Topic: The motivations to purchase bitcoin (Read 4079 times)

I stopped watching this thread a while ago, thus the ridiculously late response.  I just searched for it last night and couldn't find it any more, so it doesn't look like it's available any more.  But just do searches for RAM on bitcoinstore, maybe it'll turn up again sometime.

Can you gimme the link please?
I am very interested to buy 4*16GB DDR3

That's true, you gotta look for the moment when Bitcoin climbs up in value fast, like $20 or more within a few hours.
This fast increase in value means a high volume of bitcoins have been bought.

Eventually the people who bought them will seek for an opportunity to liquidate their profits, hence a drop in Bitcoin value occurs. This is the moment where you should try to go short. Offcourse reading news which might have a considerable effect on dropping Bitcoins value, like the one with the Liberty Reserve take down will give you a good indication to know when the perfect moment to go short is near.

Short always have unlimited risk, and due to limited amount of coins, short bitcoin is very dangerous, all the people who shorted bitcoin since last year were eventually squeezed out when price reached 200+

I only started trading because of the high volatility. At first I was thinking about getting like $30 dollars profit in a day when BTC was worth $70 back in march 2013.

But when BTC started to keep rising over  > $100 I was waiting and waiting for BTC to get under $90 again so I could buy back in but it took so long and then I learned about how you could profit from Bitcoin going down in value, I learned about going "Short".

At the same time I learned about "leverage" which means I could make 5x as much profit but also 5x as much loss with the same budget. A moving of $20 would mean 5 x $20 = 100 with just 1 Bitcoin capital which normally would needed 5 Bitcoin capital on exchanges like MtGox, Bitstamp and BTC-E.

Until now I never trade at those exchanges anymore but stick to my favourite trade platform Plus500. All this also led me to trade in other currency pairs like EUR/USD, EUR/JPY and trading in stocks like Facebook.

My biggest profit call with Bitcoin at Plus500 was  1030 EURO in just 45 minutes, you can see it in this screenshot I made:


It was the moment when BTC spiked $20 down in 5 minutes and I was so sure it would climb back up very quickly so I went long when it peaked down. 45 minutes later I got 1030 euro richer.

Does anyone else had any fabulous experiences with going short on Bitcoins?

I think for me the original reason was #1.  It looked like a great way to make a quick buck or two.  However, the more I understand it, and understand how I really should not be putting all my trust in the dollar (people do not realize how risky that really is) I want to have holdings of BTC at all times, so my motivation has moved to #3.

In 10 years it will be very interesting to see what happens to many of the world's currencies and it will be interesting to see what the value of BTC is in relation to the rest of them.  It could be a gamble, but it is a gamble to have money tied up in fiat too.  Just my take on it all.

Purchase Bitcoin because it's the future of money, plain and simple. Not only that, but it's a great investment. The governments currently managing fiat currencies aren't exactly doing a stellar job of managing debt, inflation etc.

Bitcoin is transparent and as valuable as the people that use it. So as more people use it, naturally it will appreciate.

Currently the liquidity of all exchanges are still low, when major exchanges are established, the international transfer utility of bitcoin can become more useful

Take localbitcoins.com for example, if large volume of trade can be done in each country, then international money transfer can be done over night

By the way, this will not affect the exchange price, since the amount of buy and sell is always the same. So even the demand for transaction increased, it does not mean the price of transaction medium will rise, this is a good example of supply and demand do not necessarily change the value of money

I didn't know that was an option.  Oh wait, you mean selling to people in person.  Yeah, that could work, if you can find buyers.

The buying stuff is definitely a good idea too.  There is a 16 GB RAM chip that I'm tempted to buy on Bitcoin store one of these days - last I checked, it was something like $20 cheaper than Amazon.com, which is pretty impressive.

Some of us have the ability to buy at coinbase price and sell locally at MtGox price.  That's my motivation for buying right now.
Also, buying gift cards/items that I normally would have purchased at a discount, just by using btc.  That's a huge motivation.

some people buy btc because it is more effective than just protest the banks ... for some of us it is an act of rebellion to do so.

10% of 1% of the profits?  That seems like an odd way of putting it.  Why not just call it 0.1% of the profits?

just dice is pretty neat for investing you get 10% of 1% of the profits from the casino so its pretty good if you intend to let your coin sit for a year or so

That's the hard part.  Right now, I have my coins in a Coinlender CD, but it's gotten a bit crazy there.  TradeFortress assured me that he's not planning on shutting the site down before my CD expires, but after that happens (in about another month), I'll be looking for another place to invest my bitcoins.  Thinking of Cloudhashing, but I'm really not sure what I'll do once I take them out of Coinlenders.

 hwere do you ınvest your bıtcoıns ??

Recently I put some order at localbitcoins.com to purchase and sell bitcoins, to my surprise, there are many people buying bitcoins from me, but I have not received any sell orders, so I have to actively buy coins from other exchanges

So it seems that most of the people do not want to sell their coins, or they just don't have enough coins to sell. The statement that most of the coins mined will be sold immediately at market price is not true. The current sell presure mostly comes from early investors


This chart shows how 10%, 20% and 50% cash out strategy by investors will affect the bitcoin daily supply. If the mined coins were mostly hoarded (acquired through investing in mining devices), then the daily coin supply on exchanges will mostly consists of coins cashed out from early investors, this will reduce the amount of supply on market and increase the exchange rate

Mining is a cheap way to acquire coins, since it does not affect the market price. Only when mining becomes unprofitable, people will start to purchase coins on exchanges. So before the difficulty rise another 10 fold, we might not see a lot of buying support on exchanges, that is another 6 months

Yes I think so. Many bitcoin must be sold immediately. If people didnot sell them and hold them price would be much higher.
I suppose that people who are mining with asics sell some coins all the time to get their investment back but once they earn some money back they would stash all mined coins and price can reach at least $200. and once it starts soaring it could go very high because all people would be holding coins at the moment but simultaneously many new investors would like to buy some bitcoin. It could end on $1000 who knows. And if price would stay at this level for some time it could influence much all future expectations.....

Nominal numbers are meaningless and arbitrary.

Bitcoin's money supply is still growing at >10% on an annualized basis.  That is high monetary inflation in any economic book.  The fact that Bitcoin maintains purchasing power is a pretty solid testament to the demand but monetary inflation is still high.   

The supply side is 3600 coins per day, a market value of 360K USD. Comparing that with FED's QE3, which is currently at 2.8 billion USD per day, that is nothing

Inflation in Bitcoin at the moment is crazy though? It'll be at least another few years until Bitcoin has a substantial edge over other currencies as far as supply side inflation goes.