~$72,000 worth of BTC is mined every single day. Where does it all go?
It has been discussed before that not nearly all of the coins are sold at all, they are saved. How much of it is sold is unknown, but it is nowhere near 100%. 
Topic: White Wizard Bitcoin analysis - Part 1: The August 23rd crash - page 2. (Read 4122 times)
Perhaps it is being horded so that it may cause a giant crash on Mtgox, push the price down to $7 and then to $4 over inconfidence, buy it all up again at that price, increase valuation.
But, um, I don't know it doesn't seem to be a very likely or intelligent plan. Even if you push it to $7, tons of people may start buying then and mess up the whole plan. Bitcoin is too volatile to really know what's going on from one moment to the next. I buy when the price looks low and sell when it looks high.
Even all the money mined today can not breach the $11 wall.
But, um, I don't know it doesn't seem to be a very likely or intelligent plan. Even if you push it to $7, tons of people may start buying then and mess up the whole plan. Bitcoin is too volatile to really know what's going on from one moment to the next. I buy when the price looks low and sell when it looks high.
Even all the money mined today can not breach the $11 wall.
There are too many buyers for bitcoin for it right now to crash... to get to $9 we need 800,000$ of BTC sold on Mtgox, but only 300,000$ bought to get to 13.
BTC is in short supply for some reason.
BTC is in short supply for some reason.
~$72,000 worth of BTC is mined every single day. Where does it all go?
There are too many buyers for bitcoin for it right now to crash... to get to $9 we need 800,000$ of BTC sold on Mtgox, but only 300,000$ bought to get to 13.
BTC is in short supply for some reason.
BTC is in short supply for some reason.
I think that speculators of a necessary part of any market, including Bitcoin. Speculators provide liquidity and assume the price risk that the producers (miners), and consumers (merchants) do not want to accept.
Imagine how wide the bid/ask spread would be if there were no speculators present in the market.
Imagine how wide the bid/ask spread would be if there were no speculators present in the market.
even with media attention, it would take a few days for any new investor to fund an account. So any movement this weekend would be in the btc community. It would seem that any spark in new investor would be coming in more mid this week no?
Hahaha. It's North Korea!
Some like to pin the blame on one person, those that are in the Bitcoin spotlight are easy targets.
Really it's the fact that the exchange rate is driven solely by speculation. People held onto their coins in the hopes of mass media attention from the convention driving up the price.
The reality of the situation is that the convention was a great success for the longterm development of Bitcoin, but not for the speculators who care only for a get rich quick scheme.
Over time the exchanges will be less dependant on speculators, but right now the majority of buyers are speculators and so we will have these wild swings.
Really it's the fact that the exchange rate is driven solely by speculation. People held onto their coins in the hopes of mass media attention from the convention driving up the price.
The reality of the situation is that the convention was a great success for the longterm development of Bitcoin, but not for the speculators who care only for a get rich quick scheme.
Over time the exchanges will be less dependant on speculators, but right now the majority of buyers are speculators and so we will have these wild swings.
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