Topic: Why would a rational person pay 6,000 $ for Bitcoin if he can have its ... (Read 371 times)

There is no doubt that the future of bitcoin is shining and it will be only usable currency throughout the world although the price in these days is not good and is decreasing every day, but a rational person looks forward for long run and he knows that in the future he would make huge profits from his today’s investment. That is the reason for his investment.

Bitcoin is currently available of value below 7k dollar and the actual value has appeared after improvement today that is 6505 US dollar. So this is a golden opportunity for us to get on such low price as we are well aware of its average price as well as its potential to give us maximum profit so we should avail this opportunity. Better you start buying right now so that you may not need to use more money to get it later.

A rational person is not investing in bitcoin in these days because he knows that the price of bitcoin is not increasing besides it is on the way down. a rational person will never lose his money and waste his time. Most people are putting their money in Altcoin. I still believe that bitcoin is number one currency in the world and possesses highest market cap than any other crypto.

Payment protocol and monetary function aren't why people are into bitcoin but because of its value. We haven't gotten to that point yet. Though i'm pretty sure most if us are aware that you don't need to spend for a whole btc right?

because bitcoin does have a high price, and I think in the future it will turn around and increase its price, and it becomes secure and potential investment place.

The dollar price of bitcoin doesn't matter in its true use case because it aims to replace such currencies. The only price that then matters is the price of bitcoin relative to what each individual is trying to buy, be that a car, a house or a loaf of bread.

because bitcoin does have a high price, and I believe that in the future, it will turn around and grow up its price, and it becomes secure and probable investment place. its future are more potential.

bitcoin does have a high price thats why its do this and I believe that in the future, it will throw up its price, and it becomes probable and reliable investment place. its future are more bright.

why do you buy rice if you can plant it?
buying bitcoin is not like buying a car or other item, you can buy bitcoin with the money you have now.

What? Are you seriously with that question? Of course everyone buy Bitcoin for a speculative investment, as a long-term investition,as a hedge to current monetary system, for easily and cheap transfer money and so on.

Exactly! Whatever we call money and whatsoever value it ends up having, is hinged squarely on people's perception and acceptance, besides that, fiat money inclusive are piece of garbage. Credit and debit cards are handy examples of embrace of virtual money and the interest for digital money remains on the increase because of it's relatively low cost of production, security and storage.

There is a financial incentive to speculate but there is no incentive to actually use it. That was my point. Each bubble will have more investors until enough people get burned and then this will not be the case.

People are getting caught up in prices here... Bitcoin's price has a lot of to do with the block reward algorithm that causes distortions and promotes speculation, hoarding, and volatility. This is the largest issue with crytocurrencies and normies will never trust crypto until it is relatively stable. You would need a dynamic block reward with a baseline that it moves from to prevent bad feedback loops. This could prevent about 70% of the volatility that we see today. But everyone is off their rocker and somehow thinks going from perpetual inflation to a perfectly inelastic supply is a good thing. The middle road is usually the best and least traveled. But yes right now it makes little sense to buy Bitcoin and then to use it as a medium of exchange. It is too volatile and has many technical issues holding it back from realizing the purpose of a medium of exchange. Gold and Silver, even though old, are still the best ways to maintain a STABLE storage of value and still act as a medium of exchange. I say this being a millennial that has never owned any gold or silver up until this point so there is no real bias in my statement.

This is a risk which everyone were aware of when they first stepped into this extremely volatile cryptocurrency market. There is nothing surprising about any of this if you think about it.

Investors choose to invest into this market because of the financial incentive involved and there will always be financial incentive(It is literally a billion dollar market which could become a trillion dollar market in the future).

This is why I would not worry too much about investors leaving everytime a bubble burst since there will always be a surplus of new investors entering the market.

Because most people believe in the future growth of bitcoin, so they are willing to pay $ 6,000 to sell at a higher price in the future

indeed there are many people who are willing to spend a lot of money to buy bitcoin, because I think it can provide many benefits in the future.

many people thought what you thought. they made their forks and are playing with them now.
but what you dont realise is this

1. the price is made up by the acquisition costs (costs of getting it) when a mining pools needs to buy equipment and pay electric of $5800 to mine an amount that equates to 1btc. he wont sell for less.
the person he sells to might squeeze the pools to sell for $5801.
the person he sells to might squeeze the pools to sell for $5802.
and so on (usually people sell for more that 0.x% profit)

what you find is over time the price goes up because people want it. they see it has purpose. there are merchants. there are goods services that can be bought with it. and ofcourse because of costs they know they can get a certain amount back when they sell it if they dont spend it on goods or services.

those silly altcoin forks that people made and are playing with because they have the mindset of why use bitcoin when they can take the protocol and start their own.. do not have the awareness and acceptance from merchants and those selling goods and services. and do not have a mass of mining hardware to protect their silly altcoins.

if you did not realise. if it costs $5800 today to mine 1btc.
thats made up of a math of it needing X miners a day to make 1800btc

now for an attacker to try to edit the blockchain from the previous block requires X miners to get the data from 2 blocks ago. edit the previous block but include the header of 2blocks ago. create the block solution of the previous block and then mine the another block to even out and then another block to over take everyone elses version.

so knowing it will cost alot to do this it becomes not worth editing the previous block to reverse a transaction you mad to buy a coffee. because it costs 1800x5800 to edit just 1 previous block

now to get the speed to edit a block a few blocks ago. you need to harness even more mining hash speed. so thats even more hashpower then the network if you want to edit mine and overtake to lock in your edit. so it costs you more.

the further back you want to edit the more its going to cost you.
this is why people are happy with bitcoin because its costs more to edit out a transaction than a transaction is worth. and the more difficult it gets to mine a coin the more protected the transactions are

so if you see a coin for pennies. you will realise it only costs pennies to protect it which means someone can copy and overtake cheaply

I'm almost sure you're trolling at this point, but I'll bite.

Back in December 1btc was worth almost $20,000, now is only $6,300, What rational person wouldn't buy it for 3 times less while utility is exactly the same?

1 USD and 1 Venezuelan Bolivar have exactly same utility - they function as means of exchange. 1 USD = 248,520 VES. How's that possible? Has the world gone insane?

I'll ask you what I asked you before: What's your point? Can you clarify it? Are you now arguing that any movements in price are illogical if utility is unchanged?

You are ignoring that bitcoin not only is a medium of exchange bitcoin is also a network, this is why Facebook is very valuable because it has billions of users, anyone can create a network similar to Facebook but the value of Facebook comes from its users, and the same applies to bitcoin now you need to pay more for each bitcoin because now there are more users willing to accept it, there is more demand and if there is more demand then that something because more valuable, that is just how the economy works.

Are you talking about altcoins that offer the same functionality but have a much lower coin price? Well those tokens also have absolutely no volume, accepted merchants or developers improving the network over time. You can't base a coins success based entirely on its functions, it also depends on usage and acceptance rates.