Bitcoin Forum

Hi,

Can all of you bitcoin and market gurus please explain for a dumb kid like me WHY bitcoin will and can be worth 1000-3000 USD (some say $10000 to $1MIL which I find weird?!).
One reason I think I've understood is that once all the bitcoins are mined and bitcoins goes global... we can kinda set the price. Is this correct?

Please list every reason and explain it like it's for a 10 yr old. I often see "BITCOIN WILL REACH THE PRICE XXXX USD" but never a reason why.
My heart says I should hold on to all of my bitcoins but my paranoid brain says "No. Plenty of crashes before that."

Thanks in advance.

http://www.zerohedge.com/news/2014-07-10/pure-madness-revenueless-assetless-sync-continues-over-5bn-now-bigger-cablevision-an

People who say that Bitcoin can reach $1 million per coin at some poin in the future are not being realistic. They keep fooling themselfs. I think anything between $1000-$5000 is surely possible. Especially when Bitcoin is getting used as an investment tool by institutional investors. These guys have the money to move Bitcoin beyond what we think is possible. Without them we'll probably keep sitting below $5000 for ever. We only need Bitcoin to gain more popularity among average joe people as being a currency and an investment tool. The rest will go automatically.

Bitcoin is controlled by a Chinese cabal. They have Bitcoin stitched right up in terms of mining capacity and in terms of control of Bitcoin 'wealth', Satoshi's coin stash notwitstanding.

If Western institutions pile into Bitcoin, then they are piling into Chinaman's business and enriching Chinaman. If Western Institutions are eager to make use of 'blockchain' technology, then there are plenty other alternatives that they could turn to other than hyper expensive, bloated, and lets face it, very slow Bitcoin.

Bitcoin goes up, when the Chinese whales decide to pump it. Bitcoin goes down, when they decide to dump it.

Bitcoin's only advantage over existing means of electronic payment, is in it's ability to avoid government capital controls.

If Bitcoin is going to hit new ATHs, it aint gonna be institutional investors coming into the frame, it is going to be an increase in demand due ton Capital Flight (probably from China), and the Chinese Bitcoin Cowboys ramping Bitcoin into the stratosphere to ensure that the Capital Flightees pay top dollar for their Bitcoin. Thus Joe Bitcoiner hopes to get rich on the back of economic chaos and mass suffering in the most populated nation on the face of the Earth.




And indeed, one should never underestimate the avalanche effect of mass public greed, which is why the old adage of the majority always losing holds true. The majority who invest money in a vacuos asset like Bitcoin are certain to lose and those who win or hope to win are exploiting the stupidty of other humans, whilst neither creating nor offering anything of value in exchange for their profit. The very definition of a 'rat race'.

more chances to be worth 10k than 1, also what are the argument against a 1$ value of bitcoin, based its fail for random reason, like it may die because of x bullshit thing?

instead there is a greater reason to have a higher price, which is adoption and miners manipulation, adoption will be forced by price manipulation in some way

because owning bitcoins gives you rights of ownership of the relative data stored on the Blockchain, which is the world's biggest, more widespread and popular p2p decentralized network, hence bitcoins have an intrinsic value.
because bitcoins have the pros without cons of gold, which makes them and ideal store of value.
because bitcoins have the pros without the cons of cash, which which makes them the ultimate payment method for in person trades.
because bitcoins have the pros without the cons of electronic payment systems, and are much more secure and fast than those, which makes them the ultimate payment method for online trades.
because bitcoins are non inflationary, which means that if demand and adoption grow, their value is bound to rise.
and many more reasons, these are the most notheworthy.

you would just need one of these reasons to justify such prices, but you have all of them.

There is no information that can back up such a claim. In the end it is all about what people are willing to pay for 1 single bitcoin.
Remember that bitcoin is an asset, and with all assets the price is based on speculation and potential.

So no there's no legit claim the price will be guaranteed at a certain value during a certain period of time.

Because greed? Utility's a long ass way behind that for the foreseeable future.

if you look at the history of bitcoin is will rise much more.

yeah bitcoin won't reech 10000$ soon, it will takes years,  i think by end of 2016 we will have 700$ because of halving of course, and because of china market

not possible even after 10 years. if you hold large amount yet the price plummet like a log, you'd be scracthing you head thinking why you bought the coins for $400. 

