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Author Topic: What will be the consequences of increasing demand to bitcoin?  (Read 571 times)
thend1949
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January 08, 2018, 08:42:39 PM
 #61

I think we are now encountering the consequences of the increasing demand. The fees in transacting bitcoin is very high plus the confirmation process is very slow right now.
Looking at the question that the OP asked though, that should not be a negative effect. There is really no negative effect that the increase in demand can cause, except for those who could have wish they were given the time to accrue as much as they would have wanted to before the bull run starts because that is exactly what is going to end up happening with increase in demand.
I think its just normal that btc were decreasing now since some were back in trading but time will come that btc will set its new ATH soon like it always did before.

Well, the current situations that bitcoin has decreasing and increasing nowadays I think its based on how an investors decide. Some of them got panicked and some were not into a positive vision of holding for long term. Short term traders will have to dump their assets quickly as long as they've seen the good price is already their, the opportunity was always grabbed for good. Those consequences that happened after an increasing demand here, I think that it would create chaos and more speculative ideas like bubble price expectations from frustrated investors.
richardsNY
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January 08, 2018, 09:20:09 PM
 #62

I think bitcoin price will never be stable as the demand keep increasing.

There will be a point where this market has turned into a developed market of such a level, that we'll likely see it mimic gold's market, or that of other major traditional assets. It won't stay as free as it is for ever, and we have already experienced the impact of the first regulations. At some point exchanges will act like stock markets when it comes to the rules they are subject to. It's just a matter of time before we'll get certain market safety measures where if the price drops with 5-10% in a matter of whatever time frame, that trading will be paused for a few minutes. Over time, it will make the market movers adjust their actions to fit within these limitations, which basically happened in every other market as well.
skorupi17
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January 08, 2018, 09:33:30 PM
 #63

Is there any negative effects to bitcoin if it becomes more popular than it is now?

Increasing demand may lead to exponential growth of price and increase in the number of transaction per second. With this 2 results alone, we can draw several issues already. First is with respect to the speed of transaction confirmation. The blockchain being congested with transactions would result to longer waiting time especially to those who uses lower transaction fees. This also leads to another problem, the transaction fee. Transaction fee would probably increase in value due to blockchain congestion and bitcoin price increase.

These issues might be coped when the time comes but if not, this is a serious matter. We all want Bitcoin to gain more popularity but if the issue worsen, we might wished Bitcoin stays cheap as possible.
chrmn27
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January 11, 2018, 01:17:39 PM
 #64

Increasing demand of bitcoin will trigger a tremendous increase in its price. Since more and more people go after it, sellers will have a good time enjoying bigger profits from selling bitcoin.
South Park
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January 11, 2018, 07:15:32 PM
 #65

Is there any negative effects to bitcoin if it becomes more popular than it is now?
The only negative effect is that bitcoin will become incredibly expensive, if demand doubled overnight, the price will not double it could go up ten times, because many people will not sell and will keep holding making the supply even lower and the prices even higher.
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January 11, 2018, 07:56:26 PM
 #66

Increasing demand of bitcoin will trigger a tremendous increase in its price. Since more and more people go after it, sellers will have a good time enjoying bigger profits from selling bitcoin.

If you have bought bitcoin at dips then selling it at a high price will definitely earn you a lot of money. Imagine how much you will gain if you bought it at $1K and the price goes to $50K this year. You will become instant millionaires. That's why its really better to hodl on bitcoin for longer terms.

As far as the consequences of increasing demand, bitcoin will grow exponentially but there will be serious issues on high transaction fees. I think we can't get out of that situation, as long as bitcoin growing, transaction fees will increase as well. It's going to be included as package. That's one of the drawback that I'm seeing that may happen in the future.

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January 12, 2018, 07:55:07 PM
 #67

I am sending this message from the year 2025. Things are looking bleak here, and some of you will carry blood on your hands.

If you don't believe me, please move on, as I have no way of proving to you I'm really who I claim to be.

I don't want to waste any of your time, so I'm merely going to explain what happened.

On average, every year so far, the value of Bitcoin has increased by about a factor ten. From 0.1 dollar in 2010, to 1 dollar in 2011, to 10 dollar in 2012, to 100 dollar in 2013. From now on, there's a slight slowdown, as the value increased by a factor ten every two years, to 1,000 dollar in 2015, to 10,000 in 2017, 100,000 in 2019, and 1,000,000 in 2021. From here onwards, there's no good way of expressing its value in dollars, as the dollar is no longer used, nor is any central bank issued currency for that matter. There are two main forms of wealth in today's world. Land and cryptocurrency.

There are just over 19 million Bitcoin known to be used in the world today, as well as a few hundred thousand that were permanently lost, and we're still dealing with a population of just over 7 billion people today. On average, this means the average person owns just under 0.003 bitcoin. However, due to the unequal distribution of wealth in my world, the mean person owns just 0.001 bitcoin. That's right, most of you reading this today are rich. I personally live next to an annoying young man who logged into his old Reddit account two years ago and discovered that he received a tip of 0.01 Bitcoin back in 2013 for calling someone a "faggot" when he was a 16 year old boy. Upon making this discovery he bought an airline ticket, left his house without telling anyone anything and went to a Citadel.

"What is a Citadel?" you might wonder. Well, by the time Bitcoin became worth 1,000 dollar, services began to emerge for the "Bitcoin rich" to protect themselves as well as their wealth. It started with expensive safes, then began to include bodyguards, and today, "earlies" (our term for early adapters), as well as those rich whose wealth survived the "transition" live in isolated gated cities called Citadels, where most work is automated. Most such Citadels are born out of the fortification used to protect places where Bitcoin mining machines are located. The company known as ASICminer to you is known to me as a city where Mr. Friedman rules as a king.

