i do expect that the price of bitcoin will trade betweem $850 and $950 for some time,
I don't think so. Too many people want to have at least one bitcoin.
true, and not even every millionaire (denominated in $) could have one. there are more millionaires existing than bitcoin.
I understand your point, but What a silly one, no? At today's prices, as I type, a million dollars could get you about 1,093 bitcoins, but if you have a million to invest, you might need to diversify a little bit, no?
Frequently, I mention to people who might be skeptical about bitcoins, that 1% to 10% of your quasi-liquid investment funds could be reasonable to invest in bitcoin, but if you happen to be fairly skeptical and skittish about today's prices, then maybe you would feel comfortable with only 1% in bitcoin, and all those variations seem reasonable. So, at today's prices, a person who has $1million to invest but is fairly sceptical about bitcoins could still get 10.93 bitcoins... in other words, what seems to be your point, 600watt, those millionaires should act now, while the price is seemingly reasonable in a globally distributed mindset and while supplies last (before everyone else finds out the value of bitcoin).
Sure, but the very rich never want anything until it is seen as valuable to *other* rich people and unattainable to the masses. Hence the reason why they'll wait to buy until a bitcoin is worth $500K.
Two examples: 1) No one wealthy gave a shit about owning one of the original Apple computer boards until they go at auction for $1M
2) No one wealthy gave a shit about owning an original Superman #1 comic until they go at auction for $3.2M
For the super rich, it's all about rarity, subjective (perceived) value, and bragging rights.
For the rest of us, it's just about a meager store of value and perhaps some future investment.
I agree that the wealthy buy things for rarity, bragging rights etc but not sure its going to happen with bitcoin.
First there are potentially 21 million other people that have 1 bitcoin - even in reality if it is say 100,000 it is too many to be seen as rare. Also you cannot really "show off' a string of numbers like you can a physical thing eg first edtion comic book. Finally as the $ value climbs in years to come we may start talking more in terms of 1/1000th of a bitcoin as well as many other levels. Give it a 'sexier' working name than bitcoin eg like "MilleniumCoin" and voila you have a new rarity
These are all good points, and I am not really sure if it matters what bitcoin is called, because surely there is a divisible nature, and by the time a large number of millionaires want a little bit of bitcoin, we will likely not referring to whole bitcoins, but rather some smaller unit - and we may be many years away from such a state in which a large number of millionnaires want to accumulate bitcoins to such a level that they want a whole unit, rather than some fraction.
i do expect that the price of bitcoin will trade betweem $850 and $950 for some time,
I don't think so. Too many people want to have at least one bitcoin.
true, and not even every millionaire (denominated in $) could have one. there are more millionaires existing than bitcoin.
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Exactly. I didn't see 600watt's comment being aimed
at the millionaires and how diverse their investment portfolio should be.
Rather I thought 600watt was pointing out that once Bitcoin does reach a level of recognition & (increasing) value that the multitude of wealthy all decide they want "one" and the value rockets even higher... where does that leave those of us that invested now and held on for the ride?
I admit that I was changing the point a little bit when I mentioned diversification, even though in essence, none of us are not really disagreeing in our various points, and it seems like we are making a variety of differing points.
If someone is already a millionnaire of a multimillionaire, (s)he already has a variety of investments and is not really feeling any need to deviate from his/her investments in order to preserve and/or build wealth.
On the other hand, at some point, it is going to seem quite apparent that bitcoin should be part of one's portfolio, and that is why I mentioned the question of diversification. Yeah, maybe some folks are going to identify bitcoin early and start to invest into it in a way that causes him/her to create a lot of wealth - yet somewhere down the road, there are going to be more mainstreaming of bitcoin, and at that point, more mainstream folks (including millionnaires) are going to likely begin to put money into bitcoin. It seems as if we are quite a long way from that mainsteaming of bitcoin... could be 1 year or could be 10 years, but in the meantime, likely you suggested tequilamockingbird, us early adopters are going to likely benefit dearly from our investment in bitcoin and our decisions to HODL or at least not sell too high of a proportion of our stash even while the price is exponentially appreciating because of increasing levels of recognition of the value of bitcoin.
