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Comment by msy | Hacker News Reader

I'd like to see some of the many bitcoin evangalists about the place convert their life savings, serious cash, into BitCoins and keep it that way. Talk is cheap, particularly when it's abstract economic theory.

Then I might think it's got something in it rather that looking like a volatile ponzi scheme that geeks are keen because they think they're in early and going to make mint.

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That's not a good idea. Being passionate about bitcoin doesn't imply you should convert all your money to bitcoins. In fact I would never advice anyone to invest too heavily in it: treat it like a side project, like an experiment. Maybe accept it as a form of payment for some non-essential products or services that you provide. Maybe try to make some trading with bitcoins. Try to see if you can buy a pizza maybe with bitcoins.

But only on the side.

Not because it's a ponzi scheme, but because it's still in its early days.

> ponzi scheme that geeks are keen because they think they're in early and going to make mint.

I just learned about it yesterday, but I'm excited about it because it has the potential to become a "Free" currency (free from the central control of a powerful authority).

Why not? If the crypto is bulletproof and the theory is sound shouldn't it be the ultimate place to keep your money?

Because market value of BTC is not at all stable or proven as the market is quite small. It is entirely imaginable that somebody will design similar, but slightly better system (faster transactions, more efficient implementation, whatever) that will cause most bitcoins traders to move there. Essentially, system like this depends entirely on market, while nothing has "inherent value", most physical things can be still exchanged for something (and actually gain value) after market crashes, when this kind of virtual market is abadoned, you are left with completely worthless big chunk of data.

So if this is an unstable, unregulated market that shouldn't be used for anything more serious than pizza at what point is that going to change? What magical thing is going effect to change?

And if that thing doesn't exist, what is this apart from a more complicated way to waste electricity than Seti@Home?

The assumption/hope is that it will stabilize as it grows, but this will take time. It's not gonna be a magical thing/moment.

It only has value if people accept it as payment. Cryptography is only part of it.

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