Bitcoin Forum

Imagine that Motorola company, sells its new smartphone for $1.000.000.000, while in the same time similar Huawei or Xiaomi smartphones are priced at around $1,000. Such scenario would be crazy because no one would give a million times more money for a product that has essentially the same features as alternative products. That is why the above scenario is not possible in reality.

But... in the crypto world, such scenario is exactly what can be observed.

In the crypto world people are paying a million times more for bitcoin than for alternative coins, even though these coins essentially have the same features as bitcoin. Functions and features of cryptocurrencies are pretty straightforward. Elimination of expensive brokers, lawyers, and other typical “middlemen”. Low transaction costs. Transactions are transparent, quick, permanent, and hard to fake. Cryptocurrencies that are priced below $0.001 have all these functions and features. But, the previous media attention and hype created a situation where people pay thousands of dollars for bitcoin. They pay a million times more for bitcoin than for alternative coins.

Of course that being the first in the industry and having reputation means something. For example, Motorola was first in the mobile phone industry, has good brand reputation and consumers trust it. For that reason they might pay more for some Motorola phone than for the same feature Huawei or Xiaomi phone. But, no one would pay a million times more, since phones are just plastic, metal, glass, chips, resistors and transistors put together.

The same is with cryptocurrencies. They are just addresses, numbers, databases, and protocols that enable the elimination of middlemen, low transaction costs, immutability, anonymity, transparency and traceability of transactions. In that sense, bitcoin is equal to thousands of other cryptocurrencies. It is the same thing with different name. Accordingly, no rational reason exists for bitcoin to cost millions times more than an average coin. There is no reason for people to enter into fast, transparent and cheap payment system for $7,000 if they can enter it for $0.001.

Once the hype is gone, Bitcoin will simply go down to the price of an average coin and settle around $0.001.

Bitcoin is the oldest, most secure, most tested, best developed, best distributed, most decentralised and most trusted.

A 1 cent alt is none of these things. It's a bit of code cut and pasted in a few seconds. You can't know how secure it is, whether the miner (s) will roll back your transaction or whether what's in your wallet will even be movable in a few weeks. There are plenty of dead coins.
 
The thing that gives Bitcoin its value is confidence and trust. That takes years to build. You can't buy it. You can't fake it. It can only be earned.

Forget transaction times and so on. That's nothing but tinsel. If not enough people trust it it's going nowhere.

Imagine a $0.001 cryptocurrency, then imagine some miners holding up a $1.00 cryptocurrency.

You don't have to imagine the next part, if the single-celled organism you call your corporeal form is a brain cell: the miners from the $1 coin eat the entire $0.0001 blockchain, spit it out without even chewing, then tell all the holders they now have a grand total of zero coins.

Imagine someone who doesn't even know this in nigh-on the year 2020

Here I would like to make a question. Why should you have a comparison of bitcoin against low price altcoins. Why can't you have the comparison to be made with ethereum, because there are altcoins that are priced less than $0.1 while bitcoin has a value higher than $150. If your mind knew it, then you've got the answer for what you've asked

 Just think bitcoin is priced $7000 while another altcoin is priced $1. You buy 7000 coins on the altcoin and a single bitcoin. There is growth of 1%with bitcoin and 1.2% with the altcoin. Now the bitcoin and altcoin is opened for trading. The bitcoin is opened for a sell trade and sold while the altcoins hasn't got executed. Suddenly there is drop on the growth which gets deflected on bitcoin and altcoins. As bitcoin has got sold it is possible to buy it again for lower price while altcoin remains unsold and now once again it needs to be kept till growth happens.

This way liquidity, trade support and on various other things it isn't easy to reach close to bitcoin. This is where bitcoin gets the highest preference than rest of the altcoins.

You're asking the wrong question.
The real question should not be about utility, but about value.
Value, and that's a scientifically established fact in economics, is not based on utility at all, but on supply and demand.
There's simply no causal link between utility and valuation.

In fact, it's understood in monetary theory that utility actually decreases with valuation when it comes to a medium of exchange, a.k.a. money.

Okay OP,
I was lazy and wanted to find some answers (https://bitcointalk.org/index.php?topic=178336.msg53179198#msg53179198) for you from my bros and here are some I managed to get for you.


