Quote from: Babylon on May 07, 2013, 05:18:16 AM

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Quote from: Evo on May 02, 2013, 09:53:42 PM

I think that bitcoin is too unstable, and if this trend continues, it'll never reach a value of even $1000 per coin.

Really agree.

I think that BTC don't will be strong stable never (or not in the nexts 5-10 years). But maybe we will see this price caused for the reduced number of bitcoins compared to population.

I also agree, just imagine how many people would sell their bitcoins when they hit $1000 or $500 even. People fear the instability and want to cash out and hedge their losses generally. The bitcoin would have to crush fiat to truly climb.

6 months ago people would have been saying the same thing about getting to 100 USD. But the people who sell have to be selling to somebody, so for every person who sold at 100 because they thought the price was going too high, there is somebody who bought at 100 because they think the price could go higher still and/or they think 100 is a good price.

It's interesting when you put it that way. It's a good thing to know someone has high hopes for the future of bitcoin.

Hmmm.... Unless it stablises, it cannot be used to buy and sell things in the real world, until then it is only worth what speculation means it is perceived as being worth. I am a believer, but it's a long road to these kind of values and if it does 'spike' to 2000 bucks, a lot of damage when it crashes back down will make a lot of mess. People were buying at 250USD + recently, and they got burned. there will be a lot more money at stake at the 2000 mark, and it may not be good news. The price now is what we make it, it does not reflect a real value - there isn't one that is measurable other than in the actual bitcoin market propped up by the beliefs of those who hold - and trade in it.

Even unstable it can be used to buy and sell things in the real world. What is required is a way to convert to and from fiat within a very short period of time. If I am selling something and can turn bitcoins that I receive in payment into fiat before the price changes, then I am not exposed to risk. I can denominate my prices in whatever units my buyers are familiar with, maintaining a constant price in the currency that works best for me.n This doesn't require stability over days or weeks, just over hours.

You do not necessarily have to have a way to convert your fiat into bitcoin immediately to avoid the currency exchange risk (or the other way around, depending on which you want to keep), you could use futures contracts to lock in an agreeable rate. The expanded use of futures will come with the market maturing, and they will help to stabilize the price. If you are able to set the price now, then you can take your time conducting your business without worrying what the market price will be when the transaction is complete.