Bitcoins will intensify to over $1,500 in our lifetime

[faceman]

Essay: Bitcoins will intensify to over $1,500 in our lifetime and we will all be millionaires.
By: Tom Peckelpent

Essay number one. The first essay.

Hello my name is Tom Peckelpent and I am here to day to share with you an essay I've written about how Bitcoins will aggrandize in value to $1,000 and beyond.

Bitcoins are a digital currency which has materialized out of thin air from the open source community on the internet. On the surface, it appears as if bitcoins well-represent two of the three classic requirements of money. But is this really true? They are a medium of exchange in that they are used as intermediaries in the exchange of goods and services. They are a unit of account in that they are represented by standard numerical unit of measurement. What's more? They are almost infinitely divisible. Finally, and most importantly they are a store of value because they are able to be reliably saved, stored and retrieved in their usable form as a medium of exchange. It is this last point which underscores why bitcoins will go to $1,000. They will go to $1,000 because as adoption increases over time the trust placed into bitcoins as a store of value will cause them to geometrically increase in reckoning (that is, price, I say).

Perhaps the most obvious question is, why being a store of value is of pressingly salient vitality. Being a store of value is so required mightn't it be, because it allows us to value bitcoins by the trust people put into them. If people trust bitcoins, they will use them as a store of value. We may therefore state that the value of a bitcoin is proportional to the trust which is placed in bitcoins as a whole. There are only 21 million bitcoins in the whole world ever. Withal, this value will decline over time. There are currently approximately ten million bitcoins. Therefore we may state that based on supply and demand the total value of bitcoins, should there be 21 million bitcoins, would be approximately the current price divided by 21 million over 10 million, or about $6.40 US. Next, due to the laws of supply and demand, assume a logarithmic scale for adoption as newcomers into the bitcoin market drive bitcoin prices up exponentially due to there simply never being any more bitcoins available. A doubling of the user base would then cause the $6.40 to become $12.80; a further doubling of the user base would cause it to go to $51.40. Should the user base double again the value would go over $200. Then everything will explode in value. There are only a few hundred thousand bitcoin users at most, according to statistics.

This means that however many bitcoins you have now, in the future you are always likely to have less. This fact means that bitcoins today will always be worth more in the future, because the same amount of bitcoins will chase the same utility you yourself give to bitcoins today, but also every newcomer to the scene will also chase the same utility with whatever bitcoins they have as well. Therefore, if you end up on average with 1/5th the bitcoins you have today, the assumption is that bitcoins must rise in price by five times to afford you the utility you have now. If we estimate conservative worldwide adoption numbers of ten million users, we can then easily predict a bitcoin price of over $1,000 per coin.

Of course, the story is not at all like the movies. Even now, it no longer possible to accumulate large amounts of bitcoin easily. Bitcoin has been "money" for too long, that people will spend 10,000 bitcoins for a pizza anymore. Coming by your next bitcoin requires work, or the sale of goods. This is proof that bitcoin has evolved and has found a niche for the average person to use. What remains to be seen is how fast we will get to ten million users and $1,000+ per coin. Based on logic, the number of transactions per day would be a rough estimate of utility as the numbers of users grow. In 2011, the number of bitcoin transactions went up by more than seven times. If we conservatively assume a double each year from here on, then we will reach ten million users in just a few short years.

In conclusion, I believe bitcoins will up more than $1,000 because bitcoins, their trust and use of the currency will cause the utility of bitcoins, and therefore their value, to increase due to bitcoins being available less per person over time. Additionally, as the velocity of bitcoins increases, new utility will be found and is in fact currently being developed. It seems clear to me that while volatility will always be a problem when valuing bitcoins based on some other currency, the only way forward from here is up. Let's enjoy the ride.

If you enjoyed this essay please donate some bitcoins to Mr. Tom Peckelpent, at 1DSUgbTzKnd3WWaYk78jQYd2vNDJR9v5CQ. You may check this address to see how much money this story has generated by visiting blockchain.info/address/1DSUgbTzKnd3WWaYk78jQYd2vNDJR9v5CQ. Thank you and enjoy the new year.

[1714762747]

1714762747

[1714762747]

1714762747

[1714762747]

1714762747

[1714762747]

1714762747

[1714762747]

1714762747

[1714762747]

1714762747

[Aahzman]

Tell you what.  I'll tip you for your essay, but only if you pay me BTC0.01 for every spelling, grammar or syntax error I find in it.   

