Silk Road forums
Discussion => Off topic => Topic started by: PriscillaMarie90 on September 30, 2011, 03:22 am
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I've been wondering, does anyone know what affects the value of Bitcoins? It would be really strange to me if their value just randomly fluctuates without influence from something.. I don't know anything about stocks either, and though they may not be related at all, BTC sort of remind me of the stock market lol.
Enlighten me please?
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Someone could write hundreds of thousands of words as a reply and not necessarily be able to fully answer your question. For relevant discussion on the economics of bitcoin and speculation check out the subforums at https://bitcointalk.org/
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well like madame said, it is very complex, just like any type of currency.
this site helped me figure it out. http://bitcoincharts.com/charts/
the easiest answer i can give is this-
there are X amount of bitcoins at any given time. the amount of bitcoins that people own determines the value, Y.
at least that is what i understand, correct me if i am wrong.
boy i miss those days when bitcoins were worth 30$....those were the days
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Great zombie jesus, $30?! I wish i could buy like 50 of them for $4 and THEN they would go up to $30, lol!
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what you really wanted was to buy like 10000 of them back when they were only worth like $0.003, i so wish id got into mining sooner back when difficulty was low and coins were worth next to nothing (the bitcoin faucet used to give away 5btc!) some of the old miners are literally holding thousands of coins, if youd sold them at the $30 peak youd be very well off right now, or youd at least never have to pay for drugs again in your life!
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I believe what is going on here is that someone(s) is selling BTC's, that was not selling previously. I have not been around for more than a few months (BTC's were around $19 back in June when I made my 1st purchase).
It IS just like a publicly owned company's stock that trades on a stock exchange - if there are more sellers than buyers, the stock goes down.
If there are more buyers than sellers, the stock goes up.
But, I WILL say this; it looks like BTC is not going down any further - it has been at the $4-$5 level for several weeks, so this is probably a good time to buy and hold, BECAUSE, there is a fixed amount of BTC and it will go back up as long as there is growth in the market of products that trade for BTC.
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$13 or $5 per btc. it doesn't matter too much. as long as the volatility isn't too sharp, it won't cause problems such as, vendors bouncing the btc scene.
so, you catch my drift? as long as exchanges can occur, with this currency, it's all gravy.
keep the freedom alive!!
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It looks like the value of the bitcoin is settling down to the cost of production.
That would seem to be a natural price floor.
Just my opinion tho.
Smithers
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mop nailed it, when he said it's not complicated at all -- when Demand increases relative to Supply, the price increases. We know the supply side behaves like a mining commodity. But I fail to see what would be the driver of demand in the future. The $30 spike you mentioned was due to curiosity generated by press. People wanted to get bitcoins and see what it was and (possibly) use them on SR. The only redeeming feature of bitcoins is its anonymity. But, in my view, some anonymity value that btc yields would is given away by any transaction which truly requires anonymity by the seller's demand of a risk premium. Besides this "risk tax", bitcoins will always carry with it some risk as it's vulnerable to government action. These factors imply that Demand remains relatively constant to Supply and that Bitcoins decrease in value relative to other currencies.