Coming back to this finally:
Before getting into this, I want to note that I don't come in these threads to attack people but I'm actually concerned for the average joe that is more likely to put $500 down on Bitcoin rather than towards their 401k/IRA when that may be a significant amount of their investment funds in a year. That to me, is insanely fucked up for anyone to suggest they should go that route and I will continue to post against it for that reason. The person who is well off like WoW or whoever it was that is finding additional ways to throw around their money (high risk/ high reward) aren't who concern me here just in the same way I'm not concerned with those people gambling their excess income at a casino. They are well off and aren't at risk of damaging their long term well being compared to an average joe.
As mentioned by Jack, I don't think comparing this to stocks or bonds and I agree with the definitions he used
Which brings us back to the dollars comment. Bitcoin SHOULD be trying to act like a currency which is my entire issue with the instrument. It's a currency that no one is using like a currency because of the way it is fundamentally put together. Owners expect the price to go up and that they are going to get rich holding onto it rather than going out and buying things with it. It isn't irrational on their part to think that way either. Why would you spend something you think will get you way more for in a month or even weeks time? You wouldn't. Currency should have the central goal of being a medium of exchange. Another goal is to be a store of value but that's because if you can't maintain a stable value, the first goal isn't accomplished. No one wants to hold a currency (that is being used as a currency) if it's going to be worth 50% or 200% tomorrow. There's no stability there.
That's what my main critique is with Bitcoin. In a world where I would accept it is where it's price stabilizes and it's users actually begin buying and selling with it rather than seeing it as an investment. Until that changes, its on very dangerous footing because as an investment, there should be little value in what you actually hold for a bitcoin. With a dollar, I know I'm not really holding an investment and that I actually need to do something with it in time or it will actually lose it's value. That is not a flaw (although many point to it as one) with depreciation but a very important thing that keeps an economy alive. With Bitcoin, it's completely put on it's head.
At the very best, I think we could compare Bitcoin to currency exchange trading which is all speculative in it's gains/losses and furthers my point.
Bitcoin either needs to stabilize by actually working like a currency (in which case, people will then realize it's not an real investment) or it will continue to just be a faux investment that must rely on more people buying in to increase the price. It completely relies on new users and that's why people with bitcoin only hold on to it and keep telling people to get on board. That's the most logical thing to do if you get one. Hold it, stare at the price, and tell other people to get it so the price goes up.