You start with an interesting premise (who doesn't want to be a millionaire?), but you seemed to go out of your way to use unnecessarily complex phrases and wording, not to mention archaic and outdated words, as if in an effort to appear more intelligent or knowledgeable.

I applaud your confidence in posting this, without any sort of independent proof-reading or editing, to a community board that can be quick to jump on an easy target with harsh words and criticism. Also, I was impressed to see an entire multi-paragraph post without any internet slang or buzzwords.

[ECore]

If you appreciate my proofreading, you can tip me here.....sorry, I only got half way down before my head exploded:  1EEq1NjWtnwoqANZZX2JLCCUY46wFgvfZ8

Essay: Bitcoins will intensify to over $1,500 in our lifetime and we will all be millionaires.
By: Tom Peckelpent

Essay number one. The first essay.

Do you know what a Bitcoin is?  If not, then you should continue to read because I believe that they will increase in value up to $1,000 or more.

Bitcoin is a digital currency designed by Satoshi Nakamoto.  Each bitcoin is born from the hard work of the bitcoin community members.  They use their computers to equate solutions to complex cryptographic computations that are necessary for bitcoin transactions. Bitcoin does well-represent two of the three classic requirements of money. They are a medium of exchange in that they are used as intermediaries in the exchange of goods and services. They are a unit of account in that they are represented by standard numerical unit of measurement. They are also uniquely divisible. Finally, and most importantly, they are a store of value because they are able to be reliably saved, stored and retrieved in their usable form as a medium of exchange. It is this last point which underscores why bitcoin's value will go up to $1,000. As bitcoin is adopted globally, as there is no governing body to stop this from happening, the value of each bitcoin will increase with this demand.

Perhaps the most obvious question is, "What will give bitcoin value?"  This, I believe, will be because people put their trust into bitcoin's transparent system, while distrusting the run amok, fraud-laced system that is ran by the Federal Reserve. If people trust bitcoin, then they will use them as a store of value. There are only 21 million bitcoins that will ever exist, and there are currently approximately ten million bitcoins. Therefore we may state that based on supply and demand the total value of bitcoins, should there be 21 million bitcoins, would be approximately the current price divided by 21 million over 10 million, or about $6.40 US. Next, due to the laws of supply and demand, assume a logarithmic scale for adoption as newcomers into the bitcoin market drive bitcoin prices up exponentially due to limited availability. A doubling of the user base would then cause the $6.40 to become $12.80; a further doubling of the user base would cause it to go to $51.40. Should the user base double again the value would go over $200. There are only a few hundred thousand bitcoin users at most  So this allows, at the current global population, for the bitcoin community to double 1162 times over.  

This means that however many bitcoins you have now, in the future you are always likely to have less. This fact means that bitcoins today will always be worth more in the future, because the same amount of bitcoins will chase the same utility you yourself give to bitcoins today, but also every newcomer to the scene will also chase the same utility with whatever bitcoins they have as well. Therefore, if you end up on average with 1/5th the bitcoins you have today, the assumption is that bitcoins must rise in price by five times to afford you the utility you have now. If we estimate conservative worldwide adoption numbers of ten million users, we can then easily predict a bitcoin price of over $1,000 per coin.

Of course, the story is not at all like the movies. Even now, it no longer possible to accumulate large amounts of bitcoin easily. Bitcoin has been "money" for too long, that people will spend 10,000 bitcoins for a pizza anymore. Coming by your next bitcoin requires work, or the sale of goods. This is proof that bitcoin has evolved and has found a niche for the average person to use. What remains to be seen is how fast we will get to ten million users and $1,000+ per coin. Based on logic, the number of transactions per day would be a rough estimate of utility as the numbers of users grow. In 2011, the number of bitcoin transactions went up by more than seven times. If we conservatively assume a double each year from here on, then we will reach ten million users in just a few short years.

In conclusion, I believe bitcoins will up more than $1,000 because bitcoins, their trust and use of the currency will cause the utility of bitcoins, and therefore their value, to increase due to bitcoins being available less per person over time. Additionally, as the velocity of bitcoins increases, new utility will be found and is in fact currently being developed. It seems clear to me that while volatility will always be a problem when valuing bitcoins based on some other currency, the only way forward from here is up. Let's enjoy the ride.