This worth listing for you.



I am sure more will be coming on your way but I give up however before I go here I have something for you.

https://i.ibb.co/Xx5H7b4/53179510.jpg

In the world of business and branding, why people are paying big bucks on luxurious labels, for example a designer bag when the same utility of a bag can be bought elsewhere for just a dollar maybe? Why in the world of paper money, there are currencies that cost much when all of them are just made of paper? And yeah, why would people watch a movie of a famous movie star when they can just watch another movie of an unknown starlet when both are movies? You see all of these questions can be answered by another questions...

You forgot a couple very important features to bitcoin, and it's the first of it's time. How many companies have you seen that have been first to the market, haven't really innovated, and often times, screwed over their own customers, but have still remained on top.

Just look at examples like PayPal, who no longer offer a unique service, but instead they overcharge for the same service a lot of other payment methods give out as well, but they are still the most used payment processor.

the difference of the cryptocurrency will matter in the end. you might think cardano is better or eth has better usecase and will have more demand in the future and then you will question why use BTC when there is ETH.  there are tons of us who thinks the same way but then understanding decentralization and security of bitcoin's blockchain will make you realize there is more to BTC than all the others created after it.

With that logic also consider this two example:
1. Imagine a buyer that pays 1000$ in Gucci's sunglasses while he/she can buy absolutely same quality/design glasses in 20$ and lower.
2. Imagine a buyer that buys Apple iPhone 11 Pro Max instead of other cheaper alternatives and in reality he/she doesn't use 90% resources of smartphone.

Don't you think that name also matters too? Brand <-- it's a huge advantage in selling when when you already own this status.
But bitcoin isn't just a thing, it's currency and people look at it as an investment option like stocks for example, that's what makes bitcoin to worth 7000$ and more, also there is mining difficulty factor, in order to make mining profitable, we need higher price.

Correct.


Nope.

There is no altcoin in existence today that has "the same or better utility than Bitcoin".  You are mistaken.


Some can be transferred faster, some can be transferred cheaper, some can (perhaps?) be transferred more safely, some can be transferred with more transparency, some can be transferred with more anonymity.  However, NONE are able to match ALL of the features of Bitcoin.  Whenever they are better than Bitcoin at ant one thing they are worse than Bitcoin at others.  Most are worse than bitcoin at the things that really matter (such as security), and better than bitcoin at things that don't matter as much (such as blocksize).


Because it is NOT the same thing.


The behave VERY rationally.  Your failure to see the difference doesn't mean that the difference isn't there.

I always found it funny to see people state that altcoins have more utility. If people actually cared about altcoins with utility, they would use them instead of dumping their coins the moment they see Bitcoin go up.

The only utility Bitcoin doesn't have but altcoins do, is that altcoins work as leveraged instruments due to their low liquidity, which traders exploit to accumulate satoshis faster. If you ask people why they trade altcoins, most will confirm that they just want to grow their Bitcoin position. They do not care one bit about altcoins.

Bitcoin is more reliable, more secure and trusted overall than any other alt coin.

It has more technologies involved, more real life investments and applications.
Even on real life payments systems you don't see alt coins rather than bitcoin transactional payments.

Alt coins are a growing bitcoin as a child and takes lessons from his father (Bitcoin).
Think of it as Bitcoin Cash or any other forked coin.

Why should I pay for shitcoin if Bitcoin has proven to be better than other coins. People in the crypto world are willing to pay dearly with their money for Bitcoin, because they know getting Bitcoin is not easy. And besides, have you ever imagined the difficulty of being a Bitcoin miner if every 4 years Bitcoin experiences halving that makes their mining rewards halved per block. And so on.

Bitcoin move based on its supply and demand and the fact that it reach at $7K or more, that shows how big the demand is.
This is a very different asset or technology on what you compare, this is bigger and has real use case where everyone can benefit using on it.

at $7k now, I still think its undervalued.

