Bitcoins in general are really interesting as a sandboxed, time-accelerated microcosm of capitalism. You get to watch the entirely predictable boom/bust cycle, inevitable follies, manipulation and theft play out in years or even months instead of decades.
Yet you still see people going "but this time the bubble's legit guys!"
That's just glib. People use lots of bitcoins on silk road every day with no interest in speculation. Bitcoins are a real currency with value backed by the interest in silk road products.
If you can only look at bitcoins from the viewpoint of turning a quick buck, then you are not able to see a substantial part of the elephant.
"People use lots of bitcoins on silk road every day with no interest in speculation. Bitcoins are a real currency with value backed by the interest in silk road products."
The existence of some people who use bitcoins as they are intended does not change that goldbugs, speculators, and others are legitimately affecting the currency as capitalism not only allows for, but ENCOURAGES. This is not glib. This is reality.
> Bitcoins are a real currency with value backed by the interest in silk road products.
If a few big countries legalized drugs, perhaps that would make bitcoins less valuable/interesting, causing a bust? Probably not realistic in the short term, but interesting to consider.
Bitcoins are a real currency with value backed by the interest in silk road products.
Why isn't one bitcoin fixed to dollar or euro by some conversion factor? That would remove the question of the value of a bitcoin. There are lot of currencies that are permanently fixed to an other.
The novel thing is the theory that you can cryptographically make anonymous transactions unique. It doesn't imply being a separate currency. Or am I missing something?
Who would enforce the restriction that 1 BTC == 1 USD? The fact that bitcoin is decentralized means that the value of the currency pretty much has to float.
Yet you still see people going "but this time the bubble's legit guys!"