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A comment on Bitcoin Fall Extends to 25% as Fears of Crackdown Linger. Parent comment

Re:Bitcoin Fall Extends to 25% as Fears of Crackdown Linger by pejrich on Wednesday January 17, 2018 @05:05AM (#16166786)
> but it could also exist and do it's job at $1.00 / btc.

Probably one of the stupidest comments I've read on here. You display not even a basic understanding of how Bitcoin or economics work.

If I have a successful company with 100 shares. People will want those shares which will drive the price up. To fix the price at $1.00, or to dilute shares to keep the price at $1.00 is just ridiculous.

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Re:Bitcoin Fall Extends to 25% as Fears of Crackdown Linger by defertoreptar on Wednesday January 17, 2018 @01:47PM (#16170561)
Who's saying anything about "fixing" a price or diluting shares?

Bitcoin's exchange rate is a function of supply in demand. It could exist and do its job with low demand (e.g. $1.00 / btc) or high demand (today's price). What is the reason for the high demand? The answer is speculation that the price will continue to rise.

The point I was making is that if people were using it only as a only as a currency, then the price very well could be $1.00 / btc. The reason it's so high is because people in large numbers are buying and holding it as an investment, reducing the supply.

[ Parent | on HN ]