Topic: Bitcoin can never be 1000+ dollars again because of all the new coins (Read 3110 times)

Right, then why did the value of bitcoin explode while the block reward was double the reward of what it is now? And there were less bitcoin back then so the percentage of bitcoin added daily was much higher than it is now.

This is not regular stupid, this is advanced stupid.

That's like saying the gold and silver price went down because scientists have discovered so many new metals.

Currently there are 12,779,125 BTC.

Every 10 minutes a block is mined for 25 BTC.  25 coins per block, 6 blocks per hour, 24 hours per day, 365 days per year = 25 * 6 * 24 * 365 = 1,314,000 new BTC each year.

That means in the next 1 year, at these levels, there is a supply increase of ~10.3%.

Block reward will be 25 BTC until 2016.  For the Bitcoin price to increase, the market cap must increase at a rate higher than the supply of new coins. 

In other words, for your 1 BTC to be worth the same price it is today, one year from now, the Bitcoin market cap must increase 10.3% in the next year.

So yes, the OP has a good point.  Many people do not realize that for their Bitcoin investment to increase in value, the overall market value of Bitcoin must increase over 10% over the following year.

Karpeles and PBOC are the biggest guild guys. Redirect your anger to the right targets.

For me the altcoin market is a sign that bitcoin succeded, so others can be like it. And although 99,999% of altcoins are copycats or scams, some brings news funcionalities and can help in the future to further develop the crypto world.

people find Speculation threads amusing but noting compares to shitcoin market announces / reviews .... check this out ..

Well, I ment evolution in the sense of 'change' (see dictionary, there are multiple meanings). There has been change. Everything evolves (changes).

I dont see how Gavin  or intelligent design are relevant to this thread about alt coins 

But isn't it Intelligent Design™?  Or are you calling Gavin and his team unintelligent?

Because it's open-source?

Troll fail. Try again.

Is the ops referring to altcoins or is he referring to the millions of bitcoins in blocks from mtgox, the government, etc.

Good work.

Do you happen to have collected any data for this (or is it just from memory)?
I know you can look at websites like coinmarketcap.com these days, but I would like to have the bitcoin/(all altcoins) ratio over time.


By the way, is it not possible that there is a psychological factor, which discourages people who might be interested in buying bitcoin  because of the existence of altcoins (they don't buy because they fear future purchasing power dilution by altcoins).  I am not arguing that this is a correct conclusion, just that this might be a mindset for a significant amount of people, thereby influencing the price.

Haha, how do you know Bitcoin is not a SCAM and it wondn't live short

All new shitcoins are SCAM and they live short. Dont't buy it

In the long run, I don't think the alts are going to have much of a price impact on btc
Alts will always exist but one maybe two cryptos will dominate, bitcoin will be one of them

6 September 2011 : "My first prediction and I recon its a safe one:  $4.5 within 7 days."
6 September 2013 :  133$
4 May 2014   : Current price=435$   "Bitcoin can never be 1000+ dollars again because of all the new coins"
6 September 2015 :  ?? whatever the outcome, it is certain the price will change 
 

Bitcoin can go over $1000+, because it's never wise to underestimate the power of hype and stupidity. I'm fairly certain, that bitcoin will experience at least one last bubble, that would be the one last attempt to break through the current threshold and get connected with institutional funding.
I'm not certain on the outcome of this attempt, because the vast criminal history of bitcoin's ledger should rise a barrier, but like I said before, it's never wise to underestimate the power of stupidity.
But I am certain, that there will be at least one big push to drive the price up by those, who are fanatical about bitcoin's success.

I also think that the price needs to settle low, to create some certainty and upwards pressure, before it can really jump off. My guess would be that the price currently needs to rest around $100-200.
The price would have stopped higher, if the market would have been more efficient, with dropping the price lower when the situation in China got clear already in December. The market went into denial, about the coming loss of the exchanges in China, and that in turn created an unhealthy investment environment, full of fear and uncertainty. This negative effect is the reason why the price won't stop at 300. An efficient market would have fallen quicker and therefor would have the ability to regain quicker and higher. Stability and clarity are the key words in an attractive investment environment.

When bitcoin's price will start to rise again, then it will pull most of the more popular altcoins with it. A lot of them will experience bigger waves then bitcoin itself. It's often been like that with smaller market cap. coins - their drops are deeper, but their rises are higher. When the recovery will come, then I'm also buying a small collection of low prices, but well built altcoins instead of bitcoin. I'm not very keen on investing into things that factor in hype a little too much. In my opinion, the network effect means crap, when you are dealing with high-complexity technology. Carbonated soft drinks and social networking sites can only live a long time solely on hype.

Nice chart, puts it into perspective with a visual aid.

Lets get some numbers. So I used coinmarketcap.com information, to show how big the alt coin market is all together. I used the top 105 coins.



The alt coin market today is about 9% of bitcoins total market.

One of the presentators yesterday at MIT Bitcoin Expo said : "Evolution of internet like evolution of bitcoin :  real changes and real evolution is time consuming. " (details on bitprize.org)

They also suppress the price a bit due to some of the crazy gains made by early adopters of certain alts and it would be unwise to not lock in at least a few BTC out of a 100 in profits.

altcoins do keep the Bitcoin price down a little because they invite people to diversify more than they would with Bitcoin alone. But the effect shouldn't be that strong, maybe 5-10% altogether. And as this technology is open source, this effect should have already been foreseen and priced in since, like, forever.