Crypto currency bubble?

Bobbin said:
Not all :) There are cryptos among the mix that are vastly different in philosophy/purpose, implementation and use case. Some scale better too. The 3rd largest crypto ITO market cap at the moment for example is all "pre-mined" and in existence already (Ripple XRP).

IMO BitCoin itself is a waste of time now, but I may eat my words.
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I don't think you know what mining is. Its validating a transaction. So if you purchase something or exchange a crypto coin, a new entry is entered onto the block chain. The mining community then "validates" that transaction, and is paid for doing so with more coins. That is the Ponzi part of it. The guys doing all the work are being paid with essentially printed money. It will work while there are increasing numbers of new entrants. Once the miners can't find people to offload onto they will stop mining and it will tumble down.

Just like the derivatives that created the housing bubble expected house prices to only ever rise crypto currencies rely on an infinite supply of new fools to keep buying in. There is no equilibrium possible with any crypto currency due to the way miners are paid.
 
Cius said:
I don't think you know what mining is. Its validating a transaction. So if you purchase something or exchange a crypto coin, a new entry is entered onto the block chain. The mining community then "validates" that transaction, and is paid for doing so with more coins. That is the Ponzi part of it. The guys doing all the work are being paid with essentially printed money. It will work while there are increasing numbers of new entrants. Once the miners can't find people to offload onto they will stop mining and it will tumble down.

Just like the derivatives that created the housing bubble expected house prices to only ever rise crypto currencies rely on an infinite supply of new fools to keep buying in. There is no equilibrium possible with any crypto currency due to the way miners are paid.
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Don`t they make it deliberately hard to mine/validate? to control the rate of new coins entering the market?
Seems to me like just a colossal waste of energy and resources.

I`m also interested in the effects of a hypothetical bubble burst, What effect that would have to the real world economy.
 
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Cius said:
I don't think you know what mining is. Its validating a transaction. So if you purchase something or exchange a crypto coin, a new entry is entered onto the block chain. The mining community then "validates" that transaction, and is paid for doing so with more coins. That is the Ponzi part of it. The guys doing all the work are being paid with essentially printed money. It will work while there are increasing numbers of new entrants. Once the miners can't find people to offload onto they will stop mining and it will tumble down.

Just like the derivatives that created the housing bubble expected house prices to only ever rise crypto currencies rely on an infinite supply of new fools to keep buying in. There is no equilibrium possible with any crypto currency due to the way miners are paid.
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Transaction fees are also deducted from the sender, and that will eventually be their only revenue.

But based on your logic, you might as well call traditional mining (out of the ground) a Ponzi scheme. People buy gold and miners are rewarded in currency for extracting it out of the ground using a huge amount of energy and resources. Is gold mining a Ponzi? I really don't see your logic with this.
 
garp said:
Transaction fees are also deducted from the sender, and that will eventually be their only revenue.

But based on your logic, you might as well call traditional mining (out of the ground) a Ponzi scheme. People buy gold and miners are rewarded in currency for extracting it out of the ground using a huge amount of energy and resources. Is gold mining a Ponzi? I really don't see your logic with this.
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A gold mine sells an ounce of gold for say $1200. Their cost to get it out of the ground is probably about $1000. So they make a profit of $200. The gold buyer eventually sells on to someone who actually uses the gold for its end purpose (say jewelry).

In crypto currency I go to a shop with my bitcoin and buy a R50 sandwich. I transfer a fraction of a bitcoin the store to pay. Somewhere in the world someone validates the transaction and in doing so expends R560 worth of electricity. He gets paid by bitcoin in bitcoin to that value, for a R50 transaction. I also pay a transaction fee but It's not the mining cost. The vendor of the sandwich pays nothing and has the bitcoin which he can hold or eventually cash out to buy more sandwich supplies, again creating the mining cost.

And this makes business sense to you? Did you pass grade 2 math?
 
Cius said:
A gold mine sells an ounce of gold for say $1200. Their cost to get it out of the ground is probably about $1000. So they make a profit of $200. The gold buyer eventually sells on to someone who actually uses the gold for its end purpose (say jewelry).

In crypto currency I go to a shop with my bitcoin and buy a R50 sandwich. I transfer a fraction of a bitcoin the store to pay. Somewhere in the world someone validates the transaction and in doing so expends R560 worth of electricity. He gets paid by bitcoin in bitcoin to that value, for a R50 transaction. I also pay a transaction fee but It's not the mining cost. The vendor of the sandwich pays nothing and has the bitcoin which he can hold or eventually cash out to buy more sandwich supplies, again creating the mining cost.

And this makes business sense to you? Did you pass grade 2 math?
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a similar argument for fiat currency, in order for it to work you need to debase it in order to get people to continue spending and thus keep the wheel turning
 
Who cares if it's a bubble... I'm still making money lol


stay mad no coiners
 
genelock said:
http://fortune.com/2018/01/17/bitcoin-price-crash-regulation/

Some worrying signs out there guys. China and S.Korea is clamping down on cryp.currencies
USA etc might follow
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Why do they make it sound all doom and gloom

They fail to mention the ridiculous growth beforehand. If you bought btc at $20000 you're a moron. Everyone knew there was a correction coming. They all say they're going to buy more when it happens. Yet when it actually happens there is wide spread panic
 
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