It's quite absurd that you are trying comparing bitcoin, the God father of cryptos to shitcoins that were minted out of a thin air just yesterday with false hope instilled by the developers to the ignorant sheep that the prices will one day "moon" just like bitcoin  did and that they will be millionaires  ;D

My friend stop dreaming, the online direction most of those shitcoins are going i towards $0. Wake up and join the bitcoin movement.

before you ask this question from others you yourself should answer an important question explaining why you think there exists some altcoin (which i assume you already have one specific one in mind) that is the "same thing" as bitcoin?
my guess is that you haven't used that altcoin or probably fallen victim to the advertisers selling that coin to you to get it pumped. try to look under the hood instead of judging the altcoin by the "cover" and see why it is inferior.

And what altcoin would that be?

Yeah let us do some comparison here but let us not go with full "imagination".
Too much "imagine" word in your world.  ;D

Let us say I bought an Iphone and then you bought some cheap China phone.
Both are created in the same country but the price are way far from each other.
An Iphone at $1000 while your cheap unknown China phone is at $100.

What will you buy?
Ain't that just the same as your comparison?
Trust, reliability, name, and a lot more. It gets more value because of that.

bitcoin is the main crypto, which was popular before the appearance of altcoin, I'm sure almost all crypto players have bitcoin even if only a little, because bitcoin is the oldest, most popular and trusted crypto.

All responses to the OP are essentially the same, and all are beside the point.

Of course that people will pay more for branded or initial products. But not thousands or millions times more. No one would pay $10,000,000 for Gucci's sunglasses if he/she can buy absolutely same quality/design glasses for $10. No one would pay $100,000,000 for some Motorola phone just because Motorola was the first in the mobile phone industry, if he/she can buy a mobile phone with the same features for $100.

Functions and features of cryptos are pretty straightforward. Elimination of expensive brokers, lawyers, and other typical “middlemen”.  Low transaction costs. Transactions are transparent, quick, permanent, and hard to fake. Cryptos that are priced below $0.001 have all these functions and features. So why would one pay $7,000 to have features that he/she can have for $0.001?

It is not because of the characteristics such as efficiency, fast transaction, the low transaction fee that made people to choose in buying bitcoin in comparison to another cryptocurrency. Bitcoin is quite the topmost investment cryptocurrency where people took the biggest risk. It provides huge volatility in the market that attracts investors that's why bitcoin becomes the best crypto. A cryptocurrency that other crypto cannot imitate. Simply, original.

Looks like you've found 'the answer' so why are you wasting our time?

Of you go and use your 0.00000001 cent alt for all your daily needs. I hope it works out beautifully for you. You might rapidly feel a great sense of solitude but I urge you to stick to the path you've chosen.

I don't think that altcoin and Bitcoin are the same.  They may be both cryptocurrencies but they have different blockchains.  Bitcoin has more use cases than any other cryptocurrency thus, for its current valuation or price.  Bitcoin is more secure than any other else that you wanted to point out.  And it is far recognized by the government and the same thing why people pay for the brand of an item, the trust, and proven durability. And I do not think that it is irrational because of the stated reason above.

When it comes to security and trust, Bitcoin gain so much power compare to altcoins, and nowadays people trusted Bitcoin as they know that it has been existing for more than a decade but yet it still remains the number one, $7k is worth risking for those who has a lot of money, but if you are just normal person just like me, then better to save at least weekly for it for the future.

It's all about hash power baby.  ;)  The more hash power backing the technology, the more secure it is. Can you imagine how many of these smaller Alt coins are vulnerable to 51% attacks with that small amount of hashing power?

The other thing is merchant acceptance and use case. Imagine owning $1000 worth of some unknown shitcoin that you cannot spend at any well known merchant.  ::)           -= Try buying something at Overstock.com and paying with PringlesCoin. =-

I use Bitcoin daily to buy food and I can buy bitcoins at 100's of exchanges.  ;D

400k
https://bleubloom.com/10-most-expensive-designer-sunglasses-in-the-world/

Same glasses:
https://www.ebay.com/itm/CHOPARD-Shield-23K-Gold-Plated-Metal-Brown-SCH883S-Rimless-Sunglasses-883/172761428749
And I think you can buy it for 30$ on aliexpress


iPhone 6 with a pink diamond for $48.5 million
https://www.cnet.com/news/preorder-an-iphone-6-with-a-pink-diamond-for-48-5-million/
Apple iPhone 6 - 64GB - Silver  95$
https://www.ebay.com/p/203684345?iid=254433745803&rt=nc

You were saying?????

