why is bitcoin price important?

[JohnBitCo]

There may be many different opinions about bitcoin, but it is clear that everyone wants the best for bitcoin. Talking about prices, of course, everyone doesn't want to lose even though bitcoin has a myriad of benefits and features that make it easy to make digital transactions between countries.

When the bitcoin price is high, usually it is a sign that more people are interested in buying bitcoins as the demand of bitcoin increases.

Similarly, when the bitcoin price is low, it is the indication that people are selling bitcoins and crypto due to a lack of interest or investing in other things like stocks or forex etc.

[franky1]

.

so you're saying there is a new status quo and ethereum will adjust its price to be low permanently? i think ethereum buyers are irrational people in the sense that they are willing to pay for it when it is way overpriced. but that's just my opinion.

greedy people are irrational. but if your willing to buy high sell low. you will lose and there is only so many times you can lose before your out of the game and not participating in the pump.. there are only so many idiot traders. and once they are out they are out.

then the pumps end and corrections begin. where only the smart traders are left

..

they wish they could do that, the sellers that is. more likely they will be selling for a big loss. nft market tanked lately i heard. so anyone that thinking they gonna get back their investment in some junky nft maybe they be unpleasantly surprised.

the NFT market is fake.. a huge majority of NFT are not true trades..
they are the creator selling to himself for a high price to fake high price to try to set precedent of expectation. so that when true buyers come along the true buy is suppose to also pay high/higher..
but remember if you create art. and put it into auction. and then you, wearing a different hat buy your own art.. that money as a buyer, returns to you. so it cost you nothing.. yet you manage to set a fake price..
so when a true buyer comes along to buy the art from you(wearing the hat) you are not losing anything from selling at a lower price that your fake trade before
but its this lower price that is actually the price discovery phase.. not the fake ones the creators are trying to promote

and thats the phase NFT are in . creators losing nothing because they are only selling to themselves...
then their next trade that appears to be a loss is the actual first true transaction of profit

its the 3rd transaction.. the duped buyer trying to sell.. that would be the true first losers.

this game used to happen alot in ebay when a new collectable british legal tender metal 50p piece was released. collectors buying them from the mint at 50p:50p would go to ebay and then sell it to themselves for £20(40x) to try to set precedent that these collectible 50p coins were actually worth 40x.. no one fell for that either.. apart from a couple idiots. so the trader again sells to himself for £10(20x) and then £5(10x) trying to fake price discovery until he can convince a true buyer of a price point they are willing to buy

i always felt eth was a bit overpriced when it hit into the 3k range and then you had people saying eth would go up to $20,000 soon and stuff like that. some people even said it will overtake bitcoin price.   how could anyone ever believe that?

those shouting "it will got to $20k, it will overtake BTC" are not wanna be buyers .. they are people already bought into ETH and wanting to pump it so they can exit at profit.. yes everyone wants a 5x but not willing to wait years for actual value(in deflationary currencies)..
so those buying in at $3.5k of a non deflationary. are just greedy and wanting quick pumps and dumps to exit ASAP, so they will shout out numbers like $20k. because thats their exit price the price they want other people to pump it to so the screamer can exit

yep.. in bitcoin those shouting $100k, $250k. are not shouting out the prices they are willing to buy in at.. they are shouting the Xx factor amount they personally want to exit at where they want to try to push others to buy in excessively too.. but as we seen.. it never reached $100k+ because yep there are real underlying cost windows involved that topped out at $70k last year


but again. if you look at the total users as a whole. there is a limit to any market where the overall top limit reaches a peak that even the dumbest yet-to-be buyer just gives up and says 'no, thats too high'
meaning the pumper loses..

not meaning to go off topic about ethereum prices but it does tie into our discussion about price and why is price important. to ethereum users i dont think it is. they would buy it if it was $20,000 or $20. to them they don't care. i'm not even sure some of them understands the inflationary model of ethereum how it was never a fixed supply and there's already like over 100 million eth in circulation, way more than bitcoin. how could it ever go higher than bitcoin in price if that's the case? because it has more use cases? well it better have alot of them or alot of gullible people.

