Topic: How is the current market state NOT a bubble? - page 3. (Read 9767 times)
I find it quite crazy how fast it is rising! The news sites are starting to talk about it and that just makes the demand go up. I'm not going to complain though, even if less people play my lottery, the prize keeps going up. I'm more eagerly watching to see how many people start taking BTC as a means of payment. That is what it needs the most IMHO.
For two weeks and no major reasons other than speculation, the price has gone from 2$/BTC to over 8$/BTC ....I've been on the forums for a long enough time to say that people talk more about getting rigs for mining, selling the currency for USD (equivalent), on pure speculation of the price. The actual commerce behind it isn't backing the price. I don't want Bitcoin to fail (I don't think it will in the long run) but bubbles hurt when they pop & market crashes are bad.
I don't believe 2$ to 8$ within two weeks is a healthy jump with so little to back it up. People are making such a killing in exchange rates at that point, the Bitcoin becomes the commodity itself to sell for an insane exchange rate.
I don't believe 2$ to 8$ within two weeks is a healthy jump with so little to back it up. People are making such a killing in exchange rates at that point, the Bitcoin becomes the commodity itself to sell for an insane exchange rate.
I am completely certain it is a bubble, which sucks if you want to buy some bitcoins on the cheap.
HOWEVER, it is my personal opinion that the bubble is just getting started (see my sig).
There WILL be a peak, followed by panic selling, followed by wild price swings, possibly followed by higher peaks (or not), and then hopefully the market will reach some level of stability at some price. The final stabilized price is anybody's guess.
It's not possible to know if something is a bubble before it pops, especially something anonymously traded like Bitcoin. It could be that new, enthusiastic people with lots of money to drop are discovering Bitcoin at the same rate the price is increasing.
Actually, some metrics can be used to detect a bubble. For instance, the U.S. housing bubble was getting obvious towards the peak because housing prices were getting ridiculously out of line with average income. What metrics one would use to detect a Bitcoin bubble, I have no idea.
It's not possible to know if something is a bubble before it pops, especially something anonymously traded like Bitcoin. It could be that new, enthusiastic people with lots of money to drop are discovering Bitcoin at the same rate the price is increasing.
bitcoin is a commodity
When the price of bitcoin dramatically rose, prepare for the obligatory:
IT MUST BE A BUBBLE!
IT MUST BE A BUBBLE!
For two weeks and no major reasons other than speculation, the price has gone from 2$/BTC to over 8$/BTC ....I've been on the forums for a long enough time to say that people talk more about getting rigs for mining, selling the currency for USD (equivalent), on pure speculation of the price. The actual commerce behind it isn't backing the price. I don't want Bitcoin to fail (I don't think it will in the long run) but bubbles hurt when they pop & market crashes are bad.
I don't believe 2$ to 8$ within two weeks is a healthy jump with so little to back it up. People are making such a killing in exchange rates at that point, the Bitcoin becomes the commodity itself to sell for an insane exchange rate.
I don't believe 2$ to 8$ within two weeks is a healthy jump with so little to back it up. People are making such a killing in exchange rates at that point, the Bitcoin becomes the commodity itself to sell for an insane exchange rate.
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