Bitcoin soaring, highest I've seen it since last year while it was decreasing - page 2.

rjk

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1ngldh

Quote from: testerx on July 16, 2012, 08:38:59 PM

I actually think the price is skyrocketing because people are buying BFL stuff with cash-thus converting into btc via bitpay and providing an artificially high demand for BTC at the moment.

Their stuff was available for preorder a long time before the price started rising so dramatically.

Also, BTC9.24 and rising!

Qoheleth

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Spurn wild goose chases. Seek that which endures.

Quote from: testerx on July 16, 2012, 08:38:59 PM

I actually think the price is skyrocketing because people are buying BFL stuff with cash-thus converting into btc via bitpay and providing an artificially high demand for BTC at the moment.

Maybe. But BFL takes their payment denominated in USD... so wouldn't BFL itself just immediately re-sell the BTC they received from BFL's customers?

If it's BitPay volume, why hasn't the price receded in the week+ since this rally began?

testerx

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I actually think the price is skyrocketing because people are buying BFL stuff with cash-thus converting into btc via bitpay and providing an artificially high demand for BTC at the moment.

Spekulatius

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All Bitcoinica did was increase volatility. Both ways.

teflone

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You're fat, because you dont have any pics on FB

Quote from: Qoheleth on July 16, 2012, 08:22:04 PM

Quote from: Steve on July 16, 2012, 08:10:35 PM

You don't need Bitcoinica to short Bitcoin.

You do if you're not holding Bitcoins.

Right now, a person can only act on what they think is an overly high BTC price if they've already bought in to that extent. Similarly, a "true believer" in Bitcoin can only act on a low price if they have fiat lying around.

Futures or options contracts - or, alternatively, margin trading at a 1:1 ratio - counteract that, and let people who weren't confident to begin with act on the market when it starts to act (in their eyes) irrationally.

That's the theory, anyway. Margin trading at a higher ratio (such as the ones Bitcoinica allowed) could also allow people to just make very unwise bets and swing the market around even more irrationally than normal.

Ding ding ding.. we have a winner..

Qoheleth

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Spurn wild goose chases. Seek that which endures.

Quote from: Steve on July 16, 2012, 08:10:35 PM

You don't need Bitcoinica to short Bitcoin.

You do if you're not holding Bitcoins.

Right now, a person can only act on what they think is an overly high BTC price if they've already bought in to that extent. Similarly, a "true believer" in Bitcoin can only act on a low price if they have fiat lying around.

Futures or options contracts - or, alternatively, margin trading at a 1:1 ratio - counteract that, and let people who weren't confident to begin with act on the market when it starts to act (in their eyes) irrationally.

That's the theory, anyway. Margin trading at a higher ratio (such as the ones Bitcoinica allowed) could also allow people to just make very unwise bets and swing the market around even more irrationally than normal.

Steve

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I don't see how Bitcoinica would have any effect one way or the other except in short time spans. And I don't see how it would be biased in either the up or down direction. Bitcoin just made leveraged trading in either direction easy. If you think the price is too high right now…sell some bitcoins! You don't need Bitcoinica to short Bitcoin.

HorseRider

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anyone move this to speculation board, please?

FreeMoney

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Strength in numbers

Quote from: teflone on July 16, 2012, 07:41:16 PM

Quote from: stick_theman on July 16, 2012, 07:15:08 PM

Do you think taking out the gambling aspect (e.g. Bitcoinica) has to do with the soaring prices?

BINGO!

Bitcoinica if it was done well, and worked as was intended would have been a nice stabilizing factor in the bitcoin world..

But it wasnt.. clearly, and all it was, was an indicator and a tool to be abused, and abused it was.... heavily, suppressing the price artificially, and having mad mad mad algorithm failures, which in turn caused mass panic selling.

I for one am thankful its toast.. but I feel for all the people waiting on coins that Bitcoinica has stolen. Yes.. I said STOLEN..

Right, because a bucket shop was going to suppress the value of the best money ever created.

Qoheleth

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Spurn wild goose chases. Seek that which endures.

Quote from: stick_theman on July 16, 2012, 07:15:08 PM

Do you think taking out the gambling aspect (e.g. Bitcoinica) has to do with the soaring prices?

I think the lack of Bitcoinica is relevant.

I don't know if that's because aggressive shorting on margin was suppressing the "true" price, or because the ability to short at all was keeping bullish sentiment from running up another bubble.

If there was a functional futures exchange (i.e. with market makers and fiat deposits/withdrawls), maybe I'd feel better about it.

evoorhees

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Democracy is the original 51% attack

Quote from: stick_theman on July 16, 2012, 07:15:08 PM

Do you think taking out the gambling aspect (e.g. Bitcoinica) has to do with the soaring prices?

Bitcoin allowed "gambling" in both directions - you could leverage long or leverage short. Removing Bitcoinica doesn't necessarily put upward pressure on anything. In fact, if more people were leveraged long on Bitcoinica then removing it would actually depress the price.

teflone

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You're fat, because you dont have any pics on FB

Quote from: stick_theman on July 16, 2012, 07:15:08 PM

Do you think taking out the gambling aspect (e.g. Bitcoinica) has to do with the soaring prices?

BINGO!

Bitcoinica if it was done well, and worked as was intended would have been a nice stabilizing factor in the bitcoin world..

But it wasnt.. clearly, and all it was, was an indicator and a tool to be abused, and abused it was.... heavily, suppressing the price artificially, and having mad mad mad algorithm failures, which in turn caused mass panic selling.

I for one am thankful its toast.. but I feel for all the people waiting on coins that Bitcoinica has stolen. Yes.. I said STOLEN..

MoonShadow

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Quite a run, and the 24 hour volume on MtGox is nothing to sneeze at either. This is going to make it harder for me to invest in more bitcoin. Must...Suppress....Price! Minions, go!

stick_theman

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Do you think taking out the gambling aspect (e.g. Bitcoinica) has to do with the soaring prices?

pekv2

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Just decided to check out bitcoin US prices. I am very impressed with the priced increase.

mtgoxUSD 8.5201

Topic: Bitcoin soaring, highest I've seen it since last year while it was decreasing - page 2. (Read 3570 times)