Bitcoin Forum
September 19, 2019, 11:51:26 AM *
News: If you like a topic and you see an orange "bump" link, click it. More info.
 
   Home   Help Search Login Register More  
Pages: [1]
  Print  
Author Topic: 2014-09-19 CCN: Bitcoin Price Goes Down? Good!  (Read 1345 times)
hacknoid
Sr. Member
****
Offline Offline

Activity: 417
Merit: 252


Proud Canuck


View Profile WWW
September 19, 2014, 07:05:27 PM
 #1


http://www.cryptocoinsnews.com/bitcoin-price-goes-down-good/

Quote
If my analysis is correct, we are beginning to see a structural downward trend, and this trend is good, because it shows that the Bitcoin economy is becoming real, with less speculation and more use as a currency for every day’s life. This is the first phase of the real Bitcoin economy.

I like the points made in this piece - in my opinion, this is the first thing I have read in a while that really helps to point out why we are having the recent price drops, and counts them as actually being good indicators.  Maybe I am just looking to hear something positive, but this makes sense for me.  The argument is that we have been mainly using Bitcoin as a speculative medium for the past while (which I believe), but as people start to use it to actually conduct business the price will go down because people are using coins rather than holding.

As we start to see more businesses and suppliers accepting Bitcoin, we will eventually move into a phase where the need to convert back to fiat in the process disappears entirely, at which point price starts to rise again.

My only issue with this article:

Quote
Everyone and his dog are worried about the ongoing decline in the value of Bitcoin, but I am here to tell you that 1) This is good, and 2) The trend will eventually reverse.

Bitcoin's value has not been going down - it's price has.  Value is different than price, and value is increasing.  It increases with user base, merchant base, acceptance, new tools and applications, etc.  There is so much going on in the ecosystem right now that I think the value is stronger than ever.  It simply is not reflected by the price.

BitcoinRunner : Side scroller game powered entirely by Bitcoin! 
Game (alpha): http://hacknoid.ca/bitcoinrunner
Discussion: https://bitcointalk.org/index.php?topic=907618.0
1568893886
Hero Member
*
Offline Offline

Posts: 1568893886

View Profile Personal Message (Offline)

Ignore
1568893886
Reply with quote  #2

1568893886
Report to moderator
1568893886
Hero Member
*
Offline Offline

Posts: 1568893886

View Profile Personal Message (Offline)

Ignore
1568893886
Reply with quote  #2

1568893886
Report to moderator
1568893886
Hero Member
*
Offline Offline

Posts: 1568893886

View Profile Personal Message (Offline)

Ignore
1568893886
Reply with quote  #2

1568893886
Report to moderator
Advertised sites are not endorsed by the Bitcoin Forum. They may be unsafe, untrustworthy, or illegal in your jurisdiction. Advertise here.
lyth0s
Legendary
*
Offline Offline

Activity: 1260
Merit: 1000


World Class Cryptonaire


View Profile
September 21, 2014, 01:51:19 AM
 #2

Yes Bitcoin value has gone way up over the past few months as its usability has greatly increased. Unfortunately it's just its price that has gone in the other direction.

Monero - Truly Anonymous Digital Cash. Bitcoin Reading List 2017
bitcool
Legendary
*
Offline Offline

Activity: 1441
Merit: 1000

Live and enjoy experiments


View Profile
September 21, 2014, 02:08:36 AM
 #3

Good read, too bad it's not from CNN  Wink
chennan
Legendary
*
Offline Offline

Activity: 1316
Merit: 1004


View Profile
September 21, 2014, 04:47:04 AM
 #4

But most of the bitcoin holders are sensitive to the price movement, which means loss or profit from their investment. They will be scared to buy in bitcoin. The merchants accepting bitcoin payment won't be willing to keep bitcoin payment and transfer to fiat right away. This will destroy the bitcoin ecosystem.

cr1776
Legendary
*
Offline Offline

Activity: 2366
Merit: 1035


View Profile
September 21, 2014, 11:56:36 AM
 #5

Makes sense.  I think wealth preservation and speculation are also valuable uses for bitcoin though.  In short, bitcoin's uses are not just a binary proposition and includes speculation.   Just like other currencies hedging currency risk is a valuable use.  Perhaps a better way to think about it is that speculative uses were dominating use for a while at the end of 2013 whereas things are now shifting to a more balanced use model.  :-)

You are right about the value, reminds me of some people:  they know the price of everything and the value of nothing.


gmx95
Full Member
***
Offline Offline

Activity: 154
Merit: 100


View Profile
September 21, 2014, 10:31:17 PM
 #6

Everything is true, but the reverse trend can take several months or years. If this article is correct in what it says, it means there probably would be less large scale price movements like we saw last year, instead it would be more like holding stocks - if you hold it for a few years, you will see the price growing steadily. I maybe  wrong and we will see a huge rally before the end of this year. Who knows?

Bitcoin and Litecoin trading platform. Up to 100% deposit bonus. Fund with credit card. http://novafxtrading.com/bitcoin-trading
Pages: [1]
  Print  
 
Jump to:  

Sponsored by , a Bitcoin-accepting VPN.
Powered by MySQL Powered by PHP Powered by SMF 1.1.19 | SMF © 2006-2009, Simple Machines Valid XHTML 1.0! Valid CSS!