BTC has been overpriced all along? Will stabilize around 200-400?

[JimboToronto]

The price is three times was artificially raised by mining hardware manufacturer in cooperation with MtGox currency exchange.

LOL

[Ibian]

I think the long term goal is about $400. Scalability issues won't permit real growth above that. Current prices are pure bubble logic.

Care to explain that?

We are nearing the 1MB block size limit, and I think we have been in a bubble since $20, at least. Judging from the number of transactions vs. Bitcoin price, $400 looks like 1MB in the long term, disregarding the current bubble.

Block size has been brought up before. Sounds like a fixable problem.

[gentlemand]

I think the long term goal is about $400. Scalability issues won't permit real growth above that. Current prices are pure bubble logic.

Care to explain that?

We are nearing the 1MB block size limit, and I think we have been in a bubble since $20, at least. Judging from the number of transactions vs. Bitcoin price, $400 looks like 1MB in the long term, disregarding the current bubble.

But a $5 billion market cap doesn't make Bitcoin useful for very much at all. If it were to be used solely for a small proportion of remittances a few days of transactions would gobble that up.

[Mythul]

It will grow again. 2014 could be a slow year but the overall trend is up. Our worst enemy is patience since historically hodling is the best strategy so far, long term at least.

[aminorex]

But a $5 billion market cap doesn't make Bitcoin useful for very much at all. If it were to be used solely for a small proportion of remittances a few days of transactions would gobble that up.

But the bitcoin can be recycled quite a few times during the course of a year.

Anyhow, remittance use is only just beginning.  I doubt bitcoin has penetrated even 1% of the remittance market yet.  Remittances can be expected to become a major part of the fundamental value over a 2 year time frame, but they are not yet signficant.  It's too hard to convert BTC to Som or Cedi, still.

My current fundamental value estimate is 640 USD.  Expect it to trade at a discount during the current stressed conditions.