{"id":29175,"date":"2024-11-01T17:05:09","date_gmt":"2024-11-01T17:05:09","guid":{"rendered":"https:\/\/bitcoins-101.com\/2024\/11\/01\/bitcoins-price-does-matter-a-lot\/"},"modified":"2024-11-01T17:05:09","modified_gmt":"2024-11-01T17:05:09","slug":"bitcoins-price-does-matter-a-lot","status":"publish","type":"post","link":"https:\/\/bitcoins-101.com\/2024\/11\/01\/bitcoins-price-does-matter-a-lot\/","title":{"rendered":"Bitcoin&#8217;s Price Does Matter \u2014 A Lot"},"content":{"rendered":"<figure>\n<p>                        <img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/bitcoinmagazine.com\/.image\/c_fit%2Ch_800%2Cw_1200\/MjA5NjU1OTY0ODg0ODA1MDUw\/screenshot-2024-09-30-at-114323am.png\" height=\"91\" width=\"1200\" \/><\/p>\n<\/figure>\n<figure>\n<p>                        <img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/bitcoinmagazine.com\/.image\/c_fit%2Ch_800%2Cw_1200\/MjA5NjU2NTE0MzcyMTgzNDgy\/screenshot-2024-09-30-at-10205pm.png\" height=\"800\" width=\"805\" \/><figcaption>Follow Frank on <a href=\"https:\/\/mobile.x.com\/frankcorva\">X<\/a>.<\/figcaption><\/p><\/figure>\n<p>Some in the Bitcoin space claim to only be in it for the tech, maintaining that bitcoin\u2019s price doesn\u2019t matter much to them.\u00a0<\/p>\n<p>Whether they\u2019re just posturing or whether they really mean it, they\u2019re overlooking a major factor that keeps the Bitcoin network secure and healthy \u2014 the price of bitcoin.<\/p>\n<p>Lyn Alden did an exemplary job describing why bitcoin\u2019s price matters in the follow post:<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Because money is a network good. <\/p>\n<p>Liquidity feeds more liquidity. And eventually broad enough liquidity feeds stability, which makes it more usable. Which then feeds more liquidity.<\/p>\n<p>It is similar to why we are here on this platform whether or not we like the recent owner.\u2026<\/p>\n<p>\u2014 Lyn Alden (@LynAldenContact) <a href=\"https:\/\/twitter.com\/LynAldenContact\/status\/1716617268660945279?ref_src=twsrc%5Etfw\">October 24, 2023<\/a><\/p><\/blockquote>\n<p>Her main points included:<\/p>\n<ul>\n<li>The more liquid bitcoin becomes, the less volatile and more usable as money it becomes.<\/li>\n<li>Price is a market signal: five years of stagnant price action would send a negative signal to the market about bitcoin\u2019s value.<\/li>\n<li>If bitcoin (a finite asset) was designed as a counter to fiat (an infinite asset), its price should increase as more liquidity is injected into the system (i.e., as more fiat is printed or more debt is created).<\/li>\n<\/ul>\n<figure>\n<p>                        <a href=\"https:\/\/www.bitcoinmagazinepro.com\/\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/bitcoinmagazine.com\/.image\/c_fit%2Ch_800%2Cw_1200\/MjEwMzUwNTYyMDI4Mjk5NDY4\/unnamed.png\" height=\"600\" width=\"1200\" \/><\/a><\/p>\n<\/figure>\n<p>I\u2019d like to help further Lyn\u2019s argument by including the following points:<\/p>\n<ul>\n<li>The security of the Bitcoin network depends in large part on the amount of people or institutions that mine bitcoin. As the block subsidy decreases every four years, bitcoin has to continually increase in price for miners to remain incentivized to mine the asset.<\/li>\n<li>Bitcoin\u2019s price adds to its legitimacy: the closer bitcoin\u2019s market cap gets to the market cap of gold, the more investors view the assets as comparable.<\/li>\n<li>An increase in bitcoin\u2019s price incentivizes holders to continue to do things to keep the network healthy, like running nodes, and to defend the network against its detractors. After all, as Jeff Booth says, \u201c<a href=\"https:\/\/bitcoinmagazine.com\/takes\/frank-we-are-bitcoin\">We Are Bitcoin<\/a>,\u201d and its success depends on us.<\/li>\n<\/ul>\n<p>So, if you were pumped when bitcoin\u2019s price hit a new all-time high this week, good for you.<\/p>\n<p>Even if you weren&#8217;t necessarily thinking about the points made above as bitcoin\u2019s price reached new highs, it\u2019s also okay to simply be happy about having greater purchasing power.<\/p>","protected":false},"excerpt":{"rendered":"<p>Follow Frank on X. Some in the Bitcoin space claim to only be in it for the tech, maintaining that bitcoin\u2019s price doesn\u2019t matter much to them.\u00a0 Whether they\u2019re just posturing or whether they really mean it, they\u2019re overlooking a major factor that keeps the Bitcoin network secure and healthy \u2014 the price of bitcoin. [&hellip;]<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-29175","post","type-post","status-publish","format-standard","hentry","category-crypto-news"],"_links":{"self":[{"href":"https:\/\/bitcoins-101.com\/wp-json\/wp\/v2\/posts\/29175"}],"collection":[{"href":"https:\/\/bitcoins-101.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bitcoins-101.com\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/bitcoins-101.com\/wp-json\/wp\/v2\/comments?post=29175"}],"version-history":[{"count":0,"href":"https:\/\/bitcoins-101.com\/wp-json\/wp\/v2\/posts\/29175\/revisions"}],"wp:attachment":[{"href":"https:\/\/bitcoins-101.com\/wp-json\/wp\/v2\/media?parent=29175"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bitcoins-101.com\/wp-json\/wp\/v2\/categories?post=29175"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bitcoins-101.com\/wp-json\/wp\/v2\/tags?post=29175"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}