A bullish sign, or sign we've reached a top?

[Bimmerhead]

Bitcoin has finally reached the status of a speculative fx play in a 'mainstream' publication.  Are we thus at a top?

http://moneymorning.com/ppc/reports/bitcoins.php?gclid=CIvtyPml0LUCFeVDMgodcw0A3Q

[1714860748]

1714860748

[Logik]

Personally I would categorise that as late in the 'smart money' or early in the 'institutional investor' stage of the bubble cycle. Although the extent to which the bubble cycle can model what's happening here is somewhat dubious.

Remember the dotcom bubble? When your mother starts leveraging to top up her MtGox balance then be worried. If you take the view that Bitcoin is going to back a large number of internet transactions in the future then institutional interest in Bitcoin is a perfectly logical and healthy part of that happening, isn't it?

[FreeMoney]

whose value has skyrocketed 399,900% in one year.

Oh really??

[organofcorti]

Imagine a type of money, fully protected from the destructive polices of central bankers, whose value has skyrocketed 399,900% in one year.

That's what we're talking about with Bitcoins... a new form of "virtual money" that's quickly becoming the most talked about currency investing play of 2013.

Imagine a news service, fully protected from press releases, who actually understand something whereof they write.

[b!z]

whose value has skyrocketed 399,900% in one year.

Oh really??

not this year, silly

[Rygon]

whose value has skyrocketed 399,900% in one year.

Oh really??

Initially, they were worth exactly nothing, they could have said 999,999,900% and still be technically correct.

[Peter Lambert]

whose value has skyrocketed 399,900% in one year.

Oh really??

Initially, they were worth exactly nothing, they could have said 999,999,900% and still be technically correct.

Perhaps it is more accurate to say initially they were worth an unknown amount. The first transaction assigned a value to them, and then you can measure from there.

[keewee]

whose value has skyrocketed 399,900% in one year.

Oh really??

Initially, they were worth exactly nothing, they could have said 999,999,900% and still be technically correct.

Perhaps it is more accurate to say initially they were worth an unknown amount. The first transaction assigned a value to them, and then you can measure from there.

I think the value first given to bitcoins is described on this page: http://newlibertystandard.wetpaint.com/page/2009+Exchange+Rate

From that page: "During 2009 my exchange rate was calculated by dividing $1.00 by the average amount of electricity required to run a computer with high CPU for a year, 1331.5 kWh, multiplied by the the average residential cost of electricity in the United States for the previous year, $0.1136, divided by 12 months divided by the number of bitcoins generated by my computer over the past 30 days."

[Rygon]

whose value has skyrocketed 399,900% in one year.

Oh really??

Initially, they were worth exactly nothing, they could have said 999,999,900% and still be technically correct.

Perhaps it is more accurate to say initially they were worth an unknown amount. The first transaction assigned a value to them, and then you can measure from there.

I think the value first given to bitcoins is described on this page: http://newlibertystandard.wetpaint.com/page/2009+Exchange+Rate

From that page: "During 2009 my exchange rate was calculated by dividing $1.00 by the average amount of electricity required to run a computer with high CPU for a year, 1331.5 kWh, multiplied by the the average residential cost of electricity in the United States for the previous year, $0.1136, divided by 12 months divided by the number of bitcoins generated by my computer over the past 30 days."

Good find!