I think you are right, but its also the fact that we are making the price of the bitcoin with the whole bitcoin itself so I think we can also say the price is made by our self right ?

Its also the fact that the halving is coming and that will let the price go to a high amount or maybe to a lower amount, you of course never know what is gonna happen.

Well $1000 will be within reach in the future (again) but I don't see it reach all the way up to $1 M (that's too much). Well there will be a point that the demand keeps on growing more and more with supply remaining the same and that itself would certainly be the main factor for it's value to keep on growing even further.

Indeed, you are right the price will go to a high amount soon or later, this is of course because of the different factors the bitcoin depends on.
One of them is the halving that will let the price jump another one is that the people are believing again in the bitcoin.

I do not know, but I think because bitcoin is a technology that is very good in the eyes of investors and users very much, but that's my only guess only...  ;D

Because it can!Simple is that!
Bitcoin is the oldest, most known an used coin with the biggest and fastest growing infrastructure.
Look where BTC had been in 2012 and where it is now and what is planned for the short to mid future.

First off, there is no person on Earth who knows what the future price will be. This is a social experiment and stating that the price will be this or that is just guessing. However I do think bitcoin is growing so rapidly because many of us see the huge improvement in money that bitcoin represents.

The problems with traditional money systems are many. Especially when you try using them in a digital world. Consider how awkward a credit card transaction is. After waiting for weeks and handing over all your personal banking and tax information to a bunch of people you do not know you can get a card. When using this card you must hand over everything that is needed to steal from you to whoever you are paying. This information, which includes your identity, is passed on to the payment processor and passes through... I don't know how many servers. It will then take days or even months for the paperwork to be completed and for the business to be paid. Of course when the website you bought from is inevitably broken into all your information goes on sale at some Dweb TOR site.

Because of all these problems the card issuer must charge a whopping 3% on transactions. If you think you do not have to pay for using your credit card then you don't understand economics. MasterCard is not a public service, it is a for profit business and someone MUST pay. Therefore businesses that accept credit cards pass on their fees to you.  For example, when I buy something for bitcoin I often pay 3% less. Notice in the screen shot that cash (bitcoin, checks, bankwire) are less than the normal price. In this example the buyer saves hundreds of dollars. If you used say a bankwire you would save some but still have to pay for that, another $25.

Bitcoin is also far more secure than credit cards or PayPal. If you broke into my Overstock.com account you could see my name and address and even what I have bought. But you would find no credit card information and nothing that leads to any of my money. In contrast someone getting your Amazon account would also get your card and could use it to buy stuff. It's safer for all parties involved to use BTC.

There are many other reasons and use cases that make BTC superior for one user or another. A big one for me is the universality of bitcoin. I travel a lot and love the idea of a global money that I can bring with me anywhere. Money that is beyond the control of any government or financial institution worldwide.

We have years and decades of growth ahead of us, but my guess is that bitcoin is still an infant in terms of growth in value. But, we'll see.

http://i67.tinypic.com/ngc9b6.jpg

The price will go to a high amount that is true, but the halving can also be a bad thing for the bitcoin and can get it collapsed.
In my opinion this could happen, most likely not but the bitcoin is not to predict, the only thing that can give the bitcoin a very good boost is the halving.

yeah bitcoin had huge jump in these 4 years, so because  of that, i think it will rise that high in future too

Also, china did a price rise on bitcoin months ago, thats nice reason for bitcoin to grow, and of course halving which will happen in 2016 and 2020, it's good reason for bitcoin to grow too

The price will be worth over 30k but only in your dreams. Like you said there is no valid reason or argument for the price to go this high.
So don't expect it to go this high. It will not happend. Period.

I think there's no way to know if the price will reach 1000 above as my speculation the price will rise a little bit when halving is done..
If you read some thread that the price will rise above 1000 they are just thinking that the value of bitcoin will reach high above 1000 but they are not giving the best proof... honestly we don't if it will happen you can make your own decision and didn't push anyone to hold bitcoin until halving ends..

Better be careful not to let your position influence your opinion on the market.

Just because one is long bitcoin and is wishing to see it trading at $1000 or $3000 doesn't necessairly mean such view is correct.

This should be noted on some perspective.

Drink other peoples kool aid then you`ll be part of the mess too. I can go by history that the volume we setup of bitcoin will be good, so the value will go up eventually.

