Topic: [2014-09-03] Bitcoin Price Might Move Shortly (Read 918 times)
Either the price is going to go up, or the difficulty is going to go down.
It seems that the one real way to aptly describe Bitcoin at the moment is speculative currency/payment system. The incumbent details aren't really concerning to the average potential buyer.
I'm not sure from that article what evidence they have to suggest the price 'might' move up. Can never really take people seriously when they try predict when the price may rise. It's all pure speculation.
http://www.marketoracle.co.uk/Article47164.html
It is, however, different in that people who are paid in Bitcoin are far more open to fluctuations in the value of Bitcoin since they most probably don’t hedge their Bitcoin holdings. A retailer accepting Bitcoin usually converts the payment to the local currency at the very moment of reception. A worker paid in Bitcoin most probably holds their bitcoins in a wallet which entails exchange rate risk since Bitcoin exchange rates vary and the coins have to be converted to the local currency at some point. In this way, Bitcoin holders are not sure what goods and services they will be able to buy using their coins.
It is, however, different in that people who are paid in Bitcoin are far more open to fluctuations in the value of Bitcoin since they most probably don’t hedge their Bitcoin holdings. A retailer accepting Bitcoin usually converts the payment to the local currency at the very moment of reception. A worker paid in Bitcoin most probably holds their bitcoins in a wallet which entails exchange rate risk since Bitcoin exchange rates vary and the coins have to be converted to the local currency at some point. In this way, Bitcoin holders are not sure what goods and services they will be able to buy using their coins.
Jump to: