Bitcoin - Is this a valid technical (non speculative) reason for bitcoins price rise?

Kakmakr

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Quote from: gentlemand on August 05, 2015, 06:13:19 AM

Quote from: Kakmakr on August 05, 2015, 05:28:54 AM

This will kill Bitcoin as a currency. Everyone hodl and nobody using Bitcoin. The store of value must be the secondary consideration for Bitcoin, because the value of the currency is also linked to it's use as a payment method. In that scenario it would act like gold.

I'd go for the other way around myself. Once something is a viable store of value, then it can start to become a currency.

Right now one of the reasons people don't want to use BTC is because they've no idea whether their value will be preserved. Because it's gone down, those who own it aren't spending.

Those who buy it to spend it instantly aren't using it as a currency. It's a transaction medium like visa.

I do not see it that way. The big advantage Bitcoin has over it's competitors / Alt coins is the huge merchant network it has built up over the last 6 or so years. Without this network accepting Bitcoin as a payment method, Bitcoin would have been useless as a currency.

We do not give enough attention to this network, and if it stops supporting Bitcoin, we would see a massive drop in it's value. There is no use in storing coins, if there is no place to spend it.

gentlemand

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Quote from: Kakmakr on August 05, 2015, 05:28:54 AM

This will kill Bitcoin as a currency. Everyone hodl and nobody using Bitcoin. The store of value must be the secondary consideration for Bitcoin, because the value of the currency is also linked to it's use as a payment method. In that scenario it would act like gold.

I'd go for the other way around myself. Once something is a viable store of value, then it can start to become a currency.

Right now one of the reasons people don't want to use BTC is because they've no idea whether their value will be preserved. Because it's gone down, those who own it aren't spending.

Those who buy it to spend it instantly aren't using it as a currency. It's a transaction medium like visa.

Kaneki

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Quote from: ajareselde on August 05, 2015, 05:10:28 AM

If we all keep around ~1000 $ worth of bitcoins, and there were the same number of us, as there are bitcoins, then ofcourse the price would be 1000$ per coin.
Even better so, if 21 million people hodl 1 bitcoin, the price would be what ever we want, because it would be impossible to obtain bitcoin.
Like with everything else, the minimum price is dictated by the weakest link of bitcoin holder - the one that sells for lowest rate.

cheers

sounds great let's hold each one bitcoin so that it can be realized Grin

ajareselde

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Satoshi is rolling in his grave. #bitcoin

Quote from: Kakmakr on August 05, 2015, 05:28:54 AM

Quote from: ajareselde on August 05, 2015, 05:10:28 AM

If we all keep around ~1000 $ worth of bitcoins, and there were the same number of us, as there are bitcoins, then ofcourse the price would be 1000$ per coin.
Even better so, if 21 million people hodl 1 bitcoin, the price would be what ever we want, because it would be impossible to obtain bitcoin.
Like with everything else, the minimum price is dictated by the weakest link of bitcoin holder - the one that sells for lowest rate.

cheers

This will kill Bitcoin as a currency. Everyone hodl and nobody using Bitcoin. The store of value must be the secondary consideration for Bitcoin, because the value of the currency is also linked to it's use as a payment method. In that scenario it would act like gold.

I would think, people will have a at which they would start selling again. The speculators will constantly buy and sell at the low and high ends. The advantage Bitcoin has, is it's ability to have both these characteristics in one technology.

This what i wrote above would kill it as a currency, but i was just mentioning that fact as a value factor. The massive holding in that percentage will never happen, but
part of the community that will hold, will result in a partial increase in the price none the less.
There are many things that could ultimatively increase the price, but holding (even tho maybe not healthy in masses) is the best way to "boost" both the price and the further interest of people.

cheers

ashour

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Quote from: rscholey on August 05, 2015, 03:50:17 AM

I'm not asking this in the speculation forum as I think this has nothing to do with the current price. Previously I posted and was asking why the price would go up when there were so many possible bitcoins and satoshis. I had heard that with bitcoin the transit time of the currency is very low so there's not much in transit and most is in wallets.

Now when I consider my own situation I am thinking to increase the number of bitcoins I have and the reason is not for what I want to spend but just because I want to have enough bitcoin on hand.

So in my situation I expect to keep around $1000 in bitcoins on hand rather than have to go to USD every time I need to get more coins.

If we all have this $1,000 or at least some decent amount then even with 21 million bitcoins is it right to assume that the supply will be limited and this would make the price increase.

The coin supply is limited, so when the usage of bitcoin rises and more people use it the price will rise. That is called deflation which is the opposite of inflation, and which was a major reason why Greece wouldn't adopt bitcoin as national currency. If more people used bitcoin your $1000 in bitcoin could be very valuable in the future, as long as more people use bitcoin.

Kakmakr

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Quote from: ajareselde on August 05, 2015, 05:10:28 AM

If we all keep around ~1000 $ worth of bitcoins, and there were the same number of us, as there are bitcoins, then ofcourse the price would be 1000$ per coin.
Even better so, if 21 million people hodl 1 bitcoin, the price would be what ever we want, because it would be impossible to obtain bitcoin.
Like with everything else, the minimum price is dictated by the weakest link of bitcoin holder - the one that sells for lowest rate.

cheers

This will kill Bitcoin as a currency. Everyone hodl and nobody using Bitcoin. The store of value must be the secondary consideration for Bitcoin, because the value of the currency is also linked to it's use as a payment method. In that scenario it would act like gold.

I would think, people will have a at which they would start selling again. The speculators will constantly buy and sell at the low and high ends. The advantage Bitcoin has, is it's ability to have both these characteristics in one technology.

ajareselde

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Activity: 1722

Merit: 1000

Satoshi is rolling in his grave. #bitcoin

If we all keep around ~1000 $ worth of bitcoins, and there were the same number of us, as there are bitcoins, then ofcourse the price would be 1000$ per coin.
Even better so, if 21 million people hodl 1 bitcoin, the price would be what ever we want, because it would be impossible to obtain bitcoin.
Like with everything else, the minimum price is dictated by the weakest link of bitcoin holder - the one that sells for lowest rate.

cheers

Lauda

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Terminated.

Are you talking about transaction time when you're saying 'transit time'? Transactions take only a second to process, confirmations take longer. Basically it's a economical reason, not technical.
It's the basic laws of supply/demand. In July 2016, the block reward will halve from 25 to 12.50. That means that Bitcoin generation will drop from 3 600 coins a day to to 1 800.

This should have a impact on the price. We have to be patient and wait it all out though. We can never be sure, how much will Bitcoin be worth then.

rscholey

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I'm not asking this in the speculation forum as I think this has nothing to do with the current price. Previously I posted and was asking why the price would go up when there were so many possible bitcoins and satoshis. I had heard that with bitcoin the transit time of the currency is very low so there's not much in transit and most is in wallets.

Now when I consider my own situation I am thinking to increase the number of bitcoins I have and the reason is not for what I want to spend but just because I want to have enough bitcoin on hand.

So in my situation I expect to keep around $1000 in bitcoins on hand rather than have to go to USD every time I need to get more coins.

If we all have this $1,000 or at least some decent amount then even with 21 million bitcoins is it right to assume that the supply will be limited and this would make the price increase.

Topic: Bitcoin - Is this a valid technical (non speculative) reason for bitcoins price rise? (Read 560 times)