Why would one pay $7K for Bitcoin if he/she can get the same thing for $0.001?

[Wind_FURY]

Bitcoin is the oldest, most secure, most tested, best developed, best distributed, most decentralised and most trusted.

A 1 cent alt is none of these things. It's a bit of code cut and pasted in a few seconds. You can't know how secure it is, whether the miner (s) will roll back your transaction or whether what's in your wallet will even be movable in a few weeks. There are plenty of dead coins.
 
The thing that gives Bitcoin its value is confidence and trust. That takes years to build. You can't buy it. You can't fake it. It can only be earned.

Actually, it's "no-trust"/trust-minimization. You don't have to trust anyone, or anything. You can verify everything yourself, and you know everything is intact because the incentive structure simply works.

Forget transaction times and so on. That's nothing but tinsel. If not enough people trust it it's going nowhere.

It's about transaction finality.

[1714170790]

1714170790

[1714170790]

1714170790

[1714170790]

1714170790

[1714170790]

1714170790

[antikvark]

Imagine an electronic producer that pays $10,000 for 1 gram of gold, while in the same time a metal with better electrical properties costs less then a cent.

Imagine a trader who gives his 10,000 units of fiat currency X for the same amount of fiat currency Y, although the bank created X with his 5,000 square foot luxury mansion as a collateral, while the collateral for X was only Kia Pride vehicle.

Imagine an investor that pays $1,000 for a stock with a book value of $1 and earnings of $0.01, while in the same time he can buy a stock with a book value of $2,000 and earnings of $500 for the same amount of money.

Imagine a guy that pays $1,000 for the Cheeseburger while in the same time he can get the Big Mac for only $1.

The above scenarios would be crazy because no one would trade his thing for something that has thousands or millions time less utility. Nor would someone pay a thousand or a million times more money for the same or even worse thing. That is why the above scenarios are not possible in reality.

But... in the crypto world, they are possible. People are paying thousands or even million times more for bitcoin than for some altcoins, even though these coins have the same features as bitcoin. Functions and features of cryptos are pretty straightforward. Elimination of expensive brokers, lawyers, and other typical “middlemen”. Low transaction costs. Transactions are transparent, quick, permanent, and hard to fake. Cryptos that are priced below $0.001 have all these functions and features. But, people in the crypto world buy bitcoin that is priced above $7,000. They are paying millions time more for the same thing. Why they behave so irrationally?

Your problem is that you are assuming that bitcoin is just a technology and that it should be treated as you treat your smart phone in which as soon as you can find a better and cheaper deal you replace your current one.

But bitcoin is as a currency and all currencies requires the trust of the people in order to function appropriately, what altcoins are missing is the trust that we have in bitcoin not only because it was the first cryptocurrency ever created but also because it has the highest hashing power, the best developers and the best community.

Of course that being the first in the industry and having reputation means something. For example, if a bakery has good brand reputation, consumers trust it, and feel good about purchasing its bread rolls, they might pay $2, $3, or even $10 dollars for these rolls if competitors sell them at $1. But no one would pay $1,000,000, since they are just flour, water, and yeast mixed together. The same is with cryptos. They are just numbers associated to address that are transferred through the network via some protocol. In that sense, bitcoin is equal to thousands of other cryptos, and  there is no rational reason for it to cost millions times more than them.

[bxipp]

Imagine you could buy some gold, or some tin. One is more expensive, why do you go for that one instead of the cheap one?
Its got to do with the properties of the more expensive one, which is why it commands that price.
Other coins coins try to imitate or replicate bitcoin, but they do not have the same properties, hence they are worth less.

Bitcoin is over priced and over hyped, and the majority of the world's dummies are holding now.
There are not enough new dummies to keep the price up and the tether scam is failing, so expect prices to continue on a downward spiral from now on, with the occasional dead cat bounce to keep the dummies holding while the price crashes below profitability and eventually chain death. 

The last person who will get it will be the last man standing.. We all here believe bitcoin will last forever and to be scared is part our nature. So why running away when this is a good time to invest. When thing going down it will not always stay down. Only time will reveal it soon.

[blckhawk]

It's more of the trust to the platform. Bitcoin has been with us in almost 10 years and yet it survived fatal blows to the system. Altcoins tend to have smaller community, smaller developing team, and thus could be eliminated easier with an attack to the network.

