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Why would I want to make actual purchases when it's rallying like this? You'd almost always be better off holding instead...

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That's the problem.

If no one is actually using the coin for practical purposes, you've created a glorified Ponzi scheme. The minute that "better off holding" is no longer the most common opinion, the price of BTC will drop.

I dunno how long that will take: it took years for Enron to drop to zero for example. But I do not place much trust in the whims of stranger's opinions.

So everyone is holding and buying it, and no one is making anything useful with it. Sounds like a great allocation of capital! /s

I am all for bitcoin but you think about it as it is right now. People turn their cash into ether then extract more cash then they put in later only because a bunch of other people are doing it too. This has to pop and when it does i buying a shit ton of it for the next rally.

--edit extra should have been extract.

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