price, use and value | Bitcointalksearch.org

Honeybooboo

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Quote from: Foxpup on January 13, 2015, 08:41:58 PM

Say you're not the only person who wants to send $2000 to your brother. Say 100 million people want to do the same thing simultaneously. You will notice that there aren't that many bitcoins and never will be, so you and everyone else will have to do your business with a small fraction of a bitcoin. And if a small fraction of a bitcoin is to be used to send thousands of dollars... well, you do the math.

Exactly. Plus, this isn't the only use of bitcoin. Sure the price is unstable currently but it may not always be this way. Regardless the volatility still makes it interesting as an investor or to speculate on but it is risky.

Q7

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Everytime you buy bitcoin you pay a fee. Similarly when you sell to convert to fiat, you pay fees as well. Exchangers earn from there and business starts booming. Also when bitcoin proves to become a useful system, a lot of people will want to use it. This and other factor creates demand, by which price goes up. These are the driving factors.

Foxpup

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Vile Vixen and Miss Bitcointalk 2021-2023

Say you're not the only person who wants to send $2000 to your brother. Say 100 million people want to do the same thing simultaneously. You will notice that there aren't that many bitcoins and never will be, so you and everyone else will have to do your business with a small fraction of a bitcoin. And if a small fraction of a bitcoin is to be used to send thousands of dollars... well, you do the math.

pleaseexplain

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Merit: 10

Hi
I can see bitcoin as a money transmission system is great. Say I need to send $2000 to my brother overseas who needs it urgently. But I am turning fiat into bitcoin and he turns bitcoin to fiat to pay for his urgent need. So the "price of a bitcoin" is irrelevent tome ie it could be $1 or $1000. (Although with sudden falls like now I may have to send a few more bitcoins to ensure he ends up with $2000!.)

So there is no "pressure' by money senders like me on the bitcoin price so it cannot be this that has some people saying 1 bitcoin will be worth $1000 or $10,000 in the future.

So I assume they think the price rise will be from the Blockchain ie as it begins to have multiple uses unrelated to money even eg voting then it will rise. But unless say a voting system paid a fee/lease to use 1 bitcoin for x amount of time (and that seems hard to organize?) then I cannot see the bitcoin owner getting any revenue from ownership (It would need good long term revenue flow for the price of having a bitcoin at $10,000. But they must see something like that occuring or will occur for it to get to the $10,000 type level.

Can someone help me out here?

Topic: price, use and value (Read 655 times)