Quote from: the founder (FlexCoin) on September 27, 2011, 06:54:41 PM

You can call it a "failpost" if you wish.. but figures are figures... and the figures are 100% accurate. Flame on, the point is that it's still right and denying it isn't helping the situation.

Now if you want to pick a differing moment in time, rather than it's peak... let's say the spot price from 2 months ago.. you'll see roughly $100,000,000 dollar loss.

The end result is that we're still printing bitcoins like wildfire, but the whole bitcoin economy is decreasing value so fast, and printing bitcoin like that isn't helping.

Founder - I gotta refute this stuff.

Yes, your figures are 100% accurate. Nobody is refuting the numbers. Rather, it is the implications you're drawing from those figures which are problematic.

- A $100,000,000 fall in the market cap of Bitcoins is not correctly described as a "$100,000,000 loss". The aggregate value of all coins fell by $100,000,000, true, but only after rising by more than that immediately prior. Just as if you bought Apple stock for $100, and it rises to $200, then falls to $130, it would be misleading to say that one's investment brought about a $70 loss. What you're doing is taking the potential loss of a person who bought at the peak, and applying that to the entire bitcoin community, and claiming a hundred million dollars have been lost.

- And I've seen you post frequently on the topic of inflation. You seem severely against the fact that coins are created so quickly - and you ascribe the loss in market value to this inflation rate. This too is misleading. Remember, the inflation rate HAS NOT CHANGED at any time since Bitcoins were worth less than a penny to when they were worth $30. The fact is that their meteoric rise earlier this year occurred in the exact same inflationary environment. In other words, the inflation rate is not the primary driver of market price. Rather, it's the sentiment of individual buyers and sellers which is the primary driver of market price. If sentiment changes, the price can quite quickly skyrocket again, regardless of the 7200 coins printed each day.

- Finally, you said, "the whole bitcoin economy is decreasing value so fast." This is utterly false. You are again confusing the market price of a Bitcoin with the value of the economy. Just as the market price of a dollar doesn't determine the value of the USD economy, neither does the market price of a Bitcoin determine the value of the BTC economy. Similarly, just as the value of the dollar has fallen continually for the past 80 years, the value of the USD economy is vastly larger now than it was then. Same with Bitcoins - just as the value of the Bitcoin has fallen continually for the past few months, the value of the BTC economy is larger now than it was back then.

Confusing the value of all the economic behavior and production of the Bitcoin world with the current spot price of a Bitcoin is folly, and I can tell it's bringing you great distress. The Bitcoin economy is getting more valuable, productive, diverse, and secure with each passing month, and a falling spot price of Bitcoins does not in any way refute this claim.