Final Price of bitcoin to stabilize at?

[mestar]

The price will stabilize at the point where the "value created" by the Bitcoin network is equal to the costs of running the network.


Today, its very little BTC economic activity, and a whole lot of speculation going on.  Bubble tops usually don't last long.

[PenAndPaper]

The price will stabilize at the point where the "value created" by the Bitcoin network is equal to the costs of running the network.


Today, its very little BTC economic activity, and a whole lot of speculation going on.  Bubble tops usually don't last long.

So what you are saying is that the value will never stabilize right?

[bryant.coleman]

BTC can reach more than $100K.... but there is also a chance that BTC might become worthless in the future.

For example, what happens if US and its allies decide to ban BTC?

If government makes the possession of BTC a criminal offence, then the value of BTC can come down to near-zero in no time. Right now there is no such possibility... but there is a small chance in the future.

I have friends working in the banking industry. When I discussed about BTCs with them, they always try to scare me saying that the possession of BTC will soon be a criminal offense, as it is used for money laundering or the purchase of drugs. These people are not high level employees.... but if BTC becomes a threat to the monopoly of the bankers and services like Paypal, there is a real chance that they will lobby to the government to ban the same.

[mp420]

About $400 to $600. Will crash much lower before rising back to that level.

[Coma]

they always try to scare me saying that the possession of BTC will soon be a criminal offense, as it is used for money laundering or the purchase of drugs..

If they do it, they could never use such argument, since all currencies are used for money laundering or the purchase of drugs.
When it comes to legal temrs, they'll have to come up with something else. Which I do think eventually will happen.

[mestar]

The price will stabilize at the point where the "value created" by the Bitcoin network is equal to the costs of running the network.


Today, its very little BTC economic activity, and a whole lot of speculation going on.  Bubble tops usually don't last long.

So what you are saying is that the value will never stabilize right?

What I was trying to say is that the Bitcoin network has a huge cost, and nobody sees it.

But, now that you mention it, if other world currencies are not stable against each other, what chance Bitcoin has.   

[leoragraves666]

China will be the first to accept it everywhere http://www.coindesk.com/china-mobile-network-accepts-bitcoin/

[wobber]

China will be the first to accept it everywhere http://www.coindesk.com/china-mobile-network-accepts-bitcoin/

OMG!

[donjoe]

Finally? Everything finally ends up at $0.

[Mike Christ]

Finally? Everything finally ends up at $0.

I'm curious if this also applies to gold

[balanghai]

Finally? Everything finally ends up at $0.

I'm curious if this also applies to gold

Here's the answer.

Revelation 18:11-13

King James Version (KJV)

11 And the merchants of the earth shall weep and mourn over her; for no man buyeth their merchandise any more:

12 The merchandise of gold, and silver, and precious stones, and of pearls, and fine linen, and purple, and silk, and scarlet, and all thyine wood, and all manner vessels of ivory, and all manner vessels of most precious wood, and of brass, and iron, and marble,

13 And cinnamon, and odours, and ointments, and frankincense, and wine, and oil, and fine flour, and wheat, and beasts, and sheep, and horses, and chariots, and slaves, and souls of men.

[bitcon]

$2000

[wobber]

Finally? Everything finally ends up at $0.

I'm curious if this also applies to gold

Here's the answer.

Revelation 18:11-13

King James Version (KJV)

11 And the merchants of the earth shall weep and mourn over her; for no man buyeth their merchandise any more:

12 The merchandise of gold, and silver, and precious stones, and of pearls, and fine linen, and purple, and silk, and scarlet, and all thyine wood, and all manner vessels of ivory, and all manner vessels of most precious wood, and of brass, and iron, and marble,

13 And cinnamon, and odours, and ointments, and frankincense, and wine, and oil, and fine flour, and wheat, and beasts, and sheep, and horses, and chariots, and slaves, and souls of men.

I know that quote even in latin, but I don't get why you put it...

[wearepoor]

But, now that you mention it, if other world currencies are not stable against each other, what chance Bitcoin has.   

Obviously not absolute stability for example between 1250 and 1500 many years, but just some level like around 1000

[bryant.coleman]

China will be the first to accept it everywhere http://www.coindesk.com/china-mobile-network-accepts-bitcoin/

I am quite skeptical. The Chinese Reserve Bank has announced that they will not regulate Bitcoin.

[johnyj]

Mining cost is always the lower bound, upper bound 1 million, but might take many years until the mining cost reach that level

[Mike Christ]

Finally? Everything finally ends up at $0.

I'm curious if this also applies to gold

Here's the answer.

Revelation 18:11-13

King James Version (KJV)

11 And the merchants of the earth shall weep and mourn over her; for no man buyeth their merchandise any more:

12 The merchandise of gold, and silver, and precious stones, and of pearls, and fine linen, and purple, and silk, and scarlet, and all thyine wood, and all manner vessels of ivory, and all manner vessels of most precious wood, and of brass, and iron, and marble,

13 And cinnamon, and odours, and ointments, and frankincense, and wine, and oil, and fine flour, and wheat, and beasts, and sheep, and horses, and chariots, and slaves, and souls of men.

In other words, once humanity ends

[mp420]

Mining cost is always the lower bound, upper bound 1 million, but might take many years until the mining cost reach that level

You got it wrong way around. If there's no demand, it does not matter how much it cost to make something, it's still worthless.

[PenAndPaper]

The price will stabilize at the point where the "value created" by the Bitcoin network is equal to the costs of running the network.


Today, its very little BTC economic activity, and a whole lot of speculation going on.  Bubble tops usually don't last long.

So what you are saying is that the value will never stabilize right?

What I was trying to say is that the Bitcoin network has a huge cost, and nobody sees it.

But, now that you mention it, if other world currencies are not stable against each other, what chance Bitcoin has.  

Saying that the bitcoin network has a huge cost is a very broad statement and means nothing actually.
It's like saying that public health care has a huge cost. Sure but what does this mean?

[elebit]

For example, what happens if US and its allies decide to ban BTC?

Yeah, that was a real risk last year. That's why prices were sub-$100.

Now with the senate hearing and parts of Wall St. implying that they've been playing Bitcoin for a while, I think we can safely ignore the risk that crypto currencies would be outright outlawed.

There is simply too much money invested in it right now. And real money from people much too close to the US political system to allow that.