Op-ed:There is no “proper” price for bitcoin

Most people didn’t buy in bitcoin as the price is not “right” or in other words, too expensive. However, there will be no “proper” price for bitcoin. Lao Mao , COO of Yunbi, released an op-ed article, expressing his views on bitcoin and rebutting some general conceptions among the public.

He concludes the following:
 There is no right price for bitcoin.
 Automated transaction is irrelevant to price
 Developers doesn’t have a better understanding of bitcoin than John Doe
 Pseudo-conception for bitcoin-based applications
 Bitcoin is a imagined community
 Organizational impacts to the long-term value of bitcoin is zero

Bitcoin price is related to demands only and there is no “proper” price for bitcoin for ever.

One has to follow the rabbit hole of bitcoin demands to understand the value of bitcoin. Below are some leads:
 The circulation demands from over 10 million coin-holders.
 Cross-border transaction and payment
 Blockchain-based ecosystem needs
 Investment demands
 Others

Automated transaction is irrelevant to price
Automated traders provide liquidity to common users without transaction fee, meanwhile harvesting spreads on the order-book, which, to some extent, equals to charging transaction fee on the behalf of exchanges. Lao Mao points out that the current demands for bitcoin is way different from what it was 3 years ago. Analyzing bitcoin from a static or a stock perspective is like measuring quantum physics with Newton Laws.

Developers doesn’t have a better understanding of bitcoin than John Doe
This may upset developers as non-coders may look like complete noobs to them in the virtual world.
Understanding bitcoin requires more infos than some programming language. Some background knowledge about liberalism and economy may help. However, the more fundamental standpoint is one’s values. Programmers and geeks are the earliest adopters of Bitcoin, which doesn’t necessarily mean that the future participants and holders are less important. Developers may complain about the defects of bitcoin or blockchain once they finish dumping their stakes. We have seen cases like this over the past few years.

Pseudo-conception for bitcoin-based applications
If you treat bitcoin as currency, you will find intrinsic applications like investment, fungibility, payment and transfer etc.
Bitcoin is a imagined community

Lao Mao mentions that the 10 million users, if regarded as a imagined community, would be a great force to push the revolution in the world.

“Even the arrogant PBOC will release digital currency and exchange system backed by fiats. It’s not a rival against bitcoin. It’s a proof that bitcoin’s capability to push the reform of central banking system.”

Organizational impacts to the long-term value of bitcoin is zero

“From the very beginning, bitcoin requires no endorsement from any government authorities. What central banks could and may interfere is exchanges only. From a long-term point of view, exchanges may exert influence on the short-term fluctuation of bitcoin price but has no leading voice in its long-term value discovery. What central banks couldn’t block is the demands for bitcoin. “

He also fantasize the likelihood of bitcoin being admitted as official currency reserves by small countries. Many countries with weak fiats may acknowledge the legal status of bitcoin as currency. In these countries, bitcoin may serve as exchangeable currency like USD, JPY or AUD. The point is that values attached fiats or bitcoin are the same. They are the product of “imagined community”. Compared to the fiats backed by authority, technology and consensus behind bitcoin may be more persuasive and therefore more valuable.
At the end, he asks a question:

Who will expect a spike of “bitcoin” on google search trending in Nigeria, a small African country?

Somehow the question is answered by Jiang Zhuo’er, the BU supporter and ltc1btc mining pool operator. He posted a thread on 8btc, attributing the price recovery of bitcoin to the re-opening of 3M pyramid scheme with the following screenshot he found on Wechat :

The post claims that the recent recovery of bitcoin should be attributed to the reopening of MMM, the infamous pyramid scheme that adopts bitcoin as means of money transfer. The OP, Jiang Zhuo’er, says that the 3M members are buying 10 bitcoins batch to support his claim.
Could someone run a filter to find out the 10 bitcoin sharp tx on the blockchain?

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