4 votes

Bitcoins over $40 and still Rising! Here is why it will go to $100

Whatever you think of Bitcoin you can not deny the rapid price appreciation and continued growth in popularity of the Crypto Currency. If you look at it from a completely objective standpoint there is plenty of reason for Bitcoin to continue to rise in dollars.

So why?

Well besides it's absolute stellar characteristics as a currency it is specifically the demand for products on the black market that continue it's assent. Bitcoins allows you to transact anonymously with anyone around the world. There are records of the transaction but unless you somehow reveal your link to the account used it's virtually anonymous. This provides a great median of exchange for those wanting to transact anonymously for fear of prosecution from a tyrannical unjust government.

Here is the main reason it could rise to $100 or even $200. Right now these transactions are handled in Bitcoins but the products are denominated in Dollars. So what does it matter to the purchaser of something what the price of Bitcoins is if he is receiving the same value as if were priced in Dollars. For example, I want to buy $300 worth of weed and I'm going to use Bitcoins for this transaction. well what does it matter to me If Bitcoins is priced at $30 or $100. I will still be buying $300 worth of weed. If I have to do that with 10 bitcoins or 3 bitcoins it doesn't matter. Therefore dont be surprised when you see $100 bitcoins. As long as there is demand to go through bitcoins to transact in dollars the price could really be anything. It's not until people lose trust in the dollar and start pricing in Bitcoins that it becomes it's own independent currency.

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jrd3820's picture

I can't believe I have to explain this to you

It will not be delivered. It will be created out of thin air... randomly assigned to you, but you may never own it physically. Do you really not understand how this whole bitcoin thing works? It is not a physical market, why are you expecting physical goods out of this?

This is how it works.... you look at the area you would like your goods delivered. You close your eyes and concentrate really hard and then you simply pretend the item or the value of the item is there.

Sigh, don't you hate it when I have to correct you all the time? :)

I sure hope that's sarcams lol

;)

Patriot Cell #345,168
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jrd3820's picture

Sarcasm?

Between having to explain bitcoin to you, and finding you the Colbert link last night I am starting to think you would be lost without me around here. Don't worry though, I think there is still hope for people like you...

Yes the obvious part is sarcasm, but the more I read about bitcoin I think my explanation was pretty close to realistic, no?

Yes, I don't know what I'd do without another person on the

internet that I don't know. :)

"but the more I read about bitcoin I think my explanation was pretty close to realistic, no?"

Yep..it's fiat-like.. the only thing it misses is being brought into existence by government force.

Patriot Cell #345,168
I don't respond to emails or pm's.
http://www.youtube.com/watch?NR=1&feature=endscreen&v=qo8CmO...
Those who make peaceful revolution impossible will make violent revolution, inevitable.

No so anonymous....

"This provides a great median of exchange for those wanting to transact anonymously for fear of prosecution from a tyrannical unjust government."

This is ONLY if you acquire bitcoins via cash with a face to face transaction with someone else. Or pay with paypal or something similar directly to another person. Not a bitcoin exchange. If you attempt the cash by bill pay method via money gram. Yes you can give false info but they def have you on camera at the store or wherever you're doing the transaction. My experience with the money gram method differs from place to place and person to person and who is doing the transaction. Some ask for ID while others do not.

I think there will a price drop if and when asic miners are officially out. We'll see.

Price DROP with ASICs?

Simple, powerful, CHEAP mining hardware = more people fighting over mining proceeds... not sure if I agree that equals a price drop.

well... What would happen

well... What would happen with gold if they suddenly found a crap load more? Or diamonds? or any other commodity?

If Im not mistaken

The hardware will just increase the likelihood that you will solve the algorithm but it doesn't mean that more Bitcoins will be produced. Written into the algorithm is a time table for new Bitcoin discoveries. If more discoveries happen the algorithm gets more difficult to solve reducing the rate of Discovery. This process assures that the time table remains on track. Will it work? Still to be seen but as of now it seems to be working.

Similarly to Diamonds

Your comment assumes that miners go and sell bitcoins into the market, and not hold onto it. With bitcoins most of the miners are holding them. Ironically similar to diamonds as you mentioned above. See wiki De Beers.


.

.

You made some points I don't

You made some points I don't particularly agree with, but overall well said.

Of course a "bitcoin" will be

Of course a "bitcoin" will be worth $100, same as a loaf a bread, someday. Still doesn't mean your rich.

Unless you have thousands of

Unless you have thousands of bitcoins, then yes, you are. Especially if you purchased said bitcoins at $33/bc, you just tripled your cash.

And the dollar value of a bitcoin is rising much faster than a loaf of bread.

Aaaaand you completely missed the point of the OP.

Aaaaaaaaaaaaand I just wanted to say and one more time

No, no...

