Bitcoin Forum

We know that supply and price are reciprocal. If the supply of the bitcoin in the circulation of bitcoin in the world is high.. the price or the value of the BTC is become low (VICE VERSA). so that i conclude that if we destroy. The BTC will be worthful and they don't spend it in a useless things.




Dotakels

I think you meant supply.

Sorry yeah it supply. If the supply of btc decreased or become few. Btc value will be high because the lesser the supply the higher the value.

it was not always about supply, but rather the usability of it, check out altcoin section , there are tons of altcoin with supply less than 1M, and where do we see them now? worthless. nothing more nothing less, same thing to go with bitcoins, supply could affect the outcome of the price but rather usability is the most important, if bitcoin serve no purposes anymore , it will become worthless no matter how many supply was left to be mine

Thats right, it become worthless if we do not use it in the right things.
Can i ask you? how do you say that the BTC is now worthless? even if lessthan 1M? if the supply of BTC is less than 1M ,it price will be increased. how do you say that it worthless?

No I dont say that bitcoin is worthless, im just stating an example of other altcoin where the max supply was less than 1M, it is worthless, why? because they serves no purposes different than bitcoin itself, on the other hand, what im saying is a supply doesnt actually effect the price if there is no use for that thing, and due to the volatility of bitcoin there isnt any guarantee than in a week, price could bubble up to 1k $ / btc or crash down to $1/ btc

Supply of bitcoin is the total amount of bitcoin mined less the lost coins. The rate of increase of bitcoin supply is the bitcoin mined everyday.

By your theory, we must destroy an amount equal to daily mined bitcoin to keep bitcoin price the same. This is very wrong. We need to increase demand, limit supply will not work.

destroy what?
Who will destroy his bitcoin? That's should be very stupid.
I remember  there is a altcoin names 66 coin was created in the last year, the totally supply is 66 coins, I guess it is dead already.
Any way crypcurrence can be splitting  at any accuracy, so the supply is unlimited.

By actually generating a demand of bitcoin, first bitcoin must have its own usagebility, as of now, bitcoin is used for mostly trading, not the real purposes as to serve a new decentralized currency, if there is a usagebility of bitcoin , demand of it will increase as well


By "destroying", it could mean by making it "unreachable" There are alot of bitcoin "destroyed" I believe , there are alot of unreachable wallet or someone left some dust satoshis in his wallet, either way the total amount wont be 21M but less

Despite the fact that BTC is being hoarded and yet the price is going down means someone out there is keeping the price low.

bitcoin supply is controlled via reward halving that occur every 4 years
next halving will happen in 2016 that will control supply of bitcoin

By actually putting on "supply", OP actually mean the max supply of the bitcoin, and as far as I remember, the halving period is only to control the distribution of the bitcoin itself, not to limit the max supply, so in the end max supply will be at 21M + a bit

there is a thread that is talking about , if we do spend bitcoin so fast that they won't be available in a short time, it would be like destroying them, thus the price will rise

but i'm not really sure that this is the only thing that bitcoin need to increase its value, remember that its value is given by us...no interest in bitcoin no rising in price

Try to tell bitcoins to merchands ... and it's over.
They will NEVER return to credit card FEES.

People are dumb ... they pay useless things with a HELL of fees.
And after that, they go to bankrupty.

I am saying that not literally destroy. I just want to say is to limit the number or the supply of btc to increase its price. Sorry for the term "destroy".

by actually limiting the supply, there is already a limit, as I stated before, a maximum of 21M of max supply but if you are talking about the distribution of bitcoins, it is also has been stated before that there is a halving year which it will decrease a block by 1/2 of the current value every 4 years

So you mean that every 4 years the value of btc will decreased. so that the supply will not  affect the price of thr btc. And you also mean that is the enemy of the price of btc.?

no, every 4 years the number of bitcoins in 1 block will reduced by half the current amount, today 1 block = 25 bitcoins, in 2016, 1 block will be 12.5 bitcoins, this is about limiting the distribution of bitcoins

Supply will effect the price if only there is a real demand to it, because if there is no demand on it, it will be known as abundant supplies

i.e If you got 10 candies but you only need 1, then the rest 9 candies will be worthless as it has no value, and different cases is if you got 10 candies and you need 11 candies, the value of each candy will rise

