Bitcoin Forum

The Bitcoin exchange market is confusing the hell out of me.

Who makes up the majority of people behind so much of the volume lately (say, since February)?
1) Low income individuals, college students, and young people living with their parents?
2) Medium income individuals, professionals, and high-demand skilled laborers?
3) High income individuals, business owners, and trust fund babies?
4) Paul Krugman?

Why have people been buying lately?
1) Trying to obtain a profit by short-term and medium-term trading?
2) Thinking of Bitcoin as a long-term investment (like gold), will sit on it for years, and rarely check the exchange price?
3) Buying small amounts (relative to income) to see what all the fuss is about, and maybe donate or gamble some?
4) To immediately spend on goods and services that some may frown upon (drugs, etc)?

I'd pay for the answer to that.

1) and 1)

these are very good questions... someone must have the data to shed some light?

Everyone who read about bitcoin in the news when it crashed a few weeks ago and decided to sign up for mt gox and decided, "what the hell, I'll buy a couple coins". They just got their mtgox account verified and transferred money up to the exchange.

1) and 1)
Except I live alone, and I day trade, but I have trust in the future of the cryptocurrencies.

I think there is a closely knit league of heavy buyers that are pumping the price up when nobody is selling, then as soon as they see any significant ask volume that isn't their own, they bail out and start dumping.

At least that's what it seems like to me.

Just bought in March

We are 2) and 2)

Maybe a closely knit ivy league of tall buyers.

I've sold at 250 - and I am buying back.

people who have a clue are buying, people who don't have a clue make forum threads

 2) and 2) - although I am still checking the price ticker rather a lot

I would say mostly 1 and 1, but you have a little bit of everything. I'm sure their are some higher wealth people making some bets on the future of bitcoin as well as some VCs who see potential for projects. There are likely new casino sites, small exchanges, etc. being worked on and one thing they need to start is a good chunk of bitcoins, so you probably have some of that too.

The shutdown of bitcoin-24 shows that there were few who had lots of fiat, and many who had little fiat. The few with lots of fiat were not people who send in lots of fiat, but bitcoin whales selling into the previous rally up to $266. So the fiat is being transfered from many small fish to some big whales. Likely the same is happening today.

Since most people lose money through investing and only some make money I think the ones making it are the whales by selling today, not the many small investors that buy today. Just my guess that could be proven wrong. The price will tell the truth within a few months.   

1) and 2) although I will check the price

2 & 4.

the top economists are secretly buying in and talking crap about it in the media and then they will have an epiphany

3 and 2

1, 2, 3. I suspect mainly 2 at this point.

Pretty much all of the above, I suspect the majority of coins are in section (2), but the majority of people in (1) and (3).

Started out with 1, then moved to 2 and now we are well into 3. (Winklevii, Silicon Valley etc... this is not speculation)

If I had to speculate on those who are buying over the last few weeks many from google, western union + paypal are all increasing their share before any external announcements are made.

Interesting though for sure.  If there was some "insider" information that would be a very likely scenario.

2 & 3