Topic: Why has bitcoin been increasing so quickly? (Read 4449 times)
There is no volatility. There is a steady rise and this is different from volatility. It should be rising much faster because the slow rise today will lead to much aggressive rise tomorrow.
How would you quote a 1 year lasting contract in BTC? Yo´ll never know what value you´ll have to pay.
Bitcoin is cash. You can't sell cash if you don't have the cash! You can't sell something you don't have! Leveraged margin trading in fiat has practically killed the fiat financial system. Why would you want the same happen to bitcoins?
If there are no new bitcoins introduced into the network and more and more people start buying bitcoins, what will start to happen? I assume more people are holding/storing bitcoins then using them. If these people don't sell them and more and more investors jump in wouldn't the system in time run out of bitcoins to buy? I'm not a stock market person nor a finance expert...
Yeah that's clear 
It's always just a matter of price. The price will rise until demand is satisfied. The price will drop until supply is satisfied. Nothing to see here.
If people aren't selling, it's because the price isn't high enough. Likewise if people aren't buying, the price isn't low enough.
If there are no new bitcoins introduced into the network and more and more people start buying bitcoins, what will start to happen? I assume more people are holding/storing bitcoins then using them. If these people don't sell them and more and more investors jump in wouldn't the system in time run out of bitcoins to buy? I'm not a stock market person nor a finance expert, but I guess I should go back to the very start of how money is even conceived. I mean not one person can just add a million BTC into the network and cause problems. Just like US dollars. Someone, somewhere must have the power to introduce new money itself into the system. Having that ability, power and control is hard to imagine. Eventually though since there is a CAP on BTC things will just all flaten out?
You are describing what economists refer to as a shortage. To see what causes a shortage, check out my responses to this post:
https://bitcointalksearch.org/topic/can-a-keynesian-demand-crisis-happen-147813
Basically, new bitcoins don't have to be added. Shortages are resolved with higher prices. If no one wants to sell you a bitcoin, just offer me a million bucks for a bitcoin and trust me, I'll stop hoarding it.
Ahh ok. So "everyone has their price" falls into this topic here. Even a bitcoin hoarder that hates to sell or give them up has their price. The only problem with that is even relating this to real American money people do the same thing. Hoard their money and never let it go. They'll actually die before they give it up. With American dollars when someone dies at least that money can be reached. If a bitcoin hoarder dies, good luck with that I guess.
If there are no new bitcoins introduced into the network and more and more people start buying bitcoins, what will start to happen? I assume more people are holding/storing bitcoins then using them. If these people don't sell them and more and more investors jump in wouldn't the system in time run out of bitcoins to buy? I'm not a stock market person nor a finance expert, but I guess I should go back to the very start of how money is even conceived. I mean not one person can just add a million BTC into the network and cause problems. Just like US dollars. Someone, somewhere must have the power to introduce new money itself into the system. Having that ability, power and control is hard to imagine. Eventually though since there is a CAP on BTC things will just all flaten out?
You are describing what economists refer to as a shortage. To see what causes a shortage, check out my responses to this post:
https://bitcointalksearch.org/topic/can-a-keynesian-demand-crisis-happen-147813
Basically, new bitcoins don't have to be added. Shortages are resolved with higher prices. If no one wants to sell you a bitcoin, just offer me a million bucks for a bitcoin and trust me, I'll stop hoarding it.
If there are no new bitcoins introduced into the network and more and more people start buying bitcoins, what will start to happen? I assume more people are holding/storing bitcoins then using them. If these people don't sell them and more and more investors jump in wouldn't the system in time run out of bitcoins to buy? I'm not a stock market person nor a finance expert, but I guess I should go back to the very start of how money is even conceived. I mean not one person can just add a million BTC into the network and cause problems. Just like US dollars. Someone, somewhere must have the power to introduce new money itself into the system. Having that ability, power and control is hard to imagine. Eventually though since there is a CAP on BTC things will just all flaten out?
If I check a yearly chart it looks like around January 1st of 2013 the BTC value has quickly increased from around $13 all the way up to $31 in 2 months. No where in the past 1.5 years it has done that. What is causing it to rise so quickly and can we expect either a crash, flat line or keep increasing?
Also, what happens to coins that are lost or just frozen? Someone loses a wallet. Loses their key. Someone dies. These coins aren't circulated back into the system, right? How does the system get more coins introduced, who controls that?
It seems like the price isn't stop increasing..Also, what happens to coins that are lost or just frozen? Someone loses a wallet. Loses their key. Someone dies. These coins aren't circulated back into the system, right? How does the system get more coins introduced, who controls that?
There is actually a pretty easy way to prevent this. Require physical delivery of Bitcoins. In other word: each and every trade should be visible on the Blockchain otherwise do not except it and don't pay. If everyone does this naked short selling (of Bitcoins) is infeasible. The same would be true for PM but physical delivery (sending and insuring the PM) is costly when compared to physical delivery of Bitcoins (having a transaction included in the Blockchain).
