[2014-08-26] CD: Citi: Miners and Merchants Are Keeping Bitcoin Prices Low

[LiteCoinGuy]

Citi: Miners and Merchants Are Keeping Bitcoin Prices Low

Bitcoin’s price is poised for “acute instability” due to an oversupply of coins from miners and large merchants, along with a weak growth in demand, according to a new research note from financial giant Citi.

http://www.coindesk.com/citi-miners-merchants-keeping-bitcoin-prices-check/

[cr1776]

If citi's statement about oversupply from miners is true, It will be interesting to see what happens now that we are less than two years to the next halving (perhaps 20-22 months even - but it is all a guess) what happens as we approach it and people realize the supply of new coins will drop then.  

[LiteCoinGuy]

If citi's statement about oversupply from miners is true, It will be interesting to see what happens now that we are less than two years to the next halving (perhaps 20-22 months even - but it is all a guess) what happens as we approach it and people realize the supply of new coins will drop then.  

2016 and 2019/20 will be interesting 

[seriouscoin]

That statement means one thing: bitcoin is very affordable right now. We already know the bitcoin's inflation rate and this is by design. This is how bitcoin can be distributed accordingly by adoption rate.

[bitcool]

If citi's statement about oversupply from miners is true, It will be interesting to see what happens now that we are less than two years to the next halving (perhaps 20-22 months even - but it is all a guess) what happens as we approach it and people realize the supply of new coins will drop then.  

What will happen to Dogecoin by the end of this year will be very indicative.

[gmx95]

I have to say that this statement at least makes sense. If there is oversupply, that explains why the price is not going up.

[seriouscoin]

I have to say that this statement at least makes sense. If there is oversupply, that explains why the price is not going up.

The supply rate is KNOWN, but the demand is UNKNOWN.

Thats why you cant predict btc price and bubble.

[aigeezer]

Gosh darnit - why would good old Citi predict "acute instability" in BTC prices? Aw, shucks. Maybe, just maybe, it's wishful thinking on their part, or even an attempt to - say it ain't so - manipulate perceptions.

Banksters' predictions are unlikely to be objective predictions. They may or may not be accurate. Do your own due diligence.

[Kprawn]

Yes, we simply have more BTC out there, than we have a demand for. Funny thing is, no miners can afford to hold on to the BTC they mine, for the fear of never seeing ROI.

If miners could all hold off on converting to fiat, and then, when the price is higher, sell it, it would help, but they have to pay for the electricity every month, so it's just inevitable that the price will go down, if demand is not stimulated.

Everyone are focused on the adoption of more BTC merchants, where they should actually concentrate on getting more consumers to adopt BTC