Quote from: Ibian on December 04, 2013, 01:16:40 AM

Quote from: gla22 on December 03, 2013, 11:38:55 PM

Quote from: traderCJ on December 03, 2013, 06:50:00 AM

Quote from: gla22 on December 03, 2013, 06:06:38 AM

I think everyone knows bitcoin is in bubble mode right now, 12B in market cap isn't justified by the amount of transactions that occur, alot of the money in BTC is speculation. The amazing thing about BTC though is that it still has the potential to rise significantly. I could see 10k a coin.

I couldn't care less if a BTC is ever used in a point of sale transaction. There are many investors like myself who only see it as a store of value to be cashed in/out at exchanges.

Why would anyone use bitcoin as a store of value as opposed to precious metals like gold and silver? I think bitcoin has use as a means of moving money between countries, for purchasing items not priced in fiat (ie silkroad), or as a speculative investment.

The truth is those who are in bitcoin for speculative purposes have an endgame plan of holding USD. It is these people who will pump a bubble and sell into a crash.

It's safer than metals if you know even a little about computers in that it can not be confiscated. Also much easier to get than gold. And much harder to manipulate due to its transparent nature. And you can take it with you in your pocket.

For me it's also a hedge against failing fiat. Less of a concern for me since I'm not american or greek, but no western countries are safe.

I am a huge fan of bitcoin but:

It is not safer: Gold has been a store of value for thousands of years, bitcoin is going on 5. Gold prices although fueled by speculation is alot more stable, gold won't fall overnight too $1000/oz but bitcoin could fall to $50/coin within a matter of a few days.

Gold is very easy to get, you can buy it online or through multiple physical locations.

Bitcoin is much easier to manipulate than gold. Media and press can easily inspire confidence or fear in the coin to manipulate prices.

I agree holding a bunch of fiat is terrible, but bitcoin shouldn't be a wealth preservation strategy, but a speculative investment or a hobby.