wrong
even the dumbest yet to be buyer has his limits. and there are not an infinite amount of dumb buyers.. so there is always a market top. where dumb users dilute out until there are none left

there is always a point where the speculative bubble bursts

yes when something is new and misunderstood this bubble can be as much as 100x. but once those dumb people and pumpers lose, they dont play so risky next cycle/time.

you can see how that played out in bitcoin
first pump was .$0.30-$30 (100x) but that then corrected down to reasonable closer to value of $2.50
(that period was trigger of first GPU mining where people screamed 'costs and difficulty going to 100x') which sparked the speculative price jump in days. the actual difficulty didnt jump 100x in days so ofcourse the bubble diddt last that month..
it took another 12+ months for the actual cost/diff to jump to the 100x
which is why $30 did hit again until 2013

next cycle seen a jump of far less than 100x.
and latest one was less than 10x

it takes time to weed out the weak treaders that emotional trade. where only logical traders are left and then new traders follow the logical path as they learn from their peers bad experiences
.....
because as you say eth has no supply limit. it will take time for traders to realise the new cost change and then get hurt by speculative bubble pumps.. until they get into rational/logical  value:price trading range

but long story short.. dont expect ethereum to remain in the bubble speculative price range its in now of 20x+. it will shrink over time
...
i have to admit before the merge.. i personally thought traders were smarter and prepared before the merge for the impending cost reduction.. but it seems they will learn the hard slow way, and i didnt realise how many greedy idiots there were in ethereum.. oh well their loss. they will learn.. the signs and data and indicators were there..
they will an d have learned the hard way

[theCommittalist]

Vlad the eth guy has been pictured at a banquet with the Russian government, who may have a vested interest in preserving the old world economics of oligarchy.

Marx Keiser doesn't like eth & he seems like a smart guy.

Eth is proof-of-stake which has more to do with monopolisation. BTC is proof-of-work which allows anyone with the ability & will to get involved in wealth generation.

PS This is not a 'crypto' forum this is a Bitcoin forum thou vainglorious shills! JK.

[Abiky]

The bitcoin usage is more important than the price. However, everybody is focused on the price because bitcoin is the greatest performing asset of all time

Exactly. It has always been about the price. People invest into Bitcoin with the hopes of turning a profit in the least time possible. The moment prices start going down like crazy, it's the moment people start panicking like there's no tomorrow. Only a small number of people care about Bitcoin's usability. That's usually geeks, libertarians, and cypherpunks. They will use Bitcoin regardless of how much it's worth in Fiat terms simply because it represents freedom. 1 Bitcoin = 1 Bitcoin, right?

I'd wish people would stop focusing on Bitcoin's price, so that the cryptocurrency could achieve its full potential. It's a distant dream that's unlikely to become a reality because greed goes above all else. At least we know Bitcoin won't be going anywhere. As long as it stays true to its decentralized roots, there should be nothing to worry about. Just my thoughts

[xzy887]

I think Bitcoin is faivourite son of father of crypto.

Not only that, I think bitcoin is the pin of crypto and the rest are just inflated balloons. And if the pin ever hits a balloon, all the balloons will burst. And so Bitcoin price is very important in crypto.

[ChiBitCTy]

I think Bitcoin is faivourite son of father of crypto.

Not only that, I think bitcoin is the pin of crypto and the rest are just inflated balloons. And if the pin ever hits a balloon, all the balloons will burst. And so Bitcoin price is very important in crypto.

I think so some extent that’s right but there does feel like to be a bit of separation finally starting to happen between bitcoin and other cryptocurrencies, mainly those that are large and completely different in nature such as ethereum and coins or tokens that in large part have to do with staking such as Hex.

Hopefully bitcoin will start moving away from so closely following the stock market.

