How deep do you expect the price to fall?

[Technomage]

Overall I see bitcoins as massively underpriced at single digits since it puts the market cap at under 100 million dollars. Of course a large portion of the valuation is based on the future expectations for Bitcoin but that is fine. That is how it is for something like this. The quite-possible-value for bitcoins in 5 years is just so much beyond the 100 million market cap that I seriously laugh out loud when I see bitcoins at $10 viewed as "overpriced". That is funny, really.

Right now the market cap is pretty much 100 million dollars so the value is in a comfortable spot in my mind. Short term price behaviour is a different animal though, I don't specialize in that stuff and I've been wrong about those things many times. Price may go up and it may also go down. I'm much more interested in the long term and I've been spot on about that so far.

[Adrian-x]

Right now the exchange rate is 10% driven by commerce and 90% driven by daytraders.

I presume that commerce is largely driven by Silk Road and the likes, and given the other risks in that line of business, they can afford the volatility in the exchange as just a small cost of doing business, they are also largely unaffected by price as customers buy in and they sell our all in a short space of time. 

Thinking about Bitcoin in terms of an "Innovation Adoption Curve" the economy is largely based on the Silk Road innovators and needs to glow more than 10x before the economy can be considered to have momentum.   I think the boom bust market is a good way to distribute BTC so i hope to buy when it hits a new low.

[adamstgBit]

If I think about this a bit and unfortunately that is all there is regarding the Bitcoin economy, I think it is overpriced, I would expect to see an economy develop around 1:1 with the USD and when that was stable I would imagine the demand would grow organically.

Right now the exchange rate is 10% driven by commerce and 90% driven by daytraders.

This actually represents a signifigant improvement and it's improving all the time. The ratio needs to invert, though, before bitcoin can really be considered mature enough to be a store of value.

I think no matter how big the bitcoin economy is it will always represent only 10% of the price the other 90% will always represent speculation. If the bitcoin economy grows to a 1 Billion dollar thing, then price will rise high enoght to allow for speculation to take 90% of the value. The only way this will change is if 100% of the people involved with bitcoin are paid in bitcoin and NEED to spend 90% of each bitcoin pay check to live comfortably. And so what if 90% of the price is pure speculation, 90% of the gold's value is pure speculation, no one cares, its just how it works.

[justusranvier]

I think no matter how big the bitcoin economy is it will always represent only 10% of the price the other 90% will always represent speculation. If the bitcoin economy grows to a 1 Billion dollar thing, then price will rise high enoght to allow for speculation to take 90% of the value. The only way this will change is if 100% of the people involved with bitcoin are paid in bitcoin and NEED to spend 90% of each bitcoin pay check to live comfortably. And so what if 90% of the price is pure speculation, 90% of the gold's value is pure speculation, no one cares, its just how it works.

The reason that existing markets are so dominated by speculation is because central banks can print up cheap credit at will to let their friends speculate with.

The ability to do this is severely curtailed with regards to Bitcoin trading.

[Technomage]

Okay guys.

Bitcoin mentioned on CNN TV multiple times.

Also, this article: http://edition.cnn.com/2012/09/06/politics/romney-tax-threat/index.html

Almost 4000 comments. There are multiple paragraphs on Bitcoin in that article.

Someone start posting those rockets. It's time.

[cypherdoc]

Okay guys.

Bitcoin mentioned on CNN TV multiple times.

Also, this article: http://edition.cnn.com/2012/09/06/politics/romney-tax-threat/index.html

Almost 4000 comments. There are multiple paragraphs on Bitcoin in that article.

Someone start posting those rockets. It's time.

[Crypt_Current]

"Jeff Garzik, listed on the Bitcoin website as part of its development team, told CNN the "consensus among the Bitcoin chattering class appears to be that this is a hoax." He cited an online forum in which many users express that view."

[adamstgBit]

"Jeff Garzik, listed on the Bitcoin website as part of its development team, told CNN the "consensus among the Bitcoin chattering class appears to be that this is a hoax." He cited an online forum in which many users express that view."

it probably is.

pretty sure it's a hoax, atlas posted this a month ago:

https://bitcointalk.org/index.php?topic=96616.msg1064381#msg1064381

[ElectricMucus]

"Jeff Garzik, listed on the Bitcoin website as part of its development team, told CNN the "consensus among the Bitcoin chattering class appears to be that this is a hoax." He cited an online forum in which many users express that view."

That doesn't stop anybody from posting rocket pictures though

[finkleshnorts]

"Jeff Garzik, listed on the Bitcoin website as part of its development team, told CNN the "consensus among the Bitcoin chattering class appears to be that this is a hoax." He cited an online forum in which many users express that view."

it probably is.

pretty sure it's a hoax, atlas posted this a month ago:

https://bitcointalk.org/index.php?topic=96616.msg1064381#msg1064381

Oh, hell yeah. I just got cross-posted.