Bitcoin Forum

"Bitcoin is still undervalued by quite a margin, but we should not run the marathon before we can take our first steps either."

That is the main thought of this article: http://www.newsbtc.com/2016/06/13/unnatural-bitcoin-price-growth-cannot-sustained-indefinitely/ (http://www.newsbtc.com/2016/06/13/unnatural-bitcoin-price-growth-cannot-sustained-indefinitely/)


And here is my question. Do you think that bitcoin is undervalued, but we should wait for larger scale adoption, develop infrastructure and services around it first, before pushing it?

or

Bitcoin is undervalued, so it is perfectly fine as it is now and all we need is higher price to push it to the next level and adoption, recognition and userbase will come with it?

I think a lot of people are using Bitcoin as a store of their wealth and not as a digital currency and that's why we are seeing such abnormal jumps in the price. If Bitcoin became more popular among consumers I think the price would be less volatile and would have a more stable value. Because everyone is buying a lot of coins due to all the hype surrounding Bitcoin the price is going up but it could come crashing down when people start selling and I don't think this is what we all want. I think Bitcoin is overvalued and underused these days.

Bitcoin is considered as an alternate investment option and many people like me are just buying and accumulating. The market cap is increase due to huge buying of bitcoin and that is the primary reason behind the price increase.

However, a group of investors are also traders. So they will soon start to book their profit. Like every other trading currency, bitcoin price will see a sharp drop in price when the mass selling will happen. I too believe that the current price range of $730 is not sustainable.

Bitcoin is undervalued as hell, and Bitcoin can perfectly sustain more money coming in, it just means you have to pay an higher fee if you want your transaction to go faster. We are not going to rush things so we end up like ETH with their absolute disaster we have seen today. It's better to make progress in a slow, but solid fashion, than to rush things, so pay the fucking fees and let the coders keep doing a good job.

3 transactions per second...

I don't see how it is undervalued.

At the moment, the rapid increase of bitcoin makes me worry a little.
That quick growth can not be sustainable.
I think it's a bubble that will implode soon (halving day).

bitcoin is surely undervalued , and there is no argument there.

but this doesn't meant that the bitcoin is ready to have this much value right now and the current price rise is not because of adoption. so it needs a bit longer to reach that stage and have the real price rise because of adoption.

Bitcoin History tells us that this growth is not sustainable.
There were a lot of ups and downs in the value of Bitcoin, and such trend will continue because it is inevitable.
It's nature of any market, that value always depend of supply and demand.
When demand decrease we will see decline in the value of Bitcoin.

Yes - the consensus now is that bitcoin is an asset not a currency, and as a result it is behaving very similarly to gold.

History tells us that there are periods when rapid price increases have taken Bitcoin to new levels.
From crossing $1 to crossing $100, there have been several landmarks.
Whether the current run will result in a new landmark is debatable.

I don't see bitcoin as something undervalued, to be honest. I think the current value is just enough to accommodate the number of transactions being held and the number of users using bitcoin. It's just the fact that when bitcoin's value needs to grow, it would need bigger investors and more and more coins are being held and not into active circulation.

yeah some how this bitcoin today's price is overvalued and unnatural and every one must be scared of the time when people might start selling their bitcoins so that moment prices might get down which is not good so unnatural bitcoins price growth cannot be sustained indefinitely.

It is time for sell all of my bitcoin, because the price of bitcoin will going down soon if i looked last halving block.

I do not think bitcoin is undervalued and I have good reason to think so.
Every moment of every day all over the world people are buying and selling at the exchanges. Anyone of us could ask for any price but if you chose a price above the market valuation then nobody is going to buy from you. That is because the price decided by the market is the fairest price and should be considered the "real" price. If a person's opinion is that bitcoins are undervalued then it is only their opinion and has no relationship to the actual market forces. So the value of a bitcoin is what others will pay for it. Not what we wish they would pay or what we think they should pay, what they will actually pay.

Bitcoin price has been pumped so quickly this week but suprising thing is that we haven't seen much dip or dump like before whenever there was huge pump. If we remember price been pumping from november last year from 200-300$ range. So compared to that we are doubled and this can be consideered as good and reasonable price considering upcoming halving.

New news which can fuel this price run can be current DAO network hacked and more than 2 million eth is in hacker wallet.

unnatural price growth really? the dump that happened before that(the big dump from 1200 to 200) was much more unnatural to me, bitcoin should remain at least at 1k in value no less

there is no reason for bitcoin to remain at such ridiculous low level(<400-500)

It's relative term regard the growth is "unnatural" whatnot. Do you know how fast is the fiat press printing going? It seems perfect normal growth according to the current value.

It depends. Are those transactions people using or hoarding bitcoins? My feeling is that many people are simply buy for trading and will soon dump all their coins at the right price or at the sign of a downward trend.

The recent price movement is most likely triggered by anticipation of the upcoming mining reward halving.
I suspect that at least some part of the rise is caused by deliberate pumping activity (probably by miners who need to make sure that their mining rewards are sufficient to keep their operation running even after the halving). The risk with such a pumped exchange rate is that it can't be sustained, but in this case the pumpers don't have an incentive to become dumpers after the price rise, so it might stay around $700-$800 for a while. I don't really expect a true "to-da-moon" development, but as market participants are irrational humans, it may happen anyway... In that case, a hard drop is probably inevitable, but most likely it will fall to current levels, not much lower.

