Bitcoin Forum

we see bitcoin today experiencing high fluctuations below and will always drops, probably going back to the point of $ 4500. but if I look with bitcoin stock today which a little again $ 3.5 million , then this condition is not normal. because it should be when bitcoin is scarce, then price and value will quickly rise and higher. but today why down? do we have to wait 1 million bitcoins?

"scarce" is a term in economics that means finite. Air, food, and water are not scarce because they are replenished. Bitcoin is scarce because even though there are a huge number of satoshis (2,100,000,000,000,000), that number is fixed.

I hope answers your question. I was not able to understand it.

It isn't just the supply that gives something a value, it is the demand as well.
Supply doesn't really affect Bitcoin's price that much as it is always accounted for, because it is predictable without a doubt.
It is the demand that affects it's price the most. The demand decreased for whatever reason (some sort of panic selling probably) and therefor the price fell.

I think bitcoin's scarcity is impossible, because with the increasingly sophisticated technology today, it enables everyone to access and invest money in various fields, one of which may be in the form of bitcoin. so it's not possible if bitcoin is scarce.

First to say that you explained it nicely.

The reason for the fall was primarily fake news from India about crypto ban (actually just an announcement of anti-cybercriminal policy) and news about Facebook banning crypto adds. These news are relatively unimportant, but the market is reacting very sensitively because it was bound for correction for a very long time already (it rose a lot in a short period of time so a period of slow decrease with some support testing has been expected).

A lot of new Bitcoin holders are most probably panic selling which is why it is down. There is too much supply of Bitcoin at the moment. Bitcoin may only have 21,000,000 units but the market forces is still at play so the price will be down. Basic rule of economics is at play. So the real question is that why are you even startled. It is because you are a noob.

you say that the bitcoin scarcity is not possible? then what if bitcoin runs out of stock and also runs out on the wall of every market. bitcoin is predicted to run out in 2024, what will happen after that? whether to add the stock? or will there are altcoin replace like ETH or the other?

People seem to dumping their bitcoins. WHY?

From my experience, the fluctuations in the price of bitcoin is cause as a result of the high transaction rate. 99.99 percent of individuals invest their money into cryptocurrencies because of the high profit ratio. Now that the transaction rate in bitcoin became so high, most investors are now investing into other altcoins where the transaction fee are less. The is of the high rate of transaction have to be solved for activities to normalize and the price of bitcoin to increase again.

Simple Question do you have any analysis regarding the target price for BITCOIN?

I think the bitcoin price down now is fair, try to see the Bitcoin price movement in 2017 from $ 1K / BTC earlier in the year and up to $ 15K by the end of the year.
so why is Bitcoin down? maybe you are too serious to see expensive Bitcoin prices.
relax and see Bitcoin surprises in 2018  :D :D

We will not achieve such a drastic decline, I believe that the price of Bitcoin has the power to withstand a deeper correction. Many people who panic sell when the price of Bitcoin decreases, but it is a mistake. selling Bitcoin simultaneously in a short time can make matters worse, let's do a hold and wait it is something that can increase trust in Bitcoin's market share.

Do you think that bitcoin will experiencing scarcity ?? So base on what I search on google about the word scarcity, I found out that it talks about shortage. So I think that you are trying to say that there's a shortage in bitcoin because the value of it are getting lower and lower?? But we all know that bitcoin is digital currency that has a characteristic of being volatile that's why for me it is normal to dump the value of bitcoin. On the other, if you are afraid of the value of bitcoin as of now because it reaches a lower amount, you only need to do is to wait because I believe that it will rise again. :)

Are you afraid that Bitcoin will be scarce?

If you are afraid of the value of Bitcoin as it is now because of the lower price, you just have to wait because I'm sure it will go up again.

