Bitcoin Bubble Thoughts

I am not much into Bitcoin, but from what I've heard, it gained traction during the last few years. And there is a big hype around it: One Bitcoin is now worth 5.941 euro at the time of writing. That's 5 times more than since the beginning of this year. Crazy.

So, is this a bubble? I don't know. And like with any other currency or value, nobody knows for sure. But what I know is this: I am now offering Bitcoin payments for all my software for more than two years. And since then, not one single person ever payed using BitCoin. Not a single person.

So what does that mean? My guess would be that people buying Bitcoins are doing it mostly for investing and transferring money. Hoping that its value raises, and then selling it again. Or getting money out of a country or hiding it.

So I think the probability that Bitcoin is a bubble is high, and I'm not going to invest into that. But it would be nice if I would be wrong, of course, because the idea is nice.

five comments, already:

I would happily pay in bitcoin. I want bitcoin to be a currency, not a medium for speculation but there are some things that stop me.

1) It’s value is too volatile. If I spend my bitcoin now I could lose out on a huge gain in value, so I’m put off. I end up paying for things in bitcoin and then immediately replacing the amount, so it would have been simpler to have just paid in normal cash.
2) I have no means of earning bitcoin. My only mechanism is to buy some for national currency in advance, and that takes time and money and ties up some money, and these days requires all kinds of intrusive ID checks.
3) Transaction fees on bitcoin have got quite high now

I hope that the value will remain relatively stable for a while so that I can start using it as currency and not as a high risk investment that I’m afraid to spend.
John () - 03 11 17 - 12:30

I’m terrified of it. It’s a form of currency that’s not supported by governments. It doesn’t have guarantees like money in real bank accounts have. Only brutally intelligent people with expensive computers can produce amounts of it that are worth the effort.

Can my i5-2400 with an Nvidia 750 Ti produce profitable amounts of it, compared to the amount of electricity I would waste to produce it?

Niko probably already bought an 8700k and attached it to an Nvidia Titan Xp because he likes to feel tough and dangerous.
wild master - 05 11 17 - 12:58

Bitcoins and the IP-address-concealer called “Tor” might mostly only benefit criminals.
wild master - 05 11 17 - 13:06

John, you’re using Bitcoin wrong – it’s not a commodity to speculate on, it’s a currency. If the value goes up after you’ve spent it, who cares? You spent the value that you wanted to spend it for. You didn’t lose anything. You shouldn’t use Bitcoin if you suffer from FOMO.

Wildmaster, you too don’t understand Bitcoins. It’s like gold mining. There is no possibility for normal people to go prospecting and find it in rivers any more. You need to set up an expensive gold mine to dig deep enough. It’s an established currency, use it as such. It’s very naive to think you can mine Bitcoins any more. The gold rush is long over.
Bitcon - 09 11 17 - 12:39

Thanks for the added perspective. That’s a perfect description. :-)
wild master - 09 11 17 - 17:15

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