Bitcoin Forum

I had to ask since I'm not quite clear if the bitcoin to U.S.D  is because more are using bitcoins or less are using bitcoins.

I was thinking about buying something and they want payment in static bitcoin price (same price regardless of local conversion) and went "wow!!!" ,what did I miss :o?

I think a lot of it has to do with speculation and day trading. The more people who use it the higher it could go, but there's a lot more factors involved than just the number of people using it.

Economics.

You really want a full explanation on economics here ^^? Go read up a paper, that'll do more good. Bitcoins are just another currency, so (most of the) general economic laws are in effect here.

Large scale pump and dump?  ::)

Pump and hold, if everyone do that it will be $10,000 in no time..

Just for other thought. Is this the week dwolla completely pulls use for exchanges?  I've been trying to keep up with bitcoins and the world but the last time I saw this high was when MtGox stopped paying out in U.S.D.

If bitcoins are anything like gas prices they'll hit some point and people will start riding bikes to work and they will have to come down.

As uncertainty over whether Bitcoin will survive longterm subsides the #1 determining factor will be how many people are currently interested in Bitcoin. As more people learn about it the price will continue rising (barring the encryption being catastrophically broken).

Supply and demand, where supply is inelastic and demand increases with number of users. The prospect of continouous appreciation adds to the demand.

http://web.ku.edu/~edit/affect.html (http://web.ku.edu/~edit/affect.html)

It's lot of things. Biggest is I believe the idea itself which is spreading. Illegal market has also influence. Smallest are casinos and other projects.

I would not ignore the cost to mine a bitcoin/hour. This has been increasing at a level far faster than the price to just purchase one. This inequity cannot be maintained indefinitely.

Greed, economic weakness and luck :)

If more and more people want to buy bitcoins the value of it rises like now as the chines want bitcoin the price rises but when things like the silk road crash happened the value went down because people were scared that all the people trading on SR would sell there bitcoins and let to manny bitcoins on the market the price goes down.

BINGO!

1- People are hearing about how others are making money and want a piece of the action
2- Fiat currencies are a DISASTER

As major economies are falling apart people are looking for a place to put their savings or investments, so Bitcoin, which is up what 3000+% in the last year.... yeah that looks like a decent investment. It is definitely not without risk, but no high yielding investment ever is.

The Bitcoin Economy. All about Bitcoin.

http://www.youtube.com/watch?v=CANxhNzx72w


fits here  ;)

Currently, the Chinese 0 fee exchanges are causig rise

Speculation, trading, usage, pump and dump, chinese...

economy, scarcity by design, speculation, hype

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I think a lot of it has to do with speculation and day trading. The more people who use it the higher it could go, but there's a lot more factors involved than just the number of people using it.
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The more people that use a currency don't necessarily make its value go up, however it does help with stability and social acceptance
. What is making the value of bitcoins go up is a combination of things: 1. it constructed to be a limited resource where each bitcoin is marginally more difficult to mine than the one that came before it. 2
competition amongst miners in growing the network hashrate geometrically 3. when it no longer becomes profitable to mine, people who want bitcoins are forced to buy from sellers -- the sellers being the miners who have an inventory, this drives up the market price 4. when the market price rises sufficiently, it becomes profitable again to mine, steps 2-4 repeat.
5. The velocity of money of bitcoins is very slow. Many bitcoins never enter circulation or are exchanged for goods/services, but rather are hoarded in the expectation that their buying power will increase
6. They have an anonymity premium in that taxes are not paid and that transactions cannot be tracked. Some people pay a premium for those features.

Price+Time=Value

Don't forget people doing Arbitrage like me.

Just trying to chill the Chinese CNY market by buying up all available Bitcoins using USD.

Doing it now. And if anyone thinks I'm talking crap, feel free to hit me up with a PM and I'll show you proof. :)

Peace.

Greed and inflation of usd.

Number of users, average holding preference.
Speculation tries to take the appreciation earlier than otherwise would have happened. Errors on the part of the speculators create volatility (compared to the natural exponential curve).

Why not to da moon immediately? Not enough speculators know.

trading on markets and mining gives the current value.

supply and demand, supply is going to cut in half in like 3 years so :)

We should see the price to go up a lot after the BTC mining halve 3 years later...

If more people and merchant start using Bitcoin, we should see a big rise in the value..

That's not going to happen.

Why not?