Will Bitcoin See a Pop in Price?

[TravG]

As most know Bovada has moved to Bitcoin payments starting next month and there are several operators that had trouble this month with payments and I actually had them send me Bitcoin rather than waiting for them to resolve their payment issues.

With that said, as Bovada and other operators move to paying with Bitcoin, do you think we will see a pop in the value of Bitcoin? Just like the stock market it is a supply/demand driven value currency and as more operators have to buy Bitcoin in order to send payments I would think the value would increase. Theoretically it would balance out as affiliates sell their Bitcoin to withdraw them, but I am sure some will leave a balance in their Bitcoin accounts (as I plan to) thus decreasing the supply.

If more operators move to paying with Bitcoin, it will be quite a bit of money infused into the Bitcoin market. I would think it would be enough that we see some movement in the price/value of the digital currency. Thoughts?

[TheGooner]

Some say yes - some say no.

It will certainly generate a lot more "churn" in bitcoin as operators buy and transfer and affiliate companies sell - which hopefully improve liquidity flow and make the crypto-coin a viable payment medium in more currencies than just the Chinese Yuan ...

[Syndicate]

I would think paranoia means affiliates won't sit on the currency. If you want to play the futures markets go wager on pork bellies!

[slotplayer]

Your much better playing the stock market, at least you can put in a stop loss order. Can you do that with BTC?

How reliable are these exchanges? Remember QT/UMW?

[universal4]

I can see the price being somewhat volatile for a little while due to increased interest, and the upcoming halving (for mining) is also being debated, like Gooner said some say and increase and some say a decrease.

I would speculate that the additional interest and potentially many new people trying them out with help the value for a while.

Rick
Universal4

[sweetbet]

If more operators move to paying with Bitcoin, it will be quite a bit of money infused into the Bitcoin market. I would think it would be enough that we see some movement in the price/value of the digital currency.

That's what I think will happen... initially anyway.

[rouletteguru]

With the instability of the global currency and possibility of collapse, why would you ever think bitcoin will increase in price? It is a currency based on nothing but perceived value. Like the printed paper. It has no real value.

Gold, silver etc has value because of perceived value too. But at least it is something that cannot be made from virtually nothing. So it will naturally hold its value more.

The most valuable thing will probably always be land. It cannot be just made. But there is always supply and demand, along with perceived value. At least its more tangible than computer characters.

[ocreditor]

Seems like the first country is going to accept the alternative currency after all:
http://www.bbc.com/news/blogs-news-f...where-36257465

[eenzoo]

btw .... the government of ZUG/Switzerland accept Bitcoin for any "official payment" from now.

[wonderpunter]

I regularly see quite a lot of big chain stores where i live that accept bitcoin, fact is more and more businesses and individuals are moving towards it people are still skeptical and have been saying it will crash since 2009

The most valuable thing will probably always be land. It cannot be just made. But there is always supply and demand, along with perceived value. At least its more tangible than computer characters.

Land value is just as volatile depending on many factors, I wonder what an acre goes for in Aleppo right now? And land is not as easily transferred to cash like other methods, it's also not viable to take payments by per CM of terrain.

[TheGooner]

I regularly see quite a lot of big chain stores where i live that accept bitcoin

Where do you live? Shanghai?


I see absolutely ZERO adoption of bitcoin down here.
Australia is slightly better in Sydney / Melbourne ... but still only about a dozen places ... tough to eat / drink on bitcoin.

Land value is just as volatile depending on many factors, I wonder what an acre goes for in Aleppo right now?

Agreed - land is dramatically overvalued in many places - cities - coastal towns with views etc.
It will ebb and flow over the long term according to many factors.

In the US I understand many house prices were slashed by 50% or more in places like Florida during the GFC.
They've now recovered a bit - only to be struggling again as rising sea levels put much of the coastal property at risk.

And land is not as easily transferred to cash like other methods, it's also not viable to take payments by per CM of terrain.

Indeed - that's why currency and standard units of commodity trade were invented.

I don't GET bitcoin as a scarce store of value (I think regular readers know that) it just doesn't make sense to me.

But I can see that there is some sort of cobbled together method of transferring wealth via fiat conversion in exchanges that will work as long as you don't hold the bitcoins for too long.

[TheGooner]

Seems like the first country is going to accept the alternative currency after all:
http://www.bbc.com/news/blogs-news-f...where-36257465

Not a country - a local canton council ... and mainly because the have a dozen bitcoin companies in their local "canton".

