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Title: Why Bitcoin’s extraordinary price rise is driven by more than speculation Post by: keanbosch on July 02, 2014, 02:37:48 AM One of the most potent criticisms that has been leveled against the popular cryptocurrency Bitcoin, is that the price is intimately linked with speculation and that there are few fundamental factors driving its extraordinary rise from $5 per Bitcoin in 2011, to $600+ today.
Those with a more bullish dispositon on the cryptocurrency counter that there are wide variety of factors playing a role in determining its price. http://www.ahametals.com/bitcoins-extraordinary-price-rise-driven-speculation/ (http://www.ahametals.com/bitcoins-extraordinary-price-rise-driven-speculation/) Title: Re: Why Bitcoin’s extraordinary price rise is driven by more than speculation Post by: Light on July 02, 2014, 02:49:08 AM I'd straight out have a tendency to disagree. I would assert that most of the price is driven by speculation - the rest is simply some small driving factors that have little influence whatsoever. While I have stated that increased infrastructure should lead to higher prices, there is no definite price region anyone can predict simply because the whole thing is too grey. Not to mention, what justifies a price at $640 where we are now and $700 or $500 in the future...
Even their 'factors' are simply just the infrastructure and supply and demand really. Quote usage in trade, money supply and price level Title: Re: Why Bitcoin’s extraordinary price rise is driven by more than speculation Post by: Ron~Popeil on July 02, 2014, 03:00:48 AM I'd straight out have a tendency to disagree. I would assert that most of the price is driven by speculation - the rest is simply some small driving factors that have little influence whatsoever. While I have stated that increased infrastructure should lead to higher prices, there is no definite price region anyone can predict simply because the whole thing is too grey. Not to mention, what justifies a price at $640 where we are now and $700 or $500 in the future... Even their 'factors' are simply just the infrastructure and supply and demand really. Quote usage in trade, money supply and price level Infrastructure investment brings value as well. When your company is spending on building a bit coin infrastructure you have an interest in bit coin doing well. That brings some price support with it. Adoption will bring more as will additional infrastructure. |