Another thing is that altcoin market nowadays are too crowded. More options tend to be much difficult for investors rather than a fewer set of choices. It also makes the competition somewhat difficult and non-sense, since these altcoin tend to have little uniqueness to each other.

[zviadits]

Imagine a guy that pays a million dollars for a bread roll, while in the same time he can buy it for $1 at other bakeries. Such scenario would be crazy because no one would give million times more money for the same thing. That is why the above scenario is not possible in reality. But... in the crypto world, it is possible.

In the crypto world people are paying million times more for bitcoin than for altcoins, even though these coins essentially have the same features as bitcoin. Functions and features of cryptos are pretty straightforward. Elimination of expensive brokers, lawyers, and other typical “middlemen”. Low transaction costs. Transactions are transparent, quick, permanent, and hard to fake. Cryptos that are priced below $0.001 have all these functions and features. But despite that people are paying thousands of dollars for bitcon.

Of course that being the first in the industry and having reputation means something. For example, if a bakery has good brand reputation, consumers trust it, and feel good about purchasing its bread rolls, they might pay $2, $3, or even $10 dollars for these rolls if competitors sell them at $1. But no one would pay $1,000,000, since they are just flour, water, and yeast mixed together. The same is with cryptos. They are just numbers associated to address that are transferred through the network via some protocol. In that sense, bitcoin is equal to thousands of other cryptos, and  there is no rational reason for it to cost millions times more than them. To put it differently, bitcoin is a mega-bubble, even at $10, and it is only a matter of time before it bursts.

Bitcoin has existed for 10 years and during this time, the Bitcoin ecosystem did not commit fraud, did not expose its users to risks. It is created disinterestedly, for people. Understand this, that's why people overpay

[BitcoinHunt3r]

For me, bitcoin and altcoin itself is a different thing. What make it same is title of "cryptocurrency" but the inside is different. Maybe if compare with cars, normal cars and sportscar which more popular, and although we, or maybe people don't have much money and must pick which one that they want, sportscar or normal car, they must be pick sportscar which already popular.

[shark1006]

Imagine a guy that pays a million dollars for a bread roll, while in the same time he can buy it for $1 at other bakeries. Such scenario would be crazy because no one would give million times more money for the same thing. That is why the above scenario is not possible in reality. But... in the crypto world, it is possible.

In the crypto world people are paying million times more for bitcoin than for altcoins, even though these coins essentially have the same features as bitcoin. Functions and features of cryptos are pretty straightforward. Elimination of expensive brokers, lawyers, and other typical “middlemen”. Low transaction costs. Transactions are transparent, quick, permanent, and hard to fake. Cryptos that are priced below $0.001 have all these functions and features. But despite that people are paying thousands of dollars for bitcon.

Of course that being the first in the industry and having reputation means something. For example, if a bakery has good brand reputation, consumers trust it, and feel good about purchasing its bread rolls, they might pay $2, $3, or even $10 dollars for these rolls if competitors sell them at $1. But no one would pay $1,000,000, since they are just flour, water, and yeast mixed together. The same is with cryptos. They are just numbers associated to address that are transferred through the network via some protocol. In that sense, bitcoin is equal to thousands of other cryptos, and  there is no rational reason for it to cost millions times more than them. To put it differently, bitcoin is a mega-bubble, even at $10, and it is only a matter of time before it bursts.

Why do you eat natural meat instead of genetically grown? Why are you drinking cow milk and not made from chemical powder? These are new technologies, these products are full of vitamins and benefits. I think it is because you trust natural meat and milk, and not genetic engineering products. Just compare my example with Bitcoin, you trust the original coin, not the altcoins with the same way

[barbara44]

When you have a company and that grows to become a big name in the industry, people would prefer your product more than others even if they are offering something better than what you have. I think people are into buying names and not products lol.

It's just like social media like Facebook: I see a lot of people that complain about Facebook having bad security and selling users information, but these people continue to make use of Facebook despite all those claims, does that mean that there are no other social platforms that are better than Facebook? Well, you can answer that.

So, that's how it is when it comes to cryptocurrency. Yes, I have seen a lot of altcoins that claims to be better than Bitcoin and do what it does better and for half the price you will pay when making use of Bitcoin for transactions. Some of them claim to be faster, while other claims to have better privacy and security. But people don't care about all that, all they know is that Bitcoin has already made a name for itself and it is safe, they don't have any problem using it, any other crypto claiming to offer something better is just wasting time.