From the article :

Mayor Dolfi Mueller says the council wants to show its "openness to new technologies" and cater to local financial technology companies. The area is known as the "crypto-valley", as it hosts more than a dozen companies specialising in Bitcoin-related activities.

[DaftDog]

But at least it is something that cannot be made from virtually nothing.

Most land will certainly hold it's value and more over time. Labour also has value and can be regarded as a type of currency. Intellectual property can be very valuable although it is not made from anything physical.

BitCoin is mined which uses up a lot of electricity, hardware, software, labour, rent etc. So I don't perceive BitCoin to be made from nothing. If it were then it would be worthless.

[slotplayer]

bitcoin will rise and fall on good and bad news just like stocks.

[FruityJelena]

There are even some affiliates, paying most active members in bitcoins. Actually, I work with one such affiliate and find it pretty attractive idea.

[justbookies]

Yes, the general uptake of Bitcoin by the us-facing gambling industry has to help its adoption, usage, turnover, demand and hence price.

[TheGooner]

Yes, the general uptake of Bitcoin by the us-facing gambling industry has to help its adoption, usage, turnover, demand and hence price.

That's like saying a dollar is worth more because it's used / spent more often ...
I don't follow the logic ...

[justbookies]

That's like saying a dollar is worth more because it's used / spent more often ...
I don't follow the logic ...

It is supply and demand. If more people use bitcoin then the value will rise. If Greece had taken bitcoin as its currency (a silly rumour that caused the bitcoin price to spike at the time of their problems with the EU) then its value would have risen accordingly. To me it seems blindingly obvious, but now I see why you are a bitcoin 'hater'! I wouldn't be so positive on it myself if I thought large scale adoption would not lead to a long-term rise in value against other currencies.

PS: The USD does rise when people who are not using it now start buying it.

[Sherlock]

Your much better playing the stock market, at least you can put in a stop loss order. Can you do that with BTC?

How reliable are these exchanges? Remember QT/UMW?

Yes they are very reliable (at least some of them). You can have leverages, stop loss. It is the same as forex.
But short squeezes happen quite often. Those are the red candle sticks up and there.

[Sherlock]

With the instability of the global currency and possibility of collapse, why would you ever think bitcoin will increase in price? It is a currency based on nothing but perceived value. Like the printed paper. It has no real value.

Gold, silver etc has value because of perceived value too. But at least it is something that cannot be made from virtually nothing. So it will naturally hold its value more.

The most valuable thing will probably always be land. It cannot be just made. But there is always supply and demand, along with perceived value. At least its more tangible than computer characters.

This is wrong approach to value hidden in money. Money is defined as
a medium of exchange
a unit of account
a store of value
a standard of deferred payment
Money must have all of theose 4 attributes together. The more the better. No money is perfect.

You are right that there is no inner value of paper money, of bitcoin. The inner value of precious metals is very low. Gold has much higher price now than it should have if it is used only as conductor or so.

But that is not a problem for money. Money is not a merchandise or investment. What money must be is the best combination of medium of exchange, unit of account, store of value and standard of deferred payment. That is it. This is the only reason why the funny papers called fiat money have value. They are even called "forced circulation" money, because they are papers (or computer numbers) that were originally pushed by states to circulate. And because they were good with the 4 attributes we need from money, they exist. Until now.

Now we have a problem with fiat money and exactly those problems caused that bitcoin has a value and has potencial maybe to be real money some day. The proble is that money now are stopping to be a medium of exchange. When US government for example goes after gambling transactions, the fiat money can no longer be used and that is why bitcoin starts to be an interesting alternative, because anyone can pay anybody in bitcoins.

Another reason why bitcoin can be attractive because of those 4 points is "storage of value". Yes bitcoin is volatile. So far. But you maybe read the headlines how central banks want to cause inflation to support growth of the GDP with printing of money. Things can change fast. Then bitcoin can be attractive even as storage of value. There are already countries like Russia, Brazil or Argentina, where holding realtively volatile Bitcoin is less risky then holding a local currency.

Land in no way can be an example for discussion here. Land is illiquid activum. It does not have standardised units. It has different jurisdictions. There are taxes connected to land. When you pay 1 dollar or 1 bitcoin, you feel the value. But what is 1 acre of land? In Sahara or in SF?

Last note: very strange example of money were/are cigarettes in was camps and prisons. Nobody made a law it is a money, but yes, it is a money, it has all 4 attributes of money. And although it has some inner value (=it is so called commodity money), the value of the money comes right because it is the best option in prison to hold the 4 attributes.