Why would a rational person pay 6,000 $ for Bitcoin if he can have its ...

[Haunebu]

At this point in time, anyone buying bitcoin isn't there for the payment protocol but rather the potential profits they could be making if ever they bought it at the right time. Bitcoin's protocol for payments is still top-notch even with the advent of newer, better cryptocurrencies, and perhaps people are not that naive to buy a whole bitcoin if they don't know what to do with it. I know some people who are buying a whole bitcoin for online payments, and makes sure that it fulfills that duty they intended it to be.

The number of people doing this are few are far between. 99% of transactions are speculatory in nature and this is a huge problem. Really I point to the block reward algorithm as being the main problem. It exacerbates demand shifts by also continually limiting supply more and more as time goes on. This leads to volatility and the boom and bust cycles we experience every few years. The real issues is that with every boom and bust cycle you alienate more and more people because most got in at the height of euphoria. Most of these people will not come back or trust Bitcoin in the future. That means that with each bubble there is less and less new money available.

This is a risk which everyone were aware of when they first stepped into this extremely volatile cryptocurrency market. There is nothing surprising about any of this if you think about it.

Investors choose to invest into this market because of the financial incentive involved and there will always be financial incentive(It is literally a billion dollar market which could become a trillion dollar market in the future).

This is why I would not worry too much about investors leaving everytime a bubble burst since there will always be a surplus of new investors entering the market.

[1715042211]

1715042211

[gwestcot]

...
Let's put it this way. Nine years ago you had to pay 1,000 BTC in order to get dollar. Now you have to pay 0.00016 BTC.  In the same time period, both bitcoin and dollar had exactly the same utility - they functioned as a means of exchange. Now, why would a rational person spend six million times more dollars on something that has exactly the same utility as it had before?

I'm almost sure you're trolling at this point, but I'll bite.

Back in December 1btc was worth almost $20,000, now is only $6,300, What rational person wouldn't buy it for 3 times less while utility is exactly the same?

1 USD and 1 Venezuelan Bolivar have exactly same utility - they function as means of exchange. 1 USD = 248,520 VES. How's that possible? Has the world gone insane?

I'll ask you what I asked you before: What's your point? Can you clarify it? Are you now arguing that any movements in price are illogical if utility is unchanged?

People are getting caught up in prices here... Bitcoin's price has a lot of to do with the block reward algorithm that causes distortions and promotes speculation, hoarding, and volatility. This is the largest issue with crytocurrencies and normies will never trust crypto until it is relatively stable. You would need a dynamic block reward with a baseline that it moves from to prevent bad feedback loops. This could prevent about 70% of the volatility that we see today. But everyone is off their rocker and somehow thinks going from perpetual inflation to a perfectly inelastic supply is a good thing. The middle road is usually the best and least traveled. But yes right now it makes little sense to buy Bitcoin and then to use it as a medium of exchange. It is too volatile and has many technical issues holding it back from realizing the purpose of a medium of exchange. Gold and Silver, even though old, are still the best ways to maintain a STABLE storage of value and still act as a medium of exchange. I say this being a millennial that has never owned any gold or silver up until this point so there is no real bias in my statement.

[gwestcot]

At this point in time, anyone buying bitcoin isn't there for the payment protocol but rather the potential profits they could be making if ever they bought it at the right time. Bitcoin's protocol for payments is still top-notch even with the advent of newer, better cryptocurrencies, and perhaps people are not that naive to buy a whole bitcoin if they don't know what to do with it. I know some people who are buying a whole bitcoin for online payments, and makes sure that it fulfills that duty they intended it to be.

The number of people doing this are few are far between. 99% of transactions are speculatory in nature and this is a huge problem. Really I point to the block reward algorithm as being the main problem. It exacerbates demand shifts by also continually limiting supply more and more as time goes on. This leads to volatility and the boom and bust cycles we experience every few years. The real issues is that with every boom and bust cycle you alienate more and more people because most got in at the height of euphoria. Most of these people will not come back or trust Bitcoin in the future. That means that with each bubble there is less and less new money available.

This is a risk which everyone were aware of when they first stepped into this extremely volatile cryptocurrency market. There is nothing surprising about any of this if you think about it.

Investors choose to invest into this market because of the financial incentive involved and there will always be financial incentive(It is literally a billion dollar market which could become a trillion dollar market in the future).

This is why I would not worry too much about investors leaving everytime a bubble burst since there will always be a surplus of new investors entering the market.

There is a financial incentive to speculate but there is no incentive to actually use it. That was my point. Each bubble will have more investors until enough people get burned and then this will not be the case.

[Victorycoin]

Why would a rational person pay BTC0.00016 for 1 USD if he can payment protocol and money function at its starting price of 1 satoshi?

