'Litecoin Is Silver To Bitcoin's Gold' — Here's What That Actually Means

[Hoi]

Quote from scriabinop23:

exactly, no exclusivity. people will get wise to this when the fear stage kicks in.

We all agree that there will be crashes and volatility, and many crypto-currencies will simply die. Still one or a few will survive, innovate and become mainstream.

 

[Hoi]

Quote from scriabinop23:

I think this bubble is a major example of market confusion making valuation difficult.

This bubble is more or less coded in the Protocol. To make it possible to make it mainstream and to adopt it by as many Miners as possible it has an build-in deflation property as incentive.

 

[failed_trad3r]

Quote from Hoi:

Let me give you an example what happened to me a few weeks ago.

A good friend Skyped me from South Africa (he emigrated a few years back from the Netherlands), and at some point Bitcoin was discussed. I explained him some of the benefits, and then he asked me if he could use it for transporting his monthly income from the Netherlands to his bank in Capetown. As this took days and each time he had to pay 40 Euros to the banks involved. I don't know, I said...40 Euro's isn't that much (compared the 10-20% fees WesterUnion charges), but still he insisted to try it (just as experiment) and asked me how to proceed. It took some days to setup an Bitstamp-account, as well as an exchange in Capetown (don't know the name, but they offered a straight link to his bank-account converting BTC into Rand). A few days ago we tried it with 300 Euro (Dutch-bank SEPA to bitstamp, then exchange to BTC, transport to Capetown exchange, and to Rand on his Bank-account).

We were both surprised that that the total fee was only 1 dollar. This partly because of the BTC-exchange rate in Capetown is higher than Bitstamp.
Our conclusion was that it's doable but (still) too much work for earning 39 dollar. Still, for people using WesternUnion it will be a game changer (which is a 400 trillion dollar market). And it surely will, when paying with BTC is accepted all over the world (in which case exchanges to EUR and Rand aren't needed anymore).
And of course BTC's price should stabilize which will happen if we enter the right-side of the S-curve.

Just stop telling it's useless, it has real-life properties.

if this gains enmasse and bank profits and western union profits gets hurt, you dont think the entrenched oligopolies will lobby?
as I said, money laundering is basically the only real function bitcoin has at the moment.

there is only one other thing that can help bitcoin from going to 0. a government explicitly sanctioning a it as official. if you hold for long term either you are gambling to be able to sell to a greater fool, or gambling on a explicit legalisation of bitcoin. Does that seem likely?

 

[Hoi]

Quote from failed_trad3r:

if this gains enmasse and bank profits and western union profits gets hurt, you dont think the entrenched oligopolies will lobby?

Sure, they are scarred as hell. And already feel the heat (just watch what their stock-price is doing latterly).
They cannot stop this decentralized world-wide phenom. Only good thing would be to Join it (which I guess they will do).

Quote from failed_trad3r:
I said, money laundering is basically the only real function bitcoin has at the moment.

Where do you have your information from? You only have the perception it is used for this, but even in last weeks Senate's hearing it was clear that only a very small part of Bitcoins economy is used for bad things (just like in any currency, but especially USD).

 

[failed_trad3r]

Quote from Hoi:

Sure, they are scarred as hell. And already feel the heat (just watch what their stock-price is doing latterly).
They cannot stop this decentralized world-wide phenom. Only good thing would be to Join it (which I guess they will do).



Where do you have your information from? You only have the perception it is used for this, but even in last weeks Senate's hearing it was clear that only a very small part of Bitcoins economy is used for bad things (just like in any currency, but especially USD).

yeah man, thats why half the volume is from China, a heaven of honest money.

 

[Hoi]

Quote from failed_trad3r:

yeah man, thats why half the volume is from China, a heaven of honest money.

 

[Pekelo]

Quote from Hoi:

You constantly mix up two things. The word Bitcoin, is used for a Currency as well as a Protocol.

Both can be copied so what's your point? And sure some might survive, but if stabilizes at $5 a coin, and today it is 1150, what does it tell us?

 

[ElCubano]

Quote from Pekelo:

Both can be copied so what's your point? And sure some might survive, but if stabilizes at $5 a coin, and today it is 1150, what does it tell us?

Do you think facebook could be copied? No? Why not...maybe bitcoin has.that much of a.headstart...just saying. I have mo idea.

 

[Hoi]

Quote from Pekelo:

Both can be copied so what's your point? And sure some might survive, but if stabilizes at $5 a coin, and today it is 1150, what does it tell us?

The one that survive will stabilize on much and much higher price than 1150 from today.

-If it takes over, just 1% of Gold-market, it will be 7000 dollar
-if it takes over, just 1% of the Creditcard-industry, it will be 1700 dollar
-If it takes over, just 10% of the Remittance-market (WesternUnion), it will be 4300 dollar

These percentage are just low guestimates. And you can sum those values, as the crypto-currency that survives will handle all those markets together (plus some more which I forgot to mention).

 

[bwolinsky]

Quote from Hoi:

This bubble is more or less coded in the Protocol. To make it possible to make it mainstream and to adopt it by as many Miners as possible it has an build-in deflation property as incentive.

There is no "deflation property."

It's built on limited supply only and non-productive networking.