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moriartybitcoin
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January 12, 2015, 10:59:20 PM |
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What gives Bitcoin its value?
Supply and demand?
Surely, as more merchants accept Bitcoin, more bitcoin gets sold for $$ driving the price down. The lower the price, the more people will panic and sell their BTC or trade it for goods, thus reinforcing the cycle.
I am getting to the point now where I am so tempted to sell my own BTC. I don't normally waver on things like this, I believed Bitcoin had a bright future, but my belief is shaken now.
I can't see anything in the near future that will increase the demand side of the equation....
Ostensibly, supply and demand. Reality: market manipulation by illegal trading by BitStamp and BTC-E |
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"There should not be any signed int. If you've found a signed int
somewhere, please tell me (within the next 25 years please) and I'll
change it to unsigned int." -- Satoshi
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WalkerIVIV
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January 12, 2015, 11:26:37 PM |
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Well Warren Buffet equivaled checque = bitcoin ( it¨s only paper, information) but you don´t have to forget to print this paper and process it you need banks so actually we´re talking about 5000bilion´s of USD value so what price have bitcoin which is replacing all these institutes? Well I think Btc value in 10 years will 10 - 100 000USD it´s true about this ... think about it :-)
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countryfree
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Your country may be your worst enemy
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January 12, 2015, 11:48:01 PM |
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I can't see anything in the near future that will increase the demand side of the equation....
More and more people who don't trust the global banking system anymore. More and more people who don't want to pay tax on everything. More and more people who want to shop online without being traced. BTC's growing, and so is the number of people using it. It seems correct to say that the supply side is growing faster that the demand side right now, but we know the supply's growth will be halved sometimes, so we shall remain confident in the longer term. There will be a day when demand will outgrow supply, just like it did last year. if I understand well you mean when demand get over supply, the price of Bitcoin will go up? (Correct me if I'm wrong, do not know much about economics, but I like to speculate in order to understand) last year there was a big drop Well, I was oversimplifying. BTC grew so high and so fast last year, that many early investors choose to cash in, and many more got scared. As a rule of thumb, growth is good, but the faster the growth, the larger the risk of a downfall. |
I used to be a citizen and a taxpayer. Those days are long gone.
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kasman5
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January 13, 2015, 12:29:48 AM Merited by crazyivan (10) |
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I think supply and demand is definitely a big one. 3600 coins a day flooding the market. God knows how many other stolen coins being cashed out (gox).
It will get its value from an increase in it's utility. Micro payments have real potential. However I think we need the ETF to bring in new money. It really will be an easy way to invest in bitcoin without the technical and logistical farce it is today for the not so tech savvy.
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cryptworld
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January 13, 2015, 01:55:57 AM |
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the value of bitcoin is as everything, what people is paying for it.
There is no more
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altcoin hitler
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January 13, 2015, 02:42:40 AM |
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hope OP dumped it already. Pretty bloody day.
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cyberpinoy
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January 13, 2015, 05:42:32 AM |
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What gives Bitcoin its value?
Supply and demand?
Surely, as more merchants accept Bitcoin, more bitcoin gets sold for $$ driving the price down. The lower the price, the more people will panic and sell their BTC or trade it for goods, thus reinforcing the cycle.
I am getting to the point now where I am so tempted to sell my own BTC. I don't normally waver on things like this, I believed Bitcoin had a bright future, but my belief is shaken now.
I can't see anything in the near future that will increase the demand side of the equation....
Bit coiun gets its value strictly by the people buying and selling it, there is a huge supply and absolutely no demand. So the only thing controlling bitcoin is its tradable value. Without that bitcoin would be worthless like the rocks in your driveway. You pay for them, they retain a value but yu will never sell them for a profit. |
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ujka
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January 13, 2015, 08:16:36 AM |
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^ The VALUE of bitcoin is that Bitcoin network gives us the ability to send any amount of money anywhere on the planet, instantly, for no fee, without having to trust a third person, and people are willing to pay a PRICE for that VALUE. http://www.notbeinggoverned.com/gave-bitcoin-value/The price right now is not in the domain of supply and demand of the market, but in the hands of speculative traders, that can move the price any way they want. (BTW, I don't understand your last sentence, I bought some BTC at $65, sold some at $650, there is profit) |
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Agestorzrxx
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January 13, 2015, 09:45:46 AM |
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The VALUE of bitcoin is that bring convenience to people。
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flipstyle
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January 13, 2015, 12:19:11 PM |
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One thing's for sure: the only ones making money now are the daytraders glued to their monitors shorting it every 3 minutes.
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mayax
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January 13, 2015, 12:22:56 PM |
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What gives Bitcoin its value?
Supply and demand?
Surely, as more merchants accept Bitcoin, more bitcoin gets sold for $$ driving the price down. The lower the price, the more people will panic and sell their BTC or trade it for goods, thus reinforcing the cycle.
I am getting to the point now where I am so tempted to sell my own BTC. I don't normally waver on things like this, I believed Bitcoin had a bright future, but my belief is shaken now.
I can't see anything in the near future that will increase the demand side of the equation....
Ostensibly, supply and demand. Reality: market manipulation by illegal trading by BitStamp and BTC-E Agree! very good point. I may add BTC china, OKcoin, LakeBTC and Huobi. |
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sergiokkl
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January 13, 2015, 01:14:44 PM |
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there is no demand, only sell preasure
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kpitti
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January 13, 2015, 01:32:13 PM |
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The value of Bitcoin is in freedom, it`s not control of any subject in fact.
On opposite the issue is that thanks to his freedom there is a lot of fear to just accept it and use properly - properly means to me just to exchange fast, almost free and fast the value.
