It is funny reading some of the opinions. However the current price is somewhat ridiculous. And you might think the soaring price is a good thing, it actually is not.

It is relevant. Every information is important.

Since money is scarce, it is impossible for the price to rise exponentially. I believe even the $1100 price is way above our realistic expectations. At least now we know what drives this growth... the rise of demand from China.

My highest estimate for the price bubble would have been $800 (mtgox). We're past that. So $1000 is within reach. Even though it wont hold, it is still a remarkable performace.

My question is:

Would you rather build a GPU miner for $1500 or buy LTC when the current bubble pops, for $1500, approx. 700-1000 LTCs?

Bitcoin price is most commonly expressed in USD because it is the most convenient.

USD is accessible, relatively easy to transfer. So it is a convenient medium of exchange.

If you were to buy BTC for gold, things would get more complicated. For instance, most people do not own gold. Second, gold is not an e-currency, so it cannot be exchanged digitally.

Although BTC/gold would better express the value of BTC, beware, because gold and bitcoin show very similar characteristics.
So it would not show you the price anomalies.

The trick may be to compare the buying power of the dollar to the price of one BTC expressed in dollar. This way one BTC's worth is expressed in "physical goods".

I just posted this in the similar thread.. but I thought I'd share my thoughts in this topic, too.

Unless Bitcoin is destroyed by a 51% attack, it is bound to thrive within an unstable economy.

It is similar to gold, but imo bitcoins are better than gold. Think as an investor. Bitcoins do not inflate. They cannot be stolen if stored properly (offline). They are easy and safe to move. Almost impossible to counterfeit as far as I know.
If you have some knowledge about how currencies work, you should be a fan of BTC. It is not the future, but it is way better than the USD. And as long as financial instability remains, BTC will thrive. Bubbles will come and go, just like the one nowadays, but I'm pretty sure it is going to reach $1000 in a year.

And once big financial institutions endorse BTC, the price may soar to $100k or who knows how high. It is theoretically possible to introduce bank accounts, credit/debit cards in BTC.

Or in case the USD crashes, where do you think all the money is gonna flow? When half the world economy will disappear in a day? BTC has a bright future for the years to come.

Unless Bitcoin is destroyed by a 51% attack, it is bound to thrive within an unstable economy.

It is similar to gold, but imo bitcoins are better than gold. Think as an investor. Bitcoins do not inflate. They cannot be stolen if stored properly (offline). They are easy and safe to move. Almost impossible to counterfeit as far as I know.
If you have some knowledge about how currencies work, you should be a fan of BTC. It is not the future, but it is way better than the USD. And as long as financial instability remains, BTC will thrive. Bubbles will come and go, just like the one nowadays, but I'm pretty sure it is going to reach $1000 in a year.

And once big financial institutions endorse BTC, the price may soar to $100k or who knows how high. It is theoretically possible to introduce bank accounts, credit/debit cards in BTC.

Or in case the USD crashes, where do you think all the money is gonna flow? When half the world economy will disappear in a day? BTC has a bright future for the years to come.