Why bitcoin exploded in price

[Questing]

You forgot:
- Cypress
- NZ
- Italy

All three countries are planning or attempting to plan to confiscate a percentage of their citizens' savings accounts.  People in those countries are going to be fleeing the national currencies like a bat out of Hades, you just watch.

You're out of your fucking mind if you think people who would be effected by that have any idea Bitcoin exists. This is a self fulfilling price, people have an idea of what Bitcoin is worth therefore they won't let it reach below a certain point. Bitcoin has little to no practical and no tangible value. There is no reason it should be at this price.

When given hard thoughts, euro's do not have tangible value either. It all boils down to trust, the same as with Bitcoin.

Modern money is backed up by the ability of the country to which it belongs to backup the given worth/value most notably through factoring things like GDP/debt/deficit. Bitcoin has nothing behind it and is given value purely through speculation and an assumed worth. It is more of a penny stock or commodity than a currency and an extremely volatile one at that. I think it has its uses but I think they are niche and anyone investing their life savings or mortgage into it has lost their damn minds.


The pair of socks I'm wearing right now is pretty rare as they are one of a kind but that doesn't make them valuable.

This isn't even mentioning how bad of an idea deflationary currency is as an actual currency.

I agree Bitcoin is not a good life savings plan at this volatile stage in its life. But as the number of users increases, I suspect it will stabilize. Does anybody else have an opinion on this?
But having said that, if you had of bought in at $5/btc then it would have made a perfect life savings plan. And a big step towards early retirement

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[BTC Books]

You forgot:
- Cypress
- NZ
- Italy

All three countries are planning or attempting to plan to confiscate a percentage of their citizens' savings accounts.  People in those countries are going to be fleeing the national currencies like a bat out of Hades, you just watch.

You're out of your fucking mind if you think people who would be effected by that have any idea Bitcoin exists. This is a self fulfilling price, people have an idea of what Bitcoin is worth therefore they won't let it reach below a certain point. Bitcoin has little to no practical and no tangible value. There is no reason it should be at this price.

Yeah, right.

That's why client downloads and on-line wallet installs have spiked through the roof in the past couple of days, in PIIGS and Argentina.  Because nobody in those places knows that bitcoin exists, or where to find what's needed to use it.

Uh-huh.  Very incisive thought process you've got going there...

[enquirer]

I agree Bitcoin is not a good life savings plan at this volatile stage in its life. But as the number of users increases, I suspect it will stabilize.

Yes, you shouldn't buy when it unrespectably fluctuates between $45 to $62. You should buy when it respectably stabilizes within $16,300-$16,400 range.

[Questing]

I agree Bitcoin is not a good life savings plan at this volatile stage in its life. But as the number of users increases, I suspect it will stabilize.

Yes, you shouldn't buy when it unrespectably fluctuates between $45 to $62. You should buy when it respectably stabilizes within $16,300-$16,400 range.

Yes very funny, ok I get your Sarcasm and your Absolutely right. So I guess the real reason I'm reluctant to invest life savings in Bitcoin, or recommend others to do so, is because of the potential threats to bitcoin. Systems failure