Oh:

Fleurburger 5000, yeah the 5000 stands for 5000$ apiece!

Want more?


I would be surprised if we would not have a shitcoin called pringlescoin yet.

Bitcoin and altcoins cannot be compared at all. If you hold one bitcoin and you hold one shitcoin, their value cannot be equal. You can think of an original iphone vs a clone iphone and same is the relation between bitcoin and shitcoins. You can copy and made a lot of shitcoins but none of them can be trusted and reliable as bitcoin.

you cant blame user for not buying new altcoin today because the risk is very high
some of the new altcoin is created just to take your money or to scam people
many of them look legit but in the end, the team behind it will just vanish or stop developing the coin

No, they aren't.


Again, no, they aren't.


Cryptos that are priced below $0.001 do NOT have all the same functions and features as Bitcoin.


Because one of them provides $7,000 worth of the features that the user actually cares about, and the other does not.

Trust?

Since inception of bitcoin we are told stories that unlike most currencies (so-called fiat), bitcoin is not based on trust. We are told stories that bitcoin system is amazingly designed so that no trust is needed. That bitcoin uses a decentralized database, distributed between peer-to-peer nodes to store transactions and that special mathematical functions protect every aspect of the system.  So no need for a ‘trusted’ third party like a bank, government or other authoritative institute. But now, after I mentioned that many other cryptos, that cost thousands or even millions times less than bitcoin, have all these functions and features, suddenly, the story completely shifts. And now everybody talks about trust. WTF?!

If this "trust" refers to trust in technology or network, this is absurd, since network that enables users to send and receive money has nothing to do with the value of money itself. For example, SWIFT is a network that enables financial institutions worldwide to send and receive fiat currencies. But obviously, the fact that SWIFT provides secure, standardized and reliable environment for these transactions, has nothing to do with the value of dollar, euro or pound. It is inflation, balance of payments, external debt, economic growth,  interest rates, political stability or unemployment what determines value of currencies, and not trust in the SWIFT network.

So trust in technology or network has nothing to do with the value of money itself and my question still stands: why would one pay $7,000 to have functions and features that he/she can have for $0.001?

The Zimbabwean dollar has the same function and probably the same texture and efficiency when it comes to ass swiping as the usd.
Yet one ZWD is not worth one USD.

Why?
Because people are trusting one currency more and they are sure with one dollar you will buy the same loaf of bread tomorrow, with the zwd you will need to switch from a wheelbarrow to a truck full of bills.

So, can you finally understand the difference or we should switch to yellow and red cubes and triangles?

The problem of Zimbabwean dollar is not the problem of trust but the problem of third party or central issuer. Cryptos have no central issuer.

I think it only goes one way, once you have the chance to buy 1btc for the value of 0.001 nowadays, but that doesn't mean it will go down to that price again someday, but we can say the bitcoin price right now will be the price of 0.001 in some years.

So, as i say, the price goes only one in the long term.

One wouldn't.

Cryptos that are priced below $0.001 do NOT have all the same functions and features as Bitcoin.

One of them provides $7,000 worth of the features that the user actually cares about, and the other does not.

Okay I would try to answer it in your way.
Because he knows that company with earnings $500, these earnings are just inflated once and the Company has a huge debt which actually makes the intrinsic Value of Stock much in Negative.
Because the $1000 cheeseburger is around 1000 times tasty than the Big Mac which is absolute Rubbish. Not to forget the $1000 cheese burger will be worth $2000 tomorrow.

I think two examples would be enough. I thought it would be interesting to answer but falling to that level would make my answer lame too. :D Never thought I would answer such lame questions though. :P

What is this? I think you already know the answer but trying to lure people in your quiz?
Each one who has bought bitcoin for $7000 has their own reason "why", no one buys shitcoin for $0.001 because of its utility, it's all about profits.
But people who buy bitcoin have various reasons not just for profit, and you can't force people to agree with your opinion "why".

Oh, but it is.
It's the problem of trust with the central issuer.

Why trust a 0.000001$ shitcoin when the team behind can decide overnight they can print 10 billion more coins.
Why trust a shitcoin that was premined like hell at the start.
Why trust a shitcoin that has centralized development.
Why trust a coin....etc etc etc.

