Post
Topic
Board Bitcoin Discussion
Re: Has Bitcoin survived its first bubble?
by
flug
on 12/06/2011, 17:41:34 UTC
Bubble? Bitcoins are trading at the same price they were 2 weeks ago (at least it was last night, as I type this the price is already back up to $20...). I think this should be considered normal market volatility more than anything like a bubble burst.

I almost feel like "bubble" is now just a buzzword that was mentioned on the forums a few times and now all these people that know nothing about markets are repeating it ad nauseum.

I posted this topic after reading this article:

http://www.hightechforum.org/bitcoins-a-crypto-geek-ponzi-scheme/

It concludes with the question "Can Bitcoin Survive After the Bubble Bursts?"

I was looking for some reasons on why there's more to Bitcoin than merely some speculative bubble that might someday burst; what is the intrinsic value within the Bitcoin currency that will stop it going to zero?

Personally, I think the sheer time and energy focussed on and invested in Bitcoin in mining and trading produces that intrinsic value, which forms a valid base for its value as a medium of exchange.