1 Bitcoin will be worth $100. Right now it's $30.

Yes bread will go up, but you will still be making $20 per hour. So now you will have to work 5 hours to buy that bread. The point here has escaped you, just like the bread, the bitcoin has maintained it's value, your dollar hasn't. Your measuring the increase with a depreciating dollar.

It rises because

it is used to buy drugs and maintain anonymity.
Nothing to do with popularity among other people.
My moral code refuses to be a part of that.
Another reason is that it has no value at all. It is just a barter registration system.
As such it is just a number in a computer (i know, distributed bla bla...). Even worse then a paper dollar, at least that can still be held in your hand.
A commodity backed currency is the only solution, of which money made of that commodity is the best.

A small tip for people who want to promote bitcoin.
Don't EVER mention the word drugs, weed, etc.

Another fun fact

Dollars are used to buy drugs and maintain anonymity as well

Lets be clear...

Dollars of what. A dollar is a unit of measure, like, a pint. We used to have dollars of "United States notes" which were backed by something, 1971 it is propositioned they were combined into a dual note with the FRN, but I digress. A dollar of a federal reserve note used to be redeemable (hint: and still is 12 usc 411) to a U.S. note. Not to be snarky at all, but, they say Federal Reserve Note at the top, and yes, are used to buy drugs and maintain anonymity...

A federal reserve note is the biggest con game in the history of mankind.

We're getting into semantics

We're getting into semantics here, and while I agree they are federal reserve notes - I disagree that a "dollar" is a unit of measurement. It's just the name we give and use to refer to our currency.

Maybe, but, being federal reserve awareness day...

It's worth a look. The "United States note" is entirely different then the Federal Reserve note. They are both dollars, units of currency, but one is issued by the US treasury, the other, a private banking cabal to mimic the US note. The Federal Reserve note used to have the language written in plain english "redeemed in lawful money" upon demand.

This stuff runs deep, and once again is worth a look. Some state that you can force a bank under 12 USC § 411 to redeem your notes. This doesn't allow them to fractionally lend your money because...31 USC § 5115 note 2b "may not be held or used for a reserve." Further, since you are outside the system, a few have claimed and rightfully won all their withholdings from the IRS back, claiming lawful money is non-taxable (this might be a stretch). Either way, it's been an interesting learning experience...

All good stuff...

Bitcoin: It's not just for drugs anymore

Fun Fact: Wordpress, the company that creates web platform software (and 20th-most-visted site on the internet) accepts Bitcoin. Reddit, social news / forum site, just started accepting Bitcoin last week. Coinabul.com exchanges Bitcoin for gold and silver.

Bitcoin: It's not just for drugs anymore.

Yeah soo you know...

Maintain anonymity, that sounds like a ludicrous position... It's a liberty stance, I don't care what the hell I'm buying, dish soap or ammo, I don't want people to know!

Your moral code refuses to be a part of BitCoin which a percentage may used to purchase "weed", yet you support the federal reserve note, I'm assuming for moral reasons, that is classic.

No value, ohhh, like the federal reserve note, you know backed by, wait for it...nothing!

97% of all US currency is digital right. Like, "just a number on a computer"... Bitcoins can also be separated and stored on a thumb drive for later use. But you like holding a paper dollar in your hand, I'm betting you use a debit/credit card, online banking for a large % of your expenditures. Do you always pay with cash?

I agree with commodity backed currency, but the point is, it's currently illegal to use gold and silver as legal tender. Anyways, further, Federal Reserve notes are controlled by a small number of men, Bitcoin is a service among users, a publicly controlled currency. I don't know about you, but, I think I would choose the latter over Ben Bernake.

It rises because people have interest in getting out of using the Federal Reserve note. It's is also mathematically controlled to limit over "printing". Personally anything that comes along as a form of alternative currency I find a positive, as it limits the monopoly those assholes (private fractional banking) have over our condition. I'm buying Bitcoins today and will re-post when they are worth 50 dollars. Some of the profits I will donate to this site.

I just don't get why you wouldn't support this. It sounds risky, but, people felt the same way about putting their credit card numbers online for purchases. Look where we are now. Change is hard, but currencies like this are a great starting point to getting out of the system. Also noting, the Federal Reserve System hates Bitcoin, so this above all else should be the reason to support them.

TwelveOhOne's picture

Also noting...

The majority of drug purchases are done with anonymous Federal Reserve Notes.

So for your parent poster to be upset that a currency is being used in drug purchases, says to me that the parent poster should reject FRNs first.

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Lots of Ignorance here

I was not promoting Bitcoins in this post, I just made a simple observation. and why wouldn't someone mention drugs or weed when promoting Bitcoin? Should Dr. Paul not mention Drugs or weed when promoting the ideas of liberty?