You fail to see the obvious thing, people buy bitcoin because they trust it, they don't buy a shitcoin because they don't!

Forget the colored cubes, I think that if you don't understand simple things it's not because can't but because you don't want, at which point debating with you is futile.

People do have the option to choose Big Mac over Cheeseburger yet there are people who specifically wants to eat a Cheeseburger and not a Big Mac.
Obviously there is a difference of quality and taste in-between the both. Similarly, though there are many altcoins to choose from, people still choose to invest in bitcoin. Bitcoin is trusted by many and it's the sole reason why it has increased in price so much today.

Imagine you could buy some gold, or some tin. One is more expensive, why do you go for that one instead of the cheap one?
Its got to do with the properties of the more expensive one, which is why it commands that price.
Other coins coins try to imitate or replicate bitcoin, but they do not have the same properties, hence they are worth less.

Your problem is that you are assuming that bitcoin is just a technology and that it should be treated as you treat your smart phone in which as soon as you can find a better and cheaper deal you replace your current one.

But bitcoin is as a currency and all currencies requires the trust of the people in order to function appropriately, what altcoins are missing is the trust that we have in bitcoin not only because it was the first cryptocurrency ever created but also because it has the highest hashing power, the best developers and the best community.

Actually, it's "no-trust"/trust-minimization. You don't have to trust anyone, or anything. You can verify everything yourself, and you know everything is intact because the incentive structure simply works.


It's about transaction finality.

Of course that being the first in the industry and having reputation means something. For example, if a bakery has good brand reputation, consumers trust it, and feel good about purchasing its bread rolls, they might pay $2, $3, or even $10 dollars for these rolls if competitors sell them at $1. But no one would pay $1,000,000, since they are just flour, water, and yeast mixed together. The same is with cryptos. They are just numbers associated to address that are transferred through the network via some protocol. In that sense, bitcoin is equal to thousands of other cryptos, and  there is no rational reason for it to cost millions times more than them.

The last person who will get it will be the last man standing.. We all here believe bitcoin will last forever and to be scared is part our nature. So why running away when this is a good time to invest. When thing going down it will not always stay down. Only time will reveal it soon.

It's more of the trust to the platform. Bitcoin has been with us in almost 10 years and yet it survived fatal blows to the system. Altcoins tend to have smaller community, smaller developing team, and thus could be eliminated easier with an attack to the network.

Another thing is that altcoin market nowadays are too crowded. More options tend to be much difficult for investors rather than a fewer set of choices. It also makes the competition somewhat difficult and non-sense, since these altcoin tend to have little uniqueness to each other.

Bitcoin has existed for 10 years and during this time, the Bitcoin ecosystem did not commit fraud, did not expose its users to risks. It is created disinterestedly, for people. Understand this, that's why people overpay

For me, bitcoin and altcoin itself is a different thing. What make it same is title of "cryptocurrency" but the inside is different. Maybe if compare with cars, normal cars and sportscar which more popular, and although we, or maybe people don't have much money and must pick which one that they want, sportscar or normal car, they must be pick sportscar which already popular.

Why do you eat natural meat instead of genetically grown? Why are you drinking cow milk and not made from chemical powder? These are new technologies, these products are full of vitamins and benefits. I think it is because you trust natural meat and milk, and not genetic engineering products. Just compare my example with Bitcoin, you trust the original coin, not the altcoins with the same way

When you have a company and that grows to become a big name in the industry, people would prefer your product more than others even if they are offering something better than what you have. I think people are into buying names and not products lol.

It's just like social media like Facebook: I see a lot of people that complain about Facebook having bad security and selling users information, but these people continue to make use of Facebook despite all those claims, does that mean that there are no other social platforms that are better than Facebook? Well, you can answer that.

So, that's how it is when it comes to cryptocurrency. Yes, I have seen a lot of altcoins that claims to be better than Bitcoin and do what it does better and for half the price you will pay when making use of Bitcoin for transactions. Some of them claim to be faster, while other claims to have better privacy and security. But people don't care about all that, all they know is that Bitcoin has already made a name for itself and it is safe, they don't have any problem using it, any other crypto claiming to offer something better is just wasting time.

