Topic: Why would a rational person pay 6,000 $ for Bitcoin if he can have its ... (Read 372 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.

Guess what? A huge percentage of your beloved fiat money in banks are actually digital. Not everything is in paper money. And also, guess what? Some countries are already cashless, meaning that all(95%+) of their day to day transactions are actually digital. Does the intangible characteristic of their funds make it worthless? I don't think so.

And also, guess what!? Your beloved fiat money isn't backed by anything.

Let's put it this way. Nine years ago you had to pay 1,000 BTC in order to get dollar. Now you have to pay 0.00016 BTC.  In the same time period, both bitcoin and dollar had exactly the same utility - they functioned as a means of exchange. Now, why would a rational person spend six million times more dollars on something that has exactly the same utility as it had before?

People don't do this because they are not incentivized to purchase anything. Who spends what they think and hope will be worth more tomorrow than today? The other thing is... Who wants to worry about whether your purchasing power will suddenly fall by 50 percent in a month. This is the issue of Cryptocurrencies and until it is fixed there is not much worth to it. Unlike say Gold that has demand for any number of things and is relatively stable in relation to say bread... Bitcoin's main purpose, despite what those SOV fools say, is to act as a medium of exchange. Since it does not do this very well due to volatility and other technical reasons it is still overpriced in my mind. I think the market will bleed for many more months to come and it could get really ugly. Sure the fanatics will stay around but everyone else will flee. The fanatics will say this is a good thing and it is trimming the fat but this is a resounding failure in thinking. No mass adoption occurs without the masses.  

I get what you mean, but this is also the reason why bitcoin is still not very common in most of the area because of it's reputation usually people will related with illegal stuff. However, for those people who have a better understands on bitcoin or other altcoin such as ethereum, is willing to pay $6000 to invest in such coins. They see the potential of the bitcoin based on it's top tier protocol, advance and secure measures.

Maybe I'm one of those irrational because I pay for $6000 for 1BTC. though I only bought partial of a coin, still the price of 1 is $6k. Well maybe because we hope the price of BTC is going to rise even more soon. Irrational people probably are probably just wanting to profit but I think its not just me who does that there are even more of them buying hundreds of it. BTC is more than just an investment to them.

The number of people doing this are few are far between. 99% of transactions are speculatory in nature and this is a huge problem. Really I point to the block reward algorithm as being the main problem. It exacerbates demand shifts by also continually limiting supply more and more as time goes on. This leads to volatility and the boom and bust cycles we experience every few years. The real issues is that with every boom and bust cycle you alienate more and more people because most got in at the height of euphoria. Most of these people will not come back or trust Bitcoin in the future. That means that with each bubble there is less and less new money available.

Oh, you're that guy from potato thread repeating the same 'arguments' all over again.

I'll happily pay $0.001 for BTC1 but nobody is selling that low... What now?

If the market value of potato exceeded the value of my car - then yes, I'll be happy to make such trade.

Think of BTC as of expensive wine (ie $50,000/bottle), there's no way such wine is x2,000 tastier or stronger than $25/bottle wine (many would prefer taste of the cheaper one). The price is combination of scarcity/utility/future expectation/hype etc and is dictated only by supply and demand.

The owner of bitconnect.com got arrested in India for $13 billion ponzi scheme using Bitcoins.

$50 billion could be illegal money from criminals and frauds that has been put into Bitcoins.

Why would you not pay $6,000 or $1,000,000 or any other price? It's not like you are going to lose those money for those functions, you can use Bitcoin to buy goods/services for the equivalent of its fiat value.
Why should you use Bitcoin and not fiat/altcoins? Because with Bitcoin no one will ever freeze your account, and with certain measures you can even achieve a decent level of privacy. As for altcoins, Bitcoin is simply way more secure and stable than them.

Would you pay 10,000 dollars for a potato or give up your car just to get a potato? Of course not. This is because the utility of a potato or the want-satisfying power of a potato is much smaller than that of a car or of 10,000 dollars worth of goods or services.
In comparison to a potato, Bitcoin is not even a physical tangible good that can be used for satisfying human wants or needs, and its only utility is that it functions as payment protocol and money. So why would you pay enormous amounts of money just to have these functions if they are equally available whether the price of Bitcoin is 0.001 $ or 6, 000 $, and more importantly if these functions can be realized with various alternative cryptos or fiat money?

Um... What? 

At this point in time, anyone buying bitcoin isn't there for the payment protocol but rather the potential profits they could be making if ever they bought it at the right time. Bitcoin's protocol for payments is still top-notch even with the advent of newer, better cryptocurrencies, and perhaps people are not that naive to buy a whole bitcoin if they don't know what to do with it. I know some people who are buying a whole bitcoin for online payments, and makes sure that it fulfills that duty they intended it to be.

Why would a rational person pay BTC0.00016 for 1 USD if he can payment protocol and money function at its starting price of 1 satoshi?

Seriously, you need to do a little better in explaining what exactly do you mean. Rational person would buy bitcoin either: as a speculative investment, as a hedge to current monetary system, or for its utility (ie. to easily transfer money).

... payment protocol and money function at its starting price of 0.001 $?