As I wrote in my earlier post, this is wrong. And it's not a matter of opinion, there is actual data backing this up. And to me, the biggest value of Bitcoin and other cryptocurrencies is this(the "youtube title" is stupid, but the content of the video is what is important):
Fun to read. How about a possibility that bitcoin holders see fiat as the hot potato as it's being printed by the trillions? Satoshi owns about a million bitcoins and they have not moved since they were mined ($4.6 Billion worth).
Yes, but you'll need acceptance. Something that is lost on many people saying there are over 800 cryptos out there. There's only one bitcoin. (Oops, slowly takes out foot from the mouth as there's bitcoin cash, but that's another story...) Here's an inside joke but let's see if anyone gets it, the first time bitcoin mooned to over $1,000 (before crashing back below $200), a post on reddit said when we get to $5,000/btc, bitcoin will be easy to convert to fiat. Someone responded that when bitcoin hits $5,000 price, there won't be a need to.
Could well be. Look, I'm not that against Bitcoin... I'm just very skeptical. And in this thread I'm trying to get to some kind of valuation... but I only see people saying it doesn't need a value, or a use... or the use is the trading... of store of value. That all doesn't make sense to me, and even if it would... why is it valued the way it is?
Because no one would want to sell it anymore... Because everyone wants it... and it will go a lot higher... (sounds like that thing that goes 'plop' doesn't it).
If today on a yearly basis good and services are being bought for 100 bln USD, a 22 mln BTC turnover in real purchases... than IMO 4500 USD/BTC is warranted.. probably even cheap...
Simple supply and demand is the biggest reason, imo. There are 16M bitcoins in circulation. There's already 1M owned by Satoshi which many suspect that the private keys have been destroyed by Satoshi himself (true to his ideals) plus all the lost wallets, destroyed hard drives, Counterparty proof of burn (google it), etc. Let's say 20% of the bitcoins are lost forever so current circulation is less than 13M, that's the supply. The demand? Everyone wants 1 bitcoin, lol. Chinese, South Koreans, North Americans, Europeans, South Americans, Japanese, criminals, wallstreet boys, bankers (oops, criminals represented thrice) and you got all the early adopters holding a lot of the supplies not selling them due to their ideals, they want to hold on to them.... It's a surprise bitcoin is not over $10,000, yet.