Bitcoin

[MountainTracker]

A lot of the price predictions seems crazy to me also, but that’s what they said when btc was $10 and people were claiming $100k . To hit the numbers we hear there will need to be a lot of printing and the perpetual bib to pump it. I believe we will see it go much higher bc the printing won’t stop, can’t stop.


Sent from my iPhone using Tapatalk

 

[fmyth]

Some of the predictions on here of Bitcoin’s price seem a bit farfetched… to say the least. How do they come up with these predictions?

At $1 million a coin you’re talking about a market cap for Bitcoin of over $20 trillion. That’s half the market cap of the entire S&P 500. At $21 million a coin we’re talking $400 trillion. I think that’s over 3 times the amount of money that exists on the planet.

Are we counting on discovering an alien race and then we get them to start investing in Bitcoin for these predictions to come true?

I've heard the same argument since 2020 when BTC was $4,900 per coin. Now 5 years later BTC is $110,000. That's a 22.5X in 5 years.

The market cap of gold is 22T. The market cap of BTC is 2.1T. I don't think it's a stretch to believe that BTC will reach the same market cap as gold which would be 1M per BTC.

 

[Poser]

10x your money in the last 5 years.

 

[Fowl Play]

I've heard the same argument since 2020 when BTC was $4,900 per coin. Now 5 years later BTC is $110,000. That's a 22.5X in 5 years.

The market cap of gold is 22T. The market cap of BTC is 2.1T. I don't think it's a stretch to believe that BTC will reach the same market cap as gold which would be 1M per BTC.

I personally never see Bitcoin exceeding gold’s market cap. Bitcoin is a store of value like Gold, but Gold has intrinsic value. Bitcoin could disappear if something novel comes about in quantum computing or another technology on the fringe of science. Time will tell. I do gamble in Bitcoin (and that’s what it is), but I do not put significant amounts of my net worth in it. Those saying it is the currency of the future, I think need to think through logistics of that. Is bread on the shelf going to cost 0.000002 Bitcoins? It’s too valuable, unstable, and origins are unknown. Another crypto has a better shot at that in the future. Likely backed by a nation state or treaty org…

 

[Poser]

I personally never see Bitcoin beating gold. Bitcoin is a store of value like Gold, but Gold has intrinsic value. Bitcoin could disappear if something novel comes about in quantum computing or another technology on the fringe of science. Time will tell. I do gamble in Bitcoin (and that’s what it is), but I do not put significant amounts of my net worth in it. Those saying it is the currency of the future, I think need to think through logistics of that. Is bread on the shelf going to cost 0.000002 Bitcoins? It’s too valuable, unstable, and origins are unknown. Another crypto has a better shot at that in the future. Likely backed by a nation state or treaty org…

For me, I didn't put a huge % of my net worth into crypto, but its since ngrown to over 30% of my portfolios. Even in my IRAs, I bought ETFs at $33 that are now $97. I ain't selling them anytime soon just to reduce my exposure.

I don't foresee Bitcoin being used for transactional purposes. In that realm, Ethereum and XRP (particularly for banking purposes) have much more potential application.

 

[Dan Carey]

I started in Crypto in early 21, jumped in hard and immediately got hurt when I didn't understand what the market was doing. Bitcoin went way up and I was hooked, only to drop suddenly and I got scared and sold the full coin I had, as it was then less than what I had paid for it and looked like it was crashing. Then I turned around and later bought it back for more than I had sold it for. At this point I just watch the roller-coaster ride.
Bitcoin is worth over twice what I paid for it currently and my alt's are worth about 80% of what I paid for them. If I could get out of the alt coins I would put that money into Bitcoin.
I hope this is some insight into what happened to me and how I felt about it. I've watched a lot of YouTube in the last 4 years and decided they are seldom right about anything, historically speaking of course .

 

[Mighty Mouse]

Those saying it is the currency of the future, I think need to think through logistics of that. Is bread on the shelf going to cost 0.000002 Bitcoins?

The base unit of Bitcoin is a satoshi. There are 100 million satoshis (“sats”) per 1 bitcoin. So the logistics of buying a $2 loaf of bread would be to send (approximately) 2,000 sats (0.00002 bitcoin) to the seller.

If bitcoin were to become so valuable that even a single sat became impractical for making small transactions, the number of sats per bitcoin could be increased with a simple programmatic change to the Bitcoin protocol. Bitcoin’s divisibility is infinite.

 

[timekiller13]

The value placed to BTC is based off the USD.

If the USD suddenly only has 1/100th of its purchasing power, then wouldn’t the value of BTC also be 1/100th of its current value?

What am I missing?

 

[Poser]

The value placed to BTC is based off the USD.

If the USD suddenly only has 1/100th of its purchasing power, then wouldn’t the value of BTC also be 1/100th of its current value?

What am I missing?

The dollar is just a way to measure bitcoin's value, but Bitcoin is not tied or based on the US dollar.

 

[blacktail434]

The value placed to BTC is based off the USD.

If the USD suddenly only has 1/100th of its purchasing power, then wouldn’t the value of BTC also be 1/100th of its current value?

What am I missing?

The dollar is just a way to measure bitcoin's value, but Bitcoin is not not tied or to on based on the US dollar.

So in theory, the astronomical long term valuations could be accurate as the dollar continues to devalue offsetting the reduced puchasing power of 1/100th. Because they aren't actually tied together... It's just a means of measurement?

 

[Poser]

So in theory, the astronomical long term valuations could be accurate as the dollar continues to devalue offsetting the reduced puchasing power of 1/100th. Because they aren't actually tied together... It's just a means of measurement?

