1000 USD before the end of the month.

and I thought I was overpaying my 10 BC at 410 USD 

Today 18Nov, bitcoin will top the 6 hundreds USD !

Yes, pandora's box is open.

Also there will be MUCH LESS incentive for an investor to invest USD in a Bitcoin paper instrument rather than holding bitcoin himself if he wants exposure.

In the case of metals, people don't want to deal with physical delivery, transportation, storage... But if buying and storing bitcoins becomes easy and secure, why to put USD in a bitcoin tracker when you can get bitcoin directly ?


For this reason, the capability of the financial dictators to manipulate bitcoin are likely going to be fairly low, and they know it.

For this reason they are really hesitating right now between visible repression and invisible manipulation. Usually they choose the latter but in this case, they are probably very tempted by the former because they know the dangers.

It seems likely that we are seeing the end of financial dictatorship and nothing can better free the world than this. 

I would not call the rise and correction of 2011 a bubble and its explosion.

Bitcoin has only been rising with corrections, some big and some small. But it has never been in bubble territory.

Bubble means : disconnection from the fundamentals.

Fundamentals of bitcoin are not without risk but very solid. We've always been far from a bubble imho

Yes, I mean only 6 billion USD in the bitcoin system is fairly low. It becomes significant, but it's not getting hot yet.

Bitcoin can be papertraded too ! Like anything of course.

Like they did for gold and silver, they create a "fund" where people invest and they pretend they buy the equivalent metals. Then instead of actually buying the metals with the money, they sell the paper gold to crash it. This is the method that is used to divert money away from really buying physical metals despite investors demand for metal exposure.

The dark forces will either try to BAN IT outright in as many countries as possible, or pretend to accept it but then try to manipulate it behind the scene by creating funds, trackers, indexes, options and all the paper that can be associated with a currency/share like the bitcoin.


 

The dark forces would buy bitcoins only to create crashes to scare people away. Buying bitcoins and holding them makes no sense for them because it is just increasing the market capitalisation of the bitcoin system.

We could have said the train has left the station when it went from 10 cents to 1 USD. Or to 10 USD. Why today ?

The train will have left the station when there will be thousands of start-ups worldwide working on bitcoin related services, thousands of articles in the mainstream press all around the world, mass adoption in physical and virtual shops etc...
At that point one might say "the train has left".

Right now it's only warming up slightly.

It is true but you know what the "big raise" looks like only afterwards.

It could go to 1500 before correcting to 900 for exemple...

1000 should be sooner than most people think now.

Bitcoin has doubled in less than two weeks from 250.

So we could double again in ten days and reach 1000 before the end of the month.

It is likely that we'll reach 1000 by the end of the year.

However a correction is likely too.

Upward gain potential is greater in my opinion.

it's not about "if" but "when".

Which one will come first, 1000 or 500 ?

already a new high of 575 USD on Mtgox.

This bull is wild.

So wild in fact that it must scare lots of people right now of jumping in. I think lots of people are watching and ready to buy the next correction. And it seems also lots of people keep buying no matter what the price is.

Nobody knows for sure. It probably will correct, but the question is : is it going to be lower than 550 after the future correction/crash ?

We might crash from 2000 to 600  In such a case it is still better to buy now and hold.

Or it may crash this week during the official hearings in the USA.

We don't know.

from 500 to 550 USD, a 10% increase in what ? 1 day ?

That's very good for the FBI who will get much richer selling in 2-3 years rather than selling now... or not...

Wanted to post this in economic section but I cannot since I am a "newbie".

A bitcoin is a share !

By buying a bitcoin you buy a mean of exchange but also one of the only 21 millions coins that will ever exist and thus you "own" part of the bitcoin payment system.

See it as a currency, yes, but see it also as a share of a financial platform.

The owners of this platform will own between 12 and 21 million coins. How much these coins are worth will depend on how useful the platform is to people and not just coin/share owners.

