Quote from: BitAddict on November 02, 2014, 01:02:35 AM

Quote from: brg444 on November 02, 2014, 12:57:52 AM

Quote from: BitAddict on November 02, 2014, 12:53:02 AM

Highers transactions means more users, but if they are not willing to buy then it doesn't mean price will go up. People like to invest when price is going up, and when they look last year chart they get scared as fuck. This users will probably buy, but they will feel the real urge to buy when bitcoin is 2x or 3x over ATH because bitcoin will be "cool again" and they won't want to "miss the train".
And I'm also convinced it is growing faster because people are sending more bitcoins to exchanges and expending them, adding more selling pressure.

I think bitcoin will have a shiny future, but it will need time to develop, maybe 6, 12 or 18 months. It is not magically goin to rally like lot of people think here.

but what if higher transactions translates to more coins being bought off exchange?

that sound like a pretty bullish scenario would you not agree?

What?
Are you telling me if Satoshi comes and dumps off exchange 1 million bitcoins would be bullish for the price because lot of people would be buying?

When you sell something in the other side there is a buyer... that's granted. But what matters is sellers to buyers ratio. If you have more sellers price go down...
That's pretty simple, dude...

To elaborate, just for fun: It depends. Imagine two actors, one has a car, and the other has 10 coins. The coin owner might think the car is worth more for him, and want to buy it. The other might think the car is worth less than 10 coins, and want to sell, in which case there will be a trade.

Note that the car owner can use cars as a unit of account, asking himself whether the coins are worth more than a car, or less than a car. It is the same, and it is important to know that the value of money is decided in the market just like other goods.

Now the important point. After the trade, the situation can be exactly the same, only the individual actors are different. One holds a car, the other one holds the coins. The value in the market for both of those things should be the same. But if the new car-holder thinks, after the trade, that now is the time to earn some new coins to repair his cash balance, and coin owner is happy holding his, the value of the coins have to go up and therefore the value of the car goes down (all things on the market other than money, really). Opposite, if the new car owner is happy with his situation, and the new coin owner sets out to spend his coins as fast as possible, the value of the coins should go down.

Now the really important point: This change of value of the money and the useful goods could happen without the trade, it is the actors' individual valuation, in aggregate that matters. That is why actual trade with money does not change it's value directly (indirectly there are lots of avenues for more transactions to lead to higher value, but that is beside the point).