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Old 03-30-2013, 07:28 PM   #14
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Join Date: Nov 2006
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Originally Posted by Prodigal19 View Post
You can just as easily say that gold and silver are unbacked currencies. Neither have much of an intrinsic value. It doesn't stop people from investing in them. At least bitcoins can easily be traded.
Ehh, no sorry. A bitcoin is an entirely virtual contsruct. Has no value, no use, indeed it doesn't actually exist as anything other than an idea.

At least gold and silver have a use. Or other physical things that might be used as currency.

The bitcoin system itself has not been compromised, exchanges and websites that deal with bitcoins have. This is why it is dumb to have an online wallet. This problem alone will not cause the downfall of the bitcoin.
The system has been compromised when massive impact can be had on the value of the Bitcoin. Doesn't matter if it's just one exchange.

There is no reason to believe that this "fad" will end any time soon. As long as people think the bitcoin has a reasonable chance to be an alternative currency it will have value and as long as it has value it will be an investment opportunity. Even if its value were to drop drastically tomorrow, it would recover most if not all of that value extremely quickly as people jump in to buy cheap bitcoins.

The thing that probably will result in the death of the bitcoin is some governments decisions to make them illegal. I believe we still have a ways to go before that happens though.

No reason to believe it can't end soon. It's an extremely risky bet to jump on the bitcoin wagon. Even the creator says don't buy bitcoins with money you can't 100% afford to lose. It's an experiment. An interesting experiment that could prove very useful, but still an experiment.

If you have money to burn, go for it. If you're trying to make a real investment, do it with something else. Some people are going to make a lot of money. Most people will probably lose it all.
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