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The block chain is the main innovation of Bitcoin. It is the
first distributed timestamping system.
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NewLibertyStandard
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July 24, 2010, 02:52:02 PM |
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Price has stayed very consistent for the last two weeks since the surge in demand.
Not really. The price is slowly but steadily dropping. Production costs have increased, but there's more than enough existing supply to meet demand. It'll take quite a while for demand to outstrip existing supply, but if and when it does, the price should start to rise back up toward the cost of production. |
Treazant: A Fullever Rewarding Bitcoin - Backup Your Wallet TODAY to Double Your Money! - Dual Currency Donation Address: 1Dnvwj3hAGSwFPMnkJZvi3KnaqksRPa74p
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melvster
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July 24, 2010, 03:37:42 PM |
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Price has stayed very consistent for the last two weeks since the surge in demand.
Not really. The price is slowly but steadily dropping. Production costs have increased, but there's more than enough existing supply to meet demand. It'll take quite a while for demand to outstrip existing supply, but if and when it does, the price should start to rise back up toward the cost of production. I think production value is only one price driver. Here's my other suggestions: What's the value? + Utility of a digital coinage system + Utility of zero cost transactions + Intangible Brand value + Collector item value + Community value / Network effect + Mind share of paradigm / habit forming + Philanthropy / Altruistic dividends |
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NewLibertyStandard
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July 24, 2010, 03:51:40 PM |
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Price has stayed very consistent for the last two weeks since the surge in demand.
Not really. The price is slowly but steadily dropping. Production costs have increased, but there's more than enough existing supply to meet demand. It'll take quite a while for demand to outstrip existing supply, but if and when it does, the price should start to rise back up toward the cost of production. I think production value is only one price driver. Here's my other suggestions: What's the value? + Utility of a digital coinage system + Utility of zero cost transactions + Intangible Brand value + Collector item value + Community value / Network effect + Mind share of paradigm / habit forming + Philanthropy / Altruistic dividends I agree that those are the qualities which give the currency value, but production cost provides somewhat of a loose fitting price cap. The current price is much higher than the production cost was for a long time, so a lot of people are selling their previously generated bitcoins at a profit. Once they slow down or run out of bitcoins to sell, the price will start to go up again. But I honestly have no idea how long that will take. |
Treazant: A Fullever Rewarding Bitcoin - Backup Your Wallet TODAY to Double Your Money! - Dual Currency Donation Address: 1Dnvwj3hAGSwFPMnkJZvi3KnaqksRPa74p
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melvster
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July 24, 2010, 03:56:03 PM |
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Price has stayed very consistent for the last two weeks since the surge in demand.
Not really. The price is slowly but steadily dropping. Production costs have increased, but there's more than enough existing supply to meet demand. It'll take quite a while for demand to outstrip existing supply, but if and when it does, the price should start to rise back up toward the cost of production. I think production value is only one price driver. Here's my other suggestions: What's the value? + Utility of a digital coinage system + Utility of zero cost transactions + Intangible Brand value + Collector item value + Community value / Network effect + Mind share of paradigm / habit forming + Philanthropy / Altruistic dividends I agree that those are the qualities which give the currency value, but production cost provides somewhat of a loose fitting price cap. The current price is much higher than the production cost was for a long time, so a lot of people are selling their previously generated bitcoins at a profit. Once they slow down or run out of bitcoins to sell, the price will start to go up again. But I honestly have no idea how long that will take. I'd argue that production costs MORE than electricity / CPU. It's also the work needed to set things up ... time taken to create ... time spent learning how to do things ... time spent watching, time taken to trade etc ... these things are not frictionless and that I think makes the cap higher, particularly as we dont have huge mass producers all over the place... EDIT: I dont see much wrong with a fair value of $1 USD for each bitcoin ... |
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NewLibertyStandard
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July 24, 2010, 04:10:22 PM |
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Price has stayed very consistent for the last two weeks since the surge in demand.
