♨♨♨ Bitcoin's Price Is Too High ♨♨♨

[ShortCoins]

We've mined 17m of the 21m bitcoin already.

In that time bitcoin has gone up 6 million times its original value! That makes no sense at all. Even 1000x - 10000x increase would be rather absurd


Bitcoins price is WAYYYYY TOOO HIGH!!! Only 1% of the world has adopted the coin so far. It makes no sense that the first 1% to adopt (aka miners and HODLers) should get up to a 6 million times return on their money. While someone adopting today would get a one times return. That's simply not feasible. The remaining 99% of the population will not agree to deflate their own purchasing power by 6 million - they will just continue to use Fiat.

That's the biggest problem that will prevent bitcoin from scaling.

https://www.youtube.com/watch?v=F7luAHdv61k

Heres a great video from Crypto Daily discussing the problems of bitcoins price

[ShortCoins]

Bitcoins exploding price might be the biggest deterrent to its success. A gradual rise in price would be much more reasonable.

This exponential, nonstop increase is looking more and more like a bubble.

[ShortCoins]

What should bitcoin be worth? Maybe $100 would be more reasonable after 7 years of growth

There really has been little innovation overall. Lightning network isn't even rolled out and SegWit hasn't been integrated everywhere. Basically the market cap of Bitcoin has ballooned without any real growth to justify it. The price is just being hyped

[Golovins]

That's why lot of people calling in an buble.

You know that the mining process is every time is more difficalt and power require more and more. To mine all the bitcoins (21m) it will take years and years, it can be even 10-15 years.

[SyGambler]

This doesn't only apply to bitcoin, it applies to all rare things and things that have certain cap
Yeah some people may not like it , but its a normal thing
Everyone who gets in early in something successful should be rewarded

[kueyen]

It makes no sense that the first 1% to adopt (aka miners and HODLers) should get up to a 6 million times return on their money. While someone adopting today would get a one times return. That's simply not feasible.

Why not? If I bought Microsoft stocks back in 1986, why shouldn't I get more returns than someone buying it in 2017? If you invested early in something that turns out to be successful, you make more money than the people who come after you. It's called economics.

[ShortCoins]

Lets compare bitcoins price rise to a bottle of water. Since water is something EVERYONE needs



Water:

2008 - 50 cents
2017 - 1 dollar

2x increase



Bitcoin:

2008 - $0.003
2017 - $18,000 dollars

6,000,000x increase



Clearly water (and the demand for it) is more important than bitcoin. Yet water appreciated 2x in value while an imaginary, invisible, untangible thing called bitcoin has increased 6 million times. If water increased by the same amount it woud cost 3 million dollars for a bottle today.

Would you pay 3 million for 24 fluid ounces of water? No.

Then why would you buy bitcoin for the same inflated price?

[AngelSky]

This doesn't only apply to bitcoin, it applies to all rare things and things that have certain cap
Yeah some people may not like it , but its a normal thing
Everyone who gets in early in something successful should be rewarded

But many speculators saying that if any economical product or service bumps big in the chart will fall at one stage when it goes to hill climb. We have to think now since the price moves bigger in the marketplace chart.
Value we are seeing is now is satoshi's expectation on 2020 but we achieved this value very soon that will be a positive information for us but still panic about this is burst.
After CBOE I expect we may find the bump to touch the 20k but still haven't done the chart. So go to investment on bitcoin.

[lusiaga]

yeah you can said it really high, because we know bitcoin price is born in in under 0 $.
but this is still very cheap price for new players because they will think the bitcoin price will be double or even triple in the future.
dont you think more people will interest and join? more plyers buy more high its price.

[virtualdn]

I'd say it is too low but everyone as they think

[ShortCoins]

Why not? If I bought Microsoft stocks back in 1986, why shouldn't I get more returns than someone buying it in 2017?

What? You are comparing oranges to apples.

Microsoft has revenues, Microsoft profits, Microsoft creates value, Microsoft has added many new technologies and expanded business. When you look at the history, you actually see the growth of a company. Those are the things that actually GENERATE the returns. When you look at bitcoin you see none of this. Its growth is derived not from profits, not from revenues, not from new technologies, not from much of anything. Its price is entirely based around hype

because they will think the bitcoin price will be double or even triple in the future.

It is very possible bitcoin will indeed double or triple in price before crashing. That would provide a mere 2x-3x return

My entire point is that bitcoin has already gone up 6,000,000x.

Is it worth the risk of losing a 6,000,000x profit for a chance at 2x-3x more?

