If Pirate's Scheme never existed what would the current price of BTC be?

molecular

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Quote from: 0mzUBBru on August 23, 2012, 05:45:57 PM

Quote from: Killerpotleaf on August 23, 2012, 04:54:14 PM

i dont understand why everyone is voting lower

The Bitcoin price is determined by demand and supply. If people want to invest in a HYIP they need Bitcoins, so demand goes up. This results in a price increase.

Back in December 2011 the Bitcoin price was at a local minimum around $2. BTCST was started at about the same time, and we had a constant upward trend since then. This was not only due to BTCST (e.g. SatoshiDICE was lunched in April), but BTCST contributed to the upward trend.

Unless pirate was selling the coins, then investment in BTCST would've constituted supply, not demand.

I also doubt many of pirates investors specifically bought bitcoins to invest with him... anything to back this up?

ruski

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Quote from: Killerpotleaf on August 23, 2012, 08:07:45 PM

~~some~~ a lot of people that hear about bitcoin right away think SCAM!....
your telling me once they hear 7% a week, with compound interest, they think INVESTMENT!

that's it,
beam me up scotty there's no intelligent life down here.

+1, I showed a mate, his first reaction was, "is it a ponzi?"

augustocroppo

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Quote from: BitCoinsLOL on August 23, 2012, 04:11:59 PM

Hypothetically speaking if Pirate's alleged ponzi scheme never existed what do you think the price of BTC would be and why?

Killerpotleaf

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Quote from: Serge on August 23, 2012, 07:42:30 PM

Quote from: Killerpotleaf on August 23, 2012, 06:00:35 PM

Quote from: 0mzUBBru on August 23, 2012, 05:45:57 PM

Quote from: Killerpotleaf on August 23, 2012, 04:54:14 PM

i dont understand why everyone is voting lower

The Bitcoin price is determined by demand and supply. If people want to invest in a HYIP they need Bitcoins, so demand goes up. This results in a price increase.

Back in December 2011 the Bitcoin price was at a local minimum around $2. BTCST was started at about the same time, and we had a constant upward trend since then. This was not only due to BTCST (e.g. SatoshiDICE was lunched in April), but BTCST contributed to the upward trend.

I also discuss this in my medium-term market analysis.

no way can this be the driving force of the entire rally

only 500,000BTC where ever put into this HYIP

I don't believe investing in HYIPs drew the price up but those 500k bitcoins most likely were heavily traded on exchanges before. it is a significant amount that were taken out of exchanges causing supply deficit.
If BTCST continued to operate for another year, word may have gotten out and in about half a year from now we could see new money coming in in order to get bitcoins in to BTCST

~~some~~ a lot of people that hear about bitcoin right away think SCAM!....
your telling me once they hear 7% a week, with compound interest, they think INVESTMENT!

that's it,
beam me up scotty there's no intelligent life down here.

beekeeper

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Quote from: repentance on August 23, 2012, 06:23:14 PM

Quote from: beekeeper on August 23, 2012, 05:35:09 PM

The reward halving is near the corner, it will happen with a big bubble, probably BTC will go over 30, just wait to see the rally when ASICS will hit..

Sometimes the bubble occurs in anticipation of an event so there aren't any significant price increases when the event actually occurs. The reward halving and the advent of ASIC might have driven a price hike independently of each other, but they may actually cancel each other out in reality.

Yes, I do agree, 99% of the time, but the bubble near this event will hit insane threshold scaled by huge spike in network haspower with its negative spike in BTC gain.

beekeeper

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Quote from: koin on August 23, 2012, 05:47:47 PM

Quote from: beekeeper on August 23, 2012, 05:35:09 PM

The reward halving is near the corner, it will happen with a big bubble,

yes, and that has been known since ... oh about 2009. it might already be priced in. if it stagnates here at $10 expect some selling by those like yourself thinking that alone would zip the price up to $15 or $30 and it ends up not looking likely to happen.

Quote from: beekeeper on August 23, 2012, 05:35:09 PM

just wait to see the rally when ASICS will hit..

hmm ... 7,200 btc are mined each day with 17 thash/s. then we have asic and go to 40 thash/s. and there still are 7,200 btc mined per day. how would that impact the exchange rate? perhaps you somehow thinking the hash rate controls the price? it is the other way around, after the price goes up more investment in mining capacity occurs and continues to occur until mining is no longer all that profitable.

