Quote from: skivrmt on January 20, 2014, 05:58:17 PM

Quote from: GigaCoin on January 20, 2014, 10:47:54 AM

Look at it from marketcap value, not from price per bitcoin. As the marketcap goes up which is inevitable, so will the price. Fixed amount of bitcoin will insure quick price rise. If we hit $50 Billion market cap this year we're looking at around $4000 / BTC

Price is important but this is a way more important factor in the rising price of Bitcoin that so few people seem to grasp. Bitcoin from $1 to $100 was $1B is new money. From $100 to $1000 is was ~$10 billion in new money. The problem with exponential growth is ~$100B in new money for $10k for Bitcoin.

I agree, as I wrote here.

https://bitcointalk.org/index.php?topic=385523.0

At these high prices bitcoin is just a bad investment because it would take a huge increase in market cap for the prices to go up higher. You can forget about easy returns. Actually, for the risk you are taking in bitcoin you are better off choosing risky stocks to put your money in. You will probably get a higher return on your money for less risk.

It seems that volume is getting lower and lower, I saw on Mt Gox a few days ago 24 hour volume in the 3 or 4,000's.

It seems that if people do not sell and just sit then it does cause scarcity. However, it is like a house of cards. If anything was to happen which would cause just a small increase in bitcoin holders to want to cash out the price would collapse. This may not happen as bitcoin holders are probably financially secure and probably have above average income and intelligence to just be able to buy them in the first place.

However, you are taking risk with your money at these high bitcoin prices. Just being that you are investing in a house of cards is risky. You will also need a considerable amount of money invested to make any significant gains in bitcoins at these prices.

The other thing is as bitcoin price stagnates, more speculators will put their money in other coins that see higher growth. Bitcoin and digital currencies are for the most part just a way to gamble. Dogecoin seems to be the new coin now that people are throwing lots of money into. This almost proves its just a big gamble.

But I honestly would rather invest in a more risky coin for $1000 to make $10,000.

Then invest $20,000 in bitcoin to make that same $10,000

I can live with losing $1000, but not $20,000. This is why I don't see a lot of money flowing into bitcoins anymore. The only way the price will rise is if volume gets lower and lower, but then you are investing in even a bigger house of cards.