RE: Bitcoin $10,000: What Does It Mean?
I again agree and disagree to a point. I believe that those with a good understanding see it as a long term store of value, not a payment method for everyday things. At a blistering 7 transactions per second, that is really all it can be. I also see a great many other players as well notably miners and governments whom in reality control the block chain, though we wish it were not so.
Not being a conspiracy theorist, but I have to look at the finances of the miners and take that into consideration in terms of price, future growth and sustainability. As the blocks get more difficult, the costs to solve them will increase proportionately to a point of diminished returns that can only be offset by an exponential increase in transaction fees, appreciation in price and block rewards. At a point all the coins will be mined, so that well will run dry and be removed from the equation. Necessitating even higher fees, this will lower the total number of transactions, leading to further increases in fees to offset the fewer transactions etc. Which could force it into a long term store of value due to prohibitively high transaction fees. That however would also destabilize the rest of crypto market as who is going to pay $100 fee to trade for $100 worth of Alt Coins or Bittrex? I think the Concept shows so much possibility, but the business model needs work.
Enjoy the banter.. Your followed...