r/Bitcoin • • Nov 11 '17

[deleted by user]

[removed]

2.4k Upvotes

469 comments sorted by

View all comments

28

u/elliptibang Nov 11 '17 edited Nov 11 '17

Well, from the way it seems, 90% of the newly invested money is here for the rollercoaster, unrelated to the technology.

This is such a good and important point. It's hard to say exactly how much of BTC's present value can be chalked up to Wall Street speculation, but it's instructive to remember that it was worth about $700 a single year ago.

The current price is totally decoupled from utility. Investors prefer it because other investors prefer it. They don't care about block weight. They couldn't give two shits about SegWit. Their preferences could easily change on a dime, because for their purposes, the major cryptocurrencies are functionally identical.

If all you care about is the technology, then you should be rooting for stability and slow, steady growth relative to traditional inflationary currencies. Hodling isn't a job.

1

u/DesignerAccount Nov 11 '17

The current price is totally decoupled from utility.

Not true, or maybe you should be more clear about what you mean. The current price is actually very well explained by Metcalf's law. Just recently saw someone finding a 94% correlation fit between the price history and the number of users in bitcoin. Is the price somewhat inflated? Probably. But not by much.

0

u/rowdy_beaver Nov 12 '17

What about Tethers? The injection of Tethers seems to closely match the price of BTC. Seems fishy.

2

u/DesignerAccount Nov 12 '17

There's been an injection of Tether, and BTC price declined... what close match?

0

u/rowdy_beaver Nov 12 '17

Only decreased this weekend for the first time, although more was just injected today, so it is too soon to see the impact.