Eliza's Rules Of Disorder is a user on mst3k.interlinked.me. You can follow them or interact with them if you have an account anywhere in the fediverse. If you don't, you can sign up here.
Eliza's Rules Of Disorder @Elizafox

BTC being valued at $16k doesn't make it a good currency, but it's sure a great pump and dump instrument.

· Web · 3 · 8

@KitRedgrave @Elizafox and it dropped $4000 earlier today... and it's back.

@Elizafox Steam stopped using BTC as a payment option, due to the fact that it is impossible to gauge how much to refund

a good currency it ain't

@Elizafox deflation inhibits the very definition of currency, but on the other hand, to serve a global economy it needs a market cap in the trillions. It's important to keep this in mind when estimating how much it "should be" worth. People are complaining more now that it's pushing $20k than when it was pushing $2k,but the decimal is placed fairly arbitrarily.

@rook It's important to consider what that capitalisation is coming from, though. If it's coming from speculation, it's not useful as a currency — it's simply a bubble, because payments made in the currency do not have guaranteed consistent value.

A lot of companies don't accept bitcoin because it's impossible to determine refund value.

@Elizafox no argument there, but I think speculation only counts for a few of the orders of magnitude we're seeing. I bet we'd be seeing a very different picture if the original decimal was placed much farther to the left, with correspondingly larger mining rewards, or more frequent ones.

@rook I doubt it. Acceptance of bitcoin is relatively low. That makes its value as a currency relatively limited. It stands to reason the primary uses are likely inter-personal transactions to be cashed back out in real currency, or speculation.

@Elizafox you seem to be overlooking the black market uses that predated the vast majority of speculation. Not saying the black market is good, but it proved bitcoin's utility as a currency up to about two orders of magnitude since dollar parity, or 5 orders since the first markets showed up early on.

Either way, we're only about 2 orders of magnitude beyond that. So it's really not that bad in absolute terms.

Volatility is a problem though, but not an inherent one.