It's a new species, price changes are due to speculation. This isn't a derivatives market or a bond market or a national currency. It's still small and flys on word of mouth from forums to Forbes, Wired, bloggers, and random hype. I wouldn't advise speculation, judging by solicitations in these forums there's a thriving currency market.
Correct me as I'm learning, but is there a sharp drop in the algorithm to 1/2 bitcoins generated from mining or is there a half life of four years? Either way the long-term design is deflationary. Even with increasing efficiencies, more people, and greatly increased volume, the design is for less bitcoin blocks to be created.
This is stabilizing, unique and ingenious because blocks are nearly infinitesimal. There would be less units of currency but greater utility and value -deflation. Would you feel comfortable making .048BTC, then .045BTC, then .044BTC as you kept working the same hours? Assuming the currency stabilizes like familiar markets, there would be a downward decaying trend as data is lost and demand outpaces supply. It would be a psychological headache, especially to those speculators out there.
All the excitement is over something designed not to take off into the sky, but to nose-dive and survive.
Topic: Bitcoin price skyrocket? - page 2. (Read 2660 times)
Everyone can see that this rise in price is boosted by speculation.
They can? How can they see that?There are a lot of technical traders thinking there is room to go up to $12 though.
A lot of people have theories as to what they think will happen and have reasons behind their theories, but it isn't really possible to reliably predict what is going to happen. Excitement could push it WAY up, or disappointment could bring it crashing down. Some early adopters could decide they need fiat and need to convert their hundreds of thousands of bitcoin sending the price crashing down and instilling fear. A news article could go viral and catch the fancy of millions of people in the general public driving them all to "try this thing out" and driving the price way up. Anyone who tells you they know what the price is going to do in the next few days or weeks is just guessing. They might guess right, but that doesn't mean their predictive skills are reliable.That being said, we're still down nearly 75% from 2011's high.
And up nearly 3,000% from 2011's low? Anyone knows if the price is going to go down sometimes, or will it just continue to raise?
Everyone can see that this rise in price is boosted by speculation. But the saying is that nobody rings a bell at the top. There are a lot of technical traders thinking there is room to go up to $12 though.
That being said, we're still down nearly 75% from 2011's high.
Anyone knows if the price is going to go down sometimes, or will it just continue to raise?
Sorry. You might as well be asking if the high temperature in Chicago on July 16, 2013 will be higher or lower than 84 degrees Fahrenheit (29 C). Lots of people have theories as to what they think will happen and have reasons behind their theories, but it isn't really possible to reliably predict what is going to happen. There are just too many variables that affect the price. 
Ever since the initial double dip, BTC has always been rising in value. Its true that the increase in the past few months is pretty staggering, and can send off red flags to some people. But if you look at the rise in popularity of BTC, factor that with BFL's promise of new ASIC lines, and BTC in pop culture including "The Good Wife," and couple that with the halfing of blocks ~December, I think the increase in value is proportional to the change we are seeing.
Hi. I never heard about Bitcoins before 1 week ago. Then a bitcoin costed around 6.7 US dollar, today it costs 8.3 US dollar.
Should have seen it last night! I seen it reach 8.9 and others say it topped off at 9.4 or so. Some made a mint if bought at 4-5 and dumped last night.
Its true that no one knows where the price of bitcoins is heading.
Some posts on this forum claim that the recent price increase is due to the reward decrease for miners when block 210,000 is reached (in the next few months).
It makes sense, as a market will price in furture expectations ahead of time, and the reward decrease is a certainty.
As bitcoins become more scarce, they should become more valuable against other currencies.
Some posts on this forum claim that the recent price increase is due to the reward decrease for miners when block 210,000 is reached (in the next few months).
It makes sense, as a market will price in furture expectations ahead of time, and the reward decrease is a certainty.
As bitcoins become more scarce, they should become more valuable against other currencies.
I would love to know the answer to this also,
but I imaging the only true answer is:
"Nobody knows".
but I imaging the only true answer is:
"Nobody knows".
Hi. I never heard about Bitcoins before 1 week ago. Then a bitcoin costed around 6.7 US dollar, today it costs 8.3 US dollar. So if you want to buy 10 bitcoins for example, today you would have to spend 16 more dollars compared to 1 week ago.
Iam not a economic expert but this seems like a HUGEEEE increse in such a short time..
Anyone knows if the price is going to go down sometimes, or will it just continue to raise?
Iam not a economic expert but this seems like a HUGEEEE increse in such a short time..
Anyone knows if the price is going to go down sometimes, or will it just continue to raise?
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