But dont know when this happen. RIP

I think if bitcoin ever gets that high, it's going to be years from now.  We're at a pretty good price right now but sentiment is all over the place and we'd have to get reaaaallly bullish to shoot up to $1000.  Not that it couldn't happen but it seems like a lot of crypto investors are looking into ETH and others.

I was thinking of the same as well and I`m sure most to do as well..

$1,000 seems to be the new magic # for most to be convinced.. but I guess its similar back then when bitcoin broke its 1st $100 mark.

1000 or 3000. I don't see both of them happening for the next coming  year. Even if just 1% of china's capital goes into bitcoin they will still cash it out which would be balanced.
So my bet is around 600 USD, or 700 at the most.

be careful when extrapolating the history.
past performance is not necessarly an indication of what's going to happen in the future.

Well because of the halving there is a good chance the bitcoin will go to a high amount for sure so that is the first point.
Another point is that more people are getting involved by the bitcoin and are gonna invest for sure.

I think that's possible because simply Bitcoin is already growing up daily and also we expect that after the next halving its price will rise highly

I think that many users and Bitcoin's lovers predict nowadays that the price will rise for sure in the few next coming months and especially after the coming halving happening soon.

Everyone is really positive about bitcoin going up,they didnt even move a bunch when they price was going down a few ago.
We are at peace that bitcoin will rise up.

You gotta love the positivity of the bitcoin community as it helps bring stability into the price of the coin. Some dumps won't matter much as long as the community is behind the coin and ready to eat those dumps.

Well this is easy if you ask me because the fact is that the halving is coming this year so that is a plus point.
Also another point is that the bitcoin is gonna go to a higher amount for sure.

we all assume that the block halving will bring us a significant price increase this year, but what if there wasn't a block halving upcoming? would you still think this year the price will rise significantly? in nearly every prediction i see people focus too much on the block halving which might make a lot people disappointed if things don't go as they were thinking.

Because there's a sucker born every minute, OP.

Well its $1,000 the magic # for break through.

We cant have 3,000 to happen if 1,000 hasnt been done yet lol. 700 can be easily reached one people see the momentum on price when $500-600 is reached. People eventually invest after seeing #`s.

If that would not happen it would be a whole disaster for the most under us if I'm very honest about it.
It will make the people not believe in the bitcoin anymore, although the bitcoins is growing everyday.

Some optimistic calculation tells that someday much more people will want to own BTC. Since the quantity of all bitcoin "in the world" ever is not great, the price should rise.

Too optimistic? Time will tell.

Very true. In world till 2145 bitcoin mining will work and till that time 21 billion bitcoins will be generated. After finishing all blocks there will be just interaction and exchange of bitcoins. So in that case value of bitcoin and some other cryptocurrency will be higher. That amount cannot predict now. But as per my opinion it will goes up to $10000+.

Your calculation and the realistic growth will not be the same. Bitcoin gets a long history when it touches the year 2145, but that long history and increased adoption won't pave path for a increase as you have suggested as $10000+.

I think after halving bitcoin will get stability in price at certain high point as it will be finished mining for generating bitcoins only used for transactions verification only.

At that point Bitcoin only used for trade or exchange on P2p market as well as B2b market. So more chances on bitcoin price are high. 

price after 2016 will be 900$ and not more, and you ask to explain, well it will be worth 900$ because of halving and what will happen before/after it, price rises now before halving because people buys lots of bitcoins, and halving will rise price even more

You're just substituting the question "why $1000?" for the new question "why $900?"

Why $900?

We know the block reward reduction will occur, we even know (roughly) when it will occur. But how does this tell us that $900 (and not more) will be the post-halfing price? If people buy lots of BTC - why $900? Why not $1000-$3000? Or why not $650?

By that time realistically I`d be buried in the ground.

Shit, I probably wont even see the $1k value mark and I`ll be lucky to see it since anything can happen to me before it.

Or it could stay in the $500-600 mark.

Theres no way to tell that prices can hold very long unless its the new median price after its been that way for 6 months.

Will do for what? The OP asked "Can all of you bitcoin and market gurus please explain for a dumb kid like me WHY bitcoin will and can be worth 1000-3000 USD?" They did not ask for respondents to pull new numbers out of their backsides. Being in the speculation section doesn't mean "ignore the OP and answer whatever you fancy".