This! Don't keep bitcoins on exchanges and banks longer than the shortest possible time. I agree. Leveraged short selling on the futures markets has allowed the bankers to keep the rise in gold and silver prices under control. Considering all of the quantitative easing and fiat currency debasement going on around the world, the precious metals prices should be moving up in a parabolic fashion similar to what we see are seeing with bitcoin. I sure hope the bankers aren't able to devise a way to naked short sell bitcoins.
There is actually a pretty easy way to prevent this. Require physical delivery of Bitcoins. In other word: each and every trade should be visible on the Blockchain otherwise do not except it and don't pay. If everyone does this naked short selling (of Bitcoins) is infeasible. The same would be true for PM but physical delivery (sending and insuring the PM) is costly when compared to physical delivery of Bitcoins (having a transaction included in the Blockchain).
You can't sell something you don't have! Leveraged margin trading in fiat has practically killed the fiat financial system. Why would you want the same happen to bitcoins?
I agree. Leveraged short selling on the futures markets has allowed the bankers to keep the rise in gold and silver prices under control. Considering all of the quantitative easing and fiat currency debasement going on around the world, the precious metals prices should be moving up in a parabolic fashion similar to what we see are seeing with bitcoin. I sure hope the bankers aren't able to devise a way to naked short sell bitcoins.
Low supply and high demand are causing bitcoin's current rise in price. The rise in price is not indicative of a problem with bitcoin, it's a problem with the dollar. More and more people are trying to make their dollars someone else's problem.
There is no volatility. There is a steady rise and this is different from volatility. It should be rising much faster because the slow rise today will lead to much aggressive rise tomorrow.
How would you quote a 1 year lasting contract in BTC? Yo´ll never know what value you´ll have to pay.
Bitcoin is cash. You can't sell cash if you don't have the cash! You can't sell something you don't have! Leveraged margin trading in fiat has practically killed the fiat financial system. Why would you want the same happen to bitcoins?
The thing I keep in mind is that a) the market (=80% MtGox) is quite small, also compared to total Bitcoins and b) does not have a sophisticated short function yet. Therefore, selling pressure will only appear when an existing BTC holder cashes out. Negative sentiment with others won't be reflected in the market. Thus, this small market is much more prone to air pockets than big sophisticated markets.
Since we all know that markets never move in a straight line, I am keeping all options open. Given my approach (all or nothing, trying to increase stake by medium term trading), any reversal to the mean means a buy in terms of trading. If BTC has a future, we have only just begun.
Since we all know that markets never move in a straight line, I am keeping all options open. Given my approach (all or nothing, trying to increase stake by medium term trading), any reversal to the mean means a buy in terms of trading. If BTC has a future, we have only just begun.
There is no volatility. There is a steady rise and this is different from volatility. It should be rising much faster because the slow rise today will lead to much aggressive rise tomorrow.
How would you quote a 1 year lasting contract in BTC? Yo´ll never know what value you´ll have to pay.
Pump n dump is so 2011... Or Ltc, ppc, Dev, solid, etc... Btc is past pumping then dumping. No more one night stands for btc. 
What is causing it to rise so quickly
I don't think it's rising quickly. Actually this is a very slow rise and should be much, much faster!Definitely rising too fast. Too much volatility keeps the masses from switching to BC.
What is causing it to rise so quickly
I don't think it's rising quickly. Actually this is a very slow rise and should be much, much faster!Definitely rising too fast. Too much volatility keeps the masses from switching to BC.
However, I'm thinking its a pump and dump, easy to do in such a small market. Just buy the price up, then offload your coins in the bull hysteria
Yeah, thats what I did past week. Stupid me..
What is causing it to rise so quickly
I don't think it's rising quickly. Actually this is a very slow rise and should be much, much faster! 
Well. Limited quantity. People think BTC is great and want it. Supply and demand. Going big time. Imagine if only 1% of the world pop wants just 1 btc. Buy now before the super wealthy do. Make some cash. Watch the bears day trade and lose... Again. Be glued to Clark Moody's real time trades on mt.Gox . Grab a few beers and enjoy the show. Read the press releases. Rinse and repeat.
TC
TCIt would be nice if it were supply and demand. Great for all of us as the upside is vast.
However, I'm thinking its a pump and dump, easy to do in such a small market. Just buy the price up, then offload your coins in the bull hysteria
Well. Limited quantity. People think BTC is great and want it. Supply and demand. Going big time. Imagine if only 1% of the world pop wants just 1 btc. Buy now before the super wealthy do. Make some cash. Watch the bears day trade and lose... Again. Be glued to Clark Moody's real time trades on mt.Gox . Grab a few beers and enjoy the show. Read the press releases. Rinse and repeat.
TC
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