Skip to content

Comment · Fri, November 22, 2013

@SUBWAY just retweeted me to their 1.6 million followers mentioning /u/techguy90's Bitcoin purchase in one of their stores, linking to his article.

What they were answering

BenSBernanke · 1 points

It's not so much that you are stupid. It's that you are human, and you think linearly. Surely, someone may have reacted similarly to a suggestion a fixed 10,000 BTC spent on pizza would later be worth $1mm.

Consider the growth of M3 during 2007; or compare total Federal Govt assistance to banks from 1800-2006 and 1800-2007; or market cap of Caracas/Zimbabwe stock exchanges. It's hard for the human mind to pre-conceive exponential, non-linear eventualities. It's easy for a human to imagine an ice cube on the floor, much harder to predict the shape of the imminent puddle.

You are also tunneling by platonically categorizing Bitcoin and then narrowly defining it's competition and assuming that BTC's future market cap must be justified or taken from current capitalizations. But even keeping to your narrow and obfuscating non-reality based assumptions we could easily model a $44,000,000 BTC based entirely on collapsing capitalization of the total market capitalization of all currencies, transfer systems, value stores, legacy equities, shadow/traditional liabilities, and other encumbered assets.

Edited: Grammar

u/MisterYouAreSoDumb

It's interesting that you make value judgements on the manner in which I think, based off statements so heavily draped in sarcasm, a toddler with Asperger's would recognize them. I do not really think I am stupid, nor am I attempting to define Bitcoin by "platonically" categorizing it and narrowing its competition down unnecessarily. I was merely giving some lighthearted perspective on the matter by comparing it to not only the world's largest currency, but one of the largest commodities and the entire capital flow of the planet.

Perhaps I should have compared it to bananas to have avoided constraining myself to such a linear thought process. Maybe I should have thought of Bitcoin's expansion as more of a pouring of liquid mercury onto an electrically charged hot plate. It's market penetration correlating to the size and shape of the resulting puddle. But as you said, I am too simple-minded to understand fluid dynamics, or arbitrarily relate aspects of it to cryptographic currency.

Perhaps I should have misused words like "obfuscate" to try and sway readers into thinking I know what I am talking about. Because it is true, most of my discussions are merely the incoherent ramblings of a narrow-minded fool. I do find it hard to conceptualize exponential eventualities; especially as they are a happening right before my eyes. I much prefer the safety of my own ignorance.

So you are correct, there is no way my feeble mind can imagine a world where each BTC is worth $44 million. I wasn't just adding a little light-hearted perspective to the discussion. I am actually physically incapable of imagining that scenario in my brain.

Good talk.

Other MYASD lines in this thread

Related in the archive

Commentr/BitcoinNov 20, 2013

This is how everyone new to bitcoin feels right now.

Replying to qrios · You can also buy local from someone face to face in a public place.

For 20% or more over the highest market price. Volatility is making that option not very useful at this point in time. Eventually the market is going to need to decide if this is a currency or a commodity. It can't be bo

5
Commentr/BitcoinNov 21, 2013

CNBC graphic on Bitcoin Performance (11/20 Fast Money)

Replying to OutaPlace · I really feel the same way. Unless you got on at the lowest point, its really expensive to get into. On top of that, I hear a lot of "get your friends into it" or "help spread the

As the market expands, the same amount of bitcoin will be in the hands of many more people. If the market capitalization reaches high enough, most people will not be trading even close to a whole coin. Then volatility wi

4
Commentr/BitcoinNov 20, 2013

What most investors don't get about Bitcoin as a currency

Replying to ferretinjapan · Bitcoin is not a company, it is infrastructure. It is the equivalent of the internet's ipv4.

No, it's ARPANET. There's going to be a lot of CSNETs and NSFNETs before we see the internet. Bitcoin is merely the first cryptographic currency to gain acceptance. We can use analogies all day long. My point is that th

3
Commentr/BitcoinNov 20, 2013

How To for crash selling

Replying to pyalot · Worked so far... of course eventually the 300 spartans all died, so maybe that's a bad analogy mkay?

I believe that is what he was insinuating. That Bitcoin is going to put up a good fight, but will eventually be overtaken. The, "hold no matter what" mindset is the same mindset the Spartans had when facing the Persians.

3
Commentr/BitcoinNov 20, 2013

If you've been waiting to buy at low prices and now decide that "meh, bitcoin's not that great" don't come back here in 6 months when we are over $1000 and lament over "how you nearly bought some in November"

Replying to [deleted] · More chances for us to buy some on the cheap. Trends show that Bitcoin always springs back up to new heights. I don't see why that would change now that China is in the game and th

As the market expands, previous trends become less and less accurate. Be careful basing decisions off past tendencies, as the market demand and price drastically alter the way the market reacts to situations.

2