pretty bored, but also waiting impatiently for the price to rise once again.
It would be the first time for me to make a lot of profit on bitcoin.
Skyrocketing prices are definitely more exciting, but if you have big money invested, you definitely want to see slow, stable, sustainable growth instead. Maybe not the slow part, but the key is sustainable growth. Rapid price hikes are always followed by sharp corrections.
oh really?
Tell me more about how facebook lost millions of users after having a growth spurt of a million new users a day in 2012.
It's natural for a new technology to grow exponentially.
I don't see the correlation between users (of a free service at that) and rapid price hikes. Were you trying to equate growth in user base to company value as refutation of the boom and bust cycle? If so, one has nothing to do with the other.
Of course it has to do with each other, and in more than one way
1) more users means it's a more legitimate currency. As all currency gains value the more people recognize it's value. Hence, more bitcoin users means a more valuable bitcoin. (The same holds true for fiat and even gold)
2) there's a limited supply of bitcoin. For every user who wants to store money in bitcoin, the
Price needs to be higher, otherwise there is not enough for everyone.
3) more users (companies) also means you can spend bitcoins more easily, thus making them more wanted as an actual currency.
Now, do you really think that many people who have tried bitcoin will quit bitcoin and return to fiat? I doubt it.
Therefore, every single new user of bitcoin will eventually drive the price up. Not much at first, but in the medium to long run (once they fully grasp it) they will.
It's logical to assume we are at a point where we never had so many bitcoin users, but the price is much lower than half a year ago. Therefore the price is undervalued (more people, but a lower total value), and the next "correction" will be a correction to match the value to the amount of people. In other words we will have an upwards correction. Otherwise known as a growth spurt (or bubble).
Of course a growth that rapid will always overshoot due to greed, but that's fine, as it will still be higher than it was before. And during those growth spurts bitcoin gets a lot more attention from the media and many new investors.
It's a pretty interesting cycle really:
1) bitcoin price surges for some reason
2) more people will buy bitcoin (and media attention)
3) bitcoin price rises even more
4) bitcoin price collapses because it overshoot
5) new people stop coming for a while, bitcoin enters a bear market
6) bitcoin is undervalued (low price compared to number of users)
7) bitcoin price will rise again due to this pressure from all the new members (repeat)
Also: metcalfes law
