why is bitcoin price important?

[larry_vw_1955]

alot of posts seem to be focused on the price of bitcoin. i understand why because they are wanting to sell it for a profit but is that the purpose of bitcoin or was there some other purpose for it? i thought it was originally designed to just be a way to transfer digital cash in a decentralized manner but it seems like people don't really care about that part of it and all they care about is what its price is. seems they got the wrong idea of bitcoin.

thing is, for alot of people it seems like when bitcoin price is "high" they think that means it is succeeding more than when it is "low". but if we think about bitcoin's intended purpose, it doesn't matter what the price is as long as bitcoin can be transferred peer to peer without any centralized party being involved. so if bitcoin was worth $1 people shouldn't complain.

[mk4]

Whether we like it or not, people will "use" bitcoin for whatever purpose they see fit — may it be for peer-to-peer transfers, as an unconfiscatable asset, as an investment, or a combination of any of those. That's one of the great things about it, total freedom.

[Poker Player]

alot of posts seem to be focused on the price of bitcoin. i understand why because they are wanting to sell it for a profit but is that the purpose of bitcoin or was there some other purpose for it? i thought it was originally designed to just be a way to transfer digital cash in a decentralized manner but it seems like people don't really care about that part of it and all they care about is what its price is. seems they got the wrong idea of bitcoin.

One thing is the original idea and another is how that idea evolves when it becomes a reality. Today we see many things that deviate from Satoshi's original idea, and not only in terms of the price that you mention.

Regarding the price, I guess what bothers you is that the comparison is made with the dollar, but it could be done in another way. Those of us who hold Bitcoin care about the purchasing power it has. When the Bitcoin was worth $1, you could buy a car with 1 Bitcoin? No. Today you can? Yes (as long as it's priced at $20k or less and the dealer accepts Bitcoin or you'll have to switch to fiat to exchange).

So, I say 1BTC=1BTC always put it in historical perspective, because 1BTC with which you bought just some chewing gum, is not the same as 1BTC with which you buy a car.

[bittraffic]

Because while Bitcoin serves a purpose, it is also investment for some of us so price is important. For everyone has a view of how they look and use BTC. For the gamblers its one currency to use in a casino that doesn't ask KYC. Many of us are guilty of that.

I limit myself to using BTC as investment because I kept trading it even when I'm losing. For a service provider or a businessman selling something in the market place, they literally meant BTC as currency so price is important.

[fiulpro]

Basically the price is very important for profits, which means that a long term or a short term holder would be able to get better market value at a given time, what is even more important is the savings that people have in their accounts in terms of bitcoins, those would be affected majorly if the price fell, but if you are not a holder or too focused on trading and is only doing active transfers and exchanges then you do not have to worry about it, its more important to focus on market growth in such cases.

[pooya87]

There is a lot of posts about the price because the market has been very volatile these days after the big crash that surprised everyone. On top of that you are looking at topics in places that are focused on the price like the speculation board but if you go somewhere else that is not about the price like the technical boards or sites like stackexchange you won't see any discussions there. Not to mention that the speculators are more vocal than others.

In any case, bitcoin price is important because as a currency it has to have a value and that value is reflected in the price. It also has to be more stable (which it still isn't) to function better as a currency.
Price also affects bitcoin's security since it directly affects the mining profitability and the hashrate.

[buwaytress]

In any case, bitcoin price is important because as a currency it has to have a value and that value is reflected in the price. It also has to be more stable (which it still isn't) to function better as a currency.
Price also affects bitcoin's security since it directly affects the mining profitability and the hashrate.

Yup! I don't think present prices on any given day are important, but long-term trends for sure.

A simple way to look at price is, if more people buy than sell it (demand), then it shows Bitcoin works as it should, across the variety of needs people have.

Low prices as a long-term trend reflect a market where more people are selling than buying, and then we've to question Bitcoin's value to the masses.

[Yaunfitda]

alot of posts seem to be focused on the price of bitcoin. i understand why because they are wanting to sell it for a profit but is that the purpose of bitcoin or was there some other purpose for it? i thought it was originally designed to just be a way to transfer digital cash in a decentralized manner but it seems like people don't really care about that part of it and all they care about is what its price is. seems they got the wrong idea of bitcoin.

True it was designed to be a P2P payment system, we can't deny that as it was written by Satoshi in the whitepaper. But you have to understand that even in the beginning, it started to have a value and then early bitcoin enthusiast have crypto exchanges, and with that it has change everything.

thing is, for alot of people it seems like when bitcoin price is "high" they think that means it is succeeding more than when it is "low". but if we think about bitcoin's intended purpose, it doesn't matter what the price is as long as bitcoin can be transferred peer to peer without any centralized party being involved. so if bitcoin was worth $1 people shouldn't complain.