Not really. The price is slowly but steadily dropping. Production costs have increased, but there's more than enough existing supply to meet demand. It'll take quite a while for demand to outstrip existing supply, but if and when it does, the price should start to rise back up toward the cost of production. I think production value is only one price driver. Here's my other suggestions: What's the value? + Utility of a digital coinage system + Utility of zero cost transactions + Intangible Brand value + Collector item value + Community value / Network effect + Mind share of paradigm / habit forming + Philanthropy / Altruistic dividends I agree that those are the qualities which give the currency value, but production cost provides somewhat of a loose fitting price cap. The current price is much higher than the production cost was for a long time, so a lot of people are selling their previously generated bitcoins at a profit. Once they slow down or run out of bitcoins to sell, the price will start to go up again. But I honestly have no idea how long that will take. I'd argue that production costs MORE than electricity / CPU. It's also the work needed to set things up ... time taken to create ... time spent learning how to do things ... time spent watching, time taken to trade etc ... these things are not frictionless and that I think makes the cap higher, particularly as we dont have huge mass producers all over the place... EDIT: I dont see much wrong with a fair value of $1 USD for each bitcoin ... Dude, if you're buying at that price, have I got some bitcoins for you!!! If you're not buying at that price and no one else is, then that is the problem. Seriously send me a message or email if you're buying at that price. |
Treazant: A Fullever Rewarding Bitcoin - Backup Your Wallet TODAY to Double Your Money! - Dual Currency Donation Address: 1Dnvwj3hAGSwFPMnkJZvi3KnaqksRPa74p
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knightmb
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July 24, 2010, 05:10:37 PM |
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I think the biggest problem for the value of bitcoin right now is paypal fees. To buy / exchange them if you are getting dinged to gain them, unless you are keeping the bc's and reusing them, everyone is getting dinged with fees.
The way around it is to choose the "gift" option, then if the other party has a paypal account there is no fee. |
Timekoin - The World's Most Energy Efficient Encrypted Digital Currency
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D҉ataWraith
Member
 Offline
Activity: 60
Merit: 10
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July 24, 2010, 05:40:46 PM |
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I think the biggest problem for the value of bitcoin right now is paypal fees. To buy / exchange them if you are getting dinged to gain them, unless you are keeping the bc's and reusing them, everyone is getting dinged with fees.
The way around it is to choose the "gift" option, then if the other party has a paypal account there is no fee. Unless the other party, i.e. me, is not in the US/UK.  |
1NvcPV6xi6yqo5yg8aWSkNdasPSAsGtt1m
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knightmb
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July 24, 2010, 05:43:40 PM |
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I think the biggest problem for the value of bitcoin right now is paypal fees. To buy / exchange them if you are getting dinged to gain them, unless you are keeping the bc's and reusing them, everyone is getting dinged with fees.
The way around it is to choose the "gift" option, then if the other party has a paypal account there is no fee. Unless the other party, i.e. me, is not in the US/UK. They limit to just the top half of the world? That's lame of them, go figure.  |
Timekoin - The World's Most Energy Efficient Encrypted Digital Currency
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FreeMoney
Legendary
Offline
Activity: 1246
Merit: 1014
Strength in numbers
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July 24, 2010, 07:03:46 PM |
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Price has stayed very consistent for the last two weeks since the surge in demand.
Not really. The price is slowly but steadily dropping. Production costs have increased, but there's more than enough existing supply to meet demand. It'll take quite a while for demand to outstrip existing supply, but if and when it does, the price should start to rise back up toward the cost of production. I think production value is only one price driver. Here's my other suggestions: What's the value? + Utility of a digital coinage system + Utility of zero cost transactions + Intangible Brand value + Collector item value + Community value / Network effect + Mind share of paradigm / habit forming + Philanthropy / Altruistic dividends Think about how insanely valuable a computer is. Many people would pay 5k, 10k, 20k if that's what it cost to make them, they really are worth that much (to a lot of people) thankfully their value doesn't set the price. Anyone can come in and profit on the difference between cost to produce and value to the customer. This causes the price to drop until there isn't enough margin to attract more producers. The same thing is true about bitcoin. And entry is very easy. |
Play Bitcoin Poker at sealswithclubs.eu. We're active and open to everyone. |
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joechip
Newbie
Offline
Activity: 50
Merit: 0
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August 02, 2010, 05:42:00 PM |
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Lew didn't solicit the article, I solicited him after seeing a reference to Bitcoin on the Daily Paul. Came here, checked it out and thought about it for a few days before deciding to put something together. Ta, |
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Anonymous
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August 03, 2010, 01:27:37 AM |
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Lew didn't solicit the article, I solicited him after seeing a reference to Bitcoin on the Daily Paul. Came here, checked it out and thought about it for a few days before deciding to put something together. Ta, Yeah I figured that.I was just surprised to see the story.Sometimes things are just coincidences. |
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