Topic: why is bitcoin price important? (Read 3707 times)

well i dont know about those price ranges. they seem so wide. maybe if you could make them narrower they would have more meaning.

bitcoin can never stop trying to increase the hashrate as new tech comes out otherwise it could suffer a 51% attack. so there will never be a high enough hashrate that could secure the network indefinitely. it would be nice if that weren't the case but it is what it is.

One thing is the original idea and another is how that idea evolves when it becomes a reality. Today we see many things that deviate from Satoshi's original idea, and not only in terms of the price that you mention.

the funny thing about inflation is.. dollar has always been in an inflation
ever since 2002-2007-2012 you can check the price of most goods of 10-15-20 years compared to now and the average change in price is actually been quite the same. its just a few ear-marked baskets of goods used by CPI were held down to fake a lower rate while real prices of everything else have gone up

i remember 20 years ago the price of UK fuel was 70p/litre now its over £1.40
this means 100% extra in the price of 2002. 100%/20=5%

yes inflation happens but that does not mean that becasue news company finally admits the government finally updated its rates to show a different rate this year .. does not mean this year causes real term need to buy more bitcoin. people have already been hedging fiat for years.

you wanting the price to suddenly jump now this week due to something you read on the news about inflation.. is different to the real shopping habits people see as price changes over the last few years


the 2011 ATH set the first spike a year after new price discovery event(first exchange)
the 2013 came earlier by a couple months than the prediction of the 2011 would cause
the 2016 came later
the 2020 came with 2 peaks to try emulating the mix of the peaks of the previous cycles

so here is the peaks mapped out in cycles

2010-2012 2012-2016 2016-2020 2020-2022


in short we are correctly in the 'low zone' of each cycle

i would say in the 2025 ATH attempt there will be one,2,3 peaks in the same area as those peaks and then ~2 years of lows on a slow growth
...
and here is the price range to expect the markets to work within depending on the value:premium zone based on mining hashrate of this gens hardware and costs


in short if 2023 hashrate is about 250exa, the price would wiggle SOMEWHERE between $15k-$100k
in short if 2023 hashrate is about 330exa, the price would wiggle SOMEWHERE between $20k-$130k
in short if 2023 hashrate is about 500exa, the price would wiggle SOMEWHERE between $31k-$200k

I agree with that but people are using bitcoin in a way that suits their purposes better and you can't say anything about that. some of us see it as a convenience and some of us see it as a way to make money. it has become an industry and some people are making really good money in this industry

I myself hope that Bitcoin will reach the highest level in the future. Not only to me, but one day Bitcoin will be legalized in all countries and will become the asset of the future. And the entire market depends on the price of this Bitcoin. Whenever the price of Bitcoin is down all the tokens in the market are down and when the price of Bitcoin is up all the tokens are up in price. And that's why the price of Bitcoin is more important to us.

That's certainly true, mate. A huge dip in Bitcoin's price would certainly give a bad impression to the public. It would mean Bitcoin has failed as a store of value (even if the blockchain would still be alive and running). I don't think prices will stay low for too long, especially when Bitcoin hasn't reached the mainstream yet. Once the whole world is using Bitcoin, you can bet market prices will go all the way to $1m. That, and also the fact that the Russia-Ukraine war and rising inflation rates need to end for BTC to go all the way to the moon.

I'm pretty sure it will be all over by the next Bitcoin halving in 2024. People won't want to miss the train once BTC skyrockets like crazy. While market prices are important, they're certainly not as important as the health of the blockchain itself. With how far BTC has gone since its inception, I don't think it will die just like that. Who knows if it lives for generations? Just my opinion

Bitcoin is an asset as well as a currency, it is up to the hodler to decide how they chose to handle theirs. The initial idea was a p2p network but with unstable demand and supply alongside the long-standing halving price will remain a big concern because everyone will choose how they treat their coin differently. Some might just spend it as a currency while many will see it as an investment channel

Yes of course, we believe in Bitcoin, even though it has low Value like you said people will still use it. The price of Bitcoin is showing market conditions and the main key in Cryptocurrency (this is my opinion), isn't Altcoin following the movement of Bitcoin and from here it is clear that the price of Bitcoin is the most important thing in the course of Cryptocurrency.

