Quote from: Lorenzo on May 01, 2015, 05:58:43 AM

Quote from: CtrlAltBernanke420 on April 30, 2015, 10:01:48 PM

There is a lot of discussion and hype that "bitcoin will go to the moon," My question what does that mean if it means potentially being a highly volatile object that everyone in the world is holding and or trading and volatility ranges at 12million/btc and 10million bitcoin on one day, and perhaps back down to 2 million/bitcoin

Whatver the numbers are, they will likely be much higher than $100-$999. And with out speculating on price, i am talking about the legitimacy of currency that is volatile and has a billions of people involved?

Bitcoin is volatile because it is new and small. Comparatively small amounts of money are enough to hugely affect the BTC price. It's market capitalization is still tiny compared to established currencies like the yen and the US dollar and most of the trading activity is due to speculators. The value of national currencies like the USD reflects confidence in the health of that nation's economy but the same is not yet true for BTC. If Bitcoin does "go to the moon" and billions of people are holding some amount of BTC, then I would expect the BTC price to be significantly less volatile than it is today (although perhaps not quite as stable as fiat currencies).

Secondly, hyperinflation aside, we probably won't be seeing a $12 million BTC price. $1 million is possible, but in order for Bitcoin to reach this price, it would have to replace virtually every single fiat currency in the world. If BTC reaches a status similar to how gold is treated today (which is perhaps a more realistic outcome), then the price should hover at around $350,000 USD per coin.

If you take a look at the Winklevoss analysis and I think they are on point, BTC is aiming higher than gold. BTC could theoretically dethrone all existing physical payments, which would result in a market cap on the trillions (and then more, since metal and asset money would flow into it as well).

I always like to take perspective and remember back in 2009, how people said it would never reach 1 USD. 1USD! Seriously get some perspective and never be afraid to consider sky high rocket prices when there are reasons to do so.