Bitcoin Forum

That explains quite a lot, $15m so far invested in the Bitcoin investment trust, second half of video. 

That will have moved the needle quite a bit.

http://finance.yahoo.com/video/bitcoin-rally-213700257.html

Indeed.

Assume that the $15m includes the $2m seed fund. Buying since launch a few weeks ago would iimply an average price between $200-$260. So 13m / 230 equals 56,500 bitcoins bought for long-term investment. Bitstamp and gox must be hammered by btc withdrawals. Unless this brings earlier hoards out of cold storage then a major crash from current price levels seems unlikely.

For some reason I suspect the steady 1btc per 8 seconds buying bot might be connected to this. It might be how the trust maintains parity as investment comes in.

Well, there you go.  LOL.

Love to hear the comments from folks who said SecondMarket was "priced in" from the get-go.

I can tell you with some confidence that the traders for Secondmarket's Bitcoin Investment Trust don't buy on the exchanges.  That isn't to say they don't impact the price on the exchanges.

Indeed, the initial news stories all mentioned that they source from miners and other dark/off-exchange sources.

Nice to see you back, proudhon! You should change your avatar to white instead of gray, as a symbol of resurrection.

At some point this influx will stop/pause and lead to a big correction, but I suspect from 2-3 times above where we are today, and down to 50-100% more than we are at.

I would like to see pricefall but I think it could up to $600 for 1 btc and then it could fall to $320 and it will never come back below $100.....

I am very interested to know what other mechanisms exist to purchase bitcoins, the only ones I know of are:

- Exchanges
- Coinbase
- BTC ATMs
- In-person cash sales

In person cash sales & ATMs are not going to provide the $millions in volume needed and coinbase has daily limits and uses exchanges in the back end anyway.

So... Where else can BIT purchase?

i thought that second market already holds the btc and sells them to the investors. the investors dont buy at exchanges, right.

It started with $2m dollars worth (18,000 btc at the time) but has to buy as people buy into the scheme.  They mention links to around 100 sources, mainly large miners I guess which must be mopping up  a lot of the new liquidity for now, 3600 btc per day at $300 = 1 million dollars new issuance per day.

Find one or more large holders, make contracts with them. Something along the lines of agreeing to buy X BTC for Y USD each over Z months, for example. Now you've locked in a price and your liabilities are better known than if you were just going to buy on the exchanges as needed. Chances are, you'll get a pretty decent rate when buying in bulk, too.

There are businesses, miners, and other individuals who hold relatively large sums of bitcoins and Secondmarket seeks them out and builds relationships with them.

First time I saw a news site use other than MtGox (this time - BitStamp) as their 'official' price metric.

Well, that doesnt sound very democratic and fair does it?

Is there anything preventing you from seeking out and building relationships with those who hold large sums of bitcoin, and might want to sell?

Didn't think so.

Absolutely democratic and fair.