Quote from: klee on September 29, 2013, 08:23:01 PM

Quote from: pedrog on September 29, 2013, 07:16:05 PM

Quote from: klee on September 29, 2013, 06:47:42 PM

Quote from: ex-trader on September 29, 2013, 06:17:25 PM

Quote from: klee on September 29, 2013, 08:40:58 AM

I have noticed (for the last 3 years here) that many 'traditional' traders say the same things over and over again. They are correct in short window timeframes but they miss the point entirely long term.

Bitcoin is not a traditional asset - when it was 0.0001$ last time? Sorry, I forget!

Here's a reply..... is this the one I missed?

I agree Bitcoin does not perform like any traditional asset and in the long-term it'll either be worth a lot of money or nothing at all, in fact I think it's a pretty binary outcome.

However my issue with this particular 'bank' is that irrespective of the likelihood of it going up through time history has proven that it has that capability of massively falling in value in short periods and it will likely do so again at some points, since it is not 'backed' by anything (metals, governments, taxes, countries or soldiers being the common methods).

I merely wish to discuss what happens to the 'bank' with all it's pegged deposits at that point and the answer is that it quickly becomes insolvent (unless some undeclared potential blackbox trading saves it etc)..........

Thanks for the answer!
I agree with what you say, it is the short term steep price drop gamble that makes this investment risky (probably no one will accuse NEOBEE if BTC goes to zero).

But because it will be short term the agenda of NeoBee convinced me that the risk will be tolerated/handled properly.

I guess we will found out soon!

The "bet" here is as much in BEOBEE as it is in bitcoin, if someone thinks NEOBEE is going to fail because bitcoin price will drop to zero, just stay away from bitcoin at all...

Not really - Bitcoin had several crashes (2 big and many smaller) that did not kill it. Though a big crash could kill NeoBee (bank run etc) provided that the counter measures are not sufficient as stated.

I believe there are contingencies in place for bubbles, because they are going to happen again!