Seriously, you need to do a little better in explaining what exactly do you mean. Rational person would buy bitcoin either: as a speculative investment, as a hedge to current monetary system, or for its utility (ie. to easily transfer money).

In comparison to a potato, Bitcoin is not even a physical tangible good that can be used for satisfying human wants or needs, and its only utility is that it functions as payment protocol and money.

Guess what? A huge percentage of your beloved fiat money in banks are actually digital. Not everything is in paper money. And also, guess what? Some countries are already cashless, meaning that all(95%+) of their day to day transactions are actually digital. Does the intangible characteristic of their funds make it worthless? I don't think so.

And also, guess what!? Your beloved fiat money isn't backed by anything.

Exactly! Whatever we call money and whatsoever value it ends up having, is hinged squarely on people's perception and acceptance, besides that, fiat money inclusive are piece of garbage. Credit and debit cards are handy examples of embrace of virtual money and the interest for digital money remains on the increase because of it's relatively low cost of production, security and storage.

[zazarb]

What? Are you seriously with that question? Of course everyone buy Bitcoin for a speculative investment, as a long-term investition,as a hedge to current monetary system, for easily and cheap transfer money and so on.

[sunanbonang]

why do you buy rice if you can plant it?
buying bitcoin is not like buying a car or other item, you can buy bitcoin with the money you have now.

[Flin+piclo]

bitcoin does have a high price thats why its do this and I believe that in the future, it will throw up its price, and it becomes probable and reliable investment place. its future are more bright.

[BITcoinJuniorMB]

because bitcoin does have a high price, and I believe that in the future, it will turn around and grow up its price, and it becomes secure and probable investment place. its future are more potential.

[randythered]

The dollar price of bitcoin doesn't matter in its true use case because it aims to replace such currencies. The only price that then matters is the price of bitcoin relative to what each individual is trying to buy, be that a car, a house or a loaf of bread.

[btCHOOop]

because bitcoin does have a high price, and I think in the future it will turn around and increase its price, and it becomes secure and potential investment place.

[gabmen]

... payment protocol and money function at its starting price of 0.001 $?

Payment protocol and monetary function aren't why people are into bitcoin but because of its value. We haven't gotten to that point yet. Though i'm pretty sure most if us are aware that you don't need to spend for a whole btc right?

[Husecomang]

The dollar price of bitcoin doesn't matter in its true use case because it aims to replace such currencies. The only price that then matters is the price of bitcoin relative to what each individual is trying to buy, be that a car, a house or a loaf of bread.

A rational person is not investing in bitcoin in these days because he knows that the price of bitcoin is not increasing besides it is on the way down. a rational person will never lose his money and waste his time. Most people are putting their money in Altcoin. I still believe that bitcoin is number one currency in the world and possesses highest market cap than any other crypto.

[KingdomHearts]

Why would a rational person pay BTC0.00016 for 1 USD if he can payment protocol and money function at its starting price of 1 satoshi?

Seriously, you need to do a little better in explaining what exactly do you mean. Rational person would buy bitcoin either: as a speculative investment, as a hedge to current monetary system, or for its utility (ie. to easily transfer money).

In comparison to a potato, Bitcoin is not even a physical tangible good that can be used for satisfying human wants or needs, and its only utility is that it functions as payment protocol and money.

Guess what? A huge percentage of your beloved fiat money in banks are actually digital. Not everything is in paper money. And also, guess what? Some countries are already cashless, meaning that all(95%+) of their day to day transactions are actually digital. Does the intangible characteristic of their funds make it worthless? I don't think so.

And also, guess what!? Your beloved fiat money isn't backed by anything.

Exactly! Whatever we call money and whatsoever value it ends up having, is hinged squarely on people's perception and acceptance, besides that, fiat money inclusive are piece of garbage. Credit and debit cards are handy examples of embrace of virtual money and the interest for digital money remains on the increase because of it's relatively low cost of production, security and storage.

Bitcoin is currently available of value below 7k dollar and the actual value has appeared after improvement today that is 6505 US dollar. So this is a golden opportunity for us to get on such low price as we are well aware of its average price as well as its potential to give us maximum profit so we should avail this opportunity. Better you start buying right now so that you may not need to use more money to get it later.

[hannahboy]

because bitcoin does have a high price, and I think in the future it will turn around and increase its price, and it becomes secure and potential investment place.

There is no doubt that the future of bitcoin is shining and it will be only usable currency throughout the world although the price in these days is not good and is decreasing every day, but a rational person looks forward for long run and he knows that in the future he would make huge profits from his today’s investment. That is the reason for his investment.