Quote from: DeadCoin on November 15, 2014, 11:46:39 AM

Quote from: Chang Hum on November 15, 2014, 10:40:39 AM

Quote from: ShroomsKit on November 15, 2014, 09:53:35 AM

Why are there people so damn desperate to keep the price below 400? What are they afraid of? What do they want?

Most people purchase Bitcoins in the speculative hope they can later profit by selling them at a higher price to other market participants. As it's mathematically impossible for this to continue ad infinitum it's foolish to think you can continue to make money at the expense of other market participants (of which you yourselves are among) beyond the peak of adoption.

Once adoption rates have peaked, which they more than likely did last year, there's little left but a massive downside caused by an imbalance of those wishing to cash out vs new money coming in from those wishing to speculate on further price rises. As the imbalance becomes more apparent new adopters are likely to become fewer and fewer thus escalating the downside.

As more people start to realize risk/reward is a bad bet and that the coins are gradually becoming worth less vs USD, a cash grab situation is likely to arise in which people will become aware coins are actually only backed by buy orders amounting to about 0.01% of the arbitrary market capitalization. This situation could be immensely profitable for those buying into the next round of folly.

All those who have become rich from Bitcoin have simply done so at the expense of later market participants, many of whom are likely to realize large losses on the flip side at some point. Hence why it's reasonably comparable to a giant ponzi scheme.

it is sad to see how little people here understand of the economics of network effects as well as the economics of bitcoin.

tell me what is the value of a global scale value ledger which can only be changed a consensus of its participants and is immune to any other intervention? additionally this ledger also has a function and is scarce. at this point of time the market capitalization is 0,05% of the gold market cap....