You can used it to whatever purposed, but I will say that it has not become an asset. And I doubt that it will go to $1.00 argument of yours. You really have to look at the early history of bitcoin to understand it's progress.

[pooya87]

Yup! I don't think present prices on any given day are important, but long-term trends for sure.

A simple way to look at price is, if more people buy than sell it (demand), then it shows Bitcoin works as it should, across the variety of needs people have.

Low prices as a long-term trend reflect a market where more people are selling than buying, and then we've to question Bitcoin's value to the masses.

I liked this view. At the end of the day if we are seeing that the adoption is increasing in the long run and regardless of the short term drama, that means bitcoin is successful since it is doing its job. This adoption increase is mostly reflected in the long term price rise (2 years ago it was $3k and now it is $20k).

The type of adoption is not important either because bitcoin provides many utilities for different people. For example it acts as a hedge against inflation or as a censorship resistant currency or simply for speculation or as an immutable timestamped database and a lot more.

[xSkylarx]

i thought it was originally designed to just be a way to transfer digital cash in a decentralized manner but it seems like people don't really care about that part of it and all they care about is what its price is. seems they got the wrong idea of bitcoin.

Is there someone that only knows bitcoin because of its value and not aware of that utility? People that invest their money on bitcoin obviously knows that it can be transferred anywhere around the world.  Price is important because it's just like demand and supply. If price keeps crashing and no one buys it then how can it be a means of exchange if its value is zero. Bitcoin is more of an investment to many people because of its increasing value over the years.

[tranthidung]

for alot of people it seems like when bitcoin price is "high" they think that means it is succeeding more than when it is "low". but if we think about bitcoin's intended purpose, it doesn't matter what the price is as long as bitcoin can be transferred peer to peer without any centralized party being involved.

Because they have wrong approach and standpoint about Bitcoin. They participate in Bitcoin market for profit, with their naive speculation that they will get profit in near future, after a few weeks, few months or not longer than 1 or 2 years.

With this standpoint, they are speculating price of Bitcoin. It is not good but it is how the crowd come with FOMO and leave with panic.

They should adjust their standpoint and look at Bitcoin with its value, not its price. What is value of Bitcoin? Its use cases, its utility for people. I am sure use cases and utility for Bitcoin are increasing, not decreasing. Its value is growing despite of market ups and downs.

[romero121]

During the initial days people started using it for some purpose. Most of them say it is for gambling and darknet needs. By that time the real users well understood about the technology and the good about it. Later the usage started to increase as a result of its increase in price. If bitcoin haven't gained good price in the market, surely this couldn't have reached the present level of growth through the people understanding the goodness of its underlying technology.

[wmaurik]

alot of posts seem to be focused on the price of bitcoin. i understand why because they are wanting to sell it for a profit but is that the purpose of bitcoin or was there some other purpose for it? i thought it was originally designed to just be a way to transfer digital cash in a decentralized manner but it seems like people don't really care about that part of it and all they care about is what its price is. seems they got the wrong idea of bitcoin.

Those who don't care about the purpose of Bitcoin are those traders and investors who put their money into Bitcoin because what they expect and focus on is the profit they can get from Bitcoin itself. Although basically they also know that the purpose of Bitcoin is to be able to transfer digital money in a decentralized manner at any time.

thing is, for alot of people it seems like when bitcoin price is "high" they think that means it is succeeding more than when it is "low". but if we think about bitcoin's intended purpose, it doesn't matter what the price is as long as bitcoin can be transferred peer to peer without any centralized party being involved. so if bitcoin was worth $1 people shouldn't complain.

Likewise, those who complain when they see the price of Bitcoin has gone low because they experience a loss if they buy at a higher price than now so they need more time to recover the amount of money that was lost when the decline occurred. Even though there is no need to complain that the product they are holding is Bitcoin because Bitcoin will always be good and profitable as long as they can be very patient with the market situation.

[PX-Z]

i thought it was originally designed to just be a way to transfer digital cash in a decentralized manner.

Would you use bitcoin to transfer the so called "digital cash" in the very first place if it doesnt have any much price even at 1k. Even people are hesitant when it reaches to use bitcoin on that range.
In the other hand, people will use bitcoin everything what they want it, people doesnt see bitcoin now as a p2p way to transfer funds.

[Welsh]

It's only important if you wish to spend it in the short term. If you are saving for the long term, the current price doesn't really mean much at all, except you can accumulate more Bitcoin right now, than you could last month. People do obsess over the price a little bit too much I feel. Although, that's only natural if you are a investor looking to profit on your investment, rather than use it to escape capitalism, and the banking system.

Whether we like it or not

I'm not sure why we would even care what other people use Bitcoin for. That's the beauty of it. I don't look down at speculative investors looking to use Bitcoin as a means of obtaining more fiat currency, and the same as I don't look down on the sort of elitist attitude of holding regardless of what happens.

