Bitcoin has lost 70% of its value in 10 months - htxt.africa

edited October 2014 in Site discussion

imageBitcoin has lost 70% of its value in 10 months - htxt.africa

Has the time of Bitcoin come and gone already?

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Comments

  • werneravrwerneravr South Africa
    Bitcoin doesn't become any less efficient with a lower exchange rate. Bitcoin isn't a stock; having a low "price" per coin doesn't mean the underlying mechanism is struggling. If you bought Bitcoin for reasons of speculation/currency trading (buy low, hold, sell high), you are out of luck, but that isn't what Bitcoin is about. If day traders suddenly lost money in the ZAR-USD, it doesn't mean either currency is doomed. That said, a lot of people are buying now, expecting a rise in future again. It might have lost 70% in 2014, but it is still up 168% from a year ago.

    Also, a lower exchange rate might actually make it more accessible to more people (who think in whole BTC amounts).
  • I sort of agree, but I do think it will - but the problem is that Bitcoin is almost always converted into a different currency before you can effectively use it. The Bitcoin economy isn't like the dollar one - few people earn in btx and spend in btx.

    Also, I think the question of whether btx is a commodity or a currency will ultimately be decided by users. The fact is that at the moment people are hoarding or day trading, rather than spending. It's precisely that lack of liquidity in the market that makes it so volatile to single transactions.

    It's easier to spend in btx now, but the value conversion is still done before the transaction is made - so Takealot prices in Rand and the btx varies on exchange rate. It's not that btx becomes less efficient, but it does make it more expensive to use...

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