If the each candies will rise the value if you need 11 but you have only 10 . How will effect the price?

then each candies will rise in value, because everyone will be pursuing this , the main reason of price increase is the buy power, if something is valuable enough , people might start buying it, if there is alot of buy power, the price will drive higher, remember, in every buy there is a sell, someone who bought lower will sell it higher

Do you think she/he will sell it? Whar happened if he/she eat it or use it? What will happened now? The price will be higher or lower?

in a trading, each buy is a sell, so each time anyone but a bitcoin. he / she will sell it for higher maybe not now, perhaps tomorrow or two days later, no one will be keeping it forever, or atleast use it, if he/she intended to use it, it will switch ownership, the new owner will sell it to another one, thus repeat the process

anyway this in only an analogy, the true system is that there are hundred thousand of bitcoins trades occuring each day, in short, if there is buy force the price could be drive higher

It's not always supply-dependent, mate. There are various factors that affect the price of bitcoin, and not only the supply per se. The adoption rate, the features, and what the coin offers are some of the major factors that affects the coin's price. There are numerous altcoins out there that do not offer the same features as to what bitcoin already has. And most of those altcoins turn out to be a scam; a way to get some money out of the investors pocket by the coin's developers.

Well adoption rate is what determines supply for the most part. And with time it will be all that matters, as bitcoins are mined increasingly slower.
Altcoins having an influence on bitcoin price? Don't think so... even when Ripple was "in vogue" a couple months ago, I don't think bitcoin was hurt by it. It would take a seriously advanced coin to threaten the oblivion of btc and thus people trading it for alts.

I will have to tackle this, most altcoin are made for short term pump and dump, nothing more about the features talk and we are actually talking about bitcoins here, if you would spend time to read the title it is Supply vs price : BITCOIN

The demand exists in many different area, but just like on FOREX, 70-90% of currency trading volume is related to speculation. So when some whale start to drive a speculative wave, the price and demand will all go up

It took only 300 million dollar to buy all the coins on market (about 1 million), any hedge fund with a little bit size are able to start a tsunami. However they need some official channel, wait for some official exchanges

Another issue is the safety, unless through ETF, those investors will have a hard time to keep their coins safe, this is the biggest concern right now

Price does matter for me i don't care about supply. I think most people here cares only about the price

Don't Beg, Borrow, and steal for BTC.

In the simple standard economic law, we know there is actually a correlation between supply and price, abundance of supply will result in lower price thus the reversible pattern, you cant ommit about supply if you were to talk about price

So that you mean all of changes in price is the buy power until they buy the btc it price will high.?

There are other factors to consider that affects price but yeah the supply is part of it.

well that is obvious, if no one buy(it's more accurate to say if buyers lower their walls) the price will crash fast

but the less coin in curculation the more the demand, because there will be less coins and many people want them, so they will fight each other , thus rising the price

Thats right they will fight or they will be compete to buy the btc so that the price of tbc will up.

as I have stated before there should be a usagebility for bitcoin itself to actually create a demand, if there is a demand, the buy force will be rising and thus increasing the price, and also supply is one of the factor of correlation too, abundance of supply wont create a rise in price for sure

You mean theres no big effect in price when the supply goes down or up?

there is of course an effect, standard economic law did state that price and supply is in correlation with each another, and I have given an example before of how a little supply could be means an abundance of supply if there is no use to that "thing"

So if there a relation of supply and price that affect bitcoin, how greatly affect it/

Unsure about this, but you can imagine how a limited supply of oil gonna affect the price of the oil, imagine that oil gonna dry up next year, price will greatly increase for the time being until someone come up with a new idea to replace it, that what will happen to bitcoin too if there is a demand and usagebility to it

So what do you think will replace or will be beat the btc.? If you think of it. If we dont use or support the bitcoin the bitcoin will be useless or worthless. so the users of btc will be the one who can go up or goes down the price of btc. usagebility of btc are depend of their users.

for now, bitcoin seem to be irreplacable because of its unique feature, anyway bitcoin hasnt achieved its main goal by now, i believe satoshi created this to become decentralized currency, which we know by now, only a fraction of the population even know about bitcoin

Only select people who have a intelligence.