BitCoin

Gandalf Greyhame

Well-Known Member
http://www.coindesk.com/bulls-and-bears-why-is-the-price-of-bitcoin-falling/

Bitcoin is incredibly unstable. Inno would have no accurate way to price it, and thus it would be a terrible investment for them.
Also, while I like the concept of bitcoins- Germany recognizing them is the first step to eliminating them. A part of the draw of bitcoins was the fact that they are not taxable. If the US, UK, and the other major countries tax them as well, they will just ordinary money- that is ridiculously unstable.
 
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O K

Well-Known Member
But I think that could be a good investment. Keeping a wide spread on the price will help against instability. And after all, they are not selling real assets; it won't risk any loss for them.
 

Gandalf Greyhame

Well-Known Member
But- selling 5000 euros worth of nuggets provides inno with 5000 euros worth of nuggets. Selling them for what is, at that time, 5000 worth of bitcoins could well provide inno with 1000 euros worth of bitcoins in literally a few hours.
 

nashy19

Nashy (as himself)
A part of the draw of bitcoins was the fact that they are not taxable. If the US, UK, and the other major countries tax them as well, they will just ordinary money- that is ridiculously unstable.
They could never be like normal currency because they are infinitely divisible and always getting rarer. Normal currency has inflation and usually loses value if you just hang onto it, but bitcoin has deflation and can be divided into smaller pieces. Of course it can lose value, I'm just saying it's not like our normal currency.
 

O K

Well-Known Member
From $122 in thread opening time, to $730 now!
Gandalf instead of trading Natty's u should have bought some Bitcoins :D
 

PJMAX

The problem with BitCoin is that it has no real economy to back it up.

Normal currencies get their valuation from the countries economy. If the economy fairs well the currency appreciates and vice versa. Bit Coin derives its value from demand and supply. As such its not a currency but just another commodity.
 

delldell56

Well-Known Member
pj beat me to it. in any economy, real or virtual, you need a collateral to back up currencies of any kind. if X country's economy is tumbling, their currency will lose value vs. other strong currencies (usually us dollar vs. euro, us dollar vs. yen, or say australian dollar vs. canadian dollar). when you are working with commodities (or bonds), there is a high risk involved in the price, as one tiny unexpected factor could make them go up or down. commodity traders don't expect to ever receive the actual product (oil, gold, pork belly, etc.) but at least when they trade futures, they know that in the very unusual case that they can't sell their future contracts before the time to cash them comes, they will receive the products. instead of trading paper, they would have to find a buyer for the product at whatever the price at the moment. in the bitcoins case, what would they receive in exchange if the price drops to floor levels?
 

Dizzy Dee

Well-Known Member
PJMAX and delldell56 - this theory works untill the currencies are tied to an anchor from real life (like gold). On 15 August 1971, the United States unilaterally terminated convertibility of the US$ to gold. All other countries followed.
So be serious or pls explain your theory if we look the last 5 years where countries literally compete who will print more of his own currency (to save their economies)...
 

delldell56

Well-Known Member
lol dizzy. you've got a point and i'll explain to you if you are interested, but i think technical details would derail this thread (not to mention bore people to death). but, a short answer for you or anyone who is wondering the same: even when countries decide to arbitrarily print money without assets to back it (ending up setting the bases for hyperinflation, which devaluates their own money, among other things), that currency still has a country and a central bank behind it. in the case of bitcoins, let's say innogames goes for it and in a year or two, the bitcoin says goodbye to the world. who would pay inno for the amounts of bitcoins in their books that haven't been converted? when a company files for bankruptcy, there are actual assets to sell or negotiate in order to cover a percentage of their debts. without assets, it's just maddoff and a ponzi scheme.

we just need to look at the bitcoin case the same way as with most world currencies innogames doesn't deal with. if you are in a country with a weak currency, or that has exchange controls in place, or has a volatile currency, or whose banks would go through a lot of trouble to convert, inno only accepts payments in us dollars or euros. simply because they don't want to get stuck with money that they can't convert into actual cash, and for them would only be "paper" with some face value printed on it and may not be tradeable or exchangeable at will.
 

Kidd Kalypso

Well-Known Member
As a user of bitcoins......
I would not even bother using them here.
Y'all are forgetting the whole purpose of having them. ;)
And.....if you wonder why people have them? Hit google or something.
 

ViriM

Well-Known Member
If i am wrong, correct me, but Germany already recognize them.. so soon or late will be part of our trades.
 

joe ackert

Well-Known Member
Dang, to think if you guys still held those bitcoins (Not planning on reviving a dead chat), but it was cool that people were dabbing into it in 2013

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nashy19

Nashy (as himself)
Dang, to think if you guys still held those bitcoins (Not planning on reviving a dead chat), but it was cool that people were dabbing into it in 2013
Well, I didn't make a loss but I wish I had got more :) In 2012 you could talk about them in public and people who were technically inclined would know what you meant, before that not so much.