Apart from that, the price of Bitcoin is of course very important for investors, as well as in terms of long-term investment profits, and several countries use Bitcoin as a currency for transactions, and as a currency, of course, price is the most important thing to pay attention to. The price of Bitcoin is a top priority, and this includes everything in Cryptocurrency.

The price of bitcoin is of course very important for every investor, because the price of bitcoin can affect all other altcoins on the market today, even though we have different goals, the value of bitcoin is at the highest price, of course, something we always hope for, bitcoin is a future investment. in the future so many people hope that the characteristics are at the highest point, then the price of bitcoin is very important especially in some countries it has made a legal instrument of payment so payment is the most important thing.

Most people now make profits by investing in Bitcoin. Therefore, the price of Bitcoin is more important. Everyone is more concerned about their assets. People are not yet used to paying with cryptocurrencies, and many places do not support cryptocurrency payments.

Time is the best way, time will not wait for you, will you wait for time? This is difficult for many people.

Bitcoin price is important to crypto investors, and price will be their priority. Earn higher profits by investing in bitcoins, buy bitcoins when they are cheap and sell them at a higher price. As the demand for Bitcoin increases, it becomes more valuable.

inflation is not a guessing game. you see it in everyday prices of items. anything that causes inflation of the us dollar is going to result in bitcoin having a higher us dollar price. that doesn't mean bitcoin all the sudden became more valuable though. what it means in this particular case is the us dollar became more worthless so in order to maintain its current value, bitcoin us dollar price has to go up.


I expect that trend to be broken in the 2024 halving for sure.

As a currency, the price must be the first thing people pay attention to, and people will have considerable profits, but most people who invest in Bitcoin should understand the characteristics and practicality of Bitcoin.

For those of us who invest of course, the price of bitcoin is very important to get profits when we are already in a long-term investment, and some countries and certain places have made bitcoin as a currency for making transactions, the most important thing is that the price of bitcoin can always be at a value that is indeed feasible in making transactions, if the value is low then those of us who have many assets are of course always worried about spending something with bitcoin.

looking for reasons of speculative market is not what i do. i look at the base value stuff that supports things that stop a market plunging into darkness
and looking at the economics of stuff that create the top premium resistance that forms the tipping point of an ATH

all the random reasoning of sentiment and speculation in between of the speculative market .. just becomes social dramas of guessing games

but lets delve into the theory of the ATH speculative reasoning of your stimulus theory
did you check the reasons for the 2011 ATH
did you check the reasons for the 2013 ATH
did you check the reasons for the 2017 ATH
those were not caused by stimulus cheques

yes you could see an uptick in volume on a couple months(ish) of a couple stimulus dates

but that volume is in no where comparison to the 2017-18 volumes

by this i mean lets say all 250m adult americans did put some stimulus cheques into bitcoin
they are only putting in a fraction of the $1.2k

250m * lets say $500 =$125b per round
3 rounds in a year =$375b a year volume

exchanges do far more volume over all, than what i calculated as a $375b per year 'stimulus volume'
where even that $375b per year stimulus volume was an exaggeration of all adult americans investing 42% of their cheques

here is the funny
the price in march2020 did peak to $8k. but it also dropped days later(mid march) to under $6k
and yet that march period(pre-stimulus) was the highest volume of trading occurring in 2020-2021
which you cant explain as a stimulus cheque caused high volume event..

the first stimulus of april-may 2020 had no price impact
(yes it had mid-high volume compared to lets say the 2021 volume)

then the december-jan(high volume) stimulus
and march 2021 stimulus was the first peak of a ATH (stimulus 2&3)
but the july 2021-november 2021 was the peak of a ATH with no stimulus period inside those dates

where by first stimulus round didnt see much uptick in volume or price
yes second and third round coincided with the first price ramp up.
but doesnt explain the second ramp up in price from july onwards

which seem too flimsy of a correlation to try to theorise causation
however here is a better theory, which has a test of time proof of over 12 years

so here it is:
with each major price discovery event follows a year later by a ATH
price discover events     year later
2010-first exchange   :  ATH 2011
2012-halving event   :  ATH 2013
2016-halving event   :  ATH 2017
2020-halving event   :  ATH 2021

The price is one of the indicator of bitcoin's success. What you're saying is totally right, bitcoin will be continued to be used even if it was at $1, but if something goes down from $70k to $1 then it also means that somehow it has failed. There will be people who will keep using bitcoin but forget mass adoption at that point.

