Topic: Bitcoin price is too high at 20$/BTC - page 4. (Read 10859 times)

Paypal charges 2.9% + $0.30 USD for every payment received. Which means, if I want to donate a dollar to my favorite charity via Paypal, they only get $0.67. In essence, I'm donating $0.33 to Paypal!

BTC enables practical micropayments.

I think we will find that a major, if not the predominate use of BTC, will be as a store of value.  You know, the _other_ function of money.  Using BTC for ordinary and "legal" trade has a blizzard of intractable problems with no obvious (to me) benefit.  How is BTC better than Paypal if you plan to obey the "law" ?

On the other hand I very much enjoy having a store of value, the safety of which is subject only to my responsibility.  Its security is not subject to .gov edict and it will not be taxed, seized, capital controlled, or otherwise molested.  Wherever I am in human space, there is my money as well.

Although I think it would be foolish to pour lots of "real" money into BTC right now, over the long haul, millions of people putting a few thousands of dollars (or more) into this would easily generate the influx of fiat required to pump up the price to amazing levels.  Once people have put "real" money into this, they're going to be reluctant to liquidate at a loss and this will provide a resistant floor to panic.  Notice how well the prices at Tradehill have stabilized, despite the Mt. Gox attack.  During a panic, I will merely sit and watch and wait for the storm to pass, instead of running for the exits.

All of the recent Mt Gox/hacker hooplah is merely evolution in action.  When the weak are slaughtered the survivors will be much harder to attack.  Trial by fire.

I agree with this. Bitcoin does not have a "killer app". There needs to be something cool, that will bring people in from the mainstream. There needs to be a place where BTC is always valuable,, and you don't have to be a merchant to earn coins.

You guys have heard me say this before,, we need a game like Second Life, with it's own economy. Something that allows everyone to earn/sell something of value BTC.

A persistent economy will justify BTC,  not matter what the price.

The OP has a very valid argument.  It's truly sad to see that any perceived negative comments towards BTC is immediately met with hostility (by some).  Maybe, just maybe, take an objective view and see that he might have a point.  $50 million a year.  Where is all this liquidity going to be injected from?  And where are all these funds going to trade?  On these exchanges with a $1,000 cap?  ROFL.

the only troll in here is Vegetta

no one knows what the price will be in any amount of time, it may go to $1000/bitcoin it may go down to $1/bitcoin - no one can tell the future

that's great. here's a link for you http://upload.wikimedia.org/wikipedia/en/thumb/5/54/Total_bitcoins_over_time.png/740px-Total_bitcoins_over_time.png

dont have one though.

I can use quoting too

Make sure your next post is about your account getting hacked.

what am I trying to do, tell me? manipulate prices while noone is trading? that makes sense  

I don't even have an account at an exchange. bitcoin intrigues me because of its technology and potential, so of course you think about "investing" (really, speculating on its success).

decided against it. here's (part of) the reason. if you're not interested, go away. if you have something to add, you're welcome.


for 1.5, until 2013

$20 *IS* too high... especially when they're only $16/BTC at TradeHill

Let's see... generating 2.5 million coins a year for 3 years... then 1.25 million coins a year after that.  Yeah, good math chief   And you posted sooooo many lines in that OP!

"In Internet slang, a troll is someone who posts inflammatory[citation needed], extraneous, or off-topic messages in an online community, such as an online discussion forum, chat room, or blog, with the primary intent of provoking readers into an emotional response[2] or of otherwise disrupting normal on-topic discussion."
http://en.wikipedia.org/wiki/Troll_%28Internet%29

I am trolling his thread by not allowing normal discussion. Everyone here knows what he's trying to do, and if the mods won't step in, then I sure as hell will. The price of bitcoin is highly devalued, everyone knows that, so no point in discussing an entire thread about how it's supposed to be lower. This is the lowest any of you are ever going to see it.

I don't think that word means what you think it means.

you are trolled by this pathetic thread

go away, yes I'm trolling this pathetic thread.

go away

what is the underlying analysis? (seriously)

admittedly, you can just as well draw another conclusion from the same numbers. you can agree with them, but still think that BTC will be even more successful than outlined here. then it isnt too high for you.

I was surprised what an extremely optimistic scenario 20$/BTC (mid-term) implies.

There is no such thing as "too high" of a price. It just comes down to demand and supply. Saying it's "too high" will prevent you from making an underlying analysis. You can't be choking at the price level, look at the big picture and extrapolate however you see fit.

For me, I see value increasing over time.

back in April, $5 was unbelievably high for BTC

I asked you to ignore this thread, Mr. I-sell-bitcoin-shirts-for-euros, didn't I?

"Bitcoin will make the US dollar worth pennies compared to what its worth to us today."
-AnonymousCSP


"Gold started off having almost no value, pennies for a chunk. Now look at it today, hundreds of dollars for a chunk, ever growing in value."
-AnonymousCSP

"Like Bitcoins, the more people that want and use gold, the higher in value it becomes."
-AnonymousCSP

Go away.

yes my mistake by saying "end of". the numbers are still correct.
I calculated with 1,5 years of 50*6*24*365 coins and 3,5 years of 25*6*24*365 coins.


I used the (conservative) ratio of money supply vs. GDP (0,3 : 1) to estimate what size the bitcoin economy would have to be to sustain this price.
the US economy has a ratio of (0,28 : 1) if you use M1 (which is questionable because it is a wider definition of money supply. but it's also in favor of BTC