You sure do have a crappy moral code. You rather use a petro dollar currency system that puts power in the hands of the elite, promotes war, violence, theft, inflation, etc then one that takes power away from those elitist and works to actually End the Federal Reserve system. I would say you have more of an Immoral code than a moral one.

Actually Bitcoins is gaining huge popularity with the people. More and More are turning to Bitcoins everyday and walking away from Government controlled FIAT currencies everyday. Thats great news for Liberty.

Bitcoins can be physically held. Let me just lay your false claim to rest. Bitcoins not only acts like physical currency it can be physical currency.
https://www.casascius.com/

Is a commodity backed standard better? Sure, I agree absolutely but as of right now it's not going to happen. As long as the Federal Reserve system maintains power we will never go back to a commodity based system. Bitcoins is the first real weapon to actually limit and End the Fed. Once it's gone then I would expect things like Goldmoney to be more preferable than Bitcoins but lets leave that up to the free market to decide.

can you buy silver with

can you buy silver with bitcoin? adam kokesh has agoristmetals.com. if you put money into bitcoin and then use it for silver in a few months, you could double or triple the purchasing power of silver.

lawrence

Yes:

Nice Thinking

I thought the same..

Michael Nystrom's picture

I smell a pump and dump with the bitcoins

What is this article? A sales piece? Where's the prospectus?

If you look at it from a completely objective standpoint

This statement is a red flag. It means, "I'm going to tell you my perspective, as if it were the completely objective standpoint."

The OP goes on:

Here is the main reason it could rise to $100 or even $200.

But what follows is utter nonsense. The basic jist is: bitcoins float, so naturally they'll float up. It never mentions that floating things also sometimes sink. (That would be the truly objective standpoint.)

My initial judgement is that this post is some kind of scam. And the fix is in on the bitcoins.

The question is: How high will it really go? Manias can build. Stranger things have happened.

To be mean is never excusable, but there is some merit in knowing that one is; the most irreparable of vices is to do evil out of stupidity. - C.B.

No offense taken Michael and....

let me reassure you that this is not a pump and dump but a simple observation. I'm just a normal dude with a very small position in Bitcoins (6k.) I didn't want to use my Bitcoins to make a purchase and wanted to buy new ones to do so. I kinda cringed at paying $33 dollars for them but then it struck me that the price of Bitcoins doesnt really matter since what I'm buying is denominated in dollars. I would have paid $100 for them. So, seeing this dynamic I then realized that this is a great way to build Capital and wanted to share for those on the Daily Paul community who want to speculate. As someone mentioned you can buy silver with Bitcoins. I bought Bitcoins at $8. If I would have bought silver instead of Bitcoins I would have gotten 40 ounces, however since I bought Bitcoins instead I can now buy 207 ounces with my Bitcoins because of the price appreciation.

I was initially against Bitcoins. This was because I was very ignorant, as you seem to be, to the whole system. However after putting away any preconceived notions and doing a lot of objective research I came to the conclusion that Bitcoins is a very sharp sword that can strike down the evil imperialist Federal Reserve Petro dollar system. Being a lover of liberty I now find it a moral responsibility to try and use Bitcoins before using Elitist empowering Federal reserve dollars.

Honestly I would prefer a virtual currency denominated in Gold. Something like Goldmoney. However, something like this can not be done right now. Governments wont allow it and for those places that do you still retain a high risk that any easy target like Goldmoney Vaults will be confiscated. If we ever get to the point that something like Goldmoney gets up and running then I think Bitcoins will become less desirable and the freemarket will pick a commodity based virtual currency as the winner. So until then the best way to bypass the dollar system and empower the people is Bitcoins. It mimics a Gold Standard, its anonymous, it's easily transferable, it's quantity is not centrally controlled, it's continually audited, it's really freaking an ingenious tool. One that I hope all lovers of Liberty will utilize. It's a general statement but Libertarians need to start Walking the walk dont just talk the talk... Want to end the Fed..Use Bitcoins. Then once it's gone let the free market decide what currency to use.

Michael Nystrom's picture

p.s. - And I mean no offense to the OP

The more I thought of it, the more I thought the scam could simply be nothing more than the desire of the OP. He has bitcoins, so of course he wants them to go to 100. And he's trying to spread that desire & enthusiasm to make it happen. That is classic speculator behavior. But a desire shouldn't be confused with an actual prediction.

To be mean is never excusable, but there is some merit in knowing that one is; the most irreparable of vices is to do evil out of stupidity. - C.B.

I knew for a fact you were going to reference 'Tulip Mania'

and I was right! How weird is that???
But after a dollar collapse it won't be unreasonable to predict bread going to $50 per loaf, gas going to $200 per gallon. So why not bitcoin going to $100 per bitcoin?

Don't feed the pandas. Ever.