With BTC at an all-time high (what's new), whats the demand for?

[johnniewalker]

I'm certainly not spending my bitcoins on keychains or anything like that right now. And anyone with half a brain probably isn't either. What IS worth spending your Bitcoins on?

[1715642432]

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[nwbitcoin]

Anything that is going up in value faster than bitcoins, I guess!

I have spent a few bitcoins on other currencies, but other than that, its staying in my wallet until the currency stabilises enough for week to week purchasing to not be too expensive.

[Anon136]

its probably a great time to cash in some bitcoins for silver. Silver is unusually low and bitcoin is unusually high.

[thepwnorbpwnd]

I think it's a combination of people from Reddit starting to get interested and random people finding news about it from youtube and etc.

[Littleshop]

its probably a great time to cash in some bitcoins for silver. Silver is unusually low and bitcoin is unusually high.

No, silver is still at a multi-year peak. 



http://www.kitco.com/scripts/hist_charts/yearly_graphs.plx

[johnniewalker]

Anything that is going up in value faster than bitcoins, I guess!

I have spent a few bitcoins on other currencies, but other than that, its staying in my wallet until the currency stabilises enough for week to week purchasing to not be too expensive.

Very true. I wouldn't buy an ounce of silver unless it was priced LESS than 1 BTC. (Silver Spot: $28, BTC: $34)

[Anon136]

its probably a great time to cash in some bitcoins for silver. Silver is unusually low and bitcoin is unusually high.

No, silver is still at a multi-year peak. 



http://www.kitco.com/scripts/hist_charts/yearly_graphs.plx

i think 28.50 is an amazing price for silver right now but to each his own.

[Monster Tent]

I'm certainly not spending my bitcoins on keychains or anything like that right now. And anyone with half a brain probably isn't either. What IS worth spending your Bitcoins on?

Cocaine.

[Littleshop]

I'm certainly not spending my bitcoins on keychains or anything like that right now. And anyone with half a brain probably isn't either. What IS worth spending your Bitcoins on?

Cocaine.

I would imagine that people would hord bitcoins MORE as the price is rising but people are spending more in my store now then they did when the price was lower.  Why?  Because it takes LESS bitcoins to buy things now.  I sold a ton of my polo shirts when they were 4 bitcoins each but now priced in BTC they are less then 1 BTC.  A sticker from me shipped is 45 mBTC!  People are spending more now in USD terms then when the price was lower.

[johnniewalker]

its probably a great time to cash in some bitcoins for silver. Silver is unusually low and bitcoin is unusually high.

No, silver is still at a multi-year peak. 



http://www.kitco.com/scripts/hist_charts/yearly_graphs.plx

Technically I guess you're right. But its only the beginning of March. Compare with 2012 year end silver prices.

[johnniewalker]

Also, I think some of you misinterpreted my question. But I was curious WHY Bitcoins have gone up so much. What I was asking is essentially are people buying/saving because of this high? And if they are buying, what are they buying?

[thepwnorbpwnd]

Everyone sees the price jump from 15$ one month to 31$ the next they're obviously speculating that it will continue to rise(which it is/will) and I believe(in the partially inebriated mind of mine right now) that the newcomers are collecting to horde and the old-timers are selling like no tomorrow because they KNOW asic's are coming and that the price will probably tank soon.

[akspecs]

Everyone stating silver is on the right page.  The fact that BTC1 > 1 OZ .999 Silver is so cool!  Most of us looking to hold an asset should take advantage of this.

[b!z]

its probably a great time to cash in some bitcoins for silver. Silver is unusually low and bitcoin is unusually high.

Silver is useless, Bitcoin is not

[Jenger]

LOL silver is useless..

Honestly.. If somebody isn't manipulating the BTC market right now, then I would say drugs is supporting >70% of the BTC market. A lot of traffic is starting to come through from poker players, waiting for sites like infiniti poker to finally drop so they can play "legally" from the US. There are some smart traders & young entrepreneurs out there definitely starting to take notice in the BTC market with this price jump.

I know BIG time players such as Morgan Stanley & Goldman Sachs are said to be active in the bit coin market. They would NOT be active unless they thought it had serious potential.

BTC is definitely on an upwards swing. IMO I think it will adjust more and hit a safe median price where it will stay for a bit and it will rise more & more along with the demand.