Well here lies the problem with crypto industry, a lot of the people who are involved in it are just using it or seeing it as a way of profit and not as a payment method, bitcoin has a high and fast growing price, like in a day bitcoin could change by a 100$ and that is what why many people use it especially  since 2017 when they saw the potential, and they really don't use it for buying stuff only if they have to, and anyone who says otherwise is a big lair.

Bitcoin is at the foundation of all altcoins and should be respected. it's the soul of the crypto market and other altcoins should stop trying to harm Bitcoin with it's false narratives and propaganda because if you harm Bitcoin you only harm the value of your own coin and all other altcoins. you also weaken the entire crypto-community. it's a very stupid game to play and ultimately achieves nothing. Further the people who working on altcoins are bound to be very smart and will realize blockchain technology is best suited to one chain to rule them all and eventually migrate to the strongest decentralized chain in future where bitcoin is still vastly ahead of anything else.

You guys ... khaos77 and antikvark I think posted in the wrong forum, it must be antibitcointalk.org or something lol you'll get more mocking statements below coming quick with all of your interesting thoughts and point of view regarding bitcoin ;D.
This is all about value isn't it?
People find bitcoin valuable with its utility as a digital money that worldwide acceptance borderless.
And as time goes by the ecosystem itself grow faster , gained popularity and well known wide within 10 years makes more people holding bitcoin without selling it has been created the value of bitcoin itself!

I mean, bitcoins, the same as other coins, are just numbers associated to addresses that are transferred through the network from one address to another via some protocol. In that sense, bitcoin is equal to thousands of other cryptos. It is the same thing with different name. Accordingly, no rational reason exists for bitcon to cost millions times more than an average coin. To put it differently, bitcoin is a mega-bubble, even at $10, and it is only a matter of time before it bursts.

P.S.  What do you mean by "must be up". You'll put a gun to someone's head and demand $1 million for your bitcoin? Or do you mean that the global supply of geeks and dummies is infinite?

*double face palm*  :P What a silly fellow.

Learn how bitcoin works and how supply and demand works and all your silly questions will be answered. How can you compare a currency to a freaking bread roll?

Are you saying we should pay $1 for the Japanese Yen too? That is pretty much what you are saying. Why would someone pay more for a $1 then 1 yen? Because it's worth more??
Bitcoin is worth more? What is there to understand? It's value comes from supply and demand.

What if the other shops also make their bread rolls 1 million $$ according to you thats fine?

Power of demand makes bitcoin to costs alot and gone are the days where you can get free bitcoin or buy at very cheaper price, that day aint coming back ever again, you missed the chance then its good bye, few good altcoins are still out there though that can still turn out profitable

Bitcoin is also a network and most of its value derives from the Metcalfe’s law, basically the value of a network is determined by the amount of people that uses that network, this is why social networks like Facebook and others are valued at billions of dollars even if they do not seem to produce anything, and this is true for bitcoin as well, bitcoin has millions of users, once it has hundreds of millions you will be able to use it to buy almost anything you want since you will have more users to interact with.

I'm sorry but you need to do more research on Bitcoin as reality is quite far from what you describe.

First of all you are comparing a digital asset with a physical one that is also expendable (bread). There is an natural error there as different attributes require different techniques in understanding price.

Secondly, Bitcoin's network is safe from any attack right now, as the cost of it would be astronomical for any malicious player.
So lets say you want to use some other cryptocurrency. All the rest (besides litecoin if I'm correct) have already been 51% attacked before so their network is not trusted anymore.
What Bitcoin offers is a secure, trustless, decentralized network to transact small or large amounts of money online, anywhere in the world, with small fee and no middle man involved.

The price of Bitcoin is a direct result of supply and demand law that was explained by Adam Smith, three centuries ago, in his book "The Wealth of Nations". Same with the altcoins. Price pumped when everyone involved started buying altcoins and it started falling once most investors understood that they weren't buying into secure decentralized networks.

In this true global free market (BTC/USD), it is the invisible hand that decides the price of Bitcoin.

