How and why Bitcoin will plummet in price

[verdun2003]

non-sense, lack of real econ - keynesians never got it working anyways

[skilo]

It takes $630 to buy just 1 Bitcoin lol USD is worthless.

[Taras]

Yen is to USD as USD is to an insignificant chunk of a bitcoin. Yeah, we be way above society
Let's spend the next twenty minutes insulting the author of that article now.

[dotcom]

I doubt he is right... I sure hope he isn't !

http://www.dailydot.com/opinion/how-why-bitcoin-will-fail/

He completely ignores variables brought in by the vendor, buyer, and market as a whole. He also doesn't understand the difference between price and value. And since when are altcoin prices arbitrarily decided by whoever made them lol?

This article screams of college freshman who took a few economics classes and now goes around spewing 'wisdom' like he's an expert.

Also, wtf is up with his vocabulary. Far too many awkward or incorrect word placements to be taken seriously. The guy's a native English speaker, so there's no excuse. Don't writers proofread anymore?

[AnonyMint]

Bitcoin will fail because adoption will be limited:

https://bitcointalk.org/index.php?topic=400235.msg5718375#msg5718375

[CurbsideProphet]

Bitcoin will fail because adoption will be limited:

https://bitcointalk.org/index.php?topic=400235.msg5718375#msg5718375

What exactly is your link showing that indicates limited adoption?  Adoption will be predicated on ease of use, improved infrastructure, amongst other things.  Price is mostly irrelevant since Bitcoin can be divisible to multiple decimal places making it easy to use for anyone.

[odolvlobo]

Bitcoin will fail because adoption will be limited:
https://bitcointalk.org/index.php?topic=400235.msg5718375#msg5718375

Limited adoption does not mean failure. It means limited success. AnonyMint seems to believe that Bitcoin will die unless it replaces every currency.

I don't think that anyone expects Bitcoin to gain un-limited adoption. The adoption will most likely be limited by something, and the real question is when.

[zzojar]

The author is an idiot. He obviously knows nothing about the overall altcoin markets.

[btcjedi]

I mostly agree with this forum member's that the author of the article is incompetent to tell about BTC, had never read such stupid things before

[APSJEX.com]

One of the strengths of crypto-currencies is that if someone tries to corner the market on one of them people can simply change to a different one

[tee-rex]

He seems to have completely missed the point that Bitcoins utility and thus value lies in its use as a method of currency transfer.

As far as I can figure out, he sees Bitcoin as a simple commodity whose price in a competitive market will fall to cover the cost of manufacture + a small profit margin. Just like cars or toilet seats.

So he seems to be basing his assumptions on the labor theory of value (no subjective value, i.e. utility), which had been proven wrong right at its inception in the 19th century.

[easyrhino]

This author just ignores the network effect of the most popular cryptocurrency.  He assumes that each crypotocurrency is a good substitute for any other cryptocurrency.

By analogy, we can assume that the value of the US dollar will fall sharply soon because Vietnamese Dong is much "cheaper" to buy.

[bitminister123]

There is just too much faith in bitcoin now and as more adopt btc as a method of payment the faith increases, as faith in fiat currency and the traditional banking system decreases.. btc faith increases

VC interest in bitcoin based businesses has soared this year, they have the capital and with the right strategy over time these companies will grow, as the companies grow... faith increases.

[aminorex]

Funny thing is people immediately reject this argument because it works against Bitcoin, yet many use the same principle to predict increase costs of mining and rigs pushes up Bitcoin value.  I dont buy it myself, but you cant simply reject the premise that the value of Bitcoin could be reduced by supply side pressure.

Sure you can.  As long as demand is greater than supply, the notion that supply side pressure will reduce trading price in aggregate is absurd.

Also absurd is the idea that a coin with no network constitutes an alternative to a coin with a network on the scale of bitcoin.

[tee-rex]

Funny thing is people immediately reject this argument because it works against Bitcoin, yet many use the same principle to predict increase costs of mining and rigs pushes up Bitcoin value.  I dont buy it myself, but you cant simply reject the premise that the value of Bitcoin could be reduced by supply side pressure.

Sure you can.  As long as demand is greater than supply, the notion that supply side pressure will reduce trading price in aggregate is absurd.

It seems that you don't fully understand how supply and demand work jointly. When demand increases, it almost instantaneously gets balanced through price adjustment, so most of the time supply and demand are mutually offsetting each other (read are equal). Thus, if we have supply side pressure, it also gets balanced immediately through the corresponding price adjustment.

[spazzdla]

How many people didn't realise this was a necro.....?

[tee-rex]

Yeah, just noticed (though it was not me who bumped it)!

But such questions are always topical and can be asked at any time about virtually anything.

[Yakamoto]

How many people didn't realise this was a necro.....?

I have no idea who bumped it, but carpe diem!

I read this, and I have to say it was the stupidest thing I have read. Correction; the stupidest thing I had read before this, multiplied by cancer.

This person understand absolutely nothing about Bitcoin, and I still have to understand why he wrote that. Did he not have a story for a column and decided to say something is bad, even though he's done seemingly no research?

And no variables were taken into effect.

Yeesh.

[gts476]

Network Effect.

+1

Metcalfe's law, every time I read some dumbass talk about network values, Metcalfe's Law.

[transient858]

So far, network effect is working well for bitcoin. But that doesn't mean there won't be another coin more suitable for payment gateway in the future.