Because Bicoin can be predicted without doubt, This is the demand that most affect the price.
Bitcoin is a digital currency that has volatile characteristics,

This is probably because a lot of weak hands bought bitcoins at ATH ($18000 to 19000) before its price started dipping and was halved in a short space of time due to negative news.  I also know a few that have been long term hodlers of bitcoin that had been forced to sell off their bitcoins.

correct.
the supply has been a known factor since day 1. it has not changed, everyone knew and knows the supply. but the demand is the variable.
demand affects price more than supply.

but the price is not just supply/demand. its also speculation/manipulation which affects the price the most.

for instance. i could make an exchange where each order line is set to
$8,000   -1 btc
$18.000 -1 btc
$28,000 -1 btc

and someone just buying 3btc total (of the near 17mill coin supply) can turn bitcoin from being priced/'valued' at $28,000.. yes, just 3btc can make that much of a difference in this circumstance

screw it, lets make it easier
$80   -0.01 btc
$180 -0.01 btc
$280 -0.01 btc
now someone just needs to be the third person to buy 0.01btc, and for only $280. and this too results in a bitcoin being valued at $28,000

screw it, lets make it easier
$0.80 -0.0001 btc
$1.80 -0.0001 btc
$2.80 -0.0001 btc
now someone just needs to be the third person to buy 0.0001btc, and for only $2.80. and this too results in a bitcoin being valued at $28,000.

my point being is that the whole near 17m coins in circulation so far are not 'valued'.. just the manipulated small amounts on some orderbooks of popular exchanges, which other exchanges blindly follow like sheep

Well judging about the circumstance where bitcoin was bought around $18k+, it would really give devastating impact to people if the price shrunk to around $7k and still going down. Imagine the loss that they incurred from that. People with large amount of investment would definitely think of selling what they are holding.

Of course, it can be. Sometimes people getting lost by betting, sometimes investment huge loss. Maybe people who are not expert in this sector going to hell. Even people are going to Ethereum mining, people are getting Unwelcome from bitcoin mining. Mining instruments, electricity supply overall cost is big than earn. So it can be.

Now the price is going back up.. If I had bitcoin right now I would sell no telling how low it will go before it comes back higher! What do ya'll think?

80 percent bitcoin has been mined and in circulation so bitcoin is in abduant circulation there is no scarcity

You are confusing market supply and money supply. Both use the word "supply", but they have very different meanings. The money supply is a number. It is the number of bitcoins in existence. The market supply is a curve. It shows the price necessary to motivate people to sell any particular number of coins. Market supply is what is referred to by the term "supply and demand".

Of course the two are related, as the money supply affects the market supply. But, it also affects demand, which is why your argument is weak.

To strengthen your argument you would have to show that the demand curve is steeper (less elastic) than the supply curve, so that a shift in the demand curve would affect the price more than a shift in the supply curve.


"Scarcity" is a term in economics that generally means "finite" or "limited". It does not mean rare or hard to find. Gold, oil, and bitcoins are all scarce because the amounts are limited. Air, water, and food are not scarce because there is an unlimited amount. Air and water are recycled and food is grown.

Bitcoin has a large amount of it and even though we think that it is low, it does not in scarcity. It's just there are several reasons beside of that. We can associate the countries that are banning their territories to the influence of bitcoin. Another one is the market cap it made. We can manage them through the use of several sites that tell us the price of any cryptocurrencies. If we are looking for a high price, then we deserve to wait for a long period of time just like last year.

There is no scarcity on bitcoins at the moment. That's why the price dropped, many people have sold because of the panic last week's FUD generated. This week the price increased a little, but there's no real rise or fall. The market  is a little hesitant, it's not a matter of bitcoin being scarce.

You would have to wait a long time for the coins to get scarce. If the coins don't have any value when they get scarce then you would have more problems.

It is secure and main security depends on you.you should not share your password to other ....and better security you can use online wallet ..

The artificial scarcity of Bitcoin and the "money sink" from people losing hardware etc are some good attributes that will continue to give Bitcoin value. However, I am worried about the potential abuse of paper trading by institutions in order to bypass the artificial scarcity of Bitcoin and manipulate it's price. We have already seen them do this for decades in the gold and silver markets. I don't think it's a coincidence that the price plunged right after the futures contracts and paper trading methods were starting to be brought online.

Bitcoin's price is driven by the community - the supply and demand. The scarcity of Bitcoin contributes to the price changes. Having a finite number of Bitcoin makes the "demand" as the driving force in order to lift the price up or push the price down. The price is down because there is less demand, many are selling instead of buying. We do not have to wait for additional supply in circulation, we need demand.

I think Bitcoin is not possible. Because of the current technology can be accessed by everyone continuously through It is investing capital in different sectors and it is gradually taking a bigger shape. modern technology. So it is possible that even though Bitcoin is weak, it is not possible.

The Bitcoin generation algorithm defines, in advance, how currency will be created and at what rate. Any currency that is generated by a malicious user that does not follow the rules ...

