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.

I would add here that such is the nature of capitalism, and since bitcoin doesn't change that model, things will continue bubble and burst one after the other.

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

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.

I believe that a true milestone will be (even a rally startline) when power companies accept payments by bitcoins.

kkaspar I stand behind you Tongue