How Much Lower are We Going? Already at $2.25 !!!

[ElectricMucus]

Platinum is just a tick to rare to be used as a currency, and silver is not as corrosion resistant.

Also gold has only one stable isotope which is unique and it's high density makes it more difficult to fake.
Yes both silver and platinum are kind of undervalued but they just aren't as suited for use as currency as gold, that's why.

While now irrelevant the fact that gold has only one isotope will become very important, it is the only element which can be used as nanomoney without sorting them.

[markm]

A major difference from fiat currencies is the seeming lack of anyone who is actually determined to see to it that the currency does actually have value.

Although fiat gets pretty vapourish, it used to be that some kind of reserves or something backed it up.

If someone who had a huge amount of bitcoins had held as reserves everything they ever managed to buy with them, we'd be able to make a pretty good estimate of the lowest value/price just by looking at the reserves.

For example if someone had managed to sell one million bitcoins for USD$21 each back when the going rate was $1, ***AND*** they held the resulting USD$21000000 as reserves to back bitcoin, we could figure that even when all 21 million coins have been minted they should not be worth much less than a dollar each simply because we know there are 21 million dollars, minus maybe some costs such as security arrangements, banking fees and such, ready in safe storage (aka "reserves") to buy back all the coins for dollars.

To me it has always appeared that the biggest problem with bitcoins is the miners seem to be trying to get rid of them instead of treating them as a valuable token they are committed to always being ready to buy back for close to the price they sold them for.

The money would be in the transacting, like it is planned to be once all the coins have been minted.

Since miners seem generally unable to afford to back the coins, having so much expense for rigs and power, maybe it will fall to the exchanges to aggressively buy up all the coins, maybe allocate some portion of their fees as funds with which to buy up reserves of fiat currencies and precious metals and stocks and bonds and so on with which to be able to stand ready to buy up any coins that fall below some percentage of the price they sold them for.

The mentalist though seems to be to just get rid of all the coins then start up a new currency; there does not seem to be any significant number of people who are determined to buy back any coins they sell for not a whole huge amount less than they sold them for. Even something simple like "any we sell you we will buy back from your for 90% of what you paid us for them if you fail to find another buyer within X amount of time after buying them from us".

But what reserves do bitcoins have? How much of what people have spent on bitcoins is in various hoards ready to buy bitcoins back? Does anyone acctually have a "vested interest" in bitcoins or are bitcoins just something to get rid of as soon as possible to stock up on valuables to eventually buy some better-backed currency with when some better-backed one comes along?

-MarkM-

[Melbustus]

...The "how low can we go?" post...


#we'veTalkedAboutThisBefore

[cypherdoc]

Just curious as to your thoughts on this recent decline in trading price.

Manipulated? Bound to happen, nature of Bitcoin?  Are we heading to $1.00 BTC soon 

Thanks for your insights.

SJ

I've no idea, and doubt that more than a few people really do.  I'm planning to double down one more time if we get deep into the 1.xx range and have the ammo on-line to do so.  So I kinda hope that we do but will live either way.  I would feel much better about a rally if we do get well below the bottom at $2.04 from a month ago (even though I have little interest in or knowledge of technical analysis.)

I am in the same boat. Try to follow the smarties in here for their recommendations, but the bottom line is I think I secretly wish for $1 btc, then I will go in big and long.

we never did get to $1

[btcbeliever]

very helpful to retreive this old post to refresh my investing perspective in bitcoin.

[Melbustus]

very helpful to retreive this old post to refresh my investing perspective in bitcoin.

Perspective is very important.

Now let's remember how incredible and meaningful an advance bitcoin is. Back to basics, and the broadest possible perspective:

http://www.youtube.com/watch?v=NERAN-89j8M

^ That's Wences Casares' Bitcoin2014 talk in case you missed it...

[cypherdoc]

very helpful to retreive this old post to refresh my investing perspective in bitcoin.

what exactly has changed?

oh, millions more in VC money, thousands more merchants, >100x price, Dell, Expedia, Overstock, 100's of ATM's worldwide, exchanges in multiple non US countries, a protective hashrate thru the roof, etc.

[Bitcopia]

Thanks for digging this up. Good stuff.

[njcarlos]

Funny to see people squabbling over pennies, eh? Relativity is a bitch.

[spiderbrain]

So nice to see this one again.

[maker88]

Platinum is just a tick to rare to be used as a currency, and silver is not as corrosion resistant.

Also gold has only one stable isotope which is unique and it's high density makes it more difficult to fake.
Yes both silver and platinum are kind of undervalued but they just aren't as suited for use as currency as gold, that's why.

While now irrelevant the fact that gold has only one isotope will become very important, it is the only element which can be used as nanomoney without sorting them.

i know this guy prbly won't see this, but as a jeweler i have to point out silver is quite corrosion resistant. copper is not. sterling silver is a combination of the two,(92.5% silver, 7.5% copper as most common alloy) and the copper corrodes('tarnishes') fine silver does not corrode. fine silver is however a very soft metal, which is why it is generally alloyed with copper so it can be hardened.

[LRENZ]

ahahaha nice job reviving this thread!

[silverfuture]

It'll be fun to dig up a current "How low can we go" or "Will it ever recover" thread in another three years.

[Dfrost]

I buy all you bitcoin $2.25 each that sound fair?   

[Hunyadi]

I thought this thread is from future, and it is price of mBTC 

[piramida]

There simply is no reason for bitcoins to be worth more than a $1, no reason at all.  Nagle has been right.  When a bubble pops, it pops all the way, and in the case of bitcoin, there's no reason for a legitimate recovery on the horizon.

Yes so true, no chances to recover above $1 anymore Today's new breed of trolls also seems to think that now is for real, we will go to $100 and stay there. Of course they are right just like proudhon was

[FNG]

very helpful to retreive this old post to refresh my investing perspective in bitcoin.

what exactly has changed?

oh, millions more in VC money, thousands more merchants, >100x price, Dell, Expedia, Overstock, 100's of ATM's worldwide, exchanges in multiple non US countries, a protective hashrate thru the roof, etc.

Amazing to think bitcoin was only worth $10 million or so at the time. Severely undervaluing it's growing community and future potential. The same can be said now with a marketcap of $5 billion. The price is discounting the future potential, current infrastructure in place, and the growing community.

Pessimism really does fuck with people's abilities to draw logical conclusions

[piramida]

Amazing to think bitcoin was only worth $10 million or so at the time.

Yep you could take one of today's VC investments in bitcoin biz, literally buy most of available bitcoins, and still have enough to build coinbase or two

[frankenmint]

Platinum is just a tick to rare to be used as a currency, and silver is not as corrosion resistant.

Also gold has only one stable isotope which is unique and it's high density makes it more difficult to fake.
Yes both silver and platinum are kind of undervalued but they just aren't as suited for use as currency as gold, that's why.

While now irrelevant the fact that gold has only one isotope will become very important, it is the only element which can be used as nanomoney without sorting them.

i know this guy prbly won't see this, but as a jeweler i have to point out silver is quite corrosion resistant. copper is not. sterling silver is a combination of the two,(92.5% silver, 7.5% copper as most common alloy) and the copper corrodes('tarnishes') fine silver does not corrode. fine silver is however a very soft metal, which is why it is generally alloyed with copper so it can be hardened.

maybe not, but I did read this and appreciated your input, thank you  

[ABitNut]

Thing is that exchange rates can fluctuate. When it is rising people cheering, when it's dropping people are crying.

And in the end BTC1 is still exactly BTC1