Bitcoins - a new future currency ?

[mrsaneperson]

Can anyone answer this?

Is it possible that the bitcoin buy rate can be artificially manipulated between any related parties who own substantial amounts of Bitcoin and this is the reason why its value has exponentially increased 1000's of times ?

The scenario goes like this : Bill owns a 10000 Bitcoins while his friend owns 6000 . Bill agrees to buy all his friends bitcoins and pays his friend slightly more than the listed current buyer rate for his Bitcoins.This is automatically recorded in the Bitcoin system. In reality though Bill receives an unrecorded cash payback from his friend at the correct nominal listed buy rate. This would then artificially increase the value of Bitcoin since the dubious transaction has been recorded and fed into the system.

Its harder to manipulate cash currencies in the same way as their is a central bank whereas Bitcoin is entirely decentralized.

[Bob Kane]

Is it possible that the bitcoin buy rate can be artificially manipulated between any related parties who own substantial amounts of Bitcoin and this is the reason why its value has exponentially increased 1000's of times ?

A transaction between related parties may inflate the price.
However, after that transaction is complete, the market price would return.
But, with the FOMO (fear of missing out) newbies getting excited as they are currently, then the inflated price may continue until the bubble bursts.

[Nick G]

This is really good - http://aswathdamodaran.blogspot.co.nz/2017/10/the-bitcoin-boom-asset-currency.html

[Bob Kane]

Bitcoin is dead

https://www.stuff.co.nz/business/world/100298723/criminal-underworld-is-dropping-bitcoin-for-another-currency

Bitcoin is losing its lustre with some of its earliest and most avid fans – criminals – giving rise to a new breed of virtual currency.
Privacy coins such as monero, designed to avoid tracking, have climbed faster over the past two months as law enforcers adopt software tools to monitor people using bitcoin.

[Wayne]

https://www.stuff.co.nz/business/wor...other-currency

Still 1000+ other cryptos if not BitCoin itself.

[JBM]

The NZ$ has a value because the NZ Govt makes a promise that it has a value.
It is a FIAT currency (not a gold standard) so is inherently worth nothing more that the Govts promise.

Crypto currency has no promise by anyone so how does it have any value at all.
Might as well trade in Tulips ... Oh hangon, that's been done already.

Well we kiwis give NZD value as we pay Taxes to the Govt in it ..if all Kiwis stopped paying tax then the value would erode

just as the NZD states "legal tender" for $5 -$100 etc and agreement between me and you it has value

Bitcoins are an investment a very high risk one at that

[Wayne]

Bitcoins are an investment a very high risk one at that

Bitcoins and other cryto currencies are nothing but thin air.
They aren't an investment any more than a Lotto ticket is an investment.

They have been touted as
- cutting out the middleman - they have created a new one
- secure - until you lose your wallet
- anonymous - they can track them (some easier than others)
- cheaper - they are expensive to use and slow to get validated

At the moment I can't see what they really DO.

[Jacqueline]

Is the cryptocurrency Bitcoin the biggest bubble in the world today, or a great investment bet on the cutting edge of new-age financial technology? My best guess is that in the long run, the technology will thrive, but that the price of Bitcoin will collapse.


If you haven’t been following the Bitcoin story, its price is up 700% over the past 12 months, and 1,800% in the past 24 months. At over $5,000 (as of October 12), a single unit of the virtual currency is now worth more than three times an ounce of gold. Some Bitcoin evangelists see it going far higher in the next few years.

[Bob Kane]

Bitcoin is dead.
It's only the nutters and thieves involved with it now.

[Keithw]

I think you are a couple of years ahead of yourself there Bob.
It is certainly not dead yet, even though your prophecy may prove to come true in a couple of years.
It has only just gone mainstream, so there is still much more of the bubble to inflate yet.
Futures only just getting running, so Wall st hasnt got their teeth in yet.
When the taxi drivers start giving out advice on bitcoin you will know the end is nigh.

[mrsaneperson]

China has now banned all websites relating to any Crypto currency. Basically the government has completely outlawed it , the only way for any Chinese citizen to continue trading in it now would be through virtual IP address disguise.

If caught they can be arrested,