The most decent estimates are 7x not 2x in network hash power right after ASICs come to market..

Serge

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Quote from: Killerpotleaf on August 23, 2012, 06:00:35 PM

Quote from: 0mzUBBru on August 23, 2012, 05:45:57 PM

Quote from: Killerpotleaf on August 23, 2012, 04:54:14 PM

i dont understand why everyone is voting lower

The Bitcoin price is determined by demand and supply. If people want to invest in a HYIP they need Bitcoins, so demand goes up. This results in a price increase.

Back in December 2011 the Bitcoin price was at a local minimum around $2. BTCST was started at about the same time, and we had a constant upward trend since then. This was not only due to BTCST (e.g. SatoshiDICE was lunched in April), but BTCST contributed to the upward trend.

I also discuss this in my medium-term market analysis.

no way can this be the driving force of the entire rally

only 500,000BTC where ever put into this HYIP

I don't believe investing in HYIPs drew the price up but those 500k bitcoins most likely were heavily traded on exchanges before. it is a significant amount that were taken out of exchanges causing supply deficit.
If BTCST continued to operate for another year, word may have gotten out and in about half a year from now we could see new money coming in in order to get bitcoins in to BTCST

Killerpotleaf

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to say that no one has any reason to buy bitcoin, but to throw them away on a HYIP.
Is ridiculous!

Cluster2k

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I think without pirate's scheme the price would still be around $5 to $6.

ldrgn

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Quote from: Killerpotleaf on August 23, 2012, 06:00:35 PM

only 500,000BTC

That's still around 5% of all bitcoins minted.

repentance

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Quote from: beekeeper on August 23, 2012, 05:35:09 PM

The reward halving is near the corner, it will happen with a big bubble, probably BTC will go over 30, just wait to see the rally when ASICS will hit..

Sometimes the bubble occurs in anticipation of an event so there aren't any significant price increases when the event actually occurs. The reward halving and the advent of ASIC might have driven a price hike independently of each other, but they may actually cancel each other out in reality.

Killerpotleaf

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Quote from: 0mzUBBru on August 23, 2012, 05:45:57 PM

Quote from: Killerpotleaf on August 23, 2012, 04:54:14 PM

i dont understand why everyone is voting lower

The Bitcoin price is determined by demand and supply. If people want to invest in a HYIP they need Bitcoins, so demand goes up. This results in a price increase.

Back in December 2011 the Bitcoin price was at a local minimum around $2. BTCST was started at about the same time, and we had a constant upward trend since then. This was not only due to BTCST (e.g. SatoshiDICE was lunched in April), but BTCST contributed to the upward trend.

I also discuss this in my medium-term market analysis.

no way can this be the driving force of the entire rally

only 500,000BTC where ever put into this HYIP

koin

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Quote from: beekeeper on August 23, 2012, 05:35:09 PM

The reward halving is near the corner, it will happen with a big bubble,

yes, and that has been known since ... oh about 2009. it might already be priced in. if it stagnates here at $10 expect some selling by those like yourself thinking that alone would zip the price up to $15 or $30 and it ends up not looking likely to happen.

Quote from: beekeeper on August 23, 2012, 05:35:09 PM

just wait to see the rally when ASICS will hit..

hmm ... 7,200 btc are mined each day with 17 thash/s. then we have asic and go to 40 thash/s. and there still are 7,200 btc mined per day. how would that impact the exchange rate? perhaps you somehow thinking the hash rate controls the price? it is the other way around, after the price goes up more investment in mining capacity occurs and continues to occur until mining is no longer all that profitable.

0mzUBBru

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Quote from: Killerpotleaf on August 23, 2012, 04:54:14 PM

i dont understand why everyone is voting lower

The Bitcoin price is determined by demand and supply. If people want to invest in a HYIP they need Bitcoins, so demand goes up. This results in a price increase.

Back in December 2011 the Bitcoin price was at a local minimum around $2. BTCST was started at about the same time, and we had a constant upward trend since then. This was not only due to BTCST (e.g. SatoshiDICE was lunched in April), but BTCST contributed to the upward trend.

I also discuss this in my medium-term market analysis.

beekeeper

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The reward halving is near the corner, it will happen with a big bubble, probably BTC will go over 30, just wait to see the rally when ASICS will hit..

koin

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