If the bitcoin replace the US dollar as the main reserve currency in the world, it will be worth $1m each.

3 years ago, the Bank of America Merril Lynch produced a report to state that the bitcoin price is worth about $1200.

This will only happen in people's wildest dreams.

In the real world Bitcoin will just be (already is) an alternative form of money where people find freedom in.

for replace dollar i don't think that will really happen because dollar one of the strong currency in the world but might be to be a rival of dollar still possible someday but for replace it i think it impossible

It the real fact for which bitcoin is expected to touch $3000 in the future, though the price seems to be high compared to most other countries currencies.

In reality it is really possible to touch $3000 in the future. Like what happenee in the past that it only costs cents and now it is the cryptocurrency with a highest price.

$3000 is the possible price to have. But it might be reached within the next two years. It is possible in 5 years.

Not necessarily last for so long .. Just that Bitcoin is accepted by Facebook or Google, and we have $ 3,000 in a week ;)

I think facebook and google dont need bitcoin.. and what do you mean that we have $3000 in a week?
as my speculation in 2 years the price of bitcoin will reach around 1k to 2k value maybe in 4 years we will see that the price reach 3000 value..

Easy, real price surge hasn't even begun. We are not even in teh double figures marketcap yet, we are at 7 billion marketcap roughly while services like uber are 50 billion, so do the fucking math. We aren't even started yet. We will reach 100 billion in the next 5 years and the price will be in the 5 figures.

Facebook, Google - these are only symbols of mainstream.. It can be McDonalds or Walmart.. When some giant company will start accepting Bitcoin price can jump up to $3000 even in few days.. ok .. let say in one month..

Once 21 million are already generated, its also the start of the decline of price as the money will be distributed to some coins that existed.
thus the reason why new coins these days has about 100  million of supply to last the more generations. sure we're all be dead by 2145 though :)

The value of Bitcoin is now quite stable and that is not that bad but the most people are hoping that the value will be more worth soon so they can also have more money.
But the reach a higher value it will really takes a long time until you can have a lot of profit with it,

I have different opinion. I just wish the bitcoin price rises only 1% a month. The stability will make it useful.

1% increase on average a week is even better. For the last 6 years, the average increase is more than 1% a week.

one of the main reasons is, there are 7.4 billion people in the world, and there's several trillions of dollars on the world but there will only ever be 21 million bitcoin.

Currently there's 15 million bitcoin.

So, if we divide all bitcoin evenly over 7.4 billion people that means that every person will have 0.00283783 bitcoin on average.

That's a tiny amount of bitcoin.

Of course, if bitcoin would still only be worth $500 than most people could easily buy 1, 10 or even 100 or 1000 bitcoin.

But there's not enough bitcoin for everyone to have 1, 10, 100 or 1000 bitcoin, only a few people can have that many, and the rest will have to do with 1/1000th of a bitcoin or less.

So therefore, 1 bitcoin has to be so massively expensive that most people will not be able to afford one in their lifetime

that is of course assuming that bitcoin will be used by everyone eventually.

But even if bitcoin will only be used by 1% of the worlds population that that still means that bitcoin will reach high amount, just not as high as it would otherwise (still easily $10,000)

you're forgetting that bitcoin is starting to get widely used all over the world, and those investors are sure as hell not going to want to miss the boat and let "chinamen" have all the bitcoins.

I think the bitcoin usage is not widely at the moment. But the adoption is increasing all the time.

The price of bitcoin is an indication of its usage. the more the usage, or the adoption, the higher the price.

Then how can we tell if that increased numbers of usage came from different person? The increase of adoption must came from different persons. It's really increasing as time is passing but today I see no great numbers of adoption.

Most of the traders are acquiring more coins at least when there is a chance. Meaning most of stats from active usage came from same person. They just increase their bitcoin numbers on hand.

this.
the logic is simple. bitcoin can fail and price could drop, so you lose your invested money. which is a fixed numer. on the other hand bitcoin could succeed. mass adoption event of hyper-internet-monetization epicness is possible. that means hundreds of million or even billion of people will use bitcoin. in order to serve this demand those few million existing bitcoins must improve in orders of magnitude. so the upside of this investment is unpredictibly high. if you ever played poker you know that this bet is almost a no-brainer. if bitcoin succeeds it will be big.

Maybe the total number of transactions over certain value could be a good indication. That should exclude the dust transactions.