Bitcoin Forum

Hi all I just want to canvas opinions on how Bitcoin or for that matter most crypto currencies can have a long term future as a currency with no central bank behind them?

Bitcoin is a growth investment with high potential gains. At the same time, it is high risk and any account compromise cases or scams you experience will not be covered under any type of law.

So what is the value of the fiat money issued by the central bank?
The world needs a unified currency, or between various countries legal tender in liquidity is poor, I think the BTC and encryption currency appeared officially changed that, so the currency and encryption currencies are valuable.

Good point Hellobx, however fiat currencies $, £ etc are normally backed by gold reserves, I accept that countries can and have gone bust but generally other countries bail them out.

A truly global decentralized currency would be ideal and Bitcoin could just be the trigger that starts off the revolution from fiat to global crypto, as due to the surge and resent falls this has generated a huge amount off interest in the general public.

But to gain universal acceptance and use daily, do you not think it needs some form of reserve? And how would that be organised and managed? If it could be achieved it it would cut out the banks and other vested interests, and I somehow don't think they will accept the change without a fight.

 

A crypto-currency at its most basic is a software and its network. Bitcoin has the most mining power dedicated to its PoW algortihm and has the longest chain among all cryptocurrencies.
It derives its value from the fact that a transcation recorded in its ledger is irrefutable and irreversible. Being most widely used, its network effect is the strongest making it possible for the latest innovations to be tested and adopted much faster.

There are other currencies doing similar things but they lack the network effect. Their mining infrastructure and the code itself hasn't yet undergone the stress tests that Bitcoin has. Only comparable crytpo in terms of usage is Ethereum, though not in terms of security, decentralisation or code robustness.

That is its intrinsic value.

Right now, there are issues with scaling which have resulted in high fees. These are being solved with the adoption of SegWit and LN. As these get deployed, we can go back to the good'ól times of cheap and fast transactions, hopefully soon

I think it can't  :) so I prefer investing in other altcoins which have intrinsic value but I think bitcoin will rise to $100.000 because many altcoins will die.

That is the point. Bitcoin was created not to be like the other currencies we make use in our daily life. It's an experiment and people who feel confortable with this option to use a currency that isn't backed by any central authority is very welcome. Those who think it's dangerous and centralization is needed, feel free to continue using fiat. Bitcoin can survive on long term just by demand and supply balancement. It's easy to understand how it works, the simplest economical system I have seen so far...

Super

It has to break this speculative bubble where people are entering simply to cash out more and they forget that crypto currencies are money and are the future in my opinion. Whether it is called bitcoin or some alt I am fairly confident that we will have one stable currency, but for that many years need to pass. You can back up with fiat, like tether has dome but they still put many more coins in circulation that they actually don't have pegged and backed up every dollar for every coin.

For bitcoin price to be stable many years have to pass as people are using it as gambling product rather as a currency.




Question is not about investment but about intrinsic value for bitcoin.

Intrinsic value is a difficult topic when it comes to currency. Arguably no modern form of money has intrinsic value. The intrinsic value of monies in the past was when people still used fungible commodities such as grains as currency.

If you really stretch the definition of what could be seen as inrinsic value, you could say:

Bitcoin's intrinsic value is that it enables global, permissionless, trustless, immutable and counterfeit-proof transactions in a way that is comparably cheap and fast.

Fiat's intrinsic value is in that it enables some of the above (unlike cryptocurrencies, trust is required and counterfeiting is a problem), but you have to choose between transactions being either permissionless (ie. cash) or cheap and fast (ie. bank transfers).

If the ability to enable trade is not to be seen as an intrinsic value, then both fiat and cryptocurrencies are worthless in this regard. Same goes for gold, in that matter, because...


...what's the intrinsic value of gold? The current gold valuations far outweigh its technical applications. If a system at its core relies on countries bailing out other countries that have gone bust you already got a ticking time bomb at hand.

People need to forget about intrinsic value, that does not exist, the reason gold was chosen in the past as the currency of the world was because it was the best material to do so, paper money then came and it made transportation of money easier and faster, bitcoin is just an extension of that but with a limit in the amount of coins so no one can steal from you through inflation.

It's a decentralized currency created mainly by satoshi against banking sectors and so it doesn't have any backing from any central banks.

Not true, this is a huge mistake, many people I know think this is the way the economy works and that is not the case, fiat is not backed by anything, so in that sense bitcoin is not that different, the biggest difference between bitcoin and fiat is that you can print as much fiat as you want and this is not the case of bitcoin, since there is a limit in the amount of bitcoin then that makes bitcoin more valuable in the eyes of many, that is why you need 10000 dollars just to get one bitcoin.

Because bitcoin has not been widely used in the world, many are skeptical about the applicability and value of bitcoin. I believe that in the future bitcoin can completely become a common currency for the whole world. Bitcoin was listed on the US stock exchange in December 2017, which confirmed the commercial value of bitcoin.

Many call bitcoin a bubble, but for some of the currencies there is nothing. Moreover, they can be printed as much as necessary thus devaluating.

Here is the interesting topic about Intrinsic Value of Bitcoin.
In the article, the framework for calculating a medium to long-term value for bitcoin is thoroughly explained and I think it can give you some answers to your question!

https://www.investopedia.com/articles/investing/091814/what-bitcoins-intrinsic-value.asp

We already have good future for the crypto currency and it will be the same in future too. Just imagine bitcoin and all other currencies has reached to this point without any backbone support. There was not single local or central bank which was connected with it or had bridge role to support the whole crypto idea. But still everything survived right from the first day and until now.

From here onward we might just see more development and more bridge and which will in turn grow the market cap of whole crypto market. The currencies are not having any support in todays date too whatever kept them alive is just we the investors and big whales.  ;D

For me, bitcoin cannot sustain an upward trend in its price. Price is determined by supply and demand. If the supply is going done and the demand is going up, then the price will increase. This is the trend that is currently happening. However, speculations could spread about its potential increase and decrease in price that will make sellers sell it and buyers to buy. If the sellers sell their bitcoins altogether at the same time, then the price will decrease as the supply of bitcoins for sale is high but the demand is not changing. This is the situation that I see that will be into in the next years.