Quote:
Originally Posted by woj
there is strong demand for drugs... but there is little real demand for bitcoins, the only demand comes from speculators hoping for an easy profit...
if you knew that bitcoins will not go up in value over the next year, would you buy/hold them?
as prospect of making easy $$ with bitcoins fades, so will the demand for them and so the price will plummet...  |
that's one view. another sees increasing demand for fair value-exchanging system independent from artificial manipulation on root level which bitcoin offers.
i agree that after hype wears off there is a period of suspended active speculation. if you realize that bitcoin can never reach valuation of $0 you would also know there will be many more bitcoin rallies and crashes - these cycles fuel this new economy: on a rise people hoard it, on decrease people tend to spend it or realize profits, or cut losses. once easy money opps fade people will start treating it just like regular money only with difference that overtime bitcoin value is going to increase unlike fiat's within inflation economies.