Random non-technical people I know are just getting into the cryptomarket this week and last as they have heard it is a good must win investment. But is that really driving up the prices?
The thing is, if individual and institutional investors decide, in the aggregate, that Bitcoin is a new kind of asset in which they want to have a tiny amount of exposure, the price could still go up much higher.
Investors worldwide currently own around $300 trillion in financial assets.[a] If as a group they decide to hold, say, 2% of their wealth in Bitcoin, say, to diversify away from all countries on earth, then Bitcoin's marketcap would go up 30x, from around $200 billion to $6 trillion. The number of bitcoins is fixed, so the price would go by a similar multiple.
Note that before Bitcoin it was impossible to diversify away from all countries on earth.
Which is a shame, because the blockchain is amazing technology.
No one is buying bitcoins to put them on a shelf because they're pretty. As long as Bitcoin goes up or serves in some sense as a financial reserve it's probably not going to "go out of fashion."
Of course Bitcoin may still be a bubble, but it would be a bubble for different reasons.
I don't understand this sentiment. I bought a new gaming PC last week and not only did I use Bitcoin to do so, but I specifically chose Newegg because they supported Bitcoin payments.
Apart from wasting space (e.g no cleanup even after years), energy, and calculating the nothing, sure, it's amazing.
(I might have a different opinion, let the proof of work be calculating SETI, math questions or science problems)
What I seriously want this guys to write about: Where is the volume coming from? Bitcoin has crossed 20k on the Zimbawean exchange Golix. So what is happening now?
So many just bathing there with no swimsuit whatsoever.
Whereas this article is the opposite, it has no content. It's just trivia. There's nothing special about crossing $15k, particularly since most trade isn't even denominated in USD.
I think it may be technically possible for Bitcoin to drop 90% in a single day and with most people unable to sell at any price if they want it settled on the block chain.
It could be Armageddon with nearly everyone holding bitcoint getting wiped out.
That MtGox guy should sell his billion of bitcoin soon, like right now. It is a hot potato right now and I wouldn't want to be left holding the bag with things go south.
I was a student in the first dotcom bubble and it was similar to this. And people predicted it would drop and then it did drop and basically wiped out the whole tech sector for nearly 3 years.
This is a very, very good thing. There are no breaks going up, therefore there should be no breaks going down. What's even better is that Bitcoin is 24/7 so there's not even the option of "waiting for the train to stop" when you're trying to get off.
The trading curbs are incredibly important because if there is false information and everyone rushes to the exit, people can be wiped out in the panic and then find out the next hour that nothing was true.
With bitcoin there will likely be settlement issues for days after a crash. It will be messy as hell.
All it takes is for some of the major holders who accumulated before 2016 or so to unload and the price will fall a lot.
Transactions now taking several hours might then take several days.
Already getting Error 520 on Kraken