"The price of your bitcoin is 1000 times overvalued"

[Sundark]

Gold is just a metal and diamond is just a stone, why not we call their value too as overpriced ? Unlike crypto currency, gold/Diamonds are being valued by every part of this world ? All these people are so childish to value just a metal or a stone ?

Gold is not just a metal, it is very useful because it has some excellent chemical properties. Can be used for jewelry or to create tools or electronics.
Diamonds are simply beautiful when used as decoration and they have industrial use because they are very hard and are good abrasives.

Usefulness and scarcity = high price.

[aardvark15]

It seems true that not many businesses or merchants accept Bitcoin as payment. I think this could be a problem in the future. Bitcoin seems to be used on gambling sites, porn sites, and a few online merchants and only a handful of physical businesses. Other than that, the system is kept going by mining and people acquiring and moving Bitcoins for investing, trading, lending, etc. So far that has been enough, but I think wider adoption is needed.

[richardsNY]

It seems true that not many businesses or merchants accept Bitcoin as payment. I think this could be a problem in the future. Bitcoin seems to be used on gambling sites, porn sites, and a few online merchants and only a handful of physical businesses. Other than that, the system is kept going by mining and people acquiring and moving Bitcoins for investing, trading, lending, etc. So far that has been enough, but I think wider adoption is needed.

Important reasons as to why people don't spend their coins:

-- Bitcoin as it is doesn't function as well as fiat does when it comes to doing online and local shopping.
-- In order to buy something with Bitcoin, you must obtain Bitcoin first, and then hope that the price doesn't fall too much after buying. Especially for the non Bitcoiners, this is an unneeded risky step as they can buy everything with fiat already.
-- People don't like to spend something which later explodes in value. It makes them regret having spent their coins, and most likely will never spend again.

Don't forget the fees. Most people are cheapskates that try to save on all their transaction fees by including poor fees. This will only result in many many hours of waiting time to get that important first confirmation, and guess what, Bitcoin will be blamed for 'not functioning properly'.

[Ektra]

Daily non exchange transaction volume is about $0.3 billion, market cap is about $20 billion, so I guess you could argue the proportion of money in circulation is very low compared to the total that exists. Despite the growth in bitcoin, it's hard to deny the price is still massively speculative. Mining costs per coin can and do adapt to the size of the market so that isn't a solid support at all.

[maku]

Important reasons as to why people don't spend their coins:

-- Bitcoin as it is doesn't function as well as fiat does when it comes to doing online and local shopping.
-- In order to buy something with Bitcoin, you must obtain Bitcoin first, and then hope that the price doesn't fall too much after buying. Especially for the non Bitcoiners, this is an unneeded risky step as they can buy everything with fiat already.
-- People don't like to spend something which later explodes in value. It makes them regret having spent their coins, and most likely will never spend again.

Don't forget the fees. Most people are cheapskates that try to save on all their transaction fees by including poor fees. This will only result in many many hours of waiting time to get that important first confirmation, and guess what, Bitcoin will be blamed for 'not functioning properly'.

To battle that negative bitcoin traits services/merchants accepting bitcoin should introduce some kind of incentive for people who use BTC.
Knowing deflationary nature of Bitcoin they should also store at least some portion of bitcoin payments, it would be amazing long term investing strategy.
The only real problem are growing tx fees. You can't really do anything about it as an user.

[richardsNY]

Knowing deflationary nature of Bitcoin they should also store at least some portion of bitcoin payments, it would be amazing long term investing strategy.

That would give the price a boost in the long term as it means that less coins get sold by third party payment processors, but it's only a fantasy. Volatility scares off merchants to keep a certain portion of their coins. It's easy talking for us as we can just keep holding our coins. Merchants need to pay tax over everything, use that money to buy stock, pay out employees, pay rent, etc. They simply can't afford to take a hit of 20-30% if the price suddenly happens to go down like that. Most merchants rely on constant liquidity in form of fiat -- holding Bitcoin isn't an option for them.

[lionheart78]

Knowing deflationary nature of Bitcoin they should also store at least some portion of bitcoin payments, it would be amazing long term investing strategy.

That would give the price a boost in the long term as it means that less coins get sold by third party payment processors, but it's only a fantasy. Volatility scares off merchants to keep a certain portion of their coins. It's easy talking for us as we can just keep holding our coins. Merchants need to pay tax over everything, use that money to buy stock, pay out employees, pay rent, etc. They simply can't afford to take a hit of 20-30% if the price suddenly happens to go down like that. Most merchants rely on constant liquidity in form of fiat -- holding Bitcoin isn't an option for them.

