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Bitcoin is an asset. So are baseball cards, Beanie Babies, Tulip Bulbs, gold, and diamonds. An asset is worth what people are willing to pay for it. Price is a function of supply and demand. There are only 27 million Bitcoins that can ever be mined. As long as buyers outweigh sellers, the price will continue to rise. If Bitcoin suddenly falls out of favor, and more people sell than buy, the price could crash 99% very quickly. But the same can be said about the other assets mentioned.
What is the real intrinsic value of gold? Probably not much. No more than any other rock or pebble found in the ground. But people have assigned great value to a pebble because they see what they want in it.
Bitcoin has no intrinsic value. It builds itself on 100% pure speculations out of nothing. This is different from stocks traded, which have companies with real economic activities backing them up. Fiat money government paper currencies are different too, since any government can tax its citizens.
Not trying to be a Bitcoin fanboy here but let's be honest for the past year or two many companies as opposed to growing and selling more are just laying people off to look profitable, that's not really a solid foundation either.
Here's one thing I will say about Bitcoin, it's not completely lacking value. It's both a currency and a payment platform all in one, I don't think we've had that in the past. Furthermore it's outside of the reach of governments, companies, there's no inflation there can only be so many Bitcoins, it's a store of value that nobody can take from you even by force, in that sense it has value.
Here's one thing I will say which kind of supports your argument. The utility gives it value and right now Bitcoin transactions are both expensive and slow, the other day it tried charging me $15 to send $50 even through a Segwit wallet, that's just ridiculous. The core team who I support doesn't seem to be that concerned with solving this issue in the near future and when I hear people say it will get cheaper and faster it's always some vague line about the lightening network or as technology gets better, that doesn't sovle the problems we have today
I think it will definitely go up to 25K before it drops to 10K. People keep saying it's a bubble but all it's been doing is going up. I'm going to ride that bubble until it pops.
People also keep comparing it to tulips, beanie babies, etc. as BTC is only worth as much as people value... well, here's an interesting comparison. I was looking for a property back in 2012 when houses were cheap.. and I asked my realtor what is considered a good deal, and she said, the value of the house is whatever people value it to be. I know, with a house, you can at least live in it, but keep in mind, that you could get a house back in the 80s for around $50K but the same house today would be worth $200K+.
I think it will definitely go up to 25K before it drops to 10K. People keep saying it's a bubble but all it's been doing is going up. I'm going to ride that bubble until it pops.
People also keep comparing it to tulips, beanie babies, etc. as BTC is only worth as much as people value... well, here's an interesting comparison. I was looking for a property back in 2012 when houses were cheap.. and I asked my realtor what is considered a good deal, and she said, the value of the house is whatever people value it to be. I know, with a house, you can at least live in it, but keep in mind, that you could get a house back in the 80s for around $50K but the same house today would be worth $200K+.
What's your thoughts on the slow transaction times and high fees at this point in time?
To me Bitcoin has always been more a store of value and something to use for larger or cross border transactions as opposed to buying cofee, however even I'm getting somewhat troubled by $15 fees on a $50 send. Of course this has to happen at a time of mass adoption as well. WHen I first got in I'm like this is pretty cool super cheap to send money and it's quick. Today's new users are like man $15 to send $50 and it took 6 hours. I'ts less appealing though people are still jumping in like crazy.
I'm not a Bitcoin Cash fan, but at the same time Bitcoin has to do something to unclog the network, lower fees and speed up trnasactions. I'm having to use Litecoin for transfers now. Whenever I hear people say it will get better the answer is something vague like "lightening network" and/or when technology gets better, we need something faster.
Don't get me wrong I'm a huge Bitcoin supporter and alot of people on here are calling me a fanboy so I'm in your camp in general but I also want to recognize risks and issues with Bitcoin which is why I bring this up
What's your thoughts on the slow transaction times and high fees at this point in time?
To me Bitcoin has always been more a store of value and something to use for larger or cross border transactions as opposed to buying cofee, however even I'm getting somewhat troubled by $15 fees on a $50 send. Of course this has to happen at a time of mass adoption as well. WHen I first got in I'm like this is pretty cool super cheap to send money and it's quick. Today's new users are like man $15 to send $50 and it took 6 hours. I'ts less appealing though people are still jumping in like crazy.
I'm not a Bitcoin Cash fan, but at the same time Bitcoin has to do something to unclog the network, lower fees and speed up trnasactions. I'm having to use Litecoin for transfers now. Whenever I hear people say it will get better the answer is something vague like "lightening network" and/or when technology gets better, we need something faster.
Don't get me wrong I'm a huge Bitcoin supporter and alot of people on here are calling me a fanboy so I'm in your camp in general but I also want to recognize risks and issues with Bitcoin which is why I bring this up
Since the value has been fluctuating so much, it doesn't make sense to me to move it around too much. I've been letting it sit since the day I bought it. I think unless I had to make a large transaction, it wouldn't make sense to send it or sell it.
lol - hope you're right. Placed a market order for GBTC for Monday's open - and probably could have bought at $2,900. Got cold feet, cancelled. When I got up at noon on Monday, price was $3,500 or something like that. So, typical late-to-the-game retail investor, I bought two shares at $3,445. Today, it could have been bought for $2,700. Cie la vie. Guy on Squawk today said Bitcoin could easily drop 50% back to last week's price - but will be well over $18k in a year. - like "a multiple of 2." Just gonna tuck it away and see what happens. Much too old to be trading. If I get lucky, maybe I can buy a new car - eventually.
Last edited by Ariadne22; 12-19-2017 at 09:18 PM..
Did anyone notice the “dip” last night in Bitcoin? It plunged from $18,000’s down to $14,200 in an hour and then gradually rebounded ever since. I literally had my finger on the buy button as it hit low $14,000’s but couldn’t pull the trigger. Now it is back in $17,000’s.
Bitcoin can not be a big thing. US government and the IRS can not possibly tolerate another currency that rivals USD on its land.
I hope it will force them to move to a fair tax though I'm not holding my breath. The US Gov can't shutdown Bitcoin all they can do is shutdown or regulate exchanges which doesn't kill Bitcoin but tanks it surely.
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