In my world, soon to be your world, most governments no longer exist, as Bitcoin transactions are done anonymously and thus most governments can enforce no taxation on their citizens. Most of the success of Bitcoin is due to the fact that Bitcoin turned out to be an effective method to hide your wealth from the government. Whereas people entering "rogue states" like Luxemberg, Monaco and Liechtenstein were followed by unmanned drones to ensure that governments know who is hiding wealth, no such option was available to stop people from hiding their money in Bitcoin.

Governments tried to stay relevant in my society by buying Bitcoin, which just made the problem worse, by increasing the value of Bitcoin. Governments did so in secret of course, but my generation's "Snowdens" are in fact greedy government employees who transferred Bitcoin to their own private account, and escaped to anarchic places where no questions are asked as long as you can cough up some money.

The four institutions with the largest still accessible Bitcoin balance are believed to be as following:

-ASICminer - 50,000 Bitcoin

-The IMF's "currency stabilization fund" - 70,000 Bitcoin

-Government of Saudi Arabia - 110,000 Bitcoin

-The North Korean government - 180,000 Bitcoin

Economic growth today is about -2% per year. Why is this? If you own more than 0.01 Bitcoin, chances are you don't do anything with your money. There is no inflation, and thus no incentive to invest your money. Just like the medieval ages had no significant economic growth, as wealth was measured in gold, our society has no economic growth either, as people know their 0.01 Bitcoin will be enough to last them a lifetime. The fact that there are still new Bitcoin released is what prevents our world from collapse so far it seems, but people fear that the decline in inflation that will occur during the next block halving may further wreck our economy.

What happened to the Winklevoss twins? The Winklevoss twins were among the first to die. After seeing the enormous damage done to the fabric of society, terrorist movements emerged that sought to hunt down and murder anyone known to have a large balance of Bitcoin, or believed to be responsible in any way for the development of cryptocurrency. Ironically, these terrorist movements use Bitcoin to anonymously fund their operations.

Most people who own any significant amount of Bitcoin no longer speak to their families and lost their friends, because they had to change their identities. There have been also been a few suicides of people who could not handle the guilt after seeing what happened to the bag-holders, the type of skeptical people who continued to believe it would eventually collapse, even after hearing the rumors of governments buying Bitcoin. Many people were taken hostage, and thus, it is suspected that 25% percent of "Bitcoin rich" actually physically tortured someone to get him to spill his password.

Why didn't we abandon Bitcoin, and move to another system? Well, we tried of course. We tried to step over to an inflationary cryptocurrency, but nobody with an IQ above 70 was willing to step up first and volunteer. After all, why would you voluntarily invest a lot of your money into a currency where you know your wealth will continually decline? The thing that made Bitcoin so dangerous to society was also what made it so successful. Bitcoin allows us to give into our greed.

In Africa, surveys show that an estimated 70% of people believe that Bitcoin was invented by the devil himself. There's a reason for this. It's a very sensitive issue that today is generally referred to as "the tragedy". The African Union had ambitious plans to help its citizens be ready to step over to Bitcoin. Governments gave their own citizens cell phones for free, tied to their government ID, and thus government sought to integrate Bitcoin into their economy. All went well, until "the tragedy" that is. A criminal organization, believed to be located in Russia, exploited a hardware fault in the government issued cell phones. It's believed that the entire continent of Africa lost an estimated 60% of its wealth in a period of 48 hours. What followed was a period of chaos and civil war, until the Saudi Arabian and North Korean governments, two of the world's major superpowers due to their authoritarian political system's unique ability to adapt to the "Bitcoin challenge", divided most African land between themselves and were praised as heroes by the local African population for it.

You might wonder, what is our plan now? It's clear that the current situation can not be sustained, without ending in a nuclear holocaust. I am part of an underground network, who seek to launch a coordinated attack against the very infrastructure of the Internet itself. We have at our disposal about 20 nuclear submarines, which we will use to cut all underwater cables between different continents. After this has been successfully achieved, we will launch a simultaneous nuclear pulse attack on every densely population area of the world. We believe that the resulting chaos will allow the world's population to rise up in revolt, and destroy as many computers out there as possible, until we reach the point where Bitcoin loses any relevance.

Of course, this outcome will likely lead to billions of deaths. This is a price we are forced to pay, to avoid the eternal enslavement of humanity to a tiny elite.

This is also the reason we contacted you.

It doesn't have to be like this. You do not have to share our fate. I don't know how, but you must find a way to destroy this godforsaken project in its infancy. I know this is a difficult thing to ask of you. You believed you were helping the world by eliminating the central banking cartel that governs your economies.

However, I have seen where it ends.
I do not know if you wrote this or copied from some other source, but I think you should start a thread with it, it is a good read, obviously I do not agree with most of it but it is a dystopian view of what it may happen when people do not have to give any part of their wealth to society.
harizen
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January 12, 2018, 08:00:52 PM
 #68

Is there any negative effects to bitcoin if it becomes more popular than it is now?
The only negative effect is that bitcoin will become incredibly expensive, if demand doubled overnight, the price will not double it could go up ten times, because many people will not sell and will keep holding making the supply even lower and the prices even higher.

How come it was a negative thing if bitcoin having an expensive price?

If that is the case then no worries if people will only buy a small fraction of it because at the end, still it's making sense to do hold because of the expected profits later on. And for traders or regular BTC earners, that's a great thing so why considered that as a negative. Negative for new investors? Still no. Because with the price surging more, they will think that it's really reasonable for them to enter at any current price. Not an assurance that they can get a decent profit later but surely they understand the risks the moment they enter the game so they need to managed it well properly.

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