Price of Bitcoin went up again, once the same investors realized that Bitcoin is the only true decentralized, safe and secure cryptocurrency and also the only one, at least right now, that has potential to disrupt the corrupt monetary system that is counting the last of it's years. Everyone understands how important the digital era is and the role digital currencies will play so the price of Bitcoin is in direct correlation with these facts.

This is just like saying dont buy Ferrari rather buy a toy car of Ferrari, as both looks same. So why wasting time for real Ferrari.
BTC consensus algorithm till date is most robust and no other consensus algorithm till date has been developed to beat that. That's just one aspect of BTC superiority there are too many to discuss here.

Alts don't have the same features though, do they?

They don't have the network effect. They don't have the liquidity, they don't have listings on all the exchanges against fiat.

It's only worth investing in an alt if you think it will gain network effects (or if you are willing to invest time as well as money to build those network effects yourself).

The thread with the same topic discussion already exits somewhere on this forum. It is true that other similar blockchain like Bitcoin exist in crypto world and coins those blockchain is many fold cheaper than Bitcoin then why is the price of Bitcoin so high. I think it purely depends upon demand and supply. As far as people in my country are concerned, 9 out of 10 people know about Bitcoin but if I ask them about ETH, NEO, BNB or any other popular cryptocurrency I am sure only 1 person out of 10 people will recognize it and this may be the scenario everywhere around the world. This may be the reason Bitcoin is in high demand and its price is so high.

why not look for other bakeries and buy the bread at a cheap price ? or unless he is lazy and wont work for more miles just to hunt those bread  .

why not possible ? you already explained a scenario and it did actually happen on real life because the pricing differ from different stores  .

the scenario is more applicable to cryptos because cryptos can go down or go up in different volumes while stuff on real word dont  . cryptos dont have same feature . other is faster and cheaper or cost cheaper in terms of fees  , this is why they create different cryptos  .  btc is costy simply because its way more valueable thant the others  .

@OP this is one argument that you can not win so there is no point to even try, as much as you try hard to convince people to see the reason why btc isn't worth it's current price, it won't work, btc is superior than other alts for now, my personal experience have told me so, alts are nothing but disappointment, you loss -90% of your investment, plus they have nothing to offer, that should be enough.

Well, I am not convincing people, but symply stating facts about price. Price is the amount of money given in payment for something. In the crypto world,  "something" refers to elimination of middlemen, low transaction costs, immutability, anonymity, transparency and traceability of transactions, etc. People can get all these things at the price of $0.001 by entering into alternative crypto payment system. In the long run, there is no rational reason for people to pay $7,000 for something that they can get millions times cheaper. Once the hype is gone,  Bitcoin will simply go down to the price of an average coin and settle around $0.001.

Am also trying to understand this same question... it's rather confusing you know. :-[

I can understand the logic you are thinking, but I disagree

I can make a lot of reasons here to debate, but you have to understand just one thing:

Do you prefer 200 Venezuelan bolívar or 100 dollars?

You will have a higher number of money with bolivar, but these 200 bolivar only worth 20 USD

So you have to learn and think about VALUE

And value is an objective factor, depending on your needs and supply. Here is an example: a power generator normally can be worth 200 USD.
But in a place where there had just been a natural disaster and there is no electricity at all - its value can be 10 times bigger, as there is very limited access to such devices, while demand is soaring.
This is why in countries like Venezuela, or Iran the price of Bitcoin can be MUCH higher than what we see on coinmarketcap.

Because:
1. Bitcoin is the real cryptocurrency
2. Bitcoin is very unique. Most of other coins are copycats, sorry.
3. Bitcoin is first and the oldest cryptocurrency.
4. It has stood the test of time and still standing strong without major problems.
5. If bitcoin isn't useful/valuable, people wouldn't want it thar much. The principle of Demand and supply dedicate the price.
6. It's close to what a proper money should be: scarce, decentralized, transparent, valuable, long lasting, with immutable ledger, trustless, easy-to-use, These are probably why it's highly priced.

People do not understand what is inherent in Bitcoin. Each overpaid for the quality and reliability of the asset, and not for speed or some features. This is the main sense of Bitcoin.

Why one purchases bitcoin instead of altcoins which is comparably lower in market price? Because bitcoin is not the the same cryptocurrency compared to those with lower price. The fact is yes, they can be use for transactions, but the difference is that, they cannot have the opportunity that bitcoin is providing to people which in fact, returns greater ROI because of huge volatility where other crypto could is trying their best to be at that state.

