BTC price shooting up to $24/BTC

[sublime5447]

Yes for sure I would tell him it was not a store of value. After 40 years or so you could say it is not just a fad. If you asked if I would have said that salt wasnt a store of value when people started to use it as a currency. I would say no.

There is no comparison between BTC and commodities. BTC is just 1's and 0's in the cloud. BTC can go to zero tomorrow, that is not a store of value. 

[Spaceman_Spiff]

Yes for sure I would tell him it was not a store of value. After 40 years or so you could say it is not just a fad. If you asked if I would have said that salt wasnt a store of value when people started to use it as a currency. I would say no.

There is no comparison between BTC and commodities. BTC is just 1's and 0's in the cloud. BTC can go to zero tomorrow, that is not a store of value. 

Bitcoin is Schrodingers store of value, maybe it is great, maybe it is dead...   

[cilphex]

I think there's another component to the recent price rise that I never hear mentioned: it's simply easier now for anyone to buy bitcoins.  Coinbase in particular lets anybody sign up and buy coins immediately with a direct bank transfer.

This rise could, in part, be a result of pent-up demand being released via these new easy-to-use bitcoin purchasing methods.

[arepo]

What does greed have to do with this at all? or the reference with musical chairs?

...

Bitcoin is going up. Why ? Because fundamentally it has to just like gold and silver did,

this is true. but greed is a quantifiable thing. take that the bitcoin market behaves in an extremely volatile manner compared to commodities with massive market caps:

the basic hypothesis is that people are irrational and will overestimate rewards vs risk. this will manifest itself in a game of musical chairs where everyone plays along until we reach a really unstable state where everyone rushes to sell sell sell. last one out loses (net loss) because trading is a zero-sum game. this state is "unstable" as the price exhibits extreme volatility, which sometimes can hide the underlying deflation.

while this occurs in all markets, with bitcoin it is exacerbated by the smallness of the market cap. the mechanism for this is related to the interplay between the relative sizes of the trade volume and the market cap. (if mean volume is large in proportion to the market cap, single buys and sells more drastically affect the market).

in other words, this rally could be a 'fluctuation' much larger than the underlying deflationary nature that gold and silver exhibit. the btcusd rate should increase over time, but that does not necessarily mean that this price event is due to that effect.

it could just as easily be musical chairs...

also

I dont understand how greed would come into play here, and like most who have followed bitcoin the situation we are in now is 100000000000x different than the crash we experienced 1 year ago

>the situation we are in now is 100000000000x different
>100000000000x different

[lebing]

This rise could, in part, be a result of pent-up demand being released via these new easy-to-use bitcoin purchasing methods.

Bingo

[Luno]

BTC $25.22, Facebook $28.26

Facebook is going to crash tomorrow!!!

[piramida]

I think there's another component to the recent price rise that I never hear mentioned: it's simply easier now for anyone to buy bitcoins.  Coinbase in particular lets anybody sign up and buy coins immediately with a direct bank transfer.

That is true, but you should not forget that BUY limit on coinbase is 100 btc while SELL limit is 10x more - 1000 BTC, so once this bubble starts normalizing, the same easy method of trading coins would guarantee descent 10 time as fast as the climb up.

[solex]

That is true, but you should not forget that BUY limit on coinbase is 100 btc while SELL limit is 10x more - 1000 BTC,

That seems crazy. Is there a reason?

[piramida]

possibly because bank transaction is reversible, unlike BTC transaction, so they are trying to minimize risks.

[ajk]

What does greed have to do with this at all? or the reference with musical chairs?

...

Bitcoin is going up. Why ? Because fundamentally it has to just like gold and silver did,

this is true. but greed is a quantifiable thing. take that the bitcoin market behaves in an extremely volatile manner compared to commodities with massive market caps:

the basic hypothesis is that people are irrational and will overestimate rewards vs risk. this will manifest itself in a game of musical chairs where everyone plays along until we reach a really unstable state where everyone rushes to sell sell sell. last one out loses (net loss) because trading is a zero-sum game. this state is "unstable" as the price exhibits extreme volatility, which sometimes can hide the underlying deflation.

while this occurs in all markets, with bitcoin it is exacerbated by the smallness of the market cap. the mechanism for this is related to the interplay between the relative sizes of the trade volume and the market cap. (if mean volume is large in proportion to the market cap, single buys and sells more drastically affect the market).

in other words, this rally could be a 'fluctuation' much larger than the underlying deflationary nature that gold and silver exhibit. the btcusd rate should increase over time, but that does not necessarily mean that this price event is due to that effect.

it could just as easily be musical chairs...

also

I dont understand how greed would come into play here, and like most who have followed bitcoin the situation we are in now is 100000000000x different than the crash we experienced 1 year ago

>the situation we are in now is 100000000000x different
>100000000000x different

Alright im pretty sick and tired of this greed shit, You think that bitcoin is being manipulated heavily right now? are you willing to wager, I will put 250 USD bet on the fact that Bitcoin will not go below 24.75 in the next 5 days, even with the RSI as high as it is, I believe right now most news is good and relative stability is what we have been seeing,

You want to talk shit or put money where your mouth is because if you want to wager more im willing to.

Edit:

Looks like a good time as we are seeing some drops but the bet is still live,

[Spaceman_Spiff]

Alright im pretty sick and tired of this greed shit, You think that bitcoin is being manipulated heavily right now? are you willing to wager, I will put 250 USD bet on the fact that Bitcoin will not go below 24.75 in the next 5 days, even with the RSI as high as it is, I believe right now most news is good and relative stability is what we have been seeing,

You want to talk shit or put money where your mouth is because if you want to wager more im willing to.

Edit:

Looks like a good time as we are seeing some drops but the bet is still live,

I am allways in for a good bet.  Ok to wager 1 BTC against me?

[ajk]

pmed

[piramida]

am I late to this bet? since I've seen 24.60 transactions several minutes ago...

[keewee]

am I late to this bet? since I've seen 24.60 transactions several minutes ago...

Got down to 24.50 

[ajk]

am I late to this bet? since I've seen 24.60 transactions several minutes ago...

Ya man your not to late ill sill take bets and pay out even though it already happened....(Sarcasm)

No this is no longer a live bet since it dropped to 24.50, only person to reply to me didnt want to wager 2 btc,

You care to set a stake and go for the 250 that i stated originally?

[piramida]

no sorry I only participate in bets that I'm certain I'll win, and predicting btc price is not one of those

[ajk]

no sorry I only participate in bets that I'm certain I'll win, and predicting btc price is not one of those

Well thats no fun, that kind of eliminates you most/all bets considering most things in life have no certainty,

your guess is as good as mine if you want to throw a bet down i can match and I will pay out,

[piramida]

I can say with certainty that bitcoin price would get down at least to $20 in three months timeframe. Would be willing to bet some expensive lunch money on that. We can use betsofbitco.in to avoid the need for escrow

[ajk]

ill put 250 USD  on that,

im on the over saying that we will be over 20+, can go into finer detail if wanted but i am saying any number of 20+ if your saying under, 20.00/20.01 included,

also would be willing to do a 2:1 type payout to whoever can get closest to the price 3 months from now? this is up to you,

[DoomDumas]

This is good reading:

http://www.runtogold.com/2012/12/during-2012-fiat-currencies-and-gold-collapse-against-bitcoin/

+1

Just stumbled upon that today myself.

Real nice to read !  This summarize all my points, and I agree with most of them.. Many good points/reason why the BTC price will still under-valuated unless it hit 100$, maybe much more in case of a major economic crash, that have a lot of chance to happen !