new Drifter
The reason Bitcoin will fail as a currency is that Fonestar is kind of right; were BTC to become remotely widely adopted, it would need to trade to 7 figures and beyond. The # of available bitcoins is too scarce. There's no way late adopters of Bitcoin are going to support such a valuation, as way too much value would have to accrue to the early adopters. Bitcoin will never become widely adopted; it is simply yet another penny stock that will fly as far as the speculators will carry it, until it is abandoned and the hangers-on are left with a mess of losses.
A penny stock? Man I thought the people on CNBC blog were dumb! Bitcoin is a currency and it is gaining massive adoption in case you weren't paying attention.
I assure you the wealth distribution of bitcoin is much better than any presently used currency. And it only stands to be more dispersed as the other currencies become more concentrated. As a wealthy bitcoin holder you spend your coins to increase their adoption and therefore their value. As a wealthy fiat holder you print more money for yourself and your circle of friends.
You could be correct, no one knows the future for sure. The hilarity here though is that the bank now all of the sudden sees fair value some 20% higher than the 900% run it just had.... That's like me predicting in February that January WAS cold.
So this isn't about offering market advice by the bank on BTC, it's about controlling its advance, because if it gets away on them, they lose.
BofA just released a personal desperation piece, that's all. And its feckin' hilarious.
Thursday, December 05, 2013
Zerohedge on Bitcoin
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Empty victory.