View Single Post
Old 27th November 2020, 10:16 PM   #804
Roger Ramjets
Philosopher
 
Roger Ramjets's Avatar
 
Join Date: Jun 2008
Posts: 5,279
Originally Posted by novaphile View Post
https://markets.businessinsider.com/...-11-1029844889
Quote:
The world's most popular cryptocurrency has tumbled as much as 5.9%, to $16,242.70, over the past 24 hours.
That's nothing for Bitcoin, a mere blip that could easily reverse itself tomorrow.

Some call it 'digital gold', but it isn't really a commodity - and with this volatility it's unlikely to see widespread application as a currency. So what's left? Speculation.

Bitcoin is ideal for making money out of nothing, if you are skilled or lucky enough to beat the other fools. They keep putting money into the pot thinking they will all be winners, but as Bitcoin doesn't create wealth it's a zero sum game. For every 'investor' who gains, others lose, and the price goes up and down according to what they collectively imagine it is worth. Bitcoin's volatility is a hindrance to its original purpose, but speculators love it. The only thing that would damp their enthusiasm would be if it became stable, and then they would have to move on to something else.

Some other cryptocurrencies are more useful and some are more volatile, but none have 'gone to the Moon' like Bitcoins has. Why is this so if they are 'technically' superior? Two reasons:-

1. less 'brand recognition' and lower loyalty. Bitcoin is the original, no others can compare!

2. They haven't got as much money in the pot. Even though you could make just as much trading in other 'coins', Bitcoin has the psychological edge because each one is 'worth' so much.

Apart from that it's got nothing, but psychology is everything in this market...
__________________
We don't want good, sound arguments. We want arguments that sound good.
Roger Ramjets is offline   Quote this post in a PM   Nominate this post for this month's language award Copy a direct link to this post Reply With Quote Back to Top