Before Fiat currency, money was based on Gold. I believe that change happened in 1973 and dollars didn't rise at this rate before then. Gold is a limited resource like BTC. Why is BTC expected to rise soon to $1000 or $10000 when limit currencies have not behaved that way in the past? A good article I found today on why these speculation based rises actually will more likely hurt Bitcoin as viable currency than help. Bitcoin is going from currency to commodity it seems at the moment. I'll be happier if it goes back to being more of a currency again.
http://blogs.reuters.com/felix-salmon/2013/04/03/why-bitcoins-rise-is-nothing-to-celebrate/
Topic: Anyone have fundamentals to support a higher value on BTC? - page 5. (Read 5577 times)
The total amount of fiat currency in circulation is some on the order of 10 trillion dollars (this changes over time so really one order of magnitude is all the accuracy needed for this estimation). Because there is a limit on how many bitcoins there will ever be of ~20 million, if bitcoin one day replaces fiat and has a similar market cap, each bitcoin would be valued at ~$500,000. It isn't really expected for bitcoin to become an entirely universal currency anytime soon, numbers like $10,000 or $100,000 show up.
Been watching BTC on a long position and watching things daily since it was last at $8. I was happy on Mar 9th when BTC hit $50 as it was a steady climb and monitoring Silk Road usage not unexpected. Stocks are always overvalued on P/E and I figured BTC was a bit overvalued but, this is not a bad thing as an investment. As adoption and usage increases the price should continue to rise, I was a happy bull.
I saw BTC flat line around $50 for about 9 days until Mar. 17th and thought good things are levelling off and making sense, perfect! If you go to Google news and search for Cyprus you'll see this is the day (Mar 17th) the Crisis was announced to the world. In one week price jumped to $75. Then two weeks later the price is over $100. Today it hit $148 on MtGox and is at $118 as I write this. I sold a chunk at $103 yesterday and this crazy fluctuation today means for me time to move another chunk based on past investment experience. I believe the price over $50 is people who had money in Cyprus trying to get it out as fast as possible. Also there is quite a bit of evidence that Spain is moving money to BTC.
http://www.wired.co.uk/news/archive/2013-03/20/bitcoin-spain-currency-run
So with all this evidence of speculation, I keep digging for evidence to back up the bulls. Claims of $1000 or $10,000 and I'm can not find fundamentals to support this kind of rise. In fact this huge surge based on so little and now crazy fluctuations looks identical to every speculation run I've ever seen (I prefer the term "Ramp-up then Cliff" to bubble). Also the bulls accuse everyone of trying to discuss evidence of speculation as trying to drive prices down to buy more. This reminds me of how a politician doing something will start yelling his opponents are doing the same thing to divert attention from their own actions. Like how a cheater in a relationship accuses his/her partner of cheating.
So bulls, I ask, where are the fundamentals to support the above $50 price point for BTC? Honestly I really would love evidence to support the price so I don't sell any more and can cash out $1000 or $1000000. Start pointing me in the right direction, maybe I missed those informative posts at some point. Oh and I know about BTC ATMs and Western Union but, those are maybes at this point, no decisions yet made, which is called speculation.
I saw BTC flat line around $50 for about 9 days until Mar. 17th and thought good things are levelling off and making sense, perfect! If you go to Google news and search for Cyprus you'll see this is the day (Mar 17th) the Crisis was announced to the world. In one week price jumped to $75. Then two weeks later the price is over $100. Today it hit $148 on MtGox and is at $118 as I write this. I sold a chunk at $103 yesterday and this crazy fluctuation today means for me time to move another chunk based on past investment experience. I believe the price over $50 is people who had money in Cyprus trying to get it out as fast as possible. Also there is quite a bit of evidence that Spain is moving money to BTC.
http://www.wired.co.uk/news/archive/2013-03/20/bitcoin-spain-currency-run
So with all this evidence of speculation, I keep digging for evidence to back up the bulls. Claims of $1000 or $10,000 and I'm can not find fundamentals to support this kind of rise. In fact this huge surge based on so little and now crazy fluctuations looks identical to every speculation run I've ever seen (I prefer the term "Ramp-up then Cliff" to bubble). Also the bulls accuse everyone of trying to discuss evidence of speculation as trying to drive prices down to buy more. This reminds me of how a politician doing something will start yelling his opponents are doing the same thing to divert attention from their own actions. Like how a cheater in a relationship accuses his/her partner of cheating.
So bulls, I ask, where are the fundamentals to support the above $50 price point for BTC? Honestly I really would love evidence to support the price so I don't sell any more and can cash out $1000 or $1000000. Start pointing me in the right direction, maybe I missed those informative posts at some point. Oh and I know about BTC ATMs and Western Union but, those are maybes at this point, no decisions yet made, which is called speculation.
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