I think price increasing due to deflation is real and not a fantasy.  Even if some merchants are quite afraid to accept Bitcoin, enthusiast will definitely push the price up.  You can look at the coin collection society, the rarer the coin the higher the price, even if the coin cannot be used to buy items in the market.

[ASHLIUSZ]

i am a little confused why he is so sure bitcoin price is 1000 times overvalued. why not 100? 10? why exactly 1000? Do you agree with him?

Gold is just a metal and diamond is just a stone, why not we call their value too as overpriced ? Unlike crypto currency, gold/Diamonds are being valued by every part of this world ? All these people are so childish to value just a metal or a stone ?

Your old shirt will get millions of dollars in an auction if you are a rockstar. Yes, demand determines everything. Bitcoin has demand and it has value. There is no meaning of arguing it is 1000x more valued, there are people ready to buy with 1000x more so it has those values.

^this. There may be a bubble, that's impossible to tell until after the point but we're definitely nowhere near 1000x overvalued hahaha. To say that just makes you sound like incompetent newb in the whole aspect of cryptocurrencies.

Overvalued growth have never happened with bitcoin. Recent days during the year start overvaluation haven't took place, just China miners as well the increased exchange platforms provided with the fake trading volume to profit high and for high volume transaction. This has been sought in a short making everything to move in a stable manner.

[aesma]

It's funny coming from a Chinese. Chinese people with money want one thing : get that money out of China. BTC allows this, so it's very useful, even if it's not a currency you can use to pay for food.

[YuginKadoya]

how much does a bitcoin worth?
Some say:“Worthless. It’s just a Ponzi scheme.”
Some hail:“Priceless! It’s the future of money.”
A Chinese economist Ou Chengxiao,  often nicknamed”Ou Guru” said yesterday "The price of bitcoin is 1000 times overvalued". He believed that the value of currency is decided by its scale of circulation, or adoption. But now the lack of businesses that accept the digital currency as payment has been holding bitcoin back from wider adoption. not so many people are buying things with btc.
 i am a little confused why he is so sure bitcoin price is 1000 times overvalued. why not 100? 10? why exactly 1000? Do you agree with him?

Maybe you just misheard something on what he is trying to do, maybe it is not 1000 times overvalue? maybe he means by reaching the $1000 value mark bitcoin is now an understandable key for every people to multiple their earning with bitcoin and that is the fact and I think he is just happy in saying such words that he mumble and jumble it, regarding in what he is explaining.

[ethereumhunter]

how much does a bitcoin worth?
Some say:“Worthless. It’s just a Ponzi scheme.”
Some hail:“Priceless! It’s the future of money.”
A Chinese economist Ou Chengxiao,  often nicknamed”Ou Guru” said yesterday "The price of bitcoin is 1000 times overvalued". He believed that the value of currency is decided by its scale of circulation, or adoption. But now the lack of businesses that accept the digital currency as payment has been holding bitcoin back from wider adoption. not so many people are buying things with btc.
 i am a little confused why he is so sure bitcoin price is 1000 times overvalued. why not 100? 10? why exactly 1000? Do you agree with him?

Maybe you just misheard something on what he is trying to do, maybe it is not 1000 times overvalue? maybe he means by reaching the $1000 value mark bitcoin is now an understandable key for every people to multiple their earning with bitcoin and that is the fact and I think he is just happy in saying such words that he mumble and jumble it, regarding in what he is explaining.

the price is now over than $1000 and its more than 1000 times as Ou Guru said and i think he is right to predict like that. and now the price is still moving into higher price and we can not know in how much the price will increase. we know that bitcoin will increase the value and now the value reach high.

[The_prodigy]

So a Bitcoin should actually be worth $1? That is ridiculous.
Some millionaires like Draper would be able to buy up all the bitcoins in the world. That is not going to happen any time soon.

Lol this could be the end of bitcoin currency if bitcoin will worth for 1$ only or maybe those investors and business man who had coins for savings are going to cry and will quit bitcoin for sure I will buy lots of coins to be stock to be millionaire someday. Time can only say what will happens about bitcoin it self hence we can see it happens but we are the reason behind.

[richardsNY]

Knowing deflationary nature of Bitcoin they should also store at least some portion of bitcoin payments, it would be amazing long term investing strategy.

