Bitcoin in RALLY mode

[Babylon]

I notice the price is up around 30 cents.

I am not sure why prices need to keep going up in order for more businesses to accept bitcoins though, Just so that bitcoins in circulation are worth enough for it to be a worthwhile market to tap into? or?

[FreeMoney]

I notice the price is up around 30 cents.

I am not sure why prices need to keep going up in order for more businesses to accept bitcoins though, Just so that bitcoins in circulation are worth enough for it to be a worthwhile market to tap into? or?

It's more the reverse I think. If it is used more widely then the value relative to other currencies will go up. But there is causation the other way too.

It would be pretty hard to buy a house with bitcoin right now since you would need more than all of them, but as you went to get them you'd drive the price up yourself. The trouble is that the deal is hard to work out, what do you say buy bitcoins until you've spent $2M USD and give me that many? That doesn't exactly give incentive to get the best price on them. The other way has the same problem "Keep giving me coins until I've sold them for a total of $2M" now I don't have much incentive to get a good price and we're denominating in USD anyway.

So wider trading will allow bigger trading which will open up more opportunities making the economy wider... but it won't happen all at once.

Speculating (by buying now) that it will happen eventually will help it to happen faster too. Offering to trade goods and services will help the most though.

[Bruce Wagner]

Holy Moly! Bitcoin is seeing another SURGE! It just hit $0.40 per
Bitcoin! It was only $0.06 only 3 months ago.

http://mtgox.com/trade/history

[S3052]

Holy Moly! Bitcoin is seeing another SURGE! It just hit $0.40 per
Bitcoin! It was only $0.06 only 3 months ago.

http://mtgox.com/trade/history

Yes, we are in an acceleration phase of a big , high volume rally.
At this stage, selling is not really needed from a technical perspective (unless people really need cash or need to buy sth with bitcoins in the short term)

[Bruce Wagner]

A quote from the beginning of THIS THREAD....

Next big target is the all time high around 0.08

Those who are pessimists will always be pessimists.    

Meanwhile....  those who are putting ALL of their money into bitcoin......    are very pleased.    

A 666% increase in 3 months time....   How much is THAT annually...?   2664% per year?

[fabianhjr]

A quote from the beginning of THIS THREAD....

Next big target is the all time high around 0.08

Those who are pessimists will always be pessimists.    

Meanwhile....  those who are putting ALL of their money into bitcoin......    are very pleased.    

A 666% increase in 3 months time....   How much is THAT annually...?   2664% per year?

Hey, magic must be involved. You consulted with *censored* and must be burned alive.
D:>   <---Tin Hat

LOL just joking. This is awesome! Going to start a market here in Mexico when I figure RoR out.

[Hal]

The danger is if people are buying bitcoins in the expectation that the price will go up, and the resulting increased demand is what is driving the price up. That is the definition of a BUBBLE, and as we all know, bubbles burst.

[S3052]

The danger is if people are buying bitcoins in the expectation that the price will go up, and the resulting increased demand is what is driving the price up. That is the definition of a BUBBLE, and as we all know, bubbles burst.

what you say is pure speculation.
how do you know when to define it as a bubble?
we may talk about a bubble when BTC/USD is at current value, at 100$, at 10,000$, etc.
currently, there is no technical evidence for a bubble

[jimbobway]

[Cryptoman]

Yes, all pricing in a free market is the result of supply and demand.  The problem is determining which part of demand is reasonable and which part is "irrational exuberance."

[S3052]

exactly, most of the times, people call the top way too early.

this also applies for insiders of companies

[Babylon]

The danger is if people are buying bitcoins in the expectation that the price will go up, and the resulting increased demand is what is driving the price up. That is the definition of a BUBBLE, and as we all know, bubbles burst.

It could be a bubble, on the other hand if the increase in price, even if driven purely by speculation, encourages more businesses to accept bitcoin as a form of payment that can serve as a real foundation for a bitcoin economy.

[ShadowOfHarbringer]

The current prices are rising constantly high even on a high trade volume. So I wouldn't say this is a bubble.

Mtgox BTC/USD is back to ~3,30 currently. I think this is the "normal" price, 0,40 was speculation.

[FreeMoney]

The current prices are rising constantly high even on a high trade volume. So I wouldn't say this is a bubble.

Mtgox BTC/USD is back to ~3,30 currently. I think this is the "normal" price, 0,40 was speculation.

I don't think there is a bubble either, but why would high volume imply that? For example, didn't houses turn over faster during the bubble than during other times?

[Timo Y]

The danger is if people are buying bitcoins in the expectation that the price will go up, and the resulting increased demand is what is driving the price up. That is the definition of a BUBBLE, and as we all know, bubbles burst.

Even if this is a bubble, it's unlikely to burst as long as there is a steady influx of new users and new businesses accepting Bitcoin.

We are still a long way away from market saturation.

10 million users 2 years from now I think is possible, if the history of other p2p networks is any measure. Say that each of those users spends $100 to buy Bitcoins on average.

The Bitcion economy would be worth 1 Billion USD and the naive exchange rate would be approx 1 Bln USD / 10 Million BTC = 100 USD/BTC.

[TTBit]

$8500 just crossed the tape, 40c - 44c

[S3052]

The rally is continuing.

As a side note, I am just wondering, who is the one selling 20,000 BTC at 0.51 in the order book?

At least from a market analysis standpoint, this does not make sense at all. 0.5 is really not a strong barrier. It's purely psychological.
The only fundamental reason could be that this person needs the money quickly.

(and now I stop speculating about this .. but I am just curious about that to be honest)

[davout]

Psychological barriers can be strong too i guess

[S3052]

Psychological barriers can be strong too i guess

Fully agree. My point is more that the 0.5 mark is ONLY psychological and not supported by strong market technicals. The 0.3-0.35 barrier was much much stronger.

[LZ]

Guys, why do you buy bitcoins at such high prices? The rate may still fall down and it can bring great losses.