[kueyen]

Why not? If I bought Microsoft stocks back in 1986, why shouldn't I get more returns than someone buying it in 2017?

What? You are comparing oranges to apples.

Microsoft has revenues, Microsoft profits, Microsoft creates value, Microsoft has added many new technologies and expanded business. When you look at the history, you actually see the growth of a company. Those are the things that actually GENERATE the returns. When you look at bitcoin you see none of this. Its growth is derived not from profits, not from revenues, not from new technologies, not from much of anything. Its price is entirely based around hype

It fills a certain need. People feel the need to be free of the banks, to send money around relatively anonymously and quickly. The price would be nowhere near what it is if cryptocoins were useless.

This need was not present before, and now it is. To use the analogy you used in your previous post, the price of bottled water hasn't changed because it still fills the same need, and the demand for it has remained constant. Bitcoin's price is increasing because it is filling a need that people have, and the demand is on the rise at the moment.

[ShortCoins]

The Monopoly Money costs too much real money

[wenjun123]

as the saying goes, we will see, but, the crypto currency is gaining popularity, the coinbase falls on the influx of people who want to buy lightcore and ether, the time is the transition to crypto-currencies

[1NV3ST0NM3]

We've mined 17m of the 21m bitcoin already.

In that time bitcoin has gone up 6 million times its original value! That makes no sense at all. Even 1000x - 10000x increase would be rather absurd


Bitcoins price is WAYYYYY TOOO HIGH!!! Only 1% of the world has adopted the coin so far. It makes no sense that the first 1% to adopt (aka miners and HODLers) should get up to a 6 million times return on their money. While someone adopting today would get a one times return. That's simply not feasible. The remaining 99% of the population will not agree to deflate their own purchasing power by 6 million - they will just continue to use Fiat.

That's the biggest problem that will prevent bitcoin from scaling.

https://www.youtube.com/watch?v=F7luAHdv61k

Heres a great video from Crypto Daily discussing the problems of bitcoins price

They are not losing purchasing power they are just late to enter the market. Not everyone can set up mining rig and begin mining cryptos. People are still buying it merely for returns and not for making it as a mainstream method of settlement. So its price is destined to go high its nothing like too high.

[avilsd]

Never be the first investor, or the last. But we're in a good time right now, as most of the world still isn't too familiar with Bitcoin. They only heard about it. But as more stories keep coming out about it and as more want to purchase cryptocurrencies, there's going to further interest.

[ShortCoins]

They are not losing purchasing power they are just late to enter the market

No they are definitely losing purchasing power.

Allow me to illustrate:

Theres two people in the world and $2. They each have $1

Person A invests $1 USD in monopoly money in 2010, Person B saves $1 USD in a piggy bank in 2010
Person A now has $6,000,000 USD worth of monopoly money in 2017, While Person B has $1 USD in a piggy bank
Person B wants to join Person A and get some monopoly money. So they buy $1 worth in 2017


Person B has 1 monopoly dollars and Person A has 6,000,0000 monopoly dollars out of the total of 6,000,001 dollars

Therefore, Person B has significantly lost purchasing power. In this case of only two people in the world their purchasing power would drop by a factor of 6 million times. The 6 million number is based on the ACTUAL price increase of bitcoin from 2010 to 2017. This example illustrates how phoney and absurd the price increase of bitcoin is

[Iranus]

Therefore, Person B has significantly lost purchasing power.

No.  Person B has gained less than Person A (they gained none), but did not lose purchasing power unless the value of a US dollar decreased, in which case the purchasing power that they lost was proportional to the US dollar's loss in purchasing power.

In this case of only two people in the world their purchasing power would drop by a factor of 6 million times.

Purchasing power's definition:

"the financial ability to buy products and services."

Person B can buy pretty much the same amount with that dollar that they could before, not six million times less.

[ShortCoins]

Person B can buy pretty much the same amount with that dollar that they could before, not six million times less.

its like you didn't even read my point.

if Person B starts off with $1 out of the $2 total he has the same purchasing power as Person A, they both hold 50% of the cash

when Person B ends up with $1 out of $6,000,001 total he loses purchasing power, because he now holds a very small percentage of the cash


WHAT DONT YOU GET?  Its not that hard to understand

[tonysitaly]

If you compare this year's market capacity with the market capacity in 2009, then perhaps the price is acceptable. That's why you see so many people entering encrypted money every day. What I think we need to do is how to further promote the application of bitcoin to specific projects.