Onkel Paul

On that article is not specified how much does a bitcoin really worth, but i think that it is not undervalued much as it is keeping increasing day to day. If bitcoin is undervalued then how much worth based on your/their opinions.

I'm going to focus more on the original comment; the growth of the value of Bitcoin definitely cannot be sustained indefinitely.

Addressing the questions posed by OP;

Bitcoin should be having infrastructure and services designed around a larger userbase now rather than later, as procrastination will only turn away potential users due to inaccessibility.

We ve seen this kind of growth before and we all know what happened. So, this growth, this fast, lots of pumping for sure.

On the other hand, I think BTC can reach $1.5k by the end of next year.

The rapid price growth will not go on indefinitely... This comes as a direct response from different things going on at the same time... The ETH pumpers are running back to Bitcoin.  ::) .. and the

coming Halving creating a speculative environment for the Chinese markets. Things will go back to normal after the Halving happened, IF there are not other external environmental things pushing it

any further. We will once again see a more stable Bitcoin price, at around $500.. anyone want to quote me on that?

The value of bitcoin should increase as more people use it. It is related to the usage, but there is no formular to determine the exact value.

I agree, but I wonder if this isn't a price correction so much as a pump. Mining companies will lose out if the price doesn't stay at this level, there is a strong incentive to let the market rise for the time being ;)

I think Bitcoin price is due for a pull back. In the long run, it probably will make new high, but for now, it will back to 600 level.

I expect BTC price growth to last indefinitely. That's part of the plan. The market rules and it makes no sense saying BTC is undervalued or overvaled, but the rise we've seen this past 3 weeks is grossly overdone. Change should not be so fast.

Yes. Bitcoin is not just crypto based currency, its crypto based digital gold. People just hold their bitcoin for profit like as people reserve gold. A currency is not for holding, currency is a system of money in general circulation. What ever will be the price of bitcoin near future, the price will be not sustainable IMHO.

This pump is just the start, and negatives are in with their criticism.
But I can say that we will still see a big rise before it ends up back in the garbage prices.
And mind well, don't get trapped.

Just remember that just like gold, prices go up and down. The price of gold was very high in 1979 - and then dropped and didn't recover it's previous highs till about 2005. That is a long time to be underwater. If people have made profits, then cash out an amount to your initial investment, and that way, if it tanks you haven't lost money and if it continues to soar, what you still have invested should be very profitable.

Yes, I want to quote you on that :)
In fact, you shared very good reasons for the rapid price growth of Bitcoin.
It logical and normal that such price growth can't last forever.
After halving prices will fall to realistic limits, based on supply and demand in the Bitcoin market.
After that, when it happens again some extraordinary event, and demand for Bitcoin suddenly increases, the price will again increase significantly.
We saw it so many times already :)

After halving the Bitcoin supply is decreased as miners can mine only half of what they are mining now. So its very likely today price is sustainable after halving. But still almost a month till halving, and I believe if correction comes its more likely before halving when the supply is higher rather than after halving with reducted supply.

It is priced almost double within 2-3 weeks. Sad thing I only have a small amount of btc, I didn't buy when it's cheap

Right now bitcoin is still undervalued. Its value price will still go up skyrocketing but we do not know until when will it rise. Later on the future there will be a massive dropdown on bitcoins price. But if bitcoin stocks is still less compared to demands it will continue to increase until 2017 maybe 2018. 2019 and beyond is another story that we cannot predict though.

I hope people took my advice and protected some of their profits...

Could be a little bit of both, but I think this a bit more. Wait for bitcoin to have it's infrastructure first, and the price will follow after that.

I agree.  Infrastracture and development give ways to value increase.  Even a rural area for example can significantly increase it's value once infrastracture have been develop in that area.  Likely, as what the article wants to convey,  BTC price had been pushe upward too fast, that with the current development being the same.  I do agree that a sudden inflation will just always be followed by deflation.

The price has risen too fast in the last months. So there is a big price drop. I think the price needs some correction.

Hopefully the correction is over and £400 is the new floor but the bonus is,  if it drops back down to 300 its  going to seem like it's cheap.  So cheap bitcoins for all if we continue at this rate.

If value goes down again, expect heavy dumps from big holders because they may lose their trust to bitcoins. But there will be those, especially the ones new to bitcoins, who will see the drop of value a very large opportunity to get their hands on bitcoins while it's at it's cheapest possible price.

even bitcoin became salary for they living, bitcoin became their main jobs to have a living. but exactly as you said a lot of people using bitcoin became an asset,rarely to find people who using it become a currency.

i think we still have a really long time to go until we will reach such a bitcoin popularity that would allow people to work for bitcoins only and to gain their wage only in bitcoins

thats true that after such a huge grow it is impossible that the price will be stable because people are dumping their bitcoins at a very rapid pace then in order to make big profit

There was a big dump then. But things are stable now. The bitcoin price is trading between $600 and 700 now.