created a system that was impossible to regulate and had no central authority that could step in to deal a crisis. It was from the beginning a recipe for disaster.

With that said I have changed tune slightly. I do not think bitcoin will drop to zero or disappear. It’s actually found a way to create value for at least some people which gives it inherent value in it’s own right. How large of a niche it fills is a different question. This may be impossible to truly evaluate since it’s niche is in dark or at least grey money where people, usually criminals, want to transfer or store money somewhat untraceably. Without knowing how big this demand is, it's impossible to assess where the price will go, so I still wouldn't touch it.
 
lomiller said:
Bitcoin appeals to a similar group of people, my guess is many were wiped out in similar leveraging schemes. Others could have been wiped out in the various compromises where bitcoin exchanges were people’s wallets were plundered of all their bitcoin.
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If guesses were facts . . . . . . . ..
 
lomiller said:
Herein lies the fundamental flaw with the bitcoin concept. Central bank authority didn’t cause the 2008 crisis the inherent instability of a poorly regulated market caused it. Central bank authority stepped into stabilize the situation and order was gradually restored. Mistaking both cause and resolution to the crisis, bitcoin creator(s) created a system that was impossible to regulate and had no central authority that could step in to deal a crisis. It was from the beginning a recipe for disaster.

With that said I have changed tune slightly. I do not think bitcoin will drop to zero or disappear. It’s actually found a way to create value for at least some people which gives it inherent value in it’s own right. How large of a niche it fills is a different question. This may be impossible to truly evaluate since it’s niche is in dark or at least grey money where people, usually criminals, want to transfer or store money somewhat untraceably. Without knowing how big this demand is, it's impossible to assess where the price will go, so I still wouldn't touch it.
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I've noticed that the Central Bank-haters have something in common with anti-vaxxers; the never talk about what things were like before Central banks and vaccines existed...
 
Severe bitcoin bugs 'inevitable'

In Wake of 'Major Failure,' Bitcoin Code Review Comes Under Scrutiny
"Shock" is perhaps the word that best describes the mood ever since one of bitcoin's most severe bugs was discovered and patched last week.

As the community reels over the vulnerability that was hiding in the code for two years, and that could have been exploited to print more bitcoins than the 21 million is hard-coded to be produced, developers are wondering: Is there a way to prevent such a severe bug from being added to the code again?

Days after the discover, there hasn't been any formal proposals...

"If all of Bitcoin Core's policies and practices are kept the same, then it's inevitable that a similar failure will eventually happen again, and we might not be so lucky with how it turns out that time."
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Inevitable? Duh! You don't have to be a cryptography expert to know that all complex software has bugs, and without constant review to find and fix them they will inevitably be exploited.

But unlike fiat currency there is no central authority tasked with maintaining the bitcoin core code, just a 'community' of anonymous developers and users. So who is responsible for reviewing it?

"The entire project is open, there is no 'membership' and users have just as much of a responsibility to audit code as developers actively contributing," pseudonymous bitcoin enthusiast Shinobimonkey told CoinDesk.
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That's right. If you are a bitcoin user then it's your responsibility to audit the code. Not an expert programmer? Don't have the time? Then expect more severe bugs - and they will be your fault!
 
Hedgefund manager Ray Dalio predicts a recession in 2020. Regardless when the next bust cycle starts, a recession would have investors run to a safe haven.
Traditionally this has been gold, but could BTC get some of that cash?

I wouldn't put my money in it, but there are still people who see BTC as digital gold. A recession might give Bitcoin a bump.

All the alt-coins seem to have lost their shine so badly, I don't think they'll benefit from a downturn.
 
Samson said:
bitcoin, oil
One of above is useful the other useless.
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So bitcoin isn't fattening, flammable, poisonous, bulky, shiny, . . . (and you can't wipe your arse with it). That doesn't prove that it is useless.

If you really want to reset the debate back to the beginning then you need to list the posts dating back to 2011 which prove your assertion.
 
So, we now have a major market correction.

And BTC just tanked more than 5%.

I guess that answers my question if it is a refuge in a crisis.

Gold went up a bit to levels seen last week.
 
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