Topic: Why the high price - page 2. (Read 2776 times)

Blame the web.   Let me tell you why.

There are at least two ways someone can learn about bitcoin.

1.  you are concerned about the global economy and monetary policy so you do some personal research about currency and modern alternatives.  Then eventually you find out the Wikipedia page about bitcoin.

2.  you find an article about it on your preferred website.  It's pure chance as this website usually don't speak about this kind of stuff in particular.

If you were in the first case, there is no reason why many people should have learnt about bitcoin in the same time as you.  Because you learnt about if from your initiative.  So if you start buying bitcoins it won't change the price much.

In the second case, it's very different.  An army of registered readers will suddenly learn about bitcoin more or less in the same time.  Even if only 10% of them think it is a good idea, it is still a lot of people.  And of course, they will all rush to buy a few bitcoins.  And here you have an effect in the price.  Had those people stretched their purchase on a slightly larger period of time, the price would probably not have been affected.   But no, they had to act all together, like a hurd.





It's not our fault if people behave like cattle.

Bitcoin has value because it's scarce and we say it has value.

Gold has value because it's scarce and we say it has value.

TF2 Hats have value because they're scarce and we say it has value.

These three are different than the following.

WoW Gold has little value because it's not scarce and we base its value on how annoying it is to get.

Dirt has little value because it's the opposite of scarce, but it can be a pain to haul in large quantities if you need to get some dirt in a place that doesn't have any (which wouldn't really price the dirt, but the effort it takes to move it)

The dollar has negative value because it's not only the opposite of scarce, but can be produced on a whim, and we have no say in its value, which is always negative.  We use this because it's common and the gov said so, and what the gov says is as good as God's word.

Some people believe Bitcoin's value directly represents the Dollar's actual value, which is less than dirt.  It's value increases based on how many people realize this.  But if you're implying Bitcoin shouldn't have value because it does nothing, you should bury your money in a hole and see what it does at the end of the day.

The following is a list I've comprised of things you can do with paper money that you can't do with Bitcoin.

1. Use it for campfire fuel
2. Sew it into an ineffective blanket
3. Wipe your ass
4. Snort crack
5. Blow your nose
6. Paper ball for office hoops
7. Create a public diversion when running from the popo
8. Fold to expose 9/11 was a hoax
9. Draw a mustache on great American historical figures

However, with the advent of paper Bitcoin money, this list is/will be moot.

Bitcoin's strength is in its intangibility.  This is it's intrinsic value. It cannot be confiscated and it cannot be stopped at a border. Xray scans and body searches cannot find it. You can store it in your head, and then spent it when needed. Only destruction of the internet can stop it.  It cannot be controlled by any nation or bank.

As long as it continues to meet the other 5 essential requirements of a currency, it can survive:
Durable
Consistent
Divisible
Convenient
Limited quantity

It could not exist before the internet, but in today's world where Big Brother is watching, it may be more valuable than gold.

http://en.wikipedia.org/wiki/Economic_bubble

If you think it has no value at "the end of the day" then 1 cent ought not surprise you any more than $27. Maybe it is the years of unbroken positive value that should perplex you?

Justified?

Because enough people have decided that it's worth that price, for a number of reasons. Considering things are only worth what people will pay for them (absent coercion) I'd say the market price is its own justification.

As to why it's being valued so highly now, my opinion, it's just increased demand brought about by more people finding out about bitcoins and realizing how useful they are and will be. I don't see that demand diminishing any time soon; while I don't think it's all that likely, a price of $100 by the end of the year wouldn't shock me.

And if it did I would still bank on it going even higher.

ironically this should mean that they don't place any value on their own thoughts

because thoughts aren't tangible

question i have to ask, what monetary system outside of direct barter HAS a substantial intrinsic value?
Gold can be used for making electronics... and plating stuff as a non-reactive coating... that is about it.
Silver is a bit more useful.
paper money.. uh.. can line your house with dollar bills if the banks ever crash again?

Bitcoin may not have any physical backing aside from power consumption but its right up there with the rest in 'intrinsic value' which is a medium of exchange which is accepted somewhere.

Why do people have such a hard time with "tangibility?!"  Some sort of cognitive bias?

you forgot the pic...

They're used to buy and sell drugs.

Other things too, but mostly drugs

Gold is so old school...Manganese is the new commodity. Get it now while you still can.

bitcoins ... how the hell do they work?

If one day everyone decided that gold was a total waste of time and had no value, the value of it would go to $0 and everyone who bought the gold would lose their money.

Thanks but actually I've been registered here since 2011, just didnt post much

 

Uhhh....yeah....welcome to Bitcoin and to the forums.

I'm afraid the rest is gonna hurt...

Hi guys

Just wanted to see why the price is justified with Bitcoin? Because its a very high price right now, $27.00

Bitcoin at the end of the day has no intrinsic value. Its not a tangible thing like gold. Its just some bits in a computer. If one day everyone decided that it was a total waste of time and had no value, the value of it would go to $0 and everyone who bought the coins would loose their money.