Re: Wall Observer BTC/USD - Bitcoin price movement tracking & discussion
Two opposing forces:
- Downward pressure: bigger market caps drags price action, as more money inflow is required to move the price
- Upward pressure: every day the S2F holds, it gets stronger and stronger, so future appreciation gets discounted into price, providing a lift to prices.
Its a battle.
I didn't look at this as simple as that, but you quite nailed it, imho.
You can see the increasing linear spread of market cap and price figures, for example on coinmarketcap graphs.
The more BTC get's recognized as what it is, the more inflow acceleration will occur as a logical result.
But i'm uncertain how increasing inflation will influence the latter. In critical times, people tend to fall back to traditional solutions, namely gold.
EDIT:
@JJG: Don't call me bearish just because of that statement about gold
Bitcoin should take over, imo. Only a matter when people will grasp this.
I might call you delusional, rather than bearish.
Sure there is a lot of sentiment out there regarding gold serving as a sufficient and adequate hedge against ongoing fiscal irresponsibility.. but you really believe that gold is providing anything that bitcoin is NOT going to be providing in the coming years.
Not only is bitcoin better than gold in terms of portability, divisibility, verifiability and a few other important characteristics, bitcoin also has the exponential s-curve adoption aspect, which surely is an unfair advantage for bitcoin, buy why would the market give any shits about fairness.
So, sure, maybe you won't loose your wealth as fast in gold as you might lose it in various kinds of fiat-based investments, but I still am NOT sure where you are speculating that you might be able to get something from gold that you cannot get from bitcoin... and sure you are likely going based on longer history and the already existence of financial instruments that are going to easily allow traditional financial institutions to quickly get into gold, but really? you believe gold is going to perform as well as bitcoin in the coming years?
What's coming first? A $10k gold or a $60k bitcoin? Both are around 5x price appreciation. Which one is getting there first? You betting evenly on this?
How about after gold reaches $10k (hypothetically)? You gonna get another 4x out of gold, to $40k? you going to bet on that?
How about bitcoin? Do you consider that bitcoin could arrive at $240k (that is 4x after reaching $60k) a bit more easily than gold?
I could keep going on with higher and higher numbers, and the upside still seems way more favorable for bitcoin as compared to grandpa coin (aka gold).
Make your bets however you choose, but I am having troubles appreciating how you might be so willing to suggest that gold is reasonable, feasible and necessary in light of where king daddy happens to be and where king daddy seems likely to go in the coming years.