[larry_vw_1955]

Exactly. It has always been about the price. People invest into Bitcoin with the hopes of turning a profit in the least time possible.

the thing about bitcoin though is, say it is priced at $20,000. someone invests $1000 into bitcoin. say bitcoin goes up to $21,000. thats a 5% return. but if bitcoin is $50,000 and it goes up by $1000 in one day then only 2% return. On your $1000 you made either $50 or $20 before fees and paying taxes. To really make money it would seem like you have to buy an entire bitcoin.

[Ahli38]

Because of the various uses of bitcoin, the price is also considered important. especially if it is used as an investment. Of course everyone who invests is to profit from rising prices. and what makes the price considered important is because the price can also be a benchmark in the adoption of bitcoin itself. more and more adoption especially in large numbers which indicates that people have become more and more confident in bitcoin. like the incident a few days ago when the price of gold decreased and it turned out that at the same time the price of bitcoin had increased. from there we know that the inflow of funds to invest in bitcoin has increased on the other hand many have come out of gold investments. or many sell gold and the funds are spent on bitcoins. and many more things that we can get either information or profit from a price movement. so price is always important. please correct me if i'm wrong.

[larry_vw_1955]

Because of the various uses of bitcoin, the price is also considered important. especially if it is used as an investment. Of course everyone who invests is to profit from rising prices. and what makes the price considered important is because the price can also be a benchmark in the adoption of bitcoin itself.

well i wouldn't call investing an active form of participation necessarily. just buying and holding doesn't really contribute to bitcoin adoption as much as actually using bitcoin regularly for transactions in the real world. that's what drives adoption. if all that was happening is a bunch of people buying it trying to sell higher, well that's not going to work. think of the stock market. there has to be something backing up the chart.

more and more adoption especially in large numbers which indicates that people have become more and more confident in bitcoin.

i'm not necessarily convinced that people are using bitcoin anymore than they were 10 years ago. for paying for things in the real world. i tend to think that they are but compared to 5 years ago? maybe not. i think its levelled off.

like the incident a few days ago when the price of gold decreased and it turned out that at the same time the price of bitcoin had increased. from there we know that the inflow of funds to invest in bitcoin has increased on the other hand many have come out of gold investments. or many sell gold and the funds are spent on bitcoins. and many more things that we can get either information or profit from a price movement. so price is always important. please correct me if i'm wrong.

well it's hard to attribute a causal link between gold price going down and bitcoin price going up. just because those things happened doesn't mean one caused the other. gold isn't a very volatile price if you compare it to a cryptocurrency. so minor price movements up and down are somewhat normal for it. the only thing that would cause gold to plummet would be an oversupply of gold that came onto the market for some reason.

[Iranus]

Because of the various uses of bitcoin, the price is also considered important. especially if it is used as an investment. Of course everyone who invests is to profit from rising prices. and what makes the price considered important is because the price can also be a benchmark in the adoption of bitcoin itself.

well i wouldn't call investing an active form of participation necessarily. just buying and holding doesn't really contribute to bitcoin adoption as much as actually using bitcoin regularly for transactions in the real world. that's what drives adoption. if all that was happening is a bunch of people buying it trying to sell higher, well that's not going to work. think of the stock market. there has to be something backing up the chart.

Unfortunately, but that's what's going on these days, every market participant invests in bitcoin for profit, no one uses it as a means of payment or currency. I have to tell you that there are very, very few people entering the market just to use bitcoin as a currency.
So you can see that we always talk about bitcoin price, even hope bitcoin will become more popular or more widely accepted also hope that demand is greater than supply, that will help bitcoin price will be high than.

like the incident a few days ago when the price of gold decreased and it turned out that at the same time the price of bitcoin had increased. from there we know that the inflow of funds to invest in bitcoin has increased on the other hand many have come out of gold investments. or many sell gold and the funds are spent on bitcoins. and many more things that we can get either information or profit from a price movement. so price is always important. please correct me if i'm wrong.

well it's hard to attribute a causal link between gold price going down and bitcoin price going up. just because those things happened doesn't mean one caused the other. gold isn't a very volatile price if you compare it to a cryptocurrency. so minor price movements up and down are somewhat normal for it. the only thing that would cause gold to plummet would be an oversupply of gold that came onto the market for some reason.

