ChristianKl comments on A proposed inefficiency in the Bitcoin markets - Less Wrong

3 Post author: Liron 27 December 2013 03:48AM

You are viewing a comment permalink. View the original post to see all comments and the full post content.

Article Navigation

Comments (138)
Tags: reasoning markets bayesian rationality bitcoin efficient applied

Comments (138)

You are viewing a single comment's thread. Show more comments above.

Comment author: ChristianKl 27 December 2013 03:28:07PM 4 points [-]

However, I'm not convinced that the market for Bitcoins is efficient... for example, there are going to be 84 million Litecoins to Bitcoins' 21 million, but typical investors don't know that, so 4 Litecoins for $100 feels like more of a steal than 1 Bitcoin for $100

There no reason at all to believe that the total value of Litecoins should have an easy relationship to Bitcoins. Bitcoin has much more infrastructure for real world usage behind it.

Comment author: John_Maxwell_IV 27 December 2013 11:49:22PM 3 points [-]

I agree, I'm just arguing that typical investors are not valuing either currency rationally and "failure to account for the denominator" is an argument in favor of this position.

Powered by Reddit Powered by Reddit