Post
Topic
Board Speculation
Re: Wall Observer BTC/USD - Bitcoin price movement tracking & discussion
by
Fatman3001
on 13/02/2015, 00:03:43 UTC
Where are all the predictions and YouTube videos for bitcoin going over $10,000?
How is that any more ridiculous than Apple having a market cap of $700 Billion? in order for one BTC to be worth $10,000, the market cap would only have to be $210B or less (depending on how many bitcoins have been mined when it happens), less than 1/3 of Apple Corp's current value.

Well, when you buy some Apple stock, you become owner of a slice of a huge company, that makes 70'000 USD of profit every second, by manufacturing and selling more than 10 million high-quality computers and smatrphones per month, that people literally give a kidney for.   Whereas, when you buy a bitcoin....

There is no rational reason why an Apple phone or computer is substantially more desirable than one of it's many competitors. It's simply a preference and preferences change. The desire to own bitcoins (which can be looked at as shares in the Bitcoin network) is also a preference. The demand for Apple products may go down, particularly if they fail to keep innovating at a pace and in a way their customers expect. The demand for bitcoins may go up if innovation in the space makes them more useful.

There are plenty of rational reasons why an Apple computer or phone should be substantially more desirable than any of its competitors. And there is a serious barrier to Bitcoin going mainstream. And if you look at those cases one explains the other.