[Shenzou]

Imagine a guy that pays a million dollars for a bread roll, while in the same time he can buy it for $1 at other bakeries. Such scenario would be crazy because no one would give million times more money for the same thing. That is why the above scenario is not possible in reality. But... in the crypto world, it is possible.

In the crypto world people are paying million times more for bitcoin than for altcoins, even though these coins essentially have the same features as bitcoin. Functions and features of cryptos are pretty straightforward. Elimination of expensive brokers, lawyers, and other typical “middlemen”. Low transaction costs. Transactions are transparent, quick, permanent, and hard to fake. Cryptos that are priced below $0.001 have all these functions and features. But despite that people are paying thousands of dollars for bitcon.

Of course that being the first in the industry and having reputation means something. For example, if a bakery has good brand reputation, consumers trust it, and feel good about purchasing its bread rolls, they might pay $2, $3, or even $10 dollars for these rolls if competitors sell them at $1. But no one would pay $1,000,000, since they are just flour, water, and yeast mixed together. The same is with cryptos. They are just numbers associated to addresses and are transferred through the network via some protocol. In that sense, bitcoin is equal to thousands of other cryptos, and  there is no rational reason for it to cost millions times more than them. To put it differently, bitcoin is a mega-bubble, even at $10, and it is only a matter of time before it bursts.

Well here lies the problem with crypto industry, a lot of the people who are involved in it are just using it or seeing it as a way of profit and not as a payment method, bitcoin has a high and fast growing price, like in a day bitcoin could change by a 100$ and that is what why many people use it especially  since 2017 when they saw the potential, and they really don't use it for buying stuff only if they have to, and anyone who says otherwise is a big lair.

[Darooghe]

Bitcoin is at the foundation of all altcoins and should be respected. it's the soul of the crypto market and other altcoins should stop trying to harm Bitcoin with it's false narratives and propaganda because if you harm Bitcoin you only harm the value of your own coin and all other altcoins. you also weaken the entire crypto-community. it's a very stupid game to play and ultimately achieves nothing. Further the people who working on altcoins are bound to be very smart and will realize blockchain technology is best suited to one chain to rule them all and eventually migrate to the strongest decentralized chain in future where bitcoin is still vastly ahead of anything else.

[EdenHazard]

Imagine you could buy some gold, or some tin. One is more expensive, why do you go for that one instead of the cheap one?
Its got to do with the properties of the more expensive one, which is why it commands that price.
Other coins coins try to imitate or replicate bitcoin, but they do not have the same properties, hence they are worth less.

Bitcoin is over priced and over hyped, and the majority of the world's dummies are holding now.
There are not enough new dummies to keep the price up and the tether scam is failing, so expect prices to continue on a downward spiral from now on, with the occasional dead cat bounce to keep the dummies holding while the price crashes below profitability and eventually chain death.  

You guys ... khaos77 and antikvark I think posted in the wrong forum, it must be antibitcointalk.org or something lol you'll get more mocking statements below coming quick with all of your interesting thoughts and point of view regarding bitcoin .
This is all about value isn't it?
People find bitcoin valuable with its utility as a digital money that worldwide acceptance borderless.
And as time goes by the ecosystem itself grow faster , gained popularity and well known wide within 10 years makes more people holding bitcoin without selling it has been created the value of bitcoin itself!

[antikvark]

What do you mean by the same? coins? well. it's not the same as well as btc rate must be up one day

I mean, bitcoins, the same as other coins, are just numbers associated to addresses that are transferred through the network from one address to another via some protocol. In that sense, bitcoin is equal to thousands of other cryptos. It is the same thing with different name. Accordingly, no rational reason exists for bitcon to cost millions times more than an average coin. To put it differently, bitcoin is a mega-bubble, even at $10, and it is only a matter of time before it bursts.

P.S.  What do you mean by "must be up". You'll put a gun to someone's head and demand $1 million for your bitcoin? Or do you mean that the global supply of geeks and dummies is infinite?

[Mike Mayor]

*double face palm*  What a silly fellow.

Learn how bitcoin works and how supply and demand works and all your silly questions will be answered. How can you compare a currency to a freaking bread roll?

Are you saying we should pay $1 for the Japanese Yen too? That is pretty much what you are saying. Why would someone pay more for a $1 then 1 yen? Because it's worth more??
Bitcoin is worth more? What is there to understand? It's value comes from supply and demand.