Then of course are also people who took the risk to buy bitcoin I can totally understand if they want to get some profit, nothing wrong with that.

maybe not but my theory is that this is what explains bitcoin price from early 2020 up until the present time.

march 2020 bitcoin is around $7500.

First round of economic stimulus checks: April 2020

The CAREs Act included a provision for a round of stimulus payments – eligible tax-paying adults received a check of up to $1,200 while eligible dependents under 16 years of age received $500 each (a maximum of three dependents could be claimed for).


may 2020 bitcoin is selling around $8800. people are using some of their free money printed out of thin air to buy bitcoin. causing price to go up. bitcoin then started a steady rise in price as people began receiving and spending their free money to buy bitcoin over the next 6 to 7 months. not everyone got their free money immediately for some people it took longer maybe a month or two or three. so that by november of 2020 btc price was in the $17,000 range nearing an all time high. but the reason for this ATH was different from the one that happened in dec 2017.

Second round of direct payments: December 2020-January 2021

The second round of aid, a $900 billion package which was part of the Coronavirus Response and Relief Supplemental Appropriations Act of 2021 was signed off by Trump on 27 December 2020. It provided a one-off check of up to $600, but this time, households were also able to claim an additional $600 for child dependents aged 16 or under.



Third round of stimulus checks: March 2021

Barely a week after the second round of stimulus payments were completed, new president Joe Biden entered office and immediately unveiled his American Rescue Plan, which proposed a third of round of payments to Americans, including some of those who might have missed out on the first two rounds.

On Thursday 11 March, Biden signed his $1.9tn American Rescue Plan into law. The third payment provided eligible individual taxpayers for a check of up to $1,400,

by april of 2021, just 3 months after the 2nd/3rd round of payments was announced and started being sent out, bitcoin had skyrocketed to an ATH of around $65,000 thanks to all this free money being printed and handed out to people. some of them were clearly using that to buy bitcoin. bitcoin was not becoming more valuable through this process, it was just being purchased with us dollars that were becoming more and more worthless...


not only were these programs responsible for btc price rising significantly above the ATH of 2017 but other programs that printed money out of thin air were too such as PPP Loans that didn't have to be repaid and Pandemic Unemployment Assistance by the federal government of $600 per week on top of State benefits. Not everyone was using their free money to buy extra toilet paper some of them found out about Bittrex and Coinbase 

The gravy train couldn't go on forever. The federal government wisened up and put an end to all of these programs. bitcoin could not sustain those price levels once the free money gravy train dried up. demand for bitcoin shrunk, it went back down to where it belonged.

it doesnt require uncle sam printing trillions of dollars

bitcoins price is set by the current orders of a small amount of coin
EG if people only had a max of say $400 to buy.. then orders would be of 0.025 = 1btc:$16k

also if you look at the most efficient mining hardware and then add on the cheapest electric or the most expensive electric on the planet to effectively mine sustainably.
you come to a window of like
$10k-$75k in 2021
$15k-$95k in 2022

these become the planetary limits of value vs premium
where the markets of speculation then play within those limits

in short no on on planet would soberly want to buy bitcoin in 2021 for more then $75k becasue they would have other methods to acquire bitcoin cheaper(mining)
which is why the market fizzled out of wiling buyers at $70k last year

we are not in a value:premium zone where $100k is an acceptable premium nor $200k, nor $500k right now.. have patience it will get there of offer opportunities in the future

$250,000 or $500,000 or even $1,000,000 would need to be helped along by uncle sam printing more us dollars which are backed by nothing. but bitcoin itself is not magically going to somehow become worth 10, 20 or 50 times more than it is now as far as its value proposition. so if bitcoin ever did hit $1,000,000 that probably isn't good news for Americans who use us dollars to buy things.