Silver on the other hand is a great buy under $35/ozt. I just bought $20.00 FV of 90% junk last week mainly because my LCS wont sell any bullion at these prices 

Just remember, there is always a risk of something being worth NOTHING. In the end if BTC loses its value, your beat from every angle you look at it. If silver loses its value, your still left with a pretty coin. LOL

In realistic sense, silver & gold have been sought after & used as a type of currency for hundreds, if not thousands of years. Bitcoins has been around for 2 1/2 years.

[Anon136]

LOL silver is useless..

Honestly.. If somebody isn't manipulating the BTC market right now, then I would say drugs is supporting >70% of the BTC market. A lot of traffic is starting to come through from poker players, waiting for sites like infiniti poker to finally drop so they can play "legally" from the US. There are some smart traders & young entrepreneurs out there definitely starting to take notice in the BTC market with this price jump.

I know BIG time players such as Morgan Stanley & Goldman Sachs are said to be active in the bit coin market. They would NOT be active unless they thought it had serious potential.

BTC is definitely on an upwards swing. IMO I think it will adjust more and hit a safe median price where it will stay for a bit and it will rise more & more along with the demand.


Silver on the other hand is a great buy under $35/ozt. I just bought $20.00 FV of 90% junk last week mainly because my LCS wont sell any bullion at these prices 

Just remember, there is always a risk of something being worth NOTHING. In the end if BTC loses its value, your beat from every angle you look at it. If silver loses its value, your still left with a pretty coin. LOL

In realistic sense, silver & gold have been sought after & used as a type of currency for hundreds, if not thousands of years. Bitcoins has been around for 2 1/2 years.

The way i look at it is silver and gold are insurance and bitcoin is the greatest "lottery ticket" type opportunity in the history of man (atleast in the early adoption phase). very different functions imo.

[johnniewalker]

Silver is FAR from useless. Not only has it served as a way to store wealth for thousands of years, but its use in industry is ever-increasing. Silver is the greatest conductor of heat and electricity. Not to mention, its a lot of fun to collect.

[allthingsluxury]

its probably a great time to cash in some bitcoins for silver. Silver is unusually low and bitcoin is unusually high.

Silver is useless, Bitcoin is not

 I don't think too many people on these forums would agree with that. Bitcoin has a use and so does silver. I don't think this can be argued in any way.

[Global BTC]

Everyone sees the price jump from 15$ one month to 31$ the next they're obviously speculating that it will continue to rise(which it is/will) and I believe(in the partially inebriated mind of mine right now) that the newcomers are collecting to horde and the old-timers are selling like no tomorrow because they KNOW asic's are coming and that the price will probably tank soon.

How would the entrance of ASICs make the price tank?

[kibblesnbits]

Silver is FAR from useless. Not only has it served as a way to store wealth for thousands of years, but its use in industry is ever-increasing. Silver is the greatest conductor of heat and electricity. Not to mention, its a lot of fun to collect.

Not only that, but silver is one of the few PMs that is "used" for things like medical x-rays, etc.  Once it's used, you can't recover it.  Silver has always been a favorite of mine, and with BTC being up and silver being down taking a little BTC off the table is a no-brainer.

[Oldsport]

Spend bitcoins on getting more bitcoins:

[akspecs]

How would the entrance of ASICs make the price tank?

The initial increase in bitcoins prior to the mining difficulty adjustment will most likely cause a pullback due to supply demand metrics.  Using supply demand metrics this will likely cause a short term pull back in price.

-ak

[Surpbitcoin]

How would the entrance of ASICs make the price tank?

The initial increase in bitcoins prior to the mining difficulty adjustment will most likely cause a pullback due to supply demand metrics.  Using supply demand metrics this will likely cause a short term pull back in price.

-ak

Sorry buddy but I think your wrong here and I'll explain why. Even once the new asics are out and mining, there's still only going to be 25 coin rewards, the only thing that having an asic now will do for you is allow you and your pool to have more power and as such earn more of the rewards then normal, there wont be an abundance of coins because of the abundance of power.

I assume any smart miner will stack his newly acquired asic mining coins and not  cash them out every day upon payment. If anything the new asics will raise the price, because more people will believe in mining and get into it, and they'll do that by buying BTC and then spending them on miners, especially if Avalon only takes BTC!

[akspecs]

I assume any smart miner will stack his newly acquired asic mining coins and not cash them out every day upon payment. If anything the new asics will raise the price, because more people will believe in mining and get into it, and they'll do that by buying BTC and then spending them on miners, especially if Avalon only takes BTC!

