

The exponential growth of Bitcoin value explained - lelf
http://bitcoinowl.com/exponential-growth-bitcoin-value-explained

======
lumberjack
The article just supposes that Bitcoin is the next big thing and then it
portrays where we might be in terms of adoption if indeed the supposition is
right.

But I would rather want to know why people are adopting Bitcoin and what they
are exchanging it for. That way I could truely understand the Bitcoin economy
and whether it is actually the next big thing or not.

I don't want to be a harsh critic but I always get my hopes up for nothing
with these kind of articles.

~~~
zanny
> what they are exchanging it for.

I went to a Subway in Allentown and bought subs with bitcoin last week. Scan
QR code, send amount with a (in fiat) .5 cents confirmation fee to get it
accepted quickly, done. No signing paper, no pinning codes, no 5% vendor
transaction fees for using a piece of plastic.

I've bought humble bundies, reddit gold, wordpress themes, and an sd card from
a bitcoin auction site with bitcoin. I regularly tip people on reddit with
/u/bitcointip and its simple syntax. I donate to various open source projects
in bitcoin because I just copy paste their address and send a few USD worth in
seconds.

~~~
stinkytaco
This isn't an attack on your response, because yours is a realistic answer to
the question.

However, I find it difficult to believe these things warrant the massive
increase that bitcoin has seen the past few weeks. Open source projects, indie
games and one sub shop do not a currency make.

That said, I am a believer in bitcoin and hold a few myself. I also exchange
it for the things you speak of. But I desperately want to get from auction
sites, humble bundles, reddit gold and wordpress themes to groceries, fuel and
clothing. Then we might justify this market cap.

~~~
awt
You can buy plane tickets for btc now at cheapair.com

~~~
stinkytaco
Interesting. Is this site legit? Considering the ridiculous and opaque pricing
scheme of airline tickets, I've always looked at sites like Kayak and now
cheapair with some skepticism (preferring the old standards of expedia and
orbitz). However, there's really no reason to believe that expedia has some
magic that cheapair and kayak couldn't also harness.

------
eonil
Someone said that current BTC is more like to target of speculation/venture
rather than a device for exchange because it's too unstable.

He also said, if you want speculative investment, do whatever on BTC. But if
you want a real money for value exchange, BTC is not yet for that.

I think that sounds reasonable.

------
betterunix
The article asserts this:

"All technologies eventually become outdated"

There are easy counterexamples:

* Wheels

* Fire

* Knives

These are technologies that predate written records (did I mention _writing_
as another example?) yet they all remain use and are actually _fundamental_ in
our daily lives. I am not going to claim that fiat currency will be so
enduring, but I see no reason to assume that it will be replaced by anything
short of a post-scarcity age.

~~~
tobykier
fire superseded by central heating and electric fires

knives superseded by guns (weapons) and fork (cutlery).

I'll give you the wheel only because I'm still waiting for my hovercar

~~~
xylem
I'd like to see how you cut bread with a gun or a fork.

~~~
zanny
I'll just use a concentrated laser to cut my steak! And char broil it at the
same time!

------
joezydeco
I'm holding some bitcoin, but I'm still not sure whether I'm speculating or if
I'm in for the long run.

Sure, the Chinese are plowing huge sums of surplus cash into BTC, but where
can it go? If the US, EU, and China decide tomorrow to freeze out bitcoin
exchanges (like the US has already pretty much done), then where does that
value go? Does it sit in BTC until adoption hits critical mass? How do you
reach critical mass if you can't get in and out of fiat during the transition?

All it takes at this point is for China to decide on the socialist side of the
fence and seize btcchina. All that Yuan hasn't really left the country and I'm
sure Beijing will make damn sure it never does.

~~~
judk
If you aren't spending, you are speculating. A unit BTC is currency, not a
producer of value.

~~~
joezydeco
Why would I spend at this point? The deflationary aspect is just too hard to
work with.

I have a $8,000 iPod Touch in my pocket that I bought in 2011 when I cashed in
10BTC @ $30.

~~~
craigyk
This point is probably too subtle for a lot of BT fans.

------
ferdo
Bitcoin's rise in value will reflect the same curve that rise of information
has taken:

[http://peculium.net/2013/04/08/bitcoin-is-a-bubble-only-
if-y...](http://peculium.net/2013/04/08/bitcoin-is-a-bubble-only-if-you-think-
the-rise-of-information-is-a-bubble/)

Straight up is also a curve.

------
Datsundere
how legit is this? because I'd love to buy me some bitcoins right now

~~~
aw3c2
Please tell me you are being sarcastic. You are asking how legit a speculation
about the astronomical rising price of bitcoin on a _bitcoin_ .com website,
with a graph that accurately pinpoints our location in time at the foot of a
giant mountain of $$$$$, predicts the downfall of normal money, has no
scientific sources.

Consider all "you should buy bitcoin now" to be bait from gamblers who want to
maximize their speculative outcome. Bitcoin is nothing but speculation. And
right now it is in a ridiculous bubble.

I would flag this if I could.

~~~
Datsundere
I don't expect real currencies to plummet but if bitcoins go above $1000 mark,
that's pretty amazing.

------
pdfcollect
How many bitcoins does the writer/his friends/investors own? BitCoin Bait? The
Bitcoin bubble will burst - there are enough reasons for that as well.

------
dlsx
I don't understand bitcoin. In the sense, for a normal person to use it. I
don't understand a normal consumer using bit coin.

I can't even figure out how to setup this stupid wallet. It has been
downloading a block file for over 5 days. How the fuck is this the future?

The future is retarded.

~~~
shawnz
Since you are apparently very used to people doing things for you, you might
want to look at online wallet services[1] that hold your money. You might
think that it is less safe to do things that way, and you are right, but it is
no less safe than giving your cash to the bank.

EDIT: Sorry for being rude; last night was a long night. What I'm really
trying to say is that, by running wallet software locally, you are opting
yourself in to a few responsibilities that go beyond just storing your own
money. If all you want is the ability to store your bitcoins, there are
already services that will provide you that ability with no fuss.

[1] [http://bitcoin.org/en/choose-your-wallet](http://bitcoin.org/en/choose-
your-wallet)

~~~
stinkytaco
People are critical of these services, but the poster you're replying to is
correct: bitcoin is not ready for prime time. As much as the bitcoin faithful
would like to deny it, bitcoin will not be widely adopted until there is a
financial services industry around it. The necessity of credit, the
convenience of easy payment, the security of your money in a bank, it's just
too tempting for people to walk away from. Nevermind that there is still a
_massive_ part of the first world population that can't program their clock,
much less download a bitcoin wallet. And the fact that Internet infrastructure
is still limited worldwide. Try paying with bitcoin on your phone in some more
remote parts of Montana.

~~~
VMG
That's the most exciting thing about Bitcoin. The protocol and the technology
is sound, just imagine how it will explode once the UX is polished.

You're looking at the internet in the BBS stage right now.

~~~
craigyk
In this analogy does that make bitcoin the future AOL?

