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RE: State of the Market #10 - Bitcoin to $50,000 within 6 months?

in #bitcoin7 years ago

Most of the points you raised are true but irrelevant to price movement. What gives BTC 90% of it's value is not functionality, development, or adoption. What gives BTC its value is that it is the base currency by which most cryptocurrencies trade. It is a trading currency for cryptocurrency. This is the basis for its value and it's #1 use case.

So as more interesting cryptocurrencies come online which happens regularly, BTC's use cases increases. What we have been told is BTC's use cases as a world currency, is not really true. The transaction fees are just too high, and cryptocurrency is too complicated to use in that manner for BTC to be a real everyday currency. As a reserve currency for cryptocurrency trades and crypto-investing, BTC does have a valid use case. This valid use case is worth at least 1 trillion in market cap.

As for the parabolic crash, I am expecting it. It should happen within 12 months. I am also expecting it becomes 5x over-valued before it happens. 3k is too low for that crash though, now that the CME group has adopted BTC and other major world exchanges such as Russia may follow. As the reserve currency for all crypto-trades, which is a growing industry, I believe 10k is an adequate long-term pricing for the next 12 months or so... in other words I believe investors who are rich are willing to price support BTC at 10k.

The only exception is a disastrous news event which could always happen to BTC, then there might be a mega crash. Such as a major bug or some kind of damaging network event.

Regs don't bother me too much... the worst sort of reg would be that exchanging BTC in the USA is illegal. If that happened, could be damaging, but unless a complete ban occurs in the US, not too concerned.