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Author Topic: Why bitcoin will appreciate forever  (Read 18899 times)
Rizky Aditya
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December 17, 2015, 09:57:25 AM
 #161

Bitcoin is not always going to appreciate. There are a lot of counters to what you said. Not everyone likes Bitcoin, you do realise that right?

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December 17, 2015, 10:07:56 AM
 #162

Bitcoin is not always going to appreciate. There are a lot of counters to what you said. Not everyone likes Bitcoin, you do realise that right?

What are those counters (or at least some of them)?

It's not necessary for everyone to "like" Bitcoin. What matters, and what the OP showed, is that a deflationary asset (like BTC, gold) has a "head start" over non-deflationary assets (like USD, CNY, EUR, etc) - even if demand is static, supply is still diminishing:

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So, it is easy to see, even the underlying bitcoin economy does not grow at all, just because bitcoin's deflation nature, it will become a perfect medium for saving and investment

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December 17, 2015, 07:55:21 PM
 #163

Bitcoin is not always going to appreciate. There are a lot of counters to what you said. Not everyone likes Bitcoin, you do realise that right?

Maybe that bitcoin won't be appreciate it forever, but I think he means those people who use bitcoins that they wull appreciate it.
I like bitcoins and it will always be appreciate it for m, because I have make a lot of profit with it.
Eric Cartman
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December 17, 2015, 09:26:12 PM
 #164

It will because we live in an economic model of eternal inflation.

Money will devaluate more and more every day, forever, so BTC price will have to increase or go straight to 0

Rizky Aditya
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December 17, 2015, 09:36:54 PM
 #165

Bitcoin is not always going to appreciate. There are a lot of counters to what you said. Not everyone likes Bitcoin, you do realise that right?

What are those counters (or at least some of them)?

It's not necessary for everyone to "like" Bitcoin. What matters, and what the OP showed, is that a deflationary asset (like BTC, gold) has a "head start" over non-deflationary assets (like USD, CNY, EUR, etc) - even if demand is static, supply is still diminishing:

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So, it is easy to see, even the underlying bitcoin economy does not grow at all, just because bitcoin's deflation nature, it will become a perfect medium for saving and investment

Sorry mate. When I read the topic, I misinterpreted "everyone". I think that he meant everyone that bought Bitcoin. I interpreted it as everyone in the world. Sorry about that.

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December 18, 2015, 07:33:50 AM
 #166


There are too many rules to make sure that Bitcoin always appreciates. So pretty much this will never happen as not everyone is going to do what you stated.

Just only 2 rules for participants:

1. Buy some coin and hold at least 4 years (until next reward halving)
2. Start to sell 10% of those coin each year

Then they will at least double the investment in 4 years and beyond

Of course, there will always be people don't follow this recommendation, for example when they saw their coin have doubled in value, they would immediately cash out every coin, thus cause a small crash of the price, but then if they want to enjoy this return year over year, decades over decades, they would eventually need to buy it back at some stage, and maybe they sold it too early, or too late, and have to buy it back at higher exchange rate later... Market timing is very difficult, so why don't follow the rule and get a secured investment return instead of against the rule? Furthermore, when lots of people are acting against the rule, they destroy the anticipated supply demand relation, and might get the price to crash hard, what is the benefit of that?

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January 08, 2016, 05:03:45 PM
 #167

Another interesting discussion: https://www.reddit.com/r/Bitcoin/comments/3zql53/bitcoin_isnt_supposed_to_be_backed_by_anything_it/

When people are talking about backing, they are afraid that a currency is going to lose its value, so they need some powerful organization to guarantee the value of their currency

However, even the value of fiat money fluctuate a lot in foreign currency exchanges. A fiat currency can be shorted to worth a little on FOREX if their central bank do not protect its rate. So eventually all the currencies' value is backed by the central bank's foreign currency reserve

Similarly, bitcoin's value is backed by millions of bitcoiner's fiat money reserve. When bitcoin exchange rate drops, they step in and buy bitcoin to raise its value. And this backing is purely driven by their trust and long term positive expectation of bitcoin

You can regard bitcoiner's fiat money as unlimited (comparing with bitcoin's relative small market capital), but they won't blindly buy at any price. Their support mostly come from two psychological level: The first is the mining cost, if coin value is much lower than mining cost, they will buy. The second is the reward halving every 4 years which approximate to an average 19% value increase per year, so if coin performance dropped below this level, they will consider buying

Eventually the mining coin supply will shrink to zero and the most significant daily coin supply will be replaced by the spending from existing holders, but that is another decade away. And because nothing can force the existing holder to spend their coins unless a super increase in its value, so I guess the coin supply will be less and less on market anyway


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