I think it's just a coincidence, people who have invested in gold mean they like safety so bitcoin is not their choice.

[franky1]

the thing about bitcoin though is, say it is priced at $20,000. someone invests $1000 into bitcoin. say bitcoin goes up to $21,000. thats a 5% return. but if bitcoin is $50,000 and it goes up by $1000 in one day then only 2% return. On your $1000 you made either $50 or $20 before fees and paying taxes. To really make money it would seem like you have to buy an entire bitcoin.

the real thing about bitcoin though
is when bitcoin had its last lag period the price only moved up and down by a couple dollars in an hour

now it moves buy a couple hundred dollars in an hour

so in your example of the era of a base level of $20k vs base level in the future of 50k. the 20k moving by only 1k would be equivalent to the 50k moving by 2.5k

..
just remember small minnow traders. dont buy whole coins where they are pushing up the price by spending larger amounts more per order as the price rises. whats actually happening is the sellers are offering smaller decimal amounts for the same small amounts

EG
0.1 for $400=$4k
0.1 for $420=$4.2k       ($200 change)

0.02 for $400 =$20k
0.02 for $420 =$21000  ($1k change)

0.008 for $400 =$50k
0.008 for $420 =$52500 ($2.5k change)

as you can see the buyer paid the same $20 extra.. but depending what era of price window. it affects the price more profoundly

enjoy that thought

[larry_vw_1955]

the real thing about bitcoin though
is when bitcoin had its last lag period the price only moved up and down by a couple dollars in an hour

now it moves buy a couple hundred dollars in an hour

so in your example of the era of a base level of $20k vs base level in the future of 50k. the 20k moving by only 1k would be equivalent to the 50k moving by 2.5k

why stop there, if bitcoin was $200,000 then it would be moving by $25,000 per HOUR does that seem reasonable to you (oops mistake, $10,000 per hour but still that's pretty alot)? i would expect a decreasing volatility with higher bitcoin prices. but maybe i'm wrong but how could bitcoin survive like that? peoples' networths would be changing fast some getting wiped out by 100 grand in hours sometimes...

..
just remember small minnow traders. dont buy whole coins where they are pushing up the price by spending larger amounts more per order as the price rises. whats actually happening is the sellers are offering smaller decimal amounts for the same small amounts

but as the price rises, the volatility in general should be going down. thus making bitcoin less attractive to a speculator or someone just looking to day trade it. not saying that's bad. just the way it should work out. so in reality, people should be happy bitcoin is way off of its ATH if they are day trading it. right?

[borovichok]

Because of the various uses of bitcoin, the price is also considered important. especially if it is used as an investment. Of course everyone who invests is to profit from rising prices. and what makes the price considered important is because the price can also be a benchmark in the adoption of bitcoin itself. more and more adoption especially in large numbers which indicates that people have become more and more confident in bitcoin. like the incident a few days ago when the price of gold decreased and it turned out that at the same time the price of bitcoin had increased. from there we know that the inflow of funds to invest in bitcoin has increased on the other hand many have come out of gold investments. or many sell gold and the funds are spent on bitcoins. and many more things that we can get either information or profit from a price movement. so price is always important. please correct me if i'm wrong.

Bitcoin is very essential for the us especially for those in the crypto space. The price of Bitcoin have increased over the past years and it's currently dipping, the more reason one should bagged it when the chance is still open. Confident comparising the investors and many purpose added to the coin. I've decided to bagged the little one that I'm able to purchase and keep it for long term because it have a promising future. Crypto assets are measured according to their price value, every investors and traders tend to look at the one that's profitable.