If everyone will just hold it does not help. It`s here to be used daily, with everyone.
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flipstyle
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January 13, 2015, 01:52:06 PM |
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The value of Bitcoin is in freedom, it`s not control of any subject in fact.
On opposite the issue is that thanks to his freedom there is a lot of fear to just accept it and use properly - properly means to me just to exchange fast, almost free and fast the value.
If everyone will just hold it does not help. It`s here to be used daily, with everyone.
The only problem is, spending it means losing money...because bitcoin is still measured against the dollar. So it's purchasing price is decreasing as we speak. When or if it ever comes a point where bitcoin gains complete independence from the value of fiat, then this won't be a discussion. I imagine there are still many baholders out there that still don't want to trade or spend their bitcoin at this price because they'd be taking a huge loss. It's psychological, but at the same time not everyone is rich enough to have the freedom to just be tossing bitcoins around and taking losses without batting an eyelash. |
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miztaziggy (OP)
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January 13, 2015, 02:00:41 PM |
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hope OP dumped it already. Pretty bloody day.
Yeah....wish I had. Sadly, not. |
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cbeast
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Let's talk governance, lipstick, and pigs.
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January 13, 2015, 02:11:28 PM |
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I can't see anything in the near future that will increase the demand side of the equation....
What conditions would satisfy what you would judge as an increase? |
Any significantly advanced cryptocurrency is indistinguishable from Ponzi Tulips.
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altcoinUK
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January 13, 2015, 02:25:33 PM
Last edit: January 13, 2015, 03:02:35 PM by altcoinUK |
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What gives Bitcoin its value?
Supply and demand?
Surely, as more merchants accept Bitcoin, more bitcoin gets sold for $$ driving the price down. The lower the price, the more people will panic and sell their BTC or trade it for goods, thus reinforcing the cycle.
I am getting to the point now where I am so tempted to sell my own BTC. I don't normally waver on things like this, I believed Bitcoin had a bright future, but my belief is shaken now.
I can't see anything in the near future that will increase the demand side of the equation....
Wouldn't more merchants accepting bitcoins give them more value as they (bitcoins) are then given more utility? To the majority of people if you can spend bitcoins at say a walmart, target, etc. they would be much more willing to buy them because of their benefits over USD. In the short term, no, in my opinion, it's exactly the opposite. Early adopters aren't likely to be pro investers. They're likely to be (no offence meant) geeky types. Now we have a load of guys sitting there with 10 - 200 BTC that at one point were pretty much useless. All of a sudden, they're worth quite a bit of money, but hard to turn to cash. So, now that BitPay will accept them on say Overstock, mr geek can buy himself a new PC or whatever with his BTC that he previously had no use for. Problem is that BitPay just sell the BTC for cash straight away, thus increasing supply for BTC and driving down price. Ahh but then what about the people that buy BTC to pay for goods? Lol. Really. Pull the other one. I worked it out once what it would cost for some goods in the UK paid in BTC. I can't remember the exact figures, but it was something like I could buy a GPU/mobo/CPU from Scan and pay £900 in currency, or, I could go to LBC and buy Bitcoins, then use those Bitcoins to buy the same goods. With the markup on the BTC from LBC, then the reduced rate from BitPay at the other end, I would have had to buy about £1,050 worth of BTC for the same goods. Alternatively, I could buy my BTC through BTCE. It would reduce the amount I had to pay slightly, maybe £975 or something, but to get funds into any of the exchanges takes ages. At least 3 days. By that time I could have had the goods delivered and installed. There are lots of speculations that the increasing merchant activity drives down the price. In the meantime data and proper analysis indicate that this is a completely false conclusion. As you can see at http://www.coindesk.com/analysis-around-70-bitcoins-dormant-least-six-months/ "Swanson also points out a "sobering" trend: although the number of merchants accepting bitcoin has increased fourfold this year, blockchain activity is not seeing a corresponding increase." There are other underlying issues with Bitcoin and/or with its surroundings that cause the current price drop, the issue is not the merchant activity. |
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johnyj
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Beyond Imagination
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January 13, 2015, 04:31:54 PM |
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Value is all subjective, if you don't believe that it has value, then it has no value to you
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miztaziggy (OP)
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January 14, 2015, 09:55:03 AM |
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I can't see anything in the near future that will increase the demand side of the equation....
What conditions would satisfy what you would judge as an increase? Well, something like an upcoming 'upgrade' to Bitcoin's code that would increase its utility. Or maybe an upcoming halving of the mined blocks. I think part of the problem is that in the early days, Bitcoin was mine-able by the enthusiast. Now it's sort of gone 'professional' / 'corporate' and people are losing interest. There was another spike in the price when LTC was mine-able by the enthusiast, but as the ASICs came, the interest of the enthusiast somewhat died away and the price crashed. I wonder, if someone could produce a graph showing 'mine-ability'. E.g. Date on the X axis, and KH or MH of the bitcoin network on the Y axis. A second line with KH or MH of the LTC network on the Y axis also. Perhaps there's correlation between the 'mine-ability' and the spikes in price in 2011 and 2014 |
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Yeeeeah
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January 15, 2015, 01:21:31 AM |
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"I am getting to the point now where I am so tempted to sell my own BTC. I don't normally waver on things like this, I believed Bitcoin had a bright future, but my belief is shaken now."
Listen to your tummy!!! or you know, have a cookie.
Belief and investing huh? Belief that was clearly based on price.
Well now that you're asking the internet what to do with your money... I think you should sell. If for no other reason then the future posts we'll get to read about how you're kicking yourself now that the price is so much higher.
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