Bitcoin Forum

I understand that most everyone here has put some money into Bitcoin, and you may not like this because of that reason, but why is the prevalent theory that Bitcoin should be worth thousands of dollars? I myself would be fine if Bitcoin was worth two dollars each, but was stable.

Thoughts?

If bitcoin was worth 2 dollars a coin it will quickly cease to exist. At 2 dollars a coin it is not only NOT rpofitable to mine, it is actually going to cost people money to mine. Bitcoin needs miners to process transactions, without miners the blockchain freezes and no confirmations are made on your transactions, So at 2 dollars a BTC no one would want to mine much less be able to afford to mine.

2$ was a bit of an underexaggeration (if that's a real concept). I mean more in the realm of $100.

Lucky people that bought a ton of bitcoin with 50$ and are now multimilonaires want to keep that lifestyle going and become even more wealthy. For this, they need people like us (the 99%), people that think we'll emulate their success hoping 1 coin goes to 10k or even 100k or even 1 million per coin.

Most people are clueless to understand Bitcoin's technology. Everyone i've talked to IRL didn't gave a fuck about Bitcoin except when I started going on about how it may increase in price, then they start listening. All people want is a better lifestyle without stress and luxuries, everything else is not worth the time. That's human nature, and thats why I think Bitcoin may fail, since the wealth has already been distributed mostly. No normal person now has chances to become a multimillonaire (normal person = the 99% of people that don't have much spare money at the end of the month). No one cares about doing your normal groceries and shopping with Bitcoin when they can just pay with cash or credit card, or even with your phone using country fiat, it's just pointless to buy BTC just to shop what you can already shop with "normal" money so to speak. Only nerds would get any reward from doing that. And only in specific situations would BTC be useful, aka useless for most people.

OK, promise not to tell anyone...I agree. I think it's just that the most vocal group is the speculators/investors. There's also the whole "value tends to move toward production cost" argument, but that sounds like wishful thinking to me.

People who have invested thousands of dollars in Bitcoin at $150 obviously don't want it to go down to $50. Makes sense.

There are two separate questions here, and I'm not sure which you are asking.

Why should the total value of all Bitcoins be $5.1 billion? (Is the Bitcoin economy overvalued or undervalued as a whole?)

Why should the number of arbitrary divisions of Bitcoin be set where it is, giving each a value of $385? (Does such a high value make it more awkward to talk about and use in everyday transactions?)

The first one mostly, although the second one holds merit as well.

the price of bitcoin is decided by the market, the balance between supply and demand! No matter how high the price is, if demanding of bitcoin is huge, and the high price like $500 or $1000 is recognized by the masses. Then the price is stable and seen as true value.

See this thread: https://bitcointalk.org/index.php?topic=801628.0,

or just read this: https://www.cryptocoinsnews.com/why-bitcoin-value-doesnt-matter/

anyone without any BTC would love BTC being 2 dollars.

Just anyone would love to see it stable. But some are wiling to wait for it few more years.

a) because 1 bitcoin = 100,000,000 satoshi
b) if 1 bitcoin will worth $100,000 USD then it will hard to pump (bitcoin become stable)
c) if everyone (99%) will have only 300,000 satoshi  it will hard to dump (bitcoin become stable)

Here is math for you.
==
300,000 satoshi * 7,000,000,000 people = 21,000,000 bitcoin
300,000 satoshi = $300 USD

==
On exchange there will be
       bid[we buy]                             ask[we sell]
--------------------------        ---------------------
1,000 BTC  @ $99,995 USD        1,000 BTC @ $100,005
1,000 BTC  @ $99,994 USD        1,000 BTC @ $100,006
1,000 BTC  @ $99,993 USD        1,000 BTC @ $100,007

btw 1,000 BTC = 100,000,000,000 satoshi

==
and if you want to buy pizza online then just spend 10,000 satoshi

Have we forgotten that difficulty re-targets w.r.t hash power?

Evidently...

Good point. But don't expect bitcoin cheerleaders to reply rationally. Bitcoin has a high velocity, there's no reason to price to be high, especially if considering that barely anyone is using it as u currency, price is mostly determined by speculation (holding and hoping it will go up).

If it was up only to utility, price would be much lower.

Yes! ^ Bad username though. :)