Quote from: pundit on November 29, 2019, 11:01:48 AM

Quote from: antikvark on November 28, 2019, 10:34:28 AM

Imagine that Motorola - the first company which manufactured a truly wireless communication device in 1983, designed its production system so that it can produce only 10,000 mobile phones a year. Now, does that mean these phones would have been more scarce every single day because the population is almost required to increase its demand? And would that mean the price of Motorola phones will rise to $1,000,000? No. Why? Because people will simply associate and produce their own wireless communication devices, as these devices are just chips, resistors, transistors, capacitors, inductors, and diodes joined together the right way. And it s not only Motorola that is capable to put electronic components together.

In the same sense, bitcoin is just numbers associated to addresses. These numbers are transferred through the network from one address to another via some protocol. And it is not only Satoshi Nakamoto who is capable to design such paying system. This system is not Michelangelo's Pietà or Leonardo da Vinci's Mona Lisa. It is just numbers, addresses, database, and protocols. Everybody is capable to create that. So, no rational reason exists for bitcoin to cost 1,000,000 dollars. There is no reason for people to enter into fast, transparent and cheap payment system for $1,000,000, or even $10, if they can enter it for $0.001(altcoins) or if they can associate and design their own crypto payment system.

Bitcoin is simply a mega-bubble that diminished people's ability to think rationally. Bitcoin can only go down to the price of an average coin. Just like Motorola's phones have prices of average phones.

Edit:

I see a lot of responders saying I cannot compare Motorola as a company with Bitcoin. Well, I am not comparing the two. I am comparing limited supply of phones and coins by using an argument from analogy. This argument does not assert that the two things are identical, only that they are similar. The structure or form of this argument may be generalized like so:

P and Q are similar in respect to property x.
P has been observed to have further property y.
Therefore, Q has property y also.

In my example I assumed limited supply of Motorola cellular phones. Meaning, Motorola phones(P) and Bitcoin(Q) are similar in respect to limited supply(x). Then I made the second premise: limited supply of Motorola phones wouldn't lead to drastic price growth because people would simply produce their own cellular phones - they would simply produce their own wireless communication devices(y). And then the conclusion followed: limited supply of Bitcoin won't lead to drastic price growth because people will simply produce their own coins - they will simply design their own crypto payment systems (y).

And this is exactly what is happening with the inflation of altcoins - people are designing their own crypto payment systems. Simply, there is no rational reason for people to enter into fast, transparent and cheap payment system(Bitcoin) for $7K, or even for $10, if they can enter such system for $0.001(altcoins) or if they can design their own systems.

That is also the reason why Bitcoin is a mega-bubble and can only go down to the price of an average coin, and not up to the moon.

I am very positive about Bitcoin but your post made me think deeply about it. It is true that Bitcoin payment system is not something which cannot be developed by anyone else and current value of $8000 is more than high for a single coin of a payment system, On the other side I believe value of anything depends upon market sentiments, If demand increases, its value increase and same has happened to Bitcoin as well in late 2017. Let see what has been cooked for us in future.

Bitcoin current price is not 8000$ and in 2017, it was more manipulation than the demand which actually increased the bitcoin price.
But still i am very much confident that bitcoin price will grow steadily and will reach its high again.
I simply do not like the example of the phone comparison with bitcoins and i am very much optimistic about the bitcoin.