Bitcoin to rally to $50+ - page 4. | Bitcointalksearch.org

Oldminer

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Quote from: Astro on June 10, 2011, 03:17:01 PM

I believe the drop today can be completely explained by the two exchange sites both experiencing unclear problems with USD transfer out (problems that are now resolved). I know this was because of API upgrades at Dwolla, but that wasn't explained anywhere on those sites. All most users saw were two things, 1) Senator Schumer saying he was going to shut down bitcoin, then 2) USD transfers suddenly stop working. All of this combined with the general background noise on the hate-bitcoin sites saying this is a scam, ponzi, etc, caused a crisis in confidence. Hopefully it will resolve itself.

I agree. As a result the current price is artificial.

enmaku

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Quote from: Adam on June 10, 2011, 03:06:01 PM

Difficulty follows price, not the other way around.

Difficulty follows total hashrate which could be slightly influenced by price, since a higher $/BTC exchange rate makes mining appear more profitable, but price also follows mining in that miners are the initial supply. Once all of the investors have burned off their shares, the miners tend to hold steady with what they deem is a reasonable price for their efforts and so represent a "floor" to the market, which historically has increased proportional to difficulty.

Really, the market is a sort of "strange loop" (as described by Dr. Douglas Hofstadter). Like many things in this world its initial conditions emerged from outside influence and over time the factors which influenced it came to be included within it. The market influences the miners who then influence the market which influences the miners... It's like a big crypto-economic M.C. Escher painting

Astro

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I believe the drop today can be completely explained by the two exchange sites both experiencing unclear problems with USD transfer out (problems that are now resolved). I know this was because of API upgrades at Dwolla, but that wasn't explained anywhere on those sites. All most users saw were two things, 1) Senator Schumer saying he was going to shut down bitcoin, then 2) USD transfers suddenly stop working. All of this combined with the general background noise on the hate-bitcoin sites saying this is a scam, ponzi, etc, caused a crisis in confidence. Hopefully it will resolve itself.

Oldminer

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Quote from: Nesetalis on June 10, 2011, 03:13:18 PM

screw worrying! I'm buying more!

Yup, buy, mine, and hoard is what I'm doing.

Nesetalis

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screw worrying! I'm buying more!

and as for difficulty, it doesnt really make a difference either way... though it is more likely to follow price due to price being raised by new adopters who join in on the mining.

airdata

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The rise to $30 was a bit fast... Price before the last difficulty change was around 18. I would think that 22.50-25 would be a fair increase along w\ the difficulty.

Oldminer

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Quote from: flashy on June 10, 2011, 03:03:01 PM

Coins dropped by abut $6 the past day and a half, that doesn't have you worried at all? I'm still holding on to my bitcoins in hopes of another rally. I'm just scared I didn't wait too long...

The thing is there is a 'lower limit' or 'real' value for Bitcoin. I believe thats about where its sitting now ($24). So no, I wouldnt be worried. It will rally again and next time it will go even higher. You just need to be patient.

Adam

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Difficulty follows price, not the other way around.

Astro

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I think the people saying silver parity are correct.. $36

flashy

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Coins dropped by abut $6 the past day and a half, that doesn't have you worried at all? I'm still holding on to my bitcoins in hopes of another rally. I'm just scared I didn't wait too long...

Klestin

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Quote from: airdata on June 10, 2011, 02:42:56 PM

at the current rate of network growth, how long is it going to be before block's yield 25btc instead of 50?

I'm interested to see what will happen at that point in time. With difficulty increases steadily increasing... that 50% split in yield amount added to difficulty should create a significant spike in value.

The network growth rate does not significantly affect the switch to 25BTC. That will occur on schedule around December 2012.

/Yes, a steadily growing difficulty does make this happen a little faster, but only due to difficulty adjustment lag. Dec 2012, plus or minus a few months should be a safe estimate.

airdata

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at the current rate of network growth, how long is it going to be before block's yield 25btc instead of 50?

I'm interested to see what will happen at that point in time. With difficulty increases steadily increasing... that 50% split in yield amount added to difficulty should create a significant spike in value.

imperi

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Doublings with Bitcoins come once a month, based on historical data. It will happen but not 3 or 4 days.

Oldminer

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Quote from: airdata on June 10, 2011, 02:38:47 PM

how long until the next difficulty jump?

I'm not sold on $50, but I think a rally to 40 and stabilization around 35 would be fair.

3 or 4 days I believe.

This thread is on the money (or bitcoin lol) http://forum.bitcoin.org/index.php?topic=7985.0

Theres some BIG money going to pour into Bitcoin speculation shortly and when it does the price is going to explode.

airdata

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how long until the next difficulty jump?

I'm not sold on $50, but I think a rally to 40 and stabilization around 35 would be fair.

Oldminer

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Because of the impending rise in difficulty, next time Bitcoin rallies its going to top $50US..it may even go to $100

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