[GeorgeJohn]

There is something more important connected to Bitcoin now. The ecosystem of cryptocurrencies. Bitcoin now represent dollar of crypto world. So it's prices are crucial for the health of whole crypto ecosystem. While there are many people who are buying crypto to make windfall profits. But few who are preserving its sanctity. The dream of Satoshi was to create a decentralised financial system. I think Bitcoin is faivourite son of father of crypto.

Actually you right from the aspect of the objective of Satoshi is to create decentralized financial ecosystem, i the objective of Satoshi is still dwelling in cryptocurrency sphere, because assuming Bitcoin was a centralized currency it would have been destroyed by now, but since the attention and objectives Concentrate on decentralized, that while it haven't be destroyed. It's quite obvious that Bitcoin is father's of any other cryptocurrency.

[Chrlie95]

greedy people are irrational. but if your willing to buy high sell low. you will lose and there is only so many times you can lose before your out of the game and not participating in the pump.. there are only so many idiot traders. and once they are out they are out.

then the pumps end and corrections begin. where only the smart traders are left

Yeah, I totally agree with what you're saying. It's pathetic how so many people try to pump just to make a quick buck, and it's especially risky with NFTs.  It's true, those shouting out ridiculous price targets are usually just trying to get others to buy in so they can sell at a profit.


It's all about finding that balance between greed and smart investing. Gotta be careful out there...

[larry_vw_1955]

It's true, those shouting out ridiculous price targets are usually just trying to get others to buy in so they can sell at a profit.

$250,000 or $500,000 or even $1,000,000 would need to be helped along by uncle sam printing more us dollars which are backed by nothing. but bitcoin itself is not magically going to somehow become worth 10, 20 or 50 times more than it is now as far as its value proposition. so if bitcoin ever did hit $1,000,000 that probably isn't good news for Americans who use us dollars to buy things. 

[franky1]

it doesnt require uncle sam printing trillions of dollars

bitcoins price is set by the current orders of a small amount of coin
EG if people only had a max of say $400 to buy.. then orders would be of 0.025 = 1btc:$16k

also if you look at the most efficient mining hardware and then add on the cheapest electric or the most expensive electric on the planet to effectively mine sustainably.
you come to a window of like
$10k-$75k in 2021
$15k-$95k in 2022

these become the planetary limits of value vs premium
where the markets of speculation then play within those limits

in short no on on planet would soberly want to buy bitcoin in 2021 for more then $75k becasue they would have other methods to acquire bitcoin cheaper(mining)
which is why the market fizzled out of wiling buyers at $70k last year

we are not in a value:premium zone where $100k is an acceptable premium nor $200k, nor $500k right now.. have patience it will get there of offer opportunities in the future

[larry_vw_1955]

it doesnt require uncle sam printing trillions of dollars

maybe not but my theory is that this is what explains bitcoin price from early 2020 up until the present time.

march 2020 bitcoin is around $7500.

First round of economic stimulus checks: April 2020

The CAREs Act included a provision for a round of stimulus payments – eligible tax-paying adults received a check of up to $1,200 while eligible dependents under 16 years of age received $500 each (a maximum of three dependents could be claimed for).


may 2020 bitcoin is selling around $8800. people are using some of their free money printed out of thin air to buy bitcoin. causing price to go up. bitcoin then started a steady rise in price as people began receiving and spending their free money to buy bitcoin over the next 6 to 7 months. not everyone got their free money immediately for some people it took longer maybe a month or two or three. so that by november of 2020 btc price was in the $17,000 range nearing an all time high. but the reason for this ATH was different from the one that happened in dec 2017.

Second round of direct payments: December 2020-January 2021

The second round of aid, a $900 billion package which was part of the Coronavirus Response and Relief Supplemental Appropriations Act of 2021 was signed off by Trump on 27 December 2020. It provided a one-off check of up to $600, but this time, households were also able to claim an additional $600 for child dependents aged 16 or under.



