Topic: Bitcoin should be at $13,500 ? - page 2. (Read 6840 times)

People continue to compare 2013 correction to 2011 correction.
Try to compare 2012 correction (no one ever talk of it, because it happened when so many were at the beach) with 2013 correction.




2012) it run up 400% and fell 50% --> 200% increase
Bitcoin inflation was 25%
Really few ways to use bitcoin
 
2013) it run up 2600% and fell 60%  --> 1000% increase
Bitcoin inflaton 12,5%
A lot more ways to use bitcoin (BitPay is just at what? 4000 merchants?) add the rest and wait for people to really start to adopt BTC as a way to pay for good and services.
We are just starting to heating the engine and moved around the parking lot.

If merchants accepting bitcoins are able to pass them to employees and suppliers (even a small fraction is a good start), the move up will be rocking.
And giving the increasing number of merchants accepting bitcoin, there is an increasing number of people (the merchants themselves) able and willing to have bitcoins and spend them with other merchants.
This should reduce the correction time, building a strong bottom, in just few months. By july-august end we will see a lot of pressure up just for increased adoption.

Outsiders can form whatever opinion they want -- It won't change the objective truth that Bitcoin represents a monumental, heretofore unprecedented achievement of humanity with regard to its economical transfer of value.  This objective truth combined with the empirical evidence of humanity desiring individual economic freedom in an ultimate sense, assures that crypto-currency in some form will become the de-facto standard for human economic transfer.  It may make little sense then to ascribe any USD or otherwise fiat value to a BTC in that future, but given the facts I think there is no question that said value would be relatively HUGE.

Bitcoin payment processing is 0.99% through BitPay. Merchants pay roughly 2.7% in credit / debit processing fees. When you factor chargebacks in, that number rises to 3 - 10% in transaction costs. While the typical consumer does not understand that a merchant's payment processing costs directly inflate the price that merchant must charge, they will continue to use traditional methods. But when companies that exclusively accept bitcoin (bitcoinstore) are able to undercut other merchants, users will have an incentive to obtain bitcoins to pay for their goods. As bitcoin becomes easier and easier to secure, obtain, and use, the incentive to use them will not need to be as great.

I am curious why you think bitcoin fees will always be higher than credit card fees. When both parties are considered (consumer and merchant), they are significantly lower than credit card fees, and will likely always remain lower. You are speaking from one side of a two sided transaction.

All it would take for bitcoin to be well over 13.5k USD is one central bank deciding that they should put a tiny fraction of a % of their balance sheet in bit coins. If the Fed or the European Central Bank of the BOJ or BOE decided that they may, in the future, need to have the ability to manipulate the fiat/BTC exchange rate they may try to front run other central banks and get in at a relatively low price. Hypothetically speaking if the Fed put 1/10 of 1% of their monthly open market purchases into bitcoin the value of bitcoin would double in a year, not withstanding any other speculation or growth in the bitcoin economy. Change that number to 1% and the bitcoin exchange rate would be doubling every month.

Obviously this is pure speculation but anyone who says that values of 13k or 130k are unrealistic obviously doesn't understand global finance.

    There should be no argument about the possibility of bitcoin going to 1 million USD. It is possible. If China starts dumping US bonds, bitcoin could be at $1 million tomorrow based on selloffs of forex reserves rather than bitcoin buy up. Of course, then China would lose its biggest export market. Unemployment in China would then cause the Chinese government to collapse, along with the global economy.

      The dollar is overvalued right now. Bitcoin is undervalued. The correction may be fast or slow, but a correction is all but certain. How extreme that correction will be is a matter of debate. We are in "speculation" here- I say let them speculate.

    I say don't sit around and wait to become a millionaire- innovate, understand the potential, help build the infrastructure of bitcoin, and become a millionaire. Then it won't be a get rich scheme but a collective enterprise that depends entirely on the sagacity and motivation of the participants, an enterprise that will create billions in wealth through added efficiency to the global financial system and redistribute billions from inefficient banking and electronic payment institutions. I hope the price crashes a little bit more so we can consolidate the BTC in the hands of people who will be able to wisely reinvest them as the market value grows.
    

I personally feel that all threads along the lines of 'bitcoin going to $10k' or 'bitcoins worth $1M' do more harm than good to bitcoin's reputation.  While speculation is fun there are two factors at play: No one can predict the future value of bitcoins with any certainty, and outsiders reading this forum may form the idea that bitcoin is just one huge get-rich-quick scheme full of people sitting and waiting to become millionaires. 

This is gold

Good lad.

you know, I can't say much for bitcoin at it's current time, but I think I'll go ahead and put 10-50 coins on a drive and put it in storage, then not check the price of bitcoin for 20 years.

But (1) it isn't easy to transfer your balls quickly and cheaply, (2) your balls are easily forgeable (I cannot tell the difference with someone else's balls) and (3) it's hard to divide your balls up indefinitely and still be able to tell those are pieces of your balls.

Bitcoins does all of these (and PM accomplishes them better than your balls, though rather imperfect).

So how many million Bitcoins do you have?

It was not "until I can pay my pizza, it is just speculation".
http://foodly.com/
http://pizzaforcoins.com/

Or was "until I can pay my bills"?
http://billpayforcoins.com/index.php

My balls should be at 5 billion US$ each!

There are 22 million Bitcoin, but there are only two of my balls -> so very rare thing.

Geez, people! 13,500? Seriously?

As long as I can't pay for a Cheeseburger with Bitcoins it's value is pure speculation.

I completely agree with your sentiment and I already tried to explain that to him. He doesn't want to understand.

Except you don't realize there is a hidden tax.  Merchants pay up to 3%-4% for each transaction.  You think they just eat that cost and pass 0% of it on to you in the form of higher prices?

Sorry to burst the bubble but what you said is simply not correct.

+100
 

However, money has a strange character: Without money nothing can be done, but with only one type of money anything can be done, unless the merchant exclusively require bitcoin payment (just like EU merchants only accepting €), people do not have the motivation to exchange to bitcoin and spend (due to added complexitiy in exchange process), it will take some time for a bitcoin-only economy to build up

But I think this will happen eventually, sooner or later some producer with excessive amount of cash flow and some investment in bitcoin will provide bitcoin-only sale for part of their product line, and that will create a miracle in business history: The more you sell, the more valuable your income will become, and this will create a snowball effect and more and more merchant will join the bitcoin-only sale party

you mad bro ?

I like the way you think.

+1 :-) lol

   It is impossible to think that bitcoin growth will be steady rather than exponential. For the growth not to be exponential, every person who finds out about bitcoin would have to tell only one person about it. Bitcoin's growth cannot help but accelerate.

   100k value for bitcoin sounds as absurd now as the earth being round when you can clearly see it's flat, or the earth rotating around the sun  when you can clearly feel that the earth is still and the sun moves in the sky above sounded at other times in history.