People are free to use Bitcoin for whatever they want, as long as it's legal. That's perfect, and I certainly don't have the authority to tell someone else how they spread or spend their wealth.

[Nrcewker]

People are so tensed about the price as they want to make profit from it or currently want to recover the losses.
This is the main motivation here for which people are tensed about the price.
There are also many other reasons for which the price might matter, but at the current situation, buying and selling issues are the main reason for which many people are frowning here in the forum.
Once Bitcoins reach a stable price, the less posts regarding it’s price you can see.
Let’s hope for the best.

[Lucius]

alot of posts seem to be focused on the price of bitcoin. i understand why because they are wanting to sell it for a profit but is that the purpose of bitcoin or was there some other purpose for it? i thought it was originally designed to just be a way to transfer digital cash in a decentralized manner but it seems like people don't really care about that part of it and all they care about is what its price is. seems they got the wrong idea of bitcoin.

How many people do you think are interested in Bitcoin because of the reason why Satoshi invented it? If that percentage is at least 20%, I would say that it is too much, considering that most people will never be able to escape the influence of a centralized system built over hundreds of years. You are right that most are waiting for the right price and their exit point, and in the end Bitcoin will become something that will be controlled by the richest if they find their interest in it.

thing is, for alot of people it seems like when bitcoin price is "high" they think that means it is succeeding more than when it is "low". but if we think about bitcoin's intended purpose, it doesn't matter what the price is as long as bitcoin can be transferred peer to peer without any centralized party being involved. so if bitcoin was worth $1 people shouldn't complain.

A society that has become completely materialistic cannot perceive things around it in any other way than through value - so the most expensive things are the best, while the cheap ones are less attractive. This was also reflected in Bitcoin, which is a very good and positive thing when it is in a bull run, and in the moments when it loses its value, labels of Ponzi schemes, multi-level marketing, and environmental destruction begin to be attached to it.

[Adbitco]

alot of posts seem to be focused on the price of bitcoin. i understand why because they are wanting to sell it for a profit but is that the purpose of bitcoin or was there some other purpose for it?

Now let me clear you a bit about it. For me i noticed if the price is very low or low people seems to spend more volume of bitcoin for transactions. For instance; I want to pay for a goods worth $1000BTC with current price in Bitcoin is ~0.043BTC but if the price get higher to $67k or more then i can only spend little less in Bitcoin. E.g. Goods worth $1000BTC at the price of $67k would be ~0.0141BTC at then no one want to lose his or her Bitcoin when the market is low. This could also be a reason why people are focusing on the price instead of the core value, though some might be for a profit probably buy at low waiting for the market to get higher for them to sell and make their gain.

[darkv0rt3x]

alot of posts seem to be focused on the price of bitcoin. i understand why because they are wanting to sell it for a profit but is that the purpose of bitcoin or was there some other purpose for it? i thought it was originally designed to just be a way to transfer digital cash in a decentralized manner but it seems like people don't really care about that part of it and all they care about is what its price is. seems they got the wrong idea of bitcoin.

thing is, for alot of people it seems like when bitcoin price is "high" they think that means it is succeeding more than when it is "low". but if we think about bitcoin's intended purpose, it doesn't matter what the price is as long as bitcoin can be transferred peer to peer without any centralized party being involved. so if bitcoin was worth $1 people shouldn't complain.

You thought that and you're right! However, people is still not used to the concept, and only seek for the quick buck. Sad, but it is how people's minds are working until they realize what they should have done while Bitcoin is cheap! Once more, I'll refer to this very important subject that is probably the hardest to accept and actually use it in real life. Time Preference. We need to lower our Time Preference so that we care more about the future than we care about the present! Bitcoin, among other things, can and is being used as a storage of value, for those who are lowering their time Preference, but unfortunately most of us are trading for more shiat money!

Well, guess what? We are sucking value out of Bitcoin when we sell it for more shiat money that what we bought it for!
And many times, what happens is even worse, for the ones seeking the quick buck. You buy at X, sell at Y > X, then, many times you re-buy at Z > Y... See, what happens to the profit with respect to X -> Y? It may have vanished because you bought it at a higher price than what you previously sold it.

[hugeblack]

If the value of a bitcoin is one USD, you will not find a global adoption of its use. In the end, I want to buy bitcoin to use it to buy goods and services or convert it into cash that helps me buy goods and services, so the price is important.
But you should not focus on the price as much as why do I want Bitcoin?

 - If it is just an investment, you are doing it wrong and you may end up losing your money.
 - Also, no one will feel the value of Bitcoin except those who cannot make international transfers at cheap rates or those who do not suffer from hyperinflation.