(no title)
shredfvz | 12 years ago
Facebook's market cap is $63,000,000,000. If the market cap of Bitcoin were just 10% of Facebook, each Bitcoin would be worth about $500. 1% and it's about $50. Can a global financial system conceivably give the world just 10% of the value of Facebook? Because just ten percent ... and one BTC is $500.
https://news.ycombinator.com/item?id=5398140
I couldn't have possibly imagined that Bitcoin would soar so quickly. In all honesty, the infrastructure has NOT improved noticeably over the last 6 months. This runup in price was fueled by shameless speculation, or possibly the Chinese seeking to evade capital controls. I've followed the Bitcoin market closely since the time I made that post, and what you'll notice is the price moves up considerable amounts based on miniscule volume. Liquidity is dire.
I would advise very cautious optimism if not pessimism at this point. Is Bitcoin worth really 20% of Facebook right now? That's a tough question, especially considering the open regulatory question in America, which I personally don't see doing so hot.
I think Bitcoin was a fantastic, visionary buy at $10-$50 back when nobody was taking it seriously, and I enthusiastically stated as much to everyone who would listen. However, at this point I'm telling people they've missed the boat. There's still plenty of value in Bitcoin, don't get me wrong. It's just that this run up was 100% speculative, and based on people hoarding coins because the price was going up. Not the sign of a healthy foundation.
zimbatm|12 years ago
To be honest I don't think you can compare a company and a market. I don't even know how you can estimate what is a "reasonable" price for a bitcoin ; since it's a finite resource it seems normal that the price would go up when more participants enter the system but I don't know of how much.
hayksaakian|12 years ago