Originally Posted by novaphile
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...