(1/10) Had a conversation with a friend about prices in $BTC and $CRYPTO and what might effect them. I've made money on $ETH but havn't been watching $BTC quite as closely since it's been channeling/basing and I've never sold and don't intend to...
(3/10) ...who accept it and it needs some price stability. If $BTC is on an adoption curve than stability should come later but for the moment a deflationary pressure is better than inflationary but still produces inventive to save over spending. The pricing seems to be...
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(4/10) ...a complex system made up of simple feedback loops that drive in vicious and virtuous directions. If there is an asymmetry between buyers and sellers it will either tank or pump in a sustained manner and ideally once adoption has been obtained it should reach a normal...
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(5/10) ...equilibrium of some sort (most likely with some volatility over fiat) where price is high enough to saturate demand on a scarce resource and stable enough for people to buy and sell without significant movements in between. What I'm saying in more direct terms is that..
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(6/10) ...with these asymmetric feedback loops, the more the price goes up the more people want bitcoin, the inverse of ECON 101. This to me is because the prices is a signifier of market convergence on a standard. At some point the saturated market will go back to normal...
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(7/10) ...and a relatively higher price will disincentive people from buying because they can wait and buy lower but still within a channel of some sort that we would like to see in a store of value. At the moment it looks like we havn't price discovered the equilibrium and...
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(8/10) ...it could be way way higher or if standard acceptance fails it could go to $100. This is why I think it is like a language, the more people who use the language (the higher the value of use which I relate to price) the more other people have an incentive to use it...
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(9/10) ...as well, which drives acceptance still higher. If we came up with some numerical value to represent the saturation of a language in a region, that value may act similarly to the price of an early stage currency. Languages and standards compete but...
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