Third round of stimulus checks: March 2021

Barely a week after the second round of stimulus payments were completed, new president Joe Biden entered office and immediately unveiled his American Rescue Plan, which proposed a third of round of payments to Americans, including some of those who might have missed out on the first two rounds.

On Thursday 11 March, Biden signed his $1.9tn American Rescue Plan into law. The third payment provided eligible individual taxpayers for a check of up to $1,400,

by april of 2021, just 3 months after the 2nd/3rd round of payments was announced and started being sent out, bitcoin had skyrocketed to an ATH of around $65,000 thanks to all this free money being printed and handed out to people. some of them were clearly using that to buy bitcoin. bitcoin was not becoming more valuable through this process, it was just being purchased with us dollars that were becoming more and more worthless...


not only were these programs responsible for btc price rising significantly above the ATH of 2017 but other programs that printed money out of thin air were too such as PPP Loans that didn't have to be repaid and Pandemic Unemployment Assistance by the federal government of $600 per week on top of State benefits. Not everyone was using their free money to buy extra toilet paper some of them found out about Bittrex and Coinbase 

The gravy train couldn't go on forever. The federal government wisened up and put an end to all of these programs. bitcoin could not sustain those price levels once the free money gravy train dried up. demand for bitcoin shrunk, it went back down to where it belonged.

[Ale88]

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.

The price is one of the indicator of bitcoin's success. What you're saying is totally right, bitcoin will be continued to be used even if it was at $1, but if something goes down from $70k to $1 then it also means that somehow it has failed. There will be people who will keep using bitcoin but forget mass adoption at that point.

Then of course are also people who took the risk to buy bitcoin I can totally understand if they want to get some profit, nothing wrong with that.

[franky1]

looking for reasons of speculative market is not what i do. i look at the base value stuff that supports things that stop a market plunging into darkness
and looking at the economics of stuff that create the top premium resistance that forms the tipping point of an ATH

all the random reasoning of sentiment and speculation in between of the speculative market .. just becomes social dramas of guessing games

but lets delve into the theory of the ATH speculative reasoning of your stimulus theory
did you check the reasons for the 2011 ATH
did you check the reasons for the 2013 ATH
did you check the reasons for the 2017 ATH
those were not caused by stimulus cheques

yes you could see an uptick in volume on a couple months(ish) of a couple stimulus dates

but that volume is in no where comparison to the 2017-18 volumes

by this i mean lets say all 250m adult americans did put some stimulus cheques into bitcoin
they are only putting in a fraction of the $1.2k

250m * lets say $500 =$125b per round
3 rounds in a year =$375b a year volume

exchanges do far more volume over all, than what i calculated as a $375b per year 'stimulus volume'
where even that $375b per year stimulus volume was an exaggeration of all adult americans investing 42% of their cheques

here is the funny
the price in march2020 did peak to $8k. but it also dropped days later(mid march) to under $6k
and yet that march period(pre-stimulus) was the highest volume of trading occurring in 2020-2021
which you cant explain as a stimulus cheque caused high volume event..

the first stimulus of april-may 2020 had no price impact
(yes it had mid-high volume compared to lets say the 2021 volume)

then the december-jan(high volume) stimulus
and march 2021 stimulus was the first peak of a ATH (stimulus 2&3)
but the july 2021-november 2021 was the peak of a ATH with no stimulus period inside those dates

where by first stimulus round didnt see much uptick in volume or price
yes second and third round coincided with the first price ramp up.
but doesnt explain the second ramp up in price from july onwards

which seem too flimsy of a correlation to try to theorise causation
however here is a better theory, which has a test of time proof of over 12 years

so here it is:
with each major price discovery event follows a year later by a ATH
price discover events     year later
2010-first exchange   :  ATH 2011
2012-halving event   :  ATH 2013
2016-halving event   :  ATH 2017
2020-halving event   :  ATH 2021