If you enjoyed this essay please donate some bitcoins to Mr. Tom Peckelpent, at 1DSUgbTzKnd3WWaYk78jQYd2vNDJR9v5CQ. You may check this address to see how much money this story has generated by visiting blockchain.info/address/1DSUgbTzKnd3WWaYk78jQYd2vNDJR9v5CQ. Thank you and enjoy the new year.

[BlackBison]

Essay: Bitcoins will intensify to over $1,500 in our lifetime and we will all be millionaires.

Even if what you say is true:

1,000,000/1500 = 666 btc held today ~ $8658 held in bitcoins today to become a 'millionaire' in the future.

I highly doubt that even 0.1% of the forum users here have that much money in bitcoins.

So I think you should change the title as I don't think many people would become millionaires  

[wormbog]

My new year's resolution is to use "pressingly salient vitality" in conversation sometime before the end of the year.

[21after2]

My new year's resolution is to use "pressingly salient vitality" in conversation sometime before the end of the year.

+1, and godspeed on your resolution.

[btccashacc]

It is a nice thought, if btc is even around by then.

[odolvlobo]

Here is my constructive criticism.

The essay could be more focused. There are only a few statements that support your premise, directly or indirectly. The rest seems unrelated.
A more complete essay would anticipate counter-arguments and address them also.
By picking a specific value, $1000, the reader expects you to describe how you arrived at that value.
Minor mistake: the title says $1500, but the body says $1000.

[bonker]

My new year's resolution is to use "pressingly salient vitality" in conversation sometime before the end of the year.

Yes, that phrase does have impact.

I know I was out of my depth when I read " Essay number one. The first essay"

On a constructive note, I think "less is more" is a good approach when banging shit out essay style.

[Bossbreaker]

Faceman, I owe you a bitcoin for that awesome post... Now, time to go mine a bitcoin!

[Skylineman]

Really interesting essay friend! Keep up the good work!

[Krax]

The community is growing day by day...

[Invictus]

7,000,000,000 people in the world but only 21,000,000 Bitcoins.

Interesting thoughts, but you're missing something.

Bitcoins can be easily replaced, they have no intrinsic value. Bitcoins are good for cheap money transfers, etc. But no one will ever pay 1000$. They'll just switch to LTC or some other fancy currency.

[vssa]

I don't know if bitcoin will worth 1500 $ but from my analysis it is good time to start buying around 10-8 $ :
http://www.btcwallet.org/?p=172

[psybits]

Interesting post, something a little different and with a bit more detail than usual

There is a good chance they will keep increasing in value as the demand for BTC keeps getting higher and higher - I am not sure if they will get to over $1500 though !

[lassdas]

Bitcoins are good for cheap money transfers, etc. But no one will ever pay 1000$. They'll just switch to LTC or some other fancy currency.

The funny thing is, that the price for 1BTC doesn't really matter at all if you just want to transfer money.
If you want to send $100 to your good friend in Kualalumpur, it makes no difference if you send 1, 0.1, 0.001, or even less BTC, your friend will receive $100 worth of bitcoins, no matter what the price is.

No need to switch to any other currency just because. Makes no sense.

[Invictus]

It's simply a high price for something completly worthless. I would rather transfer 100$ in thousands of LTC than in 0.1 BTC because I know if that price is reached at some point it's a bubble price and I don't want to see the bubble burst during a money transfer, risk too high.

I hope you remember what happened after the 30$ bubble lol.

[Elwar]

7,000,000,000 people in the world but only 21,000,000 Bitcoins.

Interesting thoughts, but you're missing something.

Bitcoins can be easily replaced, they have no intrinsic value. Bitcoins are good for cheap money transfers, etc. But no one will ever pay 1000$. They'll just switch to LTC or some other fancy currency.

How far we have come from a year ago.

[changpan]

First hope bitcoin will be alive in the next year, then hope more

[SizeableSausage]

7,000,000,000 people in the world but only 21,000,000 Bitcoins.

Interesting thoughts, but you're missing something.

Bitcoins can be easily replaced, they have no intrinsic value. Bitcoins are good for cheap money transfers, etc. But no one will ever pay 1000$. They'll just switch to LTC or some other fancy currency.

People will pay +$1000 for 1BTC (It has already been there).

If the exchange was that high people would still pay USD for BTC because you do not need to purchase "whole" coins; they can be purchased in decimal amounts.