Down and up scenario of bitcoin is very unpredictable for it was not stable and will never be stable. That is how btc move in this cycles of cryptocurrency world of new and risky place and time. Normally bitcoin will subdue when time comes due to the fact that it is limited to supply the unlimited wants and desires of the people around the world.

The "scarcity" of Bitcoin tells its limit in number. Just as real Gold, the limited number of Bitcoin in circulation creates a value for Bitcoin thus making a difference in other resources like air, food, which are renewable.
The price of Bitcoin depends much on the market demand, the exchange on which it is traded on and sometimes competition with other cryptocurrencies.

those fluctuations that are now happening is a normal phenomenon! correction is needed, and remember there is no eternal growth! now very serious players have ousted hamsters from the market! I'm sure that the bitcoin will begin to grow now! the more the entire crypto world is tied to bitcoins!

Bitcoin is risky investment way. But if you want to secure it we also remove the risk. If we should take a better step we could goober its risk.

It is hard to understand the question, I think you are asking why the price is not rising even though the current bitcoin in circulation is 3.5 million?

Volatility in the crypto market it is happening since it was opened to the public.

You are also taking about the scarcity of Bitcoin, probably there are less supply today but remember it is not also the supply but also the demand. There are less people right now who buys Bitcoin since we are in a bear market.

LOL I like your attitude mate. ;D True the weak minds will lose their money if they put it into bitcoin and start panic selling when price drops. Its also true that those who know that market dips are a part of the normal cycle wont bother about price and leave crypto side for now.


Bitcoin is a currency. We cannot remove the risk associated with market fluctuation. That is never possible not even for any other currency say fiat or even the stock market.

STFU

Whatever have potential to grant you some extra money, that thing must be associated with risk factor. People from different regions of earth are continuously getting into bitcoins world. But what they are lacking is basic knowledge about how and what of bitcoins. Like this one, we all must know that bitcoins can never live without risk factor. So we must know how to handle risk at different levels.

Scarcity is another factor that contributes to bitcoin volatility but this issue can be fix by using bitcoin by its function and not for investment. In this manner, the price would be stable and many institution will consider adapting bitcoin.

Emphasize the word "Extra" here. Because thats what makes it risky. Talk about gambling, its risky as anything. Trading on the other hand needs some skills too. More people getting into bitcoin is actually a good thing. Its increasing the number of "naive" people who are going to be trading. I can guarantee that 90% of then will run away after panic selling and/or after putting their money into so HYIP not knowing what it was.

Also bitcoind dont "live" with risk. Buying and selling crypto aka trading is what the risk is about. If you just buy btc and never sell it - then who cares about price rise or fall? ;)

There is no bitcoin scarcity at this point of time. Big whales are still holding thousands of bitcoin at their wallet and thus we can still say that there are no scarcity in bitcoin. Also the reason there is a correction and  why bitcoin dropped from 20k$ to 10k$ is because of too much supply compared to the demand considering bitcoins value. The moment we will meet that so called scarcity bitcoins value will be around 10 million dollars each.

This is because price is not affected by supply, demand also plays a major role in this. Demand has reduced due to fear among new investors

I don't think there is any scarcity but rather availability, bitcoin and all other crypto currency works on the principle of demand and supply,  you can't say there is scarcity of bitcoin and yet we stockyard a massive downtrend even in the price,  I even heard that the hacker who was involved in the 2013 MX GOT hack is now selling off the 180k bitcoin he stole. Don't know why he hasn't been caught yet.

Looking into the market daily is in benefit for an investor. As said by the thread that Bitcoin supply is going low this because people sell their coins and that is why the value of Bitcoin is going down. But the market is spontaneously updating which tells you today that the price has increased as the ratio of buying was more than that of selling.

Thus eventually demand increases supply also increases and the price of Bitcoin has also increased today and will be in the upcoming days.  These situations happen for a time being and not for permanent purpose.

Price is effected by both supply and demand. The second part of your comment is an assumption - that you have and possibly you belong to that group of people. Demand for crypto will never decrease - because of the deflationary nature of the supply. Every minute some bitcoin when lost the others holding coins have their coins worth slightly increased.

Again fear is a common thing among every investor. But they should learn to mitigate the risks - which can be done by different methods.

Bitcoin is a lot of people who are looking for and have a lot of Bitcoin diggers in my time. I think there will be more Bitcoin owners in the future, but the numbers will be less and less. Bitcoin prices on the market as well as on the trading floor fluctuate and I think Bitcoin is growing.

