BitcoinWhy Bitcoin Fans Don't Believe in Bad NewsJacob DavidsonLast weekend, Bitcoin crashed.The dollar value of a single Bitcoin began to decline on electronic markets starting on Friday and by Sunday afternoon had fallen 14%, to $290.It recovered a bit in the days that followed, but the slide appears to part of a broader trend: At the Thursday price of about $350, the digital currency has lost almost 70% of its value since its all-time high of $1,147 in December 2013.At the New York Times, Paul Krugman used the roller coaster weekend as an occasion to once again call Bitcoin a long con.But among the Bitcoin faithful, the sun never stopped shining.On Reddit's Bitcoin discussion board, for example, home to almost 140,000 enthusiasts of the electronic currency, the price drop was framed as good news."The good old days are back!Massive walls, manipulation and a true financial wild west - I love it" chirped one of Monday's most popular posts."Whoelse is enjoying the firesale?"asked another popular participant who claimed to be "picking up tons of cheap bit coin."RelatedBitcoinBitcoin

Soars to Record High of $1,400 Due to High Demand in Japan BitcoinBitcoin Soars to Record High of $1,400 Due to High Demand in Japan How to explain the eternal optimism?Is it possible that Bitcoin's most dedicated fans are simply more tuned in to the currency's long-term potential than the broader market and therefore have a more favorable view of its true value?Sure, it's possible -- but Meir Statman, a professor at Santa Clara University specializing in behavioral finance, has a more plausible explanation for the findings: Confirmation bias.In short, he says, Bitcoin communities tend to be echo chambers of optimism, giving their members a false impression of the currency's true value."What you hear, really, is what you want to hear; what is easy for you to believe: That bitcoin is going to take over and banks are a thing of the past," explains Statman."And when you have people who reinforce it, people are not looking for the truth, they are looking for views that are going to support their prior beliefs driven by ideology and self interest and so-on."This

explanation would seem to be supported by a recent study of Bitcoin users by researchers at the University of Illinois, who found that those who participated in online Bitcoin communities were far more bullish about the currency's future price than other Bitcoin holders.When asked about the long term value of Bitcoin (which the survey defined as the coin's price in early 2019), users who talked about Bitcoin on various online platforms produced estimates 68% higher than those who did not.Of course, that's not a phenomenon unique to Bitcoin or online forums."There is a similar finding about communities where people describe their investment success more generally, because people tend to brag about their success and not brag about their losses" the professor warns."If you are not careful, all you hear is that people are making tons of money."Statmansuggests yet another psychological explanation for the behavior of the Bitcoin community, noting that many people who invest in Bitcoin -- and other alternative assets like gold -- do so in part because it fits their broader global outlook and ideology.

"It is fair to say that lots of the people who invest in gold invest in a view of the world: That the United States is going down, bad things are going to happen, inflation is going to rise," Statman says.That makes hard truths particularly difficult to accept, he says.After all, divesting from a stock is easy.Divesting from a world view, well, that's a lot more painful.Statman advises investors of all types to avoid confirmation bias and "ideological" investing by talking to people with different perspectives.bitcoin blockchain countFor example, he jokes, Bitcoin buyers should have asked his opinion of the currency before last weekend.current bitcoin price audHis take: "I think it's a scam."Afterlitecoin live chart

being contacted by Bitcoin advocates, Statman clarified his position to MONEY."My initial thought when I heard about Bitcoin from my students is that is a scam.I know now that the technology of Bitcoin might prove useful but I am puzzled by the rush to it."The temperate winter climate of Miami, Florida is serving as a pleasing backdrop for the numerous attendees of the North American Bitcoin Conference.The symposium, being held at the Miami Beach Convention Center this weekend, brought a huge crowd.bitcoin america faucetMany of the talks were held with all seats full.amd a10 bitcoinIn the afternoon, the second hall, used in the morning for merchant vendor workshops, was used as an additional seating area with the speakers being broadcasted on a large video screen.bitcoin to litecoin converter

Here are some highlights from Day One of the conference.They say that crime doesn't pay.It probably doesn't in the long-term.But criminals still use monetary instruments in order to break laws.And despite the media exposure bitcoin has received regarding scams, thefts and the sale of illicit goods, most crooks still use cash.David Aylor is a South Carolina attorney who is involved with what is likely the first case where the federal government has seized bitcoin.bitcoin trading githubHis presentation 'Bitcoin, Dirtier than Real Money?'bitcoin qt guidemade the argument that there's plenty of good to be had with cryptocurrencies, and that it is going to attract bad actors just like any other technology would.bitcoin windows rtCraigslist was an example that Aylor used as a tool that can be used for good as well as bad.

Bitcoin can be used the same way and the media's portrayal of BTC is one of the reasons that some people "think bitcoin is evil", he said.Aylor advocated for candor and transparency within the bitcoin economy in order to propel it forward.A lack of honesty is a problem that could thwart bitcoin's success."We don't want to become a rouge industry based on secrecy," he said.Eric Benz, VP of Business Development for ZipZap, made the case that there is a business use for bitcoin, and that it is inevitable that the negative news as it relates to bitcoin will result in compliance policies coming from governments."We need smart regulation that does not stifle innovation," he said.The company allows people to complete online transactions with cash in thousands of physical locations around the globe.Bitcoin conferences are usually an exciting time for enthusiasts to get together and talk about potential.Day One's venture capital panel did just that. and an angel investor, Marc van der Chijs a partner at CrossPacific Capital, Matthew Roszak the co-founder of SilkRoad Equity and Rik Willard who is founder of MintCombine all offered opinions about VC interests.

Investor Rik Willard made it clear that virtual currencies will bring "a lot of things you can't even think of yet".Roger Ver echoed that sentiment, saying that bitcoin's opportunities scale globally."Bitcoin doesn't care where you come from," he said.Ver made clear that BTC could become a legitimate worldwide method of exchanging value."Bitcoin has the potential to be a universal currency."Economist Jeffery Tucker, the founder of Liberty.me, took to task traditional economists who do not have favorable views of bitcoin, specifically a certain author of New York Times op-eds."Does it really matter what Paul Krugman thinks?"he asked the audience.Tony Gallippi, the CEO of BitPay, pointed specifically to Miami as a place where a prosperous hub for bitcoin-related activity could happen."Miami is an amazing city for international business," he said during his presentation.Gallippi pointed out that TigerDirect, an online retailer that recently started accepting bitcoins, is based in Miami.How burgeoning businesses should be operating in the face of possible regulatory sanctions dominated the startup panel that featured leaders from several different BTC-related businesses.

Wendell Davis the founder of Hive Wallet, Steve Beauregard the founder and CEO of GoCoin, Dan Held the product manager of ZeroBlock, Oleh Zadoretskyy the founder and lead developer of BTC Robot and Paul Vernon the CEO of Cryptsy were the panelists.Interestingly enough, only Cryptsy was incorporated in the United States.The other companies on the panel cited different countries for incorporation because of somewhat murky US policies in regards to cryptocurrencies.Paul Vernon, Cryptsy's CEO, welcomed the idea of BitLicenses, a regulatory framework that the state of New York is considering."I think the BitLicense is a great idea.I hope that every state does that," he said.Day One of the conference was capped off by angel investor and bitcoin advocate Roger Ver and he did not disappoint.When asked about the future value of bitcoin, Ver was understandably bullish about price."It's very, very clear that it is going to be higher than it is today," he said.Perhaps the most intriguing though that Ver conveyed was his opinion on mining.