Bitcoin platform is not about investing, it's about facilitating transactions.

But if you want to have a share in that financial platform, you invest in a BC and hold it and thus hold a share of the platform.

It is not needed to own BC to use BC as a payment system. Transactions can be made from national currencies through exchange rate, these services already exist. People who only want to use BC for transactions purposes will not buy and hold bitcoins but only convert in and from bitcoins. Especially in the early phase when volatility is high.

Bitcoin = decentralized financial platform that owns its own currency and where the value of the platform is equal to the monetary value of its total currency.

For exemple paypal is a financial platform but it does not own any mean of exchange. It is only facilitating transactions of government issued currencies. So it's value comes only from the money it can extract from the commissions on the transactions.

You will say that the BC system does not generate any cash-flow, contrary to paypal, and thus does not pay dividends to shareholders. This is correct, but no dividend does not mean no value. With Bitcoin, the value of the platform remains in the platform in the form of it's bitcoins and cannot be loaned, sold, mortgaged, paid out or anything. There are no "profits" because the system is not extracting commissions from transactions, but there is an undeniable utility and thus a value.

People who say that "bitcoins" have no "intrinsic value" are thus wrong. They are a share of a financial platform that creates economic utility and value and that has the potential to create much much more value in the future for its current and future users. The value of the BC platform is real for the people and organisations that use it, thus a share of that platform represents real value.

If we compare currencies, one could say that they are also "shares" of the mainstream financial platform. But this is not the case. The reason is that national currencies are created out of nothing by banks through fractional reserve and by central banks through monetization. There is no limit to the quantity of currency that they create and that's why all government backed fiat currencies become worthless.

I believe that the price of a bitcoin must reflect the value of the bitcoin platform divided by the amount of bitcoins outstanding.

Today at 500 USD for 12 million BC, that's a valuation for the platform of 6 billions USD. I think this is a fair value for the system today given its use and recognition. Going much further at this stage would bring us to an overvaluation. It is maybe slightly overvalued at the moment given the uncertainties.

As more people use it, more people will be holding BC, so the value of the platform will rise and the bitcoin value will rise in equal proportion.

Calls for a BC at 10 000 USD would mean a valuation of the platform at 120 billions USD. This is not impossible but would require a massive and successful adoption of the BC system around the world without drawback. Some people are calling for a future 400 billions USD valuing the coin at over 30 000 USD. Today it's impossible to say if the bitcoin platform will reach such a socio-economic utility. A huge success of BC around the world could even lead to a valuation of the platform beyond that point. This would not be overstretched if bitcoin could reach a 1% share of the money use/transactions on the planet. If bitcoin would ever reach that stage we would be looking at a valuation of the platform around 800 billions or over 50 000 USD per share or bitcoin (depending on number of shares at that moment).
Probably a top ceiling in case of extreme success of the platform would be to achieve 15% of the worldwide transactions, valuing the platform around 10 trillions.
The other extreme of complete failure is also still possible at this stage, bringing the value of the platform back to 0. It could be for exemple, a quantum leap in technology that allows new quantum computers to break the encryption.

By buying a bitcoin you buy a mean of exchange but also one of the only 21 millions coins that will ever exist and thus you "own" part of the bitcoin payment system.

See it as a currency, yes, but see it also as a share of a financial platform.

The owners of this platform will own 21 million coins. How much these coins are worth will depend on how useful the platform is to people and not just coin/share owners.

Bitcoin is not about investing, it's about facilitating transactions.

But if you want to have a share in that investment platform, you invest in a BC and hold it and thus hold a share of the platform.

It is not needed to own BC to use BC as a payment system. Transactions can be made from currency through exchange rate, these services already exist.

People who only want to use BC for transactions purposes will not buy and hold bitcoins but only convert in and from bitcoins.

like a real wallet full of cash, you have to remain aware of it or it gets lost or stolen...