It started rising after Butterfly Labs started taking payment in BTC for their new mining equipment.
Are they hoarding? 
Topic: The Rise of Bitcoin Cost - page 2. (Read 5254 times)
"Correlation does not imply causation"
It started rising after Butterfly Labs started taking payment in BTC for their new mining equipment.
High BTC price is mainly a good thing, as it stabilizes the price - a 1$ movement in price is huge when price is 5$, and a minor thing when price is 100$
That's not really a good argument - there's no reason why the absolute volatility of the price should be constant, rather than proportional to the price itself. What is a good argument is that higher price implies more people which implies a more diffuse community and therefore more stability due to the random walk effect.
High BTC price is mainly a good thing, as it stabilizes the price - a 1$ movement in price is huge when price is 5$, and a minor thing when price is 100$
Rises in price aren't a bad thing. They have some harmful effects in the case of merchants who set fixed BTC prices, but their good massively outweighs the bad - they make using Bitcoin as a currency exchange intermediary essentially free or even negative cost, they encourage general interest in Bitcoin, and they make Bitcoin holders, the largest of whom are also Bitcoin businessmen, richer. But we're not worried about the rise. We're worried about the fall after the rise. At this point I doubt Bitcoin will fall to less than $7, but if Bitcoin goes up to $40 and then back down to $7 that would seriously disrupt the Bitcoin economy in many ways - it was a big problem the first time it happened in late 2011.
I too am curious to know why a rise in price is perceived as a problem.
Use as a medium of exchange is critical to Bitcoin's long-term success. Instability in value makes a currency harder to use as a medium of exchange. Imagine, for example, if you placed a large purchase on a Bitcoin credit card and the value of Bitcoins doubled. Or imagine if your rent was in Bitcoins and then the value of Bitcoins doubled.
I too am curious to know why a rise in price is perceived as a problem.
Heh, I'm not sure what the problem is either.
Problem? I'm not quite sure I would call this a problem.
Neither would I.
Bitcoin prices rise...
Not sure what the problem is, I would love to know why.
Not sure what the problem is, I would love to know why.
Some people claim it is because of Paul Graham of YCombinator starting a Bitcoin project.
Heh, I'm not sure what the problem is either.
Problem? I'm not quite sure I would call this a problem.
Heh, I'm not sure what the problem is either.
Right now, i'm selling a handful, hording the rest... oh and buying some things.
Bitcoin prices rise...
Lately the price of BTC has sore above the roof!
(4-5$USD to 10USD)
Why is that and what is the factor that will stop the rise?
Are more people investing in Bitcoins or somewhat "hoarding" them?
Not sure what the problem is, I would love to know why.
Lately the price of BTC has sore above the roof!
(4-5$USD to 10USD)
Why is that and what is the factor that will stop the rise?
Are more people investing in Bitcoins or somewhat "hoarding" them?
Not sure what the problem is, I would love to know why.
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