This was the best argument so far, and thanks for the link to that useful site. You persuaded me to resume buying and spending. Probably won't buy more than I spend though, just in case.
Topic: The REAL reason price went down and why it will go up - page 3. (Read 4713 times)
This was the best argument so far, and thanks for the link to that useful site. You persuaded me to resume buying and spending. Probably won't buy more than I spend though, just in case.
We've had a large number of threads like this and now it's my turn. Today I ran into an article that responded to the big Krugman blog and that response was pretty good: http://www.bitcoinmoney.com/post/9913036774/paul-krugman-bitcoin-op-ed
Now the article itself was nice but there was a link to a graph that really made me understand that the economic activity in the Bitcoin world is what truly drives the price. Look at this graph:
http://pi.uk.com/bitcoin/charts/n-transactions
Now if we compare that chart to the price chart, the correlation is very strong. The economic activity (number of transactions) has slowed down, taking the price down as well.
Of course there's still no sign of a change in the trend of lowering transaction amounts but I think it's not even a question of debate that we're soon closing in on the point where the transaction count will level off and probably start rising again.
My main point is that with the current amount of transactions, and looking at the price correlations, the price can't possibly be lower than $6, not as a stable price at least. The transactions need to come down way more. And my prediction is that the transactions will level off very soon.
I've also heard some arguments that this bubble has taken "too long" to level off but that's completely understandable because it's the biggest bubble in Bitcoin history. But it's very close to leveling off at this point.
Now the article itself was nice but there was a link to a graph that really made me understand that the economic activity in the Bitcoin world is what truly drives the price. Look at this graph:
http://pi.uk.com/bitcoin/charts/n-transactions
Now if we compare that chart to the price chart, the correlation is very strong. The economic activity (number of transactions) has slowed down, taking the price down as well.
Of course there's still no sign of a change in the trend of lowering transaction amounts but I think it's not even a question of debate that we're soon closing in on the point where the transaction count will level off and probably start rising again.
My main point is that with the current amount of transactions, and looking at the price correlations, the price can't possibly be lower than $6, not as a stable price at least. The transactions need to come down way more. And my prediction is that the transactions will level off very soon.
I've also heard some arguments that this bubble has taken "too long" to level off but that's completely understandable because it's the biggest bubble in Bitcoin history. But it's very close to leveling off at this point.
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