Bitcoin is considered by many to be a hedge against inflation for a reason, so, the answer to your question is "yes"

 

[timekiller13]

The dollar is just a way to measure bitcoin's value, but Bitcoin is not tied or based on the US dollar.

So who/what decides the value of an item pertaining to bitcoin?

Is it a just random? Or is it going to based off what the old USD was worth and then just recalculated based on that?

This is what I can’t wrap my head around. What value is there in bitcoin other than someone has said it’s worth X amount.

 

[Poser]

So who/what decides the value of an item pertaining to bitcoin?

Is it a just random? Or is it going to based off what the old USD was worth and then just recalculated based on that?

This is what I can’t wrap my head around. What value is there in bitcoin other than someone has said it’s worth X amount.

Bitcoin has a certain value.
Gold has a certain value.
The British Pound has a certain value.
A Peso has a certain value.
USD has a certain value.

In order to calculate what gold is worth in Pesos, you have to do an exchange.
When you see the value of Bitcoin in USD, that exchange rate has been converted for you.

 

[blacktail434]

Bitcoin is considered by many to be a hedge against inflation for a reason, so, the answer to your question is "yes"

Thank you. This does make sense. I’ll admit, I do have a small amount I’m DCAing into BTC because it seems to be the future, but aside from that I still don’t fully understand what gives it intrinsic value.

 

[MountainTracker]

Supply, demand, energy


Sent from my iPhone using Tapatalk

 

[timekiller13]

Bitcoin has a certain value.
Gold has a certain value.
The British Pound has a certain value.
A Peso has a certain value.
USD has a certain value.

In order to calculate what gold is worth in Pesos, you have to do an exchange.
When you see the value of Bitcoin in USD, that exchange rate has been converted for you.

I understand how to calculate exchange rate.

But you are telling me that bitcoin has value and that value is based off of whatever currency you want to match it up against.

But if those currencies have no value, then bitcoin has no value.

Gold has value because it can be used for many different things from jewelry to manufacturing. So, if there are no currencies in the world, gold would still be valuable based on the need to use it for whatever the user wanted it for.

Bitcoin provides nothing. It’s not an asset. It really doesn’t even exist. It’s just a computer code.

 

[Historybuff]

I understand how to calculate exchange rate.

But you are telling me that bitcoin has value and that value is based off of whatever currency you want to match it up against.

But if those currencies have no value, then bitcoin has no value.

Gold has value because it can be used for many different things from jewelry to manufacturing. So, if there are no currencies in the world, gold would still be valuable based on the need to use it for whatever the user wanted it for.

Bitcoin provides nothing. It’s not an asset. It really doesn’t even exist. It’s just a computer code.

HFSP

 

[yeky83]

The base unit of Bitcoin is a satoshi. There are 100 million satoshis (“sats”) per 1 bitcoin. So the logistics of buying a $2 loaf of bread would be to send (approximately) 2,000 sats (0.00002 bitcoin) to the seller.

If bitcoin were to become so valuable that even a single sat became impractical for making small transactions, the number of sats per bitcoin could be increased with a simple programmatic change to the Bitcoin protocol. Bitcoin’s divisibility is infinite.

Ain’t nobody buying bread with bitcoin or any such small transactions, come on now.

So who/what decides the value of an item pertaining to bitcoin?

Is it a just random? Or is it going to based off what the old USD was worth and then just recalculated based on that?

This is what I can’t wrap my head around. What value is there in bitcoin other than someone has said it’s worth X amount.

Who decides the value of the USD? Figure this out and you have your answer.

I understand how to calculate exchange rate.

But you are telling me that bitcoin has value and that value is based off of whatever currency you want to match it up against.

But if those currencies have no value, then bitcoin has no value.

Gold has value because it can be used for many different things from jewelry to manufacturing. So, if there are no currencies in the world, gold would still be valuable based on the need to use it for whatever the user wanted it for.

Bitcoin provides nothing. It’s not an asset. It really doesn’t even exist. It’s just a computer code.

Bitcoin is an asset. Commodity is the word you're looking for, which bitcoin is not.

The maximum total supply of bitcoin is 21 million, while there is no maximum total supply of fiat money. And they keep printing, so all things being equal the exchange rate will be favorable for bitcoin.

 

[MountainTracker]

Ain’t nobody buying bread with bitcoin or any such small transactions, come on now.

Who decides the value of the USD? Figure this out and you have your answer.

Bitcoin is an asset. Commodity is the word you're looking for, which bitcoin is not.

The maximum total supply of bitcoin is 21 million, while there is no maximum total supply of fiat money. And they keep printing, so all things being equal the exchange rate will be favorable for bitcoin.

Maybe not bread but a plane ticket…

Emirates Airline To Accept Bitcoin Payments and Launch NFT Collection

The airline industry is beginning to embrace blockchain technologies in an effort to interact more with customers and expand its reach.

blockworks.co

Sent from my iPhone using Tapatalk

 

[Mighty Mouse]

Ain’t nobody buying bread with bitcoin or any such small transactions, come on now.

Not yet. As Bitcoin gains adoption, methods of conducting small transactions will improve (e.g., layer 2 systems that facilitate small off-chain payments and later batch many small transactions into large transfers conducted on the blockchain).

My point was not to claim that bitcoin is currently being widely used for small daily transactions but to counter the objection that bitcoin’s high unit value presents a logistical barrier to it becoming “the currency of the future.”