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Its not faith based, it has a digital algorithm. It will fluctuate in price based on how many bitcoins are in the system, how many are being mined, how fast they are mined ect...
mr10k
Sub is right, to a certain degree. Bitcoin's value is solely dependent of how many are in existence, how many people own them, and how many places recognize it as a legitimate currency. In a sense, it is exactly like the dollar. The difference (among many other things) is mainly that there is no one single entity that can create Bitcoins.
The saddest thing about it is that the majority of people think Bitcoins are some sort of Pyramid-scheme. Like any other prospective investment, the people who took risks first will benefit in the later years, the only bad thing is that, while you can be confident in a company investment, considering that company may succeed based on past performance, Bitcoin is, like I said, based on the people who use them. So yeah, it is faith based, but like in any investment, obviously those who saw potential will be riding their wheelbarrows of cash to the market, just like what happened with Google back in the day.
I invested quite a while back, and I'm happy I held on to mine. Yes it is volatile, but that doesn't mean it should not be considered. And no, it isn't a Pyramid-scheme (but obviously people can trick you out of your money if you are gullible - that isn't the currency's fault), and people calling it a Ponzi scheme need to educate themselves on what a Ponzi-scheme actually is.
starfoxxx
Its not faith based, it has a digital algorithm. It will fluctuate in price based on how many bitcoins are in the system, how many are being mined, how fast they are mined ect...
mr10k
Sub is right, to a certain degree. Bitcoin's value is solely dependent of how many are in existence, how many people own them, and how many places recognize it as a legitimate currency. In a sense, it is exactly like the dollar. The difference (among many other things) is mainly that there is no one single entity that can create Bitcoins.
The saddest thing about it is that the majority of people think Bitcoins are some sort of Pyramid-scheme. Like any other prospective investment, the people who took risks first will benefit in the later years, the only bad thing is that, while you can be confident in a company investment, considering that company may succeed based on past performance, Bitcoin is, like I said, based on the people who use them. So yeah, it is faith based, but like in any investment, obviously those who saw potential will be riding their wheelbarrows of cash to the market, just like what happened with Google back in the day.
I invested quite a while back, and I'm happy I held on to mine. Yes it is volatile, but that doesn't mean it should not be considered. And no, it isn't a Pyramid-scheme (but obviously people can trick you out of your money if you are gullible - that isn't the currency's fault), and people calling it a Ponzi scheme need to educate themselves on what a Ponzi-scheme actually is.
No you cant print them but you can MINE THEM. Anyone can mine them. Thus making it backed by its own digital algorithm not faith.
mr10k
starfoxxx
Its not faith based, it has a digital algorithm. It will fluctuate in price based on how many bitcoins are in the system, how many are being mined, how fast they are mined ect...
mr10k
Sub is right, to a certain degree. Bitcoin's value is solely dependent of how many are in existence, how many people own them, and how many places recognize it as a legitimate currency. In a sense, it is exactly like the dollar. The difference (among many other things) is mainly that there is no one single entity that can create Bitcoins.
The saddest thing about it is that the majority of people think Bitcoins are some sort of Pyramid-scheme. Like any other prospective investment, the people who took risks first will benefit in the later years, the only bad thing is that, while you can be confident in a company investment, considering that company may succeed based on past performance, Bitcoin is, like I said, based on the people who use them. So yeah, it is faith based, but like in any investment, obviously those who saw potential will be riding their wheelbarrows of cash to the market, just like what happened with Google back in the day.
I invested quite a while back, and I'm happy I held on to mine. Yes it is volatile, but that doesn't mean it should not be considered. And no, it isn't a Pyramid-scheme (but obviously people can trick you out of your money if you are gullible - that isn't the currency's fault), and people calling it a Ponzi scheme need to educate themselves on what a Ponzi-scheme actually is.
I know, I stated that to some degree in my second sentence... But it IS faith based. If 21 mil BTC were in existence, and only 30 people had them, but no one accepted it as a legitimate payment, it would be worthless. The price is agreed upon by everyone that uses them, how many people accept it as a form of payment, etc. It is just like every other fiat currency, except no one person can 'print' bitcoins.
And it IS possible for 30 people to own everything, it's just that, if they did, by the currency's own standards, it would be worthless.edit on 29-11-2013 by mr10k because: (no reason given)