The bitcoin bubble explained: Understanding the mathematics...inevitable bitcoin crash

[Neil Desmond]

The bitcoin bubble explained: Understanding the mathematics of the inevitable bitcoin crash: http://www.naturalnews.com/039848_bi...ket_crash.html

Thoughts?

[kpitcher]

Besides his misunderstanding that someone could pump and dump billions of bitcoins...

His description that the core idea of faith in something being the underlying structure of value is alright. When a government crashes the money becomes worthless.

But I don't agree with how he applies it to bitcoins and stocks. By his argument everything is instantly overvalued by a single purchase of anything going higher. By the same logic why do antiques keep their value, artwork, etc? Why should I pay more than 1 cent for an indian head penny? Stocks should always be exactly the price they were first issued, etc.

He then goes on to say that he'll buy bitcoins once the speculative spike is over. Um hello? Unless bitcoin is pegged to a the dollar the author appears he wouldn't like bitcoins because as soon as 1 person buys a bitcoin of his for a penny more for what he bought it for it's overvalued and will crash again, causing wild swing, before settling on a new norm or going under entirely. So why go on about how all the negatives and then say he'll buy? Did I miss something?

[muh_roads]

Natural news...lol

Almost as bad as infowars with the FUD they need to spread to stay in business. Anything that gives people light at the end of the tunnel gets biased coverage. Hope is non-profitable for these sites.

Anytime bad news happens, they love to pounce all over it.

[Crystallas]

Some people started paying attention when BTC hit $50... then went Cyprus react-mode. So basically 3 weeks of actual BTC interest, and they think they know something.