Quote from: kkaspar on January 14, 2014, 01:59:20 PM

Quote from: Lloydie on January 14, 2014, 08:19:26 AM

Bitcoin cannot be a bubble for the simple fact that there are only 1 Million users and there are 7.25 Billion people on the planet. Further, there is no leverage that is driving up the value of Bitcoins. (leverage is normally required for bubbles to exist).

Yes, bitcoin can't be a bubble because bitcoin is a piece of software. But the bitcoin market system is in a constant trend of bubble forming and bursting.

Quote from: Lloydie on January 14, 2014, 08:19:26 AM

The people using Bitcoins choose to use Bitcoins because it is better. The features that make Bitcoin better don't disappear overnight. These features include scarcity, transferability, divisibility, transparency and incorruptibility.

Bitcoin has very little practical value in legal business models. Because all of it's value is still supported by the value of fiat money, it's just a gimmick for payment. A company actually has to spend more resources on accepting bitcoin payments then it gains. Currently bitcoin is adopted as an payment option just for marketing purposes. When some company adopts bitcoin then it can get a lot of free attention and maybe gain new loyal customers who are also loyal to bitcoin.
Cryptos will be serious alternatives to fiat only when they are able to support their own value. When bitcoin value isn't measured in USD, but for instance in LTC instead. Then will cryptos be more then a gimmick.

Quote from: Lloydie on January 14, 2014, 08:19:26 AM

The fairness issue is so way overblown in a Bitcoin market cap of $10 Billion. Versus the banksters controlling trillions of dollars, the "unfairness" of Bitcoins pales into insignificance. In any event, Bitcoins must be spent to derive economic value. The same is not true in debt based fiat because the wealthy obtain massive amounts of credit which boosts asset prices for their own benefit. They draw these out as equity and capital gains which they spend on their lifestyles.

No it doesn't. It is already easily seen how cryptos have wealth distribution issues. For instance looking at the top 500 richest addresses (and it's only a fraction where most of the richest probably hold their funds in thousands of different addresses), observing the market manipulation and the artificial deficit created can already give you an idea how bad the wealth distribution already is. And it will only get worse, because the richer you get the more advantages you have in gaining new riches. And with deflative currencies you don't have to invest into new projects and use your money to some progressive actions. All you have to do is manipulate the market with numb minded tactics, sit on your money numbers and everyone will owe you more and more everyday. I am quite sure that deflative currencies would soon create a lot bigger wealth distribution problems then fiat. Only way to stop mindless hoarding with deflative currencies would be an heavily regulated market system that presents a lot of laws that prohibit hoarding. But that's a slippery road and will lead to centrally controlled economy and I know that it isn't a something pretty, because I have also lived in soviet union.

Quote from: Lloydie on January 14, 2014, 08:19:26 AM

Bitcoin is not a pyramid for the simple fact that there is a fixed limit, usage is increasing, population growth is increasing, productivity is increasing and there are lost coins. If there is a new superior alt coin, then the value will transfer from Bitcoin to that superior coin, in which case the "pyramid" did not collapse - the value is fully preserved and transferred that new coin.

There is no fixed limit in the value of one coin and that is where the pyramid game is played.
I agree that bitcoin will probably see an transfer of value before it's collapse, because I also truly believe in the future of cryptos and the general idea of privatized monetary systems. I just don't believe in bitcoin, because I find it simplistic and full of determinative flaws. The progression with bitcoin is also very slow, so it will be quickly outmatched by an altcoin that is backed by serious people with skills and resources. Only reason why bitcoin is nr.1 at the moment, is because other coins have been created by students and hobbyists.

There are too many things wrong in your comment so I'm not going to bother. You just made it into my ignore list for being TFS. Bye.