In my opinion, Bitcoin becomes scarce in the future if the mining process from private companies or organizations does not produce favorable results. In addition, Bitcoin is becoming the most highly regarded investment method in the world. If it is adjusted for investment and all investors hold bitcoin, the value of bitcoin can explode as the popularity of the community grows in the crypto market.

What the hell do you mean by "Bitcoin is a lot of people" ? Bitcoin is a currency for heavens sake and not a group of people. I believe you are using a translator to view and post in the forum which is why you posts seems to be non-sense jumbled up. Better for you to learn English first before posting.

You are correct that in future the adoption of bitcoin will increase and this will actually make bitcoin scarce even if the supply is being done by miners. This does not mean that bitcoin is "growing" - it shows the economic liquidity of bitcoin and that new traders are coming into the market.

Previous downtrend of bitcoin price showed that supply of this bitcoin is high, then now with uptrend of bitcoin price showing the demand is rising. I think no scarcity of bitcoin currently.

not at the moment. bitcoin still maintaining high trade volume which indicate demand still strong.

any news neither good or bad had much impact on trade. only affecting more or less people decide to hodl or not. in the end. demand is still there, anyone would willing to supply if the price is right.

if we assume that if something is scarce it has the ability to grow more and just because of this factor ti must go up than it is not an healthy analyse because there are so many other factors and indicators which are more important than scarcity.

The possibility of bitcoin to fall deeper can be yes or no. At the beginning of this year bitcoin had twice touched the price point of about $ 6600- $ 6700. I think that the price point has become the ground floor for bitcoin prices this year. The strong influence on the movement of bitcoih is still dominated by emerging news and the whales entering the market so the stock supply numbers do not seem to affect the state of crypto market

In 2020, the reward for closing the block will be halved and then the price will fly to the moon, many will realize that the issue of bitcoin will end, and the demand for it will only increase. Perhaps John Mcafee will be right at least half))

I think i am not able to understand what are you saying . If we look at the market right now , bitcoin is doing well comparative to the previous two weeks . The volume has definitely seen some decline because of the sell offs but the decline is not very significant to declare that there is some sort of "scarcity" . Bitcoin is doomed some day . Because we all know that it only has supply of 21 million .

Bitcoin according to the coinsmarketcap update has a volume of  16.9M remaining divided by almost a billion believer on the world, quite interesting statistics about bitcoins. Why bitcoin has scarcity? Because of the trends and news about the real value of 1 Bitcoin. 1 Bitcoin costs $8,234 as coinsmarketcap update. Who will not interest on that amount of money?.
On my opinion people demand on bitcoin raises as its value raises into double that's why maybe other believer making scams and fake news about bitcoin to avoid higher demands.

if according to my analysis bitcoin will not go down to $ 4500 again, bitcoin is now the price has started up again, and I really expect bitcoin to rise higher, so it is very fortunate for people who have bought some bitcoin with yesterday's price price decreased, and of course those people will profit enormously.

There's nothing scarce about any cryptocurrency because it can be divided into a million pieces. So 21 million multiplied by 1 million is 21 trillion. So that's not scarce, and really limited supply only matters if the entire world needs to transact at the same time. If Bitcoin is worth $1 only 21 million dollars in trades could happen at any given time considering everybody was spending and nobody holding. So that's why scarcity could matter.

The main reason the smart money is investing in bitcoin is its capacity to eliminate expensive trusted intermediaries in human commerce.So even if bitcoin doesn't make it as a currency it still has a huge future as the ticket to use the blockchain for a million other financial applications.This is more important than whether you can buy a coffee with it across the street.

yes we need to wait but not only 1million bitcoins but infinite if ever. bitcoin will rise again soon we need to wait first dont rush it because this is a currency not only a normal currency. bitcoin is a big currency and people want to earn more money thats why they forcing their self to hold their coins until the price will go up.

No need to wait until 1 million, all will recover quickly and this is just a matter of time and patience we have to do, and I believe soon bitcoin will definitely recover better.

supply bitcoin which is currently increasingly thinning but on the other hand demands on bitcoin is still high. this will cause supply bitcoin can be considered increasingly thinning and can be called as a rare item. and this will make the bitcoin price will soar.