You can be right - but this is a statement based on a scenario - on the scenario that miners will save / hoard their bitcoins.  IMHO this has many ill effects.  Whether or not you (hypothetical) as a miner will sell your produced bitcoins, there will be a miner who will. 

My personal insight regarding my mining output and other miner's outputs is sell like crazy when bitcoin is as expensive as it is today.  Not only is this happening, but it SHOULD happen.  Miners are there to make sure that the price of bitcoin doesn't spiral out of control.  They're also there to make sure bitcoin is trading at a fair price.  At the end of the day, honest miners need to pay for electricity.  Electricity payments aren't accepted in bitcoin - yet.

[Surpbitcoin]

I assume any smart miner will stack his newly acquired asic mining coins and not cash them out every day upon payment. If anything the new asics will raise the price, because more people will believe in mining and get into it, and they'll do that by buying BTC and then spending them on miners, especially if Avalon only takes BTC!

You can be right - but this is a statement based on a scenario - on the scenario that miners will save / hoard their bitcoins.  IMHO this has many ill effects.  Whether or not you (hypothetical) as a miner will sell your produced bitcoins, there will be a miner who will. 

My personal insight regarding my mining output and other miner's outputs is sell like crazy when bitcoin is as expensive as it is today.  Not only is this happening, but it SHOULD happen.  Miners are there to make sure that the price of bitcoin doesn't spiral out of control.  They're also there to make sure bitcoin is trading at a fair price.  At the end of the day, honest miners need to pay for electricity.  Electricity payments aren't accepted in bitcoin - yet.

Its not like mining is something new, people are mining everyday and some like you said, are cashing out to cover the bills. But why would the ratio of cashing out change?  I dont see the new rigs being able to create a sell frenzy. You may think this is a good time to sell while others disagree. This is all pure speculation all based on our "in-mind" scenarios but the fact remains that if more and more people get into bitcoins then supply and demand will come into play like it is now and the price will steadily rise to numbers we could only imagine. Here's to wishing!

[Anon136]

its probably a great time to cash in some bitcoins for silver. Silver is unusually low and bitcoin is unusually high.

Silver is useless, Bitcoin is not

Silver is one of the most useful materials on the planet. it has many amazing and unique properties that make it useful in electronics, photography, medicine, solar technology, mirror fabrication and of course as money. Silver has the highest conductivity to density ratio, it is a natural anti-microbial, it is the most conductive raw element as well as the most reflective substance in the universe. Im not saying that you should chose one over the other, but i will say they are both great investments and you would probably be wise to diversify into silver atleast a little.

[Anon136]

How would the entrance of ASICs make the price tank?

The initial increase in bitcoins prior to the mining difficulty adjustment will most likely cause a pullback due to supply demand metrics.  Using supply demand metrics this will likely cause a short term pull back in price.

-ak

you are failing to understand how markets work. Sure all things being equal an increase in supply will lead to a decrease in price but markets price these things in gradually over time. the switch to asics for example was probably priced in over a year ago.

[akspecs]

you are failing to understand how markets work. Sure all things being equal an increase in supply will lead to a decrease in price but markets price these things in gradually over time. the switch to asics for example was probably priced in over a year ago.

*gasp*

You mean the idea of ceteris paribus is impractical in the real world?

You're saying there's a chance that ASICS were already priced into the markets!?  

I can believe that.

But I don't think it's far fetched to think that a new technology will bring down the short term price of bitcoin.  I mean, this may be simple minded - but when new technologies make it more efficient to do something, won't the price go down?

The hash rate per watt of electricity will continue to decrease.  Meanwhile, it will become more common for miners to put more competitive prices of BTC/$ because more and more miners will be able to accept a smaller ROI due to the competition on the exchanges.

Also, bitcoin in it's CURRENT stage is an inflationary asset.  Inflation will continue to remain positive for many more years before official deflation hits.  But what do I know - the markets may have priced this in already as well.

[Surpbitcoin]

you are failing to understand how markets work. Sure all things being equal an increase in supply will lead to a decrease in price but markets price these things in gradually over time. the switch to asics for example was probably priced in over a year ago.

*gasp*


You're saying there's a chance that ASICS were already priced into the markets!?  

Believe it, I too have been told the same thing by many miners all whom have a very large stake in mining.

[skilo]

Now is a good time to sell, It peaked at $50 then the sell off started and the price tanked to around $38, It's gone parabolic and when the bubble pops again you might see BTC at 2011 prices again, That's my thoughts on it anyway.

I don't think $45 - $50 is a valid price for BTC.