Bitcoin Forum

At the time of his [Roger Ver's] bet gold was trading at $1,664.25, silver at $41.62 the S&P 500 at $1,200 and bitcoins at $9.26. Currently gold is trading at $1,580.70, silver at $27.12, S&P 500 at $1,553 and bitcoins at $160.00. So, only the S&P has outperformed the USD with a 29.4% return compared to bitcoin’s 1,633% return or 55.5x the S&P 500′s return.
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The bottom line: there are a ton of funds flowing into Bitcoin. And nothing could be more exciting for the bitcoin price than a feeding frenzy of well capitalized financial sharks in a market as tight as Bitcoin who then have a financial incentive to build out the infrastructure that will enable greater adoption and network effects.
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To maximize your profits from this long-term secular crypto-currency bull market you merely need to

Is Trace Mayer on the forum?

THe OP dude. ^

There is only transactional and speculative demand. For transactional demand the price is irrelevant. So that simply leaves speculative demand. And since Bitcoin is a Giffen good that is produced only to be hoarded and not consumed therefore it has a paradoxical effect: As the bitcoin price rises it decreases float supply and increases demand.

He's forgetting about mining.

No he isn't.  He's - correctly - ignoring it.  It just confuses the issue.  Mining is esoterica, these days - not for anyone just getting started.

Bitcoin price can't simply go up forever.

One could imagine that Gox is actively selling to stem the price from melting up.

Why would they want to do that?

For every practical purpose you can say that Bitcoin price can go up forever. Just think if al lthe money now in gold and tax haven accounts would come to Bitcoin. Bitcoin price would expolode to almost unimanigably heights.

That's not the problematic part to imagine, the problem is imagining the energy needed to run the network.

$ price - $ estimated energy costs (per day)

100 - 0.2 million
1000 - 2 million
10,000 - 20 million
100,000 - 200 million

and at the magic price of 2,760,000 bitcoin uses the total electric power generated in the world. ($0.1 per kWh, 2.3 TW total world electric power usage)


At this point we are probably building bitcoin miners directly at the top of oil rigs.

That's not the problematic part to imagine, the problem is imagining the energy needed to run the network.

$ price - $ estimated energy costs (per day)

100 - 0.2 million
1000 - 2 million
10,000 - 20 million
100,000 - 200 million

and at the magic price of 2,760,000 bitcoin uses the total electric power generated in the world. ($0.1 per kWh, 2.3 TW total world electric power usage)


At this point we are probably building bitcoin miners directly at the top of oil rigs.

Perhaps you can do a cost per day for ALL gold and silver miners to operate? Oh an the operating cost to have the DOLLAR guarded in all banks, transported, printed, shipped etc etc etc

That's not the problematic part to imagine, the problem is imagining the energy needed to run the network.

$ price - $ estimated energy costs (per day)

100 - 0.2 million
1000 - 2 million
10,000 - 20 million
100,000 - 200 million

and at the magic price of 2,760,000 bitcoin uses the total electric power generated in the world. ($0.1 per kWh, 2.3 TW total world electric power usage)


At this point we are probably building bitcoin miners directly at the top of oil rigs.

But what those costs have to do with price of bitcoin?  At least by looking at the power costs, we get some sensible limits on bitcoin prices.  That is what this forum totally lacks. 

As for ridiculous, saying that bitcoin will go to 1,000,000 is indirectly the same as saying: "Bitcoin will grow until it uses third of world's electric power!"

Do you think that Ben and co. are printing money with no energy costs? I am pretty sure that Bitcoin is one of the most efficient currencies when it comes to energy costs to run the whole system.

will facilitate the largest transfer of wealth in human history