But we should consider the high risks in dealing with altcoins since as we know a lot of altcoins are come and go. When you invest in Bitcoin, it is much less risk since there is a massive volume in the market backing it unlike some altcoins out there. A lot of people been saying that Bitcoin’s price is high right now to enter and expect massive returns but the thing is that Bitcoin’s price surpasses its current prices much greater than what it was. Not investing now in Bitcoin would be much too late than doing it later on.

other than that no one know if one of the altcoin can also be successful like what happen to BTC . Bitcoin has been proven as a usable online currency  for many years . More people adopt that currency because they see the potential of it to use in any country which is already happening right now. Altcoin cant do that easily.

Well, that's not entirely true. Bitcoin as the most liquid coin by default is less volatile than an altcoin with much lower liquidity and market cap, which is why we see some altcoins pump 20-50% on a daily basis.

For whales it's impossible to cash out positions at once, but for small few thousand dollar fishes these markets are liquid enough to participate in, especially when they have been pumping for a while and thus attract more capital.

The Original Post is ABSOLUTELY RIGHT


Bitcoin is a mania, and the only thing that gives it value is what same greater fool will pay for it 🙈🙈🙈🙈


Being FIRST means nothing.  Is the first brick size Motorola Cell Phone the most used and most Valuable phone ???   The cell network was the future, just like blockchian is the future, but bitcoin is NOT the blockchain... No more than the first Motorla cellphone was the cellular network.


People buy and hold bitcoin because they think the price is going to go to the moon !!!   The moment this mania ends, Bitcoin will go down to its intrinsic value of near zero.


Hard Facts

So are diamonds, gold and plenty of other forms of store of value. It is the reputation and trust making price to stay at such levels.

This question demonstrates the real problem with socalled crypto adoption.

If people actually think altcoins and Bitcoin are the same thing, then we have a long way to go for actual mainstream adoption and understanding.

Of course, we see the same thing happening in tech cycles. People thought IE and Chrome were the samething long ago. Or that yahoo mail is the same as protonmail.

Now people know. Some day hopefully everyone knows the diff with btc and most alts.

What’s the difference between Picasso’s “the Dream” and a child’s school painting? Answer the question why one costs 150mln, while other is 0. Then you’ll have a clear understanding between BTC and similar coins price difference.
You can’t compare pricing between different kinds of assets. Pricing of consumer goods asset class and store of value (SOV) asset class is absolutely different.
BTC is the best SOV in existence. Firstly, because of its inner qualities. Limited supply, impossible forgery, high liquidity, instant transfers, zero cost storage. You can argue with each of those qualities in general, but you have to compare those with other SOVs. Not with let’s say smartphones or cars, or cash (usd, eu, any other). You have to compare it with gold, arts, real estates.
Secondly, comparing BTC to other coins. Please, feel free to find and show another coin with same qualities, worths million times lower. By qualities, I mean same safety, supply, tokenomic model, premine and so on. Maybe you’ll find a few similar. But here comes supply and demand. In order to become a store of value, people should actually use it (have trust) as SOV and be able to transfer, and convert it easily. BTC is trusted and used as SOV right now. And at current mcap it fulfills all the needs of people who use it in terms of SOV. Billions are stored and transferred via BTC network. When there will be a need for tens or hundreds of billions to be stored in BTC, we will see natural mcap growth.
Why Picasso’s painting worth 100mln+? Cause people decided to use it as SOV. And never sell it lower than they’ve purchased it. That’s it. It has all qualities of SOV as well. All of them are worse than the same of BTC, except total supply. Only 1 painting and 21mln BTC.
So what do we got in the end? To become a SOV, asset should have qualities of it (inner  value) and people should decide to use it as SOV. No other coin like that for now.

The fact that they have to let go of several thousand dollars for one coin and they get others for sod all should be a wee clue for them.

With a market like this is that there's no hiding and no fudging. Dangly breasts like OP can disingenuously whine all they like. The price is the impermeable riposte to that whining and wilful mindlessness.

Pay it or fuck off. No one else gives a shit what you claim to think.