That would give the price a boost in the long term as it means that less coins get sold by third party payment processors, but it's only a fantasy. Volatility scares off merchants to keep a certain portion of their coins. It's easy talking for us as we can just keep holding our coins. Merchants need to pay tax over everything, use that money to buy stock, pay out employees, pay rent, etc. They simply can't afford to take a hit of 20-30% if the price suddenly happens to go down like that. Most merchants rely on constant liquidity in form of fiat -- holding Bitcoin isn't an option for them.

I think price increasing due to deflation is real and not a fantasy.  Even if some merchants are quite afraid to accept Bitcoin, enthusiast will definitely push the price up.  You can look at the coin collection society, the rarer the coin the higher the price, even if the coin cannot be used to buy items in the market.

You didn't understand me correctly. With fantasy I meant to say that it will most likely not happen that Bitcoin accepting merchants will keep a portion of their coins. If they would -- that directly means that less coins will get dumped on the market by the payment processors that these merchants are using, and thus results in less overall selling pressure. Again, not a likely scenario for most merchants.

[bohr]

Bitcoin is neither undervalued or overvalued whatever the price bitcoin has is the right price decided by the market.

[Dimelord]

Bitcoin is not over valued.If any one says it is over valued,compared to what? gold or stock markets.Bitcoin is the perfect system for sending millions of dollars to any parts of world quickly.It has intrinsic value.Some may speculate bitcoin's price to be more and if they lose,its their mistake.Bitcoin should be valued based on the under lying characteristics in it.Bitcoin is a protocol used by millions of people all over the world and it is decentralized and so works in a fair manner.

[pedrobraz]

I just wrote this post  about reasons I believe Bitcoin might be currently undervalued. Also wrote a bit on why we gotta watch out for a possible ICO Bubble . Don’t get me wrong, I’m a total crypto-enthusiast, on the other hand I try to be very logical about my analysis as an investment.

[marcuslong]

You can't please everybody to use or to believed in bitcoin however they will show some interest to use bitcoin in the future yes they might not believe because they seeing someone had the bad experience using bitcoin but then its really worth to use everybody who uses it enjoying the profit they work for hard . Bitcoin will be the future money soon as the technology and generation become more hightech.

[cpfreeplz]

I just wrote this post  about reasons I believe Bitcoin might be currently undervalued. Also wrote a bit on why we gotta watch out for a possible ICO Bubble . Don’t get me wrong, I’m a total crypto-enthusiast, on the other hand I try to be very logical about my analysis as an investment.

There are literally hundreds of ICOs going on right now and every single one of them gets millions invested because of a good idea basically and nothing else. There's going to be a huge crash from all of the coins that never do what they were supposed to.

[ASHLIUSZ]

I just wrote this post  about reasons I believe Bitcoin might be currently undervalued. Also wrote a bit on why we gotta watch out for a possible ICO Bubble . Don’t get me wrong, I’m a total crypto-enthusiast, on the other hand I try to be very logical about my analysis as an investment.

There are literally hundreds of ICOs going on right now and every single one of them gets millions invested because of a good idea basically and nothing else. There's going to be a huge crash from all of the coins that never do what they were supposed to.

Well this has the possibility to occur, but most of the ICO's were quite good in its development as well the investment base seems to increase as these are the beginning in the innovation through blockchain in different sectors. Also very few are scam and making fool of the investors.

[hatshepsut93]

how much does a bitcoin worth?
Some say:“Worthless. It’s just a Ponzi scheme.”
Some hail:“Priceless! It’s the future of money.”
A Chinese economist Ou Chengxiao,  often nicknamed”Ou Guru” said yesterday "The price of bitcoin is 1000 times overvalued". He believed that the value of currency is decided by its scale of circulation, or adoption. But now the lack of businesses that accept the digital currency as payment has been holding bitcoin back from wider adoption. not so many people are buying things with btc.
 i am a little confused why he is so sure bitcoin price is 1000 times overvalued. why not 100? 10? why exactly 1000? Do you agree with him?

Perhaps he would be somewhat right if Bitcoin was just another centralized payment system, but Bitcoin is radically different from them, it's immutable and decentralized, and that alone is worth a lot, since there's nothing similar to it in this world (aside from alts, which are kinda like clones of Bitcoin). This means that Bitcoin can be used much more than just a currency, it's an easily accessible storage of value that can be easily moved around the world at any time. Unlike all other payment processors, it doesn't need any legal permissions to operate, so it's the first truly global digital payment system.