Topic: Will Bitcoin reach $10,000 one day ? - page 2. (Read 6188 times)

yeah should have replied to the original thread.

you know that I was ironic, right?

more merchants make the currency more valuable. I would pay everything in Bitcoin, but I can't. (to be clear, I would have not all of my money in Bitcoin. To risky! I would have some stocks, some gold, but for spending I would use Bitcoin). Just because it is more convenient for me. A good that can be used as medium of exchange has some extra property that is valuable for users. THE example is gold. The industrial value is very small compared to its storage value.

the software will change...... it will be 4000satoshis for a cup of coffee...... in time perhaps 400satoshis..... and maybe 40 satoshis.

true. Because of that gold is worth nothing, because how much is one cup of coffee in kg of gold?

It's not that simple. Value in money is very flexible and is based on international relationships...

You're considering 1 dollar to be the price of a dollar... That's not the case outside of the US. The value of the dollar increases as the amount of trade increases. The more merchants that accept dollars the higher the probability that the amount of trade will increase. If half of the merchants in the world who currently accept the dollar were to stop accepting dollars it would result in fewer goods and services available for purchase using dollars and thus a weaker dollar. Imagine the supply of goods and services available for dollars decreasing and demanding higher dollar prices for what's left.

Think of it like this; imagine a world with only 3 types of currency. Each currency will have equal amounts in circulation and the value of goods and services will be denominated as $...

Currency 1 GDP = $10,000,000,000 and will be stored as the variable "A"
Currency 2 GDP = $15,000,000,000 and will be stored as the variable "B"  
Currency 3 GDP = $5,000,000,000 and will be stored as the variable "C"

The total monetary value for all goods and services traded in the world will equal $30,000,000,000 and will be stored as "X" as can be calculated with the formula "A + B + C = X"

You can more or less determine the value of any of the three currencies by solving the relationships between them. The value of currency "A" is 2/3rds of "B" and 2 times that of "C."

In this scenario you could infer that there are more goods and services transacting in currency B. Currency B is likely accepted by more merchants than A or C as can be seen by the larger volume of trade. It get's more complicated when you start inflating or deflating the money supplies and increasing the number of currencies but the principle still holds true.

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The price of Bitcoin is speculative not on the current value of Bitcoin; rather the survival of Bitcoin and crypto currencies in general. Here's why:

The market adoption that occurs as time goes on will increase the amount of trade in Bitcoin. As the amount of trade increases the value will increase naturally and progressively as more people use Bitcoin to store the value of their work.

Basically, the major motivator behind the Bitcoin price right now is the investors who favor the odds that it will survive long enough to account for a certain percentage of world trade. If you believe that Bitcoin will never do more than what is today's equivalent of 12 Billion per year in global trade then you should sell everything now as you would believe that the price per coin has peaked...

As it is now; the volume of Bitcoin trade is too low to justify it's current value. It's price is inflated because people think it will be used more in the future.

$10,000 per coin is an extremely low number and would allow for a peak market capitalization of around $120 Billion with 12 million coins in circulation...

Remember, currencies aren't valued on other currencies. They are valued on the amount of real world goods and services that are exchanged for them. People are only interested in exchanging goods and services for other goods and services. Currency is nothing more than a container to store the value of your work to be used at a future time for goods or services...

My simply and "in one" wise answer is: I think it's very very to early to talk about that all. I personaly never heard maybe 80% of all what you thought.

I focused jet on fundamentals who aren't formed yet. I think we must have that fundamentals formed before we can go forward and think about all that specific information you talked about. For exemple biggest news would be one of some country given an offical status to bitcoin. That means we will exactly know what bitcoin is, why we need that, what we will do with coins and just then we will have an opportunity to think of bitcoins future. Today it's just experiment, to day nobody knows what this beast is and how you hunt it.

Then how about the accellerating aggregate demand for bitcoin as a result of broadening adoption and increasing coin distribution? Or the number of hardware devices being specifically engineered in a capital intensive fashion to increase bitcoin mining efficiency specifically? Or what about the network hashrate & the first-mover advantage of increasing awareness of bitcoin in mass media causing too large of a barrier to entry for competing alt-coins that provide marginal to zero improvement over the blockchain protocol. Or more simply, the fact that most people can only learn about and properly understand one crypto at a time. This will naturally draw more people towards the dominant entity, which is bitcoin.

For the moment at least. Things may change if a new altcoin improves signifigantly over the bitcoin protocol, or achieves dramaticly more 'fame' than bitcoin already has. But once the price starts heading north of €10,000 you might perhaps get people looking more closely at which altcoins are here for the 'long-term' and which are flash-in-the pan pump & dump schemes.

not big reason to me,
seems like you thinking everybody is stupid around...  

Because there are too many rich people in the world with more fiat money than you can ever dream of who are itching to spend it on something before it becomes worthless, yet afraid to spend it at the same time for fear of it causing inflationary effects on the economy and destroying even more of debt-based assets they also own in large quantities.

Yes it is.
Miniscule in fact, in the grand scheme of things, in a monetary environment where the Federal Reserve System has just created >15 TRILLION usd in monetised debt over the last 5 years alone.

why not? 

3k is too low of a price for market elasticity mechanisms to kick in.
This will not happen on very large scales until MUCH higher prices.
But I do agree that altcoins can dampen price exploration and coin distribution.
However, the tide of innovation is strongly on our side for the present moment.

I don't believe the question can be intelligently answered, or at least addressed, until we get a handle on what, specifically, drives the price of a Bitcoin.  This is the component of it that drives me crazy.  Why do we think that more widespread acceptance will make the price go up, or this or that government taking a benign position on it, or whatever? 

Let me put it this way...a dollar has the same "price", the same buying power, the same "value", whether a hundred thousand merchants accept it or a hundred million merchants accept it.  The relative general acceptance of the dollar has nothing to do with its price or value.  It certainly is a stablizing force, but not a price mover.  I can't wrap my head around what, precisely, is driving the price of Bitcoin, up or down, other than the actions of a few wealthy Chinese speculators at this point.

Please, if I'm missing something damn simple, explain it to me.  I would love to comprehend a connection between some market fundamental and the Bitcoin price.

$10,000 dollars a low number? That's not a very low number and I wonder if you would throw that amount of money around and if you lost it would you be like "only a small amount of money" if Bitcoin ever reached that amount which I don't think it will I think it would be the highest Bitcoin would reach.

ftfy

$10,000 is such a low number it hardly makes sense not to think we'll get there... We could see $10,000 from the purchasing power of a single investor.

I guess time will tell.

Whatever you were smoking while writing this, you should continue smoking it.
You can stay high for ever, it is so easy.

No.

They won't do it unless they are offered something in return from it. You have to buy support from governments...