Topic: Why Bitcoin may now level off... - page 5. (Read 8655 times)

So what you're saying is, growth of Bitcoin will eventually be stopped by the limited amount of fiat people have available (or said differently, by the size of the economy.)

This is absolutely true in the long run and will happen eventually. But the way to look at it is in terms of market cap. The total market cap of BTC right now, if all coins were mined, is 21m * $1150 ~= $25 billion. That's actually a TINY amount in the context of world trade or a major currency. The global forex market alone has a daily turnover measured in TRILLIONS.

So if bitcoin ever makes it anywhere near "mainstream" usage, we still have some ways to go.

If 90% of the public down't know you can buy a fraction of a bitcoin I wouldn't be concern.
Currently , assuming the best scenario we have around 1 million users and that it just 1/6000 of the people on this planet.

Also , the switch to millie or minnie or donaldbits may also help.

If true about funds buying half, the run up to summer/fall 2016 (halving) will be interesting to watch.

Minicoins. And someday mikes.

i was interested in USD, but then i realized their damn $1000 bills couldnt be divided so i decided just to trade my trusty clam shells instead. *cough * *sarcasm perhaps*

i honestly don't think it's that big of a deal. if someone were seriously interested in getting bitcoin, they'd do the research and learn that they can buy fractions. if they are just saying "im interested," but are unwilling to put the effort out to join the game.. they probably wouldn't have bought them anyways.

this problem with people not understanding you can buy half a bitcoin frustrates me so much!

what about the big players? hedge funds? wall street? while the psychological effect does have a role in changing the price, i think sometimes we put too much focus on it. before we hit $1,000, i thought there would have been a pretty big sell-off and that we'd have somewhat of a crash.. well, that didn't really happen.

another things we don't know of: where the news comes from, and whether it's good or bad. if, for example, tigerdirect were to announce that it is going to accept BTC... what do you think would happen? people would ignore the psycholgical barrier and buy up some coin.

who will be interested in fiat when it takes a thousand dollars to buy a bigmac?

I hope that the community and eventually the media start refering to value in terms of mBTC. A lot of my friends would invest but they think that a coin is too expensive for them.

Interesting - how do you know the mining output is being bought by funds?  Which funds?

I agree that the growth will be exponential for a very long time.  I think it has to do with how information propagates through networks .. 5 people tell 5 people who tell 5 people and so on.

Edit: One more thing - I think the reason we haven't seen a bump today (man aren't we greedy?) is there hasn't been much Bitcoin-related news besides the sheep swindle ..

If someone is willing to pay 40 cents for 0.00004 BTC, and nobody is willing to sell it for less than that, then the price becomes $10,000 per BTC.  In other words, it doesn't matter what amount is being traded, just the price it's being traded at.

An extreme example would be a universal currency...so governments would be the entities buying bitcoins.
Napkin math would say 100 trillion dollars in global currency divided by 21 million bitcoins is...$4.75M.

If your new  'unit of currency' was a microbitcoin, a unit would be about $4.75 and a "satoshi" would be 1/100 of that or about 0.05.

estimated 350,000 holders a couple of months ago, according to some random paper i read.  since then the price roughly sextupled, so perhaps  22 million holders could naively be taken to correspond to a 10k level.  

funds are buying at least half the mining output now, probably much more, and this is a very recent development.  the impact on price trajectory is likely to be more upward pressure than seen in the past.

it's starting to look like we're basing around the 1k USD / 1oz Au gap, but the newsflow on btc has increased by a factor of 10 or more in the past month, so i suspect at least ten times the number of people are learning about btc each day.  admittedly this is a lower quality audience than the early technophile demographic, but it also includes technically unsophisticated by financially sophisticated business people and investors.  as they become comfortable with the concepts and perform value calculations, they will do the paperwork necessary to buy coin.

people who understand how money is valued on its fundamentals will be much more willing to buy speculatively, will have a much longer-term discounting horizon, and will understand the mechanics of future sustainable gains, and will invest accordingly, as compared to the average relatively uneducated and less affluent neophyte.

the difference between $900 bitcoins and $800 bitcoins is not substantial.  neither is the difference between $1000 bitcoins and $1100 bitcoins.  in fact, it is less substantial.  for that reason i do not expect the latter to be more difficult to achieve than the former transition.  the critical factor is demographic penetration.  as long as awareness is spreading at an exponential rate, to a first approximation, growth will continue to be exponential.  the exponent may decay over time, but it remains over unity for the time-being.

You don't have to buy whole coins. You can buy by the mBTC.

Can someone explain this to me please?

People can afford $200 ... $400 Bitcoins ... $900 bitcoins... and with all the money in China floating around, its not too big of a deal for people go buy $1000 bitcoins.

You reach the $1000 mark and you've got Snoop Doggs buying up 20 or 50 of them .... but that's Snoop Dogg.  He's a multi millionaire. 

People have been able to afford to buy in to Bitcoin up till now...

Who the hell is going to afford to buy into Bitcoin at $2,000 ?   $5,000 ?   $10,000 ?

At some point shit is going to simply stop shooting up. 
I know you can buy bitcoins in divisible amounts.   But 90% of the public has no idea they can do this, and Im not even certain that someone buying 0.00004 BTC at $10,000 is going to push the price up at all. 

So my "Speculation" ?   That we're reaching a point at which human beings can no longer buy in to Bitcoin enough to keep pushing the price up so quickly. 

Can someone please explain to me where the money would come from?  Even if India gets on board ... how the heck will their participation affect price? 
Its not like a bunch of people in India can start blowing money on $5,000 Bitcoins .

Can someone explain to me why people here think a rise from $1,000 to $10,000 could even happen at all, let alone quickly?