Post
Topic
Board Speculation
Re: Why Bitcoin may now level off...
by
Miz4r
on 03/12/2013, 12:30:30 UTC
Can someone please explain to me where the money would come from?  Even if India gets on board ... how the heck will their participation affect price?  
Its not like a bunch of people in India can start blowing money on $5,000 Bitcoins .

Can someone explain to me why people here think a rise from $1,000 to $10,000 could even happen at all, let alone quickly?

Let's assume there are a total of 2 million people in the entire world holding 6 BTC each on average (not a bad estimate I think). Now let's think about what would happen if 8 million more people got interested in bitcoin recently after reading about it in the papers, and they decide to invest $2000 each on average in bitcoin. Together that means $16 billion will flow into bitcoin, which as you can imagine will push up the price considerably. And 8 million people is still only a tiny fraction of the world population, so $10,000 and higher can be easily reached when more people get interested and start investing a small portion of their wealth.