What if the other shops also make their bread rolls 1 million $$ according to you thats fine?

[FireBallex]

Power of demand makes bitcoin to costs alot and gone are the days where you can get free bitcoin or buy at very cheaper price, that day aint coming back ever again, you missed the chance then its good bye, few good altcoins are still out there though that can still turn out profitable

[BartS]

Imagine an electronic producer that pays $10,000 for 1 gram of gold, while in the same time a metal with better electrical properties costs less then a cent.

Imagine a trader who gives his 10,000 units of fiat currency X for the same amount of fiat currency Y, although the bank created X with his 5,000 square foot luxury mansion as a collateral, while the collateral for X was only Kia Pride vehicle.

Imagine an investor that pays $1,000 for a stock with a book value of $1 and earnings of $0.01, while in the same time he can buy a stock with a book value of $2,000 and earnings of $500 for the same amount of money.

Imagine a guy that pays $1,000 for the Cheeseburger while in the same time he can get the Big Mac for only $1.

The above scenarios would be crazy because no one would trade his thing for something that has thousands or millions time less utility. Nor would someone pay a thousand or a million times more money for the same or even worse thing. That is why the above scenarios are not possible in reality.

But... in the crypto world, they are possible. People are paying thousands or even million times more for bitcoin than for some altcoins, even though these coins have the same features as bitcoin. Functions and features of cryptos are pretty straightforward. Elimination of expensive brokers, lawyers, and other typical “middlemen”. Low transaction costs. Transactions are transparent, quick, permanent, and hard to fake. Cryptos that are priced below $0.001 have all these functions and features. But, people in the crypto world buy bitcoin that is priced above $7,000. They are paying millions time more for the same thing. Why they behave so irrationally?

Your problem is that you are assuming that bitcoin is just a technology and that it should be treated as you treat your smart phone in which as soon as you can find a better and cheaper deal you replace your current one.

But bitcoin is as a currency and all currencies requires the trust of the people in order to function appropriately, what altcoins are missing is the trust that we have in bitcoin not only because it was the first cryptocurrency ever created but also because it has the highest hashing power, the best developers and the best community.

Of course that being the first in the industry and having reputation means something. For example, if a bakery has good brand reputation, consumers trust it, and feel good about purchasing its bread rolls, they might pay $2, $3, or even $10 dollars for these rolls if competitors sell them at $1. But no one would pay $1,000,000, since they are just flour, water, and yeast mixed together. The same is with cryptos. They are just numbers associated to address that are transferred through the network via some protocol. In that sense, bitcoin is equal to thousands of other cryptos, and  there is no rational reason for it to cost millions times more than them.

Bitcoin is also a network and most of its value derives from the Metcalfe’s law, basically the value of a network is determined by the amount of people that uses that network, this is why social networks like Facebook and others are valued at billions of dollars even if they do not seem to produce anything, and this is true for bitcoin as well, bitcoin has millions of users, once it has hundreds of millions you will be able to use it to buy almost anything you want since you will have more users to interact with.

[Bitcoin_bullish]

I'm sorry but you need to do more research on Bitcoin as reality is quite far from what you describe.

First of all you are comparing a digital asset with a physical one that is also expendable (bread). There is an natural error there as different attributes require different techniques in understanding price.

Secondly, Bitcoin's network is safe from any attack right now, as the cost of it would be astronomical for any malicious player.
So lets say you want to use some other cryptocurrency. All the rest (besides litecoin if I'm correct) have already been 51% attacked before so their network is not trusted anymore.
What Bitcoin offers is a secure, trustless, decentralized network to transact small or large amounts of money online, anywhere in the world, with small fee and no middle man involved.

The price of Bitcoin is a direct result of supply and demand law that was explained by Adam Smith, three centuries ago, in his book "The Wealth of Nations". Same with the altcoins. Price pumped when everyone involved started buying altcoins and it started falling once most investors understood that they weren't buying into secure decentralized networks.

In this true global free market (BTC/USD), it is the invisible hand that decides the price of Bitcoin.

Price of Bitcoin went up again, once the same investors realized that Bitcoin is the only true decentralized, safe and secure cryptocurrency and also the only one, at least right now, that has potential to disrupt the corrupt monetary system that is counting the last of it's years. Everyone understands how important the digital era is and the role digital currencies will play so the price of Bitcoin is in direct correlation with these facts.