Patience is the name of the game with cryptocurrencies. If money were so easy, then everyone would be a millionaire. This is not an investment for the anxious or weak-hearted.

should it happen but we all also can not know for sure the reason that happened but I am sure the price will again creep up and possibly be stable

There is scarcity in the market, that's why one coin costs almost $9000 currently. Not everyone has $9000 to spend, so being able to own just one Bitcoin is a dream for many people. That is scarcity. Even with 80% of all coins being mined, an estimated 5%+ of the total supply is already lost forever (assuming satoshi will never use his coins, let's be honest, he was a genius. He definitely has the private keys still).

Many others are hodling coins too, which means they are not technically in circulation until they are moved. There are 10s of thousands of Bitcoin addresses that hold a very large amount of coins and they haven't made any transactions in years. The halving takes place in two more years as well, so the influx of new bitcoins from any miner that sells will be cut in half. The market will be flooded with fewer coins, and hopefully, adoption has continued to increase by that time. Bitcoin will be way more scarce than it already is by that point.

If all will want to own at least 1 Bitcoin then this will not happen, because the amount of Bitcoin is limited, which in turn would affect its value. I believe that the price of 1 million bitcoins would overcome easily.

Scarcity or the scarce is not the right term to describe bitcoin. your so funny  ;D ;D
But by the the reason why bit goes up and down its because I think the demand of bitcoin are down. Maybe because of the country who didn't accept crypotocurrency.

Do you think bitcoin will be scarce? My answer is yes! One of the most valuable features of Bitcoin is the limited availability of virtual currency with 21 million units. For humans, scarcity is considered a valuable asset because economists believe that this will prevent market behavior like inflation. Most people in the world consider precious metals like gold and silver to be a scarce commodity. However, gold can still be faked, but bitcoins are not.

Now bitcoin does not have a deficit, but perhaps when bitcoin reaches its limit, there will be a great demand for bitcoin. And how much more bitcoin will be lost? Nobody knows.

There is no deficit in bitcoin, all mined priverno 12 million coins , and a total of 21 million coins , so that the deficit will not happen soon , and if it happens, imagine how its price will rise

Lol how can high volatility not be normal. The factors that affect the volatility varies so anything can happen. And there's still a lot of btcs to be mined still so i don't think scarcity is an issue for now.

I agree on you, although their are times that bitcoin is really in demand but it does not mean that it is going to scarcity because bitcoin hits it's own target. The technology that works all over the world is super advance which bitcoin advantages when we are going to access it. In investment you will know that it increasingly and the demand is high because you had set your target about it.

FYI, "scarce" is a concept in economics that basically means "limited" or "finite".


A resource is not called "scarce" because it is hard to find or rare, but because there are limited quantities. Bitcoin is "scarce" because there are only 2,100,000,000,000,000 satoshis.

Dollars are not scarce because there is no limit on how many can be made.

Space in a Bitcoin block is artificially scarce because validation rules limit the size to 1 MB of data (or thereabouts). If the size limit rule were removed, space might possibly still be scarce because there might be economic reasons for miners to limit the size of the blocks they produce.

More info: https://www.investopedia.com/terms/s/scarcity.asp

It is not only the scarcity of a good that determines its value, there are other factors such as its usefulness, however, this will vary and it will be granted depending on the preferences of each user or the situation in which they are, that is, the demand is the predisposing factor in the determination of its price, and due to the direct price-demand relationship, a fall in demand will mean a fall in its price level. 

I think the amount of bitcoin is very much, so bitcoin prices will also degrade dartis, if we think it's our chance-we'll get more bitcoin at the moment, because we'll wait with higher warnings, we're sure someday the bitcoin price will return nice.

it seems, the high investors on bitcoin make stock currency this digital the thinning and almost out, supply bitcoin shows the gap significant most bitcoiners believe that the scarcity of digital will make bitcoin more valuable from time to time.

you need to focus on real value that bitcoin and cryptos are providing to the real life. I'm not developer myself but still I understand that decentralized finance is the future.

I'm almost sure, in the future bitcoin will be worth if not a million dollars, then 500 thousand is for sure. Another 8-10 years will pass and we will all see such a price. Already, the price of bitcoin is rising again after a recent fall. I would not be surprised if by the end of the year bitcoin would cost 20 thousand dollars again.

Here are the three reasons behind Bitcoin price fall. Last month three negative news related with cryptocurrencies triggered their plunge. It is not true that the reason of price falling is the scarcity of BTC..