Posted: Nov 22, 2019 7:51 pm
More erratic movement from Bitcoin again today.
I've noticed an increasing trend in studies along the lines of one reported earlier this year https://www.cnbc.com/2019/03/22/majorit ... finds.html purporting the large price increases have been caused by market manipulations and noting that with something like a quarter of all bitcoins owned by just an estimated ten people the market is particularly susceptible to this sort of thing.
E.g.
https://www.forbes.com/sites/billybambr ... 050e405c2b
https://www.wsj.com/articles/large-bitc ... 1572863400
https://www.bloomberg.com/news/articles ... study-says
I've been keeping an eye on the price out of a sort of morbid curiosity, and I really don't see anything that makes me change my view on Bitcoin's future all that much.
A couple of articles I read last month (but have now lost) and found interesting detailed a potential valuation as a function of the user base of bitcoin (i.e. people actually exchanging it for goods and services), one estimate suggested that if 15% of all economic transactions in the entire world came to be made in Bitcoin the price would reach a dizzying $500,000.
A more plausible estimate based on the technological and regulatory limitations (mentioned in more detail at some point by Newolder, I believe) suggested a long term price in the neighbourhood of $2,000, which I have to admit is probably higher than I would have thought, but seemed reasonably believable.
I've noticed an increasing trend in studies along the lines of one reported earlier this year https://www.cnbc.com/2019/03/22/majorit ... finds.html purporting the large price increases have been caused by market manipulations and noting that with something like a quarter of all bitcoins owned by just an estimated ten people the market is particularly susceptible to this sort of thing.
E.g.
https://www.forbes.com/sites/billybambr ... 050e405c2b
https://www.wsj.com/articles/large-bitc ... 1572863400
https://www.bloomberg.com/news/articles ... study-says
I've been keeping an eye on the price out of a sort of morbid curiosity, and I really don't see anything that makes me change my view on Bitcoin's future all that much.
A couple of articles I read last month (but have now lost) and found interesting detailed a potential valuation as a function of the user base of bitcoin (i.e. people actually exchanging it for goods and services), one estimate suggested that if 15% of all economic transactions in the entire world came to be made in Bitcoin the price would reach a dizzying $500,000.
A more plausible estimate based on the technological and regulatory limitations (mentioned in more detail at some point by Newolder, I believe) suggested a long term price in the neighbourhood of $2,000, which I have to admit is probably higher than I would have thought, but seemed reasonably believable.