- Chinese discovered Bitcoin
- Gained the attention of big investors
- Media attention increased
- Actual usage was starting to happen on a significant scale (even if it was for illegal things)
- Many small businesses were adopting
- Software had matured to a place were an average user could do it.
- Mining hardware had recently specialized (You can't do anything but mine Bitcoin or other SHA-256 coins with the ASIC hardware that people spent thousands of dollars on)
- The Willy bot
Topic: what caused the rise to $1100 last year? - page 4. (Read 4983 times)
I think there were many many factors. To name just a few. (These are in order of importance based on only my personal opinion)
The introduction of bitcoin to the chinese and Asian countries made it spike and more panic buyers made it increase even more 
The last rise was mostly caused by the chinese people who discovered the bitcoin and its potential, they leaded the uptrend and the following fall.
agreed, excellent post Melbustus.
i almost feel like (or hope) that scenario 2 will cause a massive and long lasting spike in the value of bitcoin. as though the more effort governments backed by corrupt banks puts into squashing bitcoin - it could almost act conversely as a kind of legitimisation on the disruptive power of bitcoin in decentralizing the monopoly of wealth.
it may be a longshot but i think bitcoin is here to stay, at least on at least on the black market and/or as a form of currency in developing nations.
i almost feel like (or hope) that scenario 2 will cause a massive and long lasting spike in the value of bitcoin. as though the more effort governments backed by corrupt banks puts into squashing bitcoin - it could almost act conversely as a kind of legitimisation on the disruptive power of bitcoin in decentralizing the monopoly of wealth.
it may be a longshot but i think bitcoin is here to stay, at least on at least on the black market and/or as a form of currency in developing nations.
Excellent post Melbustus. I have nothing to add and couldn't have said it better if my life depended on it.
fake purchases at mtgox promoted all rises not only the mentioned one
Bitcoin is a finite-supply asset with a potential market size as big as the planet. Every 6-18 months since trading began in 2010, there have been these huge boom phases where new groups of people discover bitcoin, read up about it, and realize that's it's near-perfect electronic cash; something that had not been possible until bitcoin. Then other less-diligent people pile on.
Bitcoin has potential applications for ultimately handling huge payment volumes across the internet, as well as replacing some portion of traditional store-of-value assets (gold, silver) since it exhibits all of the same properties without the tangibility bug.
So there are these phases of people realizing the above and buying bitcoin, which then creates a positive feedback loop which eventually starts to suck in get-rich-quick folks and momentum traders who don't really understand the above but just see an asset appreciating in value and they don't want to miss out. So those crazy spikes occur.
The boom/bust cycle is likely to continue happening until one of two things occurs:
1) Bitcoin achieves a large enough market-cap and user-base that everyone who is going to has heard of it, researched it, and understands it to a reasonable degree.
2) Bitcoin fails completely (either an unresolvable technical issue, or governments all over the world coordinate in an extremely aggressive crackdown with far-reaching consequences for western-style freedom and democracy in general).
Bitcoin has potential applications for ultimately handling huge payment volumes across the internet, as well as replacing some portion of traditional store-of-value assets (gold, silver) since it exhibits all of the same properties without the tangibility bug.
So there are these phases of people realizing the above and buying bitcoin, which then creates a positive feedback loop which eventually starts to suck in get-rich-quick folks and momentum traders who don't really understand the above but just see an asset appreciating in value and they don't want to miss out. So those crazy spikes occur.
The boom/bust cycle is likely to continue happening until one of two things occurs:
1) Bitcoin achieves a large enough market-cap and user-base that everyone who is going to has heard of it, researched it, and understands it to a reasonable degree.
2) Bitcoin fails completely (either an unresolvable technical issue, or governments all over the world coordinate in an extremely aggressive crackdown with far-reaching consequences for western-style freedom and democracy in general).
thanks for link minerpart.
@nickenburg - what makes me a little sceptical of this is that rise happend in such a short duration of time and also that it occured so close to the sharp drop in jan 2014. although you make a good point that where was a lot of buzz and media attention around bitcoin at the specific time.
yes it does seem to be a combination of factors. i'm hoping to be a long term investor in bitcoin so of course i hope the price stabilises and increases gradually as more and more people become aware of its paradigm changing ability.
@nickenburg - what makes me a little sceptical of this is that rise happend in such a short duration of time and also that it occured so close to the sharp drop in jan 2014. although you make a good point that where was a lot of buzz and media attention around bitcoin at the specific time.
yes it does seem to be a combination of factors. i'm hoping to be a long term investor in bitcoin so of course i hope the price stabilises and increases gradually as more and more people become aware of its paradigm changing ability.
there are multi factors... Chinese investors, cyprus banks failures, willy bot at mt.gox
above all , accept it that's the true potential of bitcoin...
above all , accept it that's the true potential of bitcoin...
In the other topic, they said it was because of market manipulation.
But I like to think it was because of bitcoin was getting popular because of the bitcoin atm's.
And just because of the positive things it brings to the table instead of fiat money.
Also around that time it was summertime and I think people around that time are free and are searching for investments.
But that's just my opinion.
But I like to think it was because of bitcoin was getting popular because of the bitcoin atm's.
And just because of the positive things it brings to the table instead of fiat money.
Also around that time it was summertime and I think people around that time are free and are searching for investments.
But that's just my opinion.
hello, i'm relatively new to the bitcoin scene and wanted to ask a kind of noob question to introduce myself to the forum.
what is the general consensus around the cause of bitcoin reaching a valuation of around $1100 in november 2013 - looking at this chart it seem like a pretty accelerated spike in a short period of time.
http://bitcoincharts.com/charts/bitstampUSD#rg730ztgTzm1g10zm2g25zv
i'm guessing the 50% drop in january was related somehow to the mt.gox fiasco but i wasnt too sure what had caused the price to go up so much in the period of roughly 1 month around november 2013, any insights would be appreciated!
what is the general consensus around the cause of bitcoin reaching a valuation of around $1100 in november 2013 - looking at this chart it seem like a pretty accelerated spike in a short period of time.
http://bitcoincharts.com/charts/bitstampUSD#rg730ztgTzm1g10zm2g25zv
i'm guessing the 50% drop in january was related somehow to the mt.gox fiasco but i wasnt too sure what had caused the price to go up so much in the period of roughly 1 month around november 2013, any insights would be appreciated!
Panic buying/bots.. you'll see it again.. sooner than later.
hello, i'm relatively new to the bitcoin scene and wanted to ask a kind of noob question to introduce myself to the forum.
what is the general consensus around the cause of bitcoin reaching a valuation of around $1100 in november 2013 - looking at this chart it seem like a pretty accelerated spike in a short period of time.
http://bitcoincharts.com/charts/bitstampUSD#rg730ztgTzm1g10zm2g25zv
i'm guessing the 50% drop in january was related somehow to the mt.gox fiasco but i wasnt too sure what had caused the price to go up so much in the period of roughly 1 month around november 2013, any insights would be appreciated!
what is the general consensus around the cause of bitcoin reaching a valuation of around $1100 in november 2013 - looking at this chart it seem like a pretty accelerated spike in a short period of time.
http://bitcoincharts.com/charts/bitstampUSD#rg730ztgTzm1g10zm2g25zv
i'm guessing the 50% drop in january was related somehow to the mt.gox fiasco but i wasnt too sure what had caused the price to go up so much in the period of roughly 1 month around november 2013, any insights would be appreciated!
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