Topic: Someone please explain the speculation about bitcoin (People say 2-10k by 2015) - page 2. (Read 3327 times)

This image is outdated, but it was always one of my favorites. The pixel representing Bitcoin has certainly grown since then!



If Bitcoin proves to be the superior choice, or even a choice for one of these "markets", well...

Bitcoin is definitely not a computer virus.

Maybe a virus ONLY when applied to banks. But still, no.

Never heard it put that way!  Probably true, but not the best marketing strategy.  

^  This guy knows his stuff.

because to-da-moon

look at the long term chart

look at all the potential use cases for not just bitcoin as a money, but bitcoin the protocol

look at the hashing power of the network

look at the governments and their limpdick responses that have barely any effect

look at the current level of adoption and how much room it has to grow

look at VISA... they let you donate to the Ku Klux Klan but not Wikileaks

look at the FED and PBOC and BOJ and BOE and all them niggaz flailing about

bitcoin is a gigantic computer virus that will wipe out the entire legacy financial system, including central banks.

As a currency, bitcoin price will tend to reach its fundamental value.  PQ = MV (Fisher's quantity theory of money) describes that fundamental value.  PQ is the size of the economy denominated in bitcoin.  M is the number of bitcoin floating in circulation, and V is the number of times each year a mean bitcoin is used in a transaction, the velocity of money.  If you do the math, for conservative estimates of PQ, you get numbers similar to those you mooted.  For ambitious or longer-term estimates of PQ, disaster scenarios, etc., you get much higher numbers.

Bitcoin tends to reward savers, and promises not to punish them too much.  Therefore, it may see (already does see) disproportionate reserve demand.  This tends to reduce M, above, making each unit worth more.  I suspect most estimates of value based on the size of the economy underestimate the reserve demand.

The reason why people believe that Bitcoin will increase by so much is primarily due to the fact that Bitcoin has limited supply, and they believe it will grow its market share - market share of currency value, that is.

Here's the theory:
Bitcoins have a fixed supply & are much easier to move than USD & have lower fees, so the theory goes that people should want them more than USD (I certainly do). Since the feds have been printing money at a breakneck speed for the longest time, some of that money eventually has to hit circulation. And when it does, the USD price will drop rapidly, getting rid of its advantage of being a supposedly stable asset. Thus, people holding dollars will have no incentive not to switch to BTC (since BTC is unstable, they aren't right now, but when the USD is similarly unstable, they will have no reason not to).

This process of switching causes more USD to go into circulation (as people spend the money from their savings on BTC, putting that saved USD into circulation) and in turn further destabilizes the USD. As such BTC will increase in market share against the US Dollar (where the market is the total value in currency assets worldwide).

And increased market share > increased demand > increased price because supply is held relatively constant.

Yep, and apart from the exponential up trend, an explanation would be that the market capital (10bil) is still very low compared to many markets that bitcoin represents. Bitcoin is gold, a most efficient medium of exchange, a means of financial privacy, and a unit of account (offering coloured coins for example) an escape route, a commodity etc..... These markets are each worth hundreds of billions, and trillions each. this is way a small bull scenario for bitcoin is likely to be 40 Billion at least (Winkelvii - $2000/BTC) and the capital has potential to grow to hundreds of billions ($10,000-100,000) and some would argue more. its totally possible and there is plenty of money (credit!) to go around. The network effects of money are possibly the strongest of all, so BTC is likely to lead the way, and this is why it is unlikely for the market cap to leak into the abyss of alt coins.

Watch this to start:

http://www.youtube.com/watch?v=WMilJzD3pL0&feature=share

If you are serious about understanding the answers to your questions you need to spend several weeks studying. But start with the video I just gave you.

Very interesting responses.  Miners are going through the roof and with it being harder and harder to get bitcoins, it looks positive for the market.

Or the bubble will burst back to $50.

because it rised 90fold in 2013 and bitcoin is more hyped then ever now

i highly doubt we gonna rise 90fold again but 10fold, sure

Because that is what they are wishing.

Hello, I am new when it comes to bitcoin.  I hear a lot of talk on hear about speculation that bitcoin will reach 2k-3k or even 10k by 2015 (or even sooner).

I know overstock and other companies accept bitcoin.  Can someone explain in detail why they believe bitcoin will double or even 10 fold within a few months to a year.  I hope it does (and have bought more coins by then)