Supply / demand - the main exchange doing 90% of business has frozen a massive chunk of bitcoins for days now. With the supply shock, why hasn't the price exploded? I mean if bitcoins are hot the few left around should be trading gangbusters.
There is no shortage of bitcoins due to the MtGox hack.
There actually is a shortage of dollars in the market because those dollars are frozen in MtGox accounts, so prices should rather be expected to drop.
So basically what i'm implying is that the people at Mt Gox were selling to each other mostly with a trickle of miners.
The people at MtGox were selling to each other. No way denying that
I think the cash that's poured in has gone to the first holders of bitcoins
Yep.
and I think I'd be very careful given there's no boom in the underlying demand.
Whatever you think fits your interests best.
Because if there is no demand we are about to see a supply FLOOD when Gox comes online.
That's right, a lot of people will want to withdraw from MtGox, thereby flooding other Exchanges with bitcoins.
Withdrawing their dollars will take a little longer.
So unless you all start trading with each other, add the miners new coins, where's the new cash coming from?
There's not a lot of new cash coming in at the moment. Prices drop. With a lower price, more people will think it is a good opportunity to buy. They will pour cash into the market.
Just my .02 btc
Thanks for your views. But there are less bitcoins, they are stuck at the exchange. And as for money, because they were all generated by mining, and most very cheaply, the coins outweight the cash. I mean its not like every coin out there was bought for $20. Its only the fractional traders. Do you see?