[sovie]

In the crypto world people are paying million times more for bitcoin than for altcoins, even though these coins essentially have the same features as bitcoin.

This is just like saying dont buy Ferrari rather buy a toy car of Ferrari, as both looks same. So why wasting time for real Ferrari.
BTC consensus algorithm till date is most robust and no other consensus algorithm till date has been developed to beat that. That's just one aspect of BTC superiority there are too many to discuss here.

[alyssa85]

Imagine a guy that pays a million dollars for a bread roll, while in the same time he can buy it for $1 at other bakeries. Such scenario would be crazy because no one would give million times more money for the same thing. That is why the above scenario is not possible in reality. But... in the crypto world, such scenario is exactly what can be observed.

In the crypto world people are paying million times more for bitcoin than for altcoins, even though these coins essentially have the same features as bitcoin. Functions and features of cryptos are pretty straightforward. Elimination of expensive brokers, lawyers, and other typical “middlemen”. Low transaction costs. Transactions are transparent, quick, permanent, and hard to fake. Cryptos that are priced below $0.001 have all these functions and features. But despite that people are paying thousands of dollars for bitcoin.

Alts don't have the same features though, do they?

They don't have the network effect. They don't have the liquidity, they don't have listings on all the exchanges against fiat.

It's only worth investing in an alt if you think it will gain network effects (or if you are willing to invest time as well as money to build those network effects yourself).

[pundit]

Imagine a guy that pays a million dollars for a bread roll, while in the same time he can buy it for $1 at other bakeries. Such scenario would be crazy because no one would give million times more money for the same thing. That is why the above scenario is not possible in reality. But... in the crypto world, such scenario is exactly what can be observed.

In the crypto world people are paying million times more for bitcoin than for altcoins, even though these coins essentially have the same features as bitcoin. Functions and features of cryptos are pretty straightforward. Elimination of expensive brokers, lawyers, and other typical “middlemen”. Low transaction costs. Transactions are transparent, quick, permanent, and hard to fake. Cryptos that are priced below $0.001 have all these functions and features. But despite that people are paying thousands of dollars for bitcoin.

Of course that being the first in the industry and having reputation means something. For example, if a bakery has good brand reputation, consumers trust it, and feel good about purchasing its bread rolls, they might pay $2, $3, or even $10 for these rolls if competitors sell them at $1. But no one would pay $1,000,000, since they are just flour, water, and yeast mixed together. The same is with cryptos. They are just numbers associated to addresses that are transferred through the network from one address to another via some protocol. In that sense, bitcoin is equal to thousands of other cryptos. It is the same thing with different name. Accordingly, no rational reason exists for bitcoin to cost millions times more than an average coin. There is no reason for people to enter into fast, transparent and cheap payment system for $7,000 if they can enter it for $0.001. To put it differently, bitcoin is a mega-bubble, even at $10, and it is only a matter of time before it bursts.

The thread with the same topic discussion already exits somewhere on this forum. It is true that other similar blockchain like Bitcoin exist in crypto world and coins those blockchain is many fold cheaper than Bitcoin then why is the price of Bitcoin so high. I think it purely depends upon demand and supply. As far as people in my country are concerned, 9 out of 10 people know about Bitcoin but if I ask them about ETH, NEO, BNB or any other popular cryptocurrency I am sure only 1 person out of 10 people will recognize it and this may be the scenario everywhere around the world. This may be the reason Bitcoin is in high demand and its price is so high.

[imstillthebest]

Imagine a guy that pays a million dollars for a bread roll, while in the same time he can buy it for $1 at other bakeries.

why not look for other bakeries and buy the bread at a cheap price ? or unless he is lazy and wont work for more miles just to hunt those bread  .

Such scenario would be crazy because no one would give million times more money for the same thing. That is why the above scenario is not possible in reality.

why not possible ? you already explained a scenario and it did actually happen on real life because the pricing differ from different stores  .

But... in the crypto world, such scenario is exactly what can be observed.
In the crypto world people are paying million times more for bitcoin than for altcoins, even though these coins essentially have the same features as bitcoin.

the scenario is more applicable to cryptos because cryptos can go down or go up in different volumes while stuff on real word dont  . cryptos dont have same feature . other is faster and cheaper or cost cheaper in terms of fees  , this is why they create different cryptos  .  btc is costy simply because its way more valueable thant the others  .