79% of what? The high bitcoin price $1,200 to $250 = 79% decrease
That's the price decrease, not company's loss.
Trent Russell already answered that but you ignored it.
I didn't declare them insolvent, I just don't trust any company offering a guaranteed BTC to $ return especially when you read the TOS.
No one asks you to trust them. Again, if you're concerned about their model you should ask them to clarify in the first place. Did you bother to do it?
I had a roommate from Panama that said that for enough $$$$ you could essentially do what ever you wanted as long as the right people were paid off.
That could be applied to any country, the definition of "enough $$$$" will vary tho.
Still, Panama being corrupted doesn't mean every business registered there is automatically a fraud.
Now back to my original problem with bitcoin volatility.
To be widely accepted, bitcoin needs to settle down. People want their currency value to remain fairly stable, not fluctuate wildly like a commodity stock. Imagine if your paycheck was paid only in bitcoins and you would gain or loose 35% of it's value week to week. Currently you still have to convert to fiat $ to pay bills. Would your utility company, landlord or mortgage company deal with +/- 35% weekly value fluctuations? Would you be able to pay your rent, mortgage, car & health insurance or buy groceries? Sorry kids, we don't eat this week:(
Price averaging. Your kids will eat in " -35% week" if you saved a surplus from "+35% week".
Volatility is inevitable in the early stages. What do you suggest? Pegging it to USD?
Price averaging is not practical when you have no idea how high or low it can go. As you can see by the 2014 charts, your guess is as good as anyone's.
The current situation is a clear example of problems the Bitcoin network will face in the future. Miners only continue to operate when its profitable. Bitcoin value will always be tied to operating costs of people, equipment, facilities & energy.
Will their be enough individuals running long term hashing power to support network transactions when mining is over? What will their operating costs be?
Will the system eventually transform into something centralized that will charge transaction fees to support operating costs? Which would be very similar to the banking system that we have today but without Government backing.