Post
Topic
Board Speculation
Re: bitfinex interest rates
by
giarc
on 05/01/2014, 22:15:56 UTC
Fairly new to bitfinex but a long time lurker Smiley

That's madness, it implies at least a 25 times gain in bitcoin price per year.

Which year did it not exceed that?

Past performance does not reflect future returns!!

Even if bitcoin were to gain as high a market capitalisation as gold its price per coin would be about $120,000 a piece, realistically in the most optimistic example inn the next 5 years it could maybe make 10% of this at very most.

This implies a fair price at the end of those 5 years of $12,000 now lets say it doubles that due to fluctuations which a trader could take advantage of that's $24,000.

Lets just run the 25 time the current price (mtgox) $1000 is $25000.

In other words this five year crazy optimist scenario already stretched to double the most optimistic price would have to happen in a year to have the trader come even close to breaking even.