Bitcoin Forum

Well, simply imagine that tomorrow, the price drop dramatically because people think that the price is overinflated.  Then, what is the "reasonable" level that people are confident with?  50$? 100$? 150$?  The point is that past a certain point, people will just say "Hey, that look like fair value".  If it goes lower, people will buy.

Now, what is this fair value, well, first, before finding a number, we must understand what it means.  The whole concept of "fair value" means something different for each individuals.  For some, it's a number that grows steadily, not too fast.  For others, that is based on speculation (or, what Bitcoin technology is "worth"), for others, it's something completely different too.

Now, we have as many different meaning as there are "investors" in Bitcoins.  But all of those people, when selling (panic, etc.) will want to still be in the game (unless you completely lose confidence in Bitcoins and "retire").  So, when there's a "flash crash" as we've seen too often, to stay in the game, everyone agree that you must not wait too long because someone else will stop the fall.  There are after all thousands of people waiting deposit, verification, etc. in the exchanges, just waiting to trade fiat to BTC.  So, each time we see a dip, not long after we see it stop.  Then, it raise again and then people panic buy (to stay in the loop).  This have been proven on several occasions, even under extreme price inflation.  I do agree that prices raise too quickly ;D

So, Bitcoin economy, although it was not envisioned, it pretty resilient.  When we pass a psychological threshold, then it's done.  There's no turning back.

It's no longer 2011.  The pool of people adopting Bitcoins is much larger.  Many more coins are at stake.  Many more dollars are invested.

The only thing that could "kill" Bitcoin is a technical flaw, like the chain fork we saw.  However, thankfully it was identified and discussed promptly.  People did understand the situation and it was easily resolvable.  So, unless a fatal flaw is found, I think Bitcoin is here to stay, exactly because it means something different to each person :)

Well, that's my 2 cents...

Damn, you understand me way too well ;D ::)