Quote from: Bitcoins101 on December 22, 2013, 04:10:32 AM

Quote from: Mortimer452 on December 22, 2013, 03:31:53 AM

I disagree 100% with the OP, and with any speculation that Bitcoin is going to reach some ridiculous number like $50,000 each or something like that.

I think the vast array of altcoins coming out (practically daily now) is taking away from the value of all other coins.

Think of digital currencies like an economic industry, like automobiles or clothing or kitchen appliances. Right now, the "digital currency" industry is worth about $8billion USD. This number is not climbing steadily along with all the additional coins coming out, this value is remaining relatively static and is simply being distributed amongst all the digital currencies.

ALL COIN TRADING PATHS LEAD TO BITCOIN. When a new coin comes out, it simply subtracts from the value of Bitcoin, because Bitcoin must be used to invest in that currency, or to convert it to $USD. New currencies are not adding wealth to the digital coin industry, they are simply providing more places to move it around.

Something major is going to have to happen before this can change, I'm not sure what it is. Maybe BTC needs to show up on the NYSE or NASDAQ so normal Joe's can invest in it instead of it being some "dark an mysterious" hacker-currency like the media has made it out to be. Maybe some major retailers like Amazon need to start accepting it so it gets more public exposure.

As far as Bitcoin reaching $50,000 or some ridiculous number like that, this is simply nonsense. Again, think of digital currency like any other economic industry. With BTC at $50,000 that would make this industry worth well over half a TRILLION dollars - sorry but I just don't see that happening. That's as large as the entire U.S. auto industry.

You're telling me bitcoin can't be worth half as much as the US auto industry? You've got to be kidding me. If bitcoin actually catches on, and I mean really catches on, bitcoin would go well over $50,000.

Of course, it's just as likely bitcoin will be nearly worthless years from now.

Bitcoin's first application is not as a currency, it is an investment vehicle. Bitcoins are a way for somebody to hide their money from governments and consequently from taxes, etc. Hedge funds are soon getting into crypto in a big way. Alt coins will be a major part of that.

What alt coins will the hedge funds buy into? Easy, those that are on multiple exchanges and have been around longest and thus have the most viable networks. There you go. All these new coins are just a distraction, avoid them until they get on an exchange.

What about price? Well the huge amount of money that is pouring into crypto will cause the price of all coins on exchanges to skyrocket. What does that mean for BTC? Somebody was quoted the other day saying $98500, probably true. I'm guessing in 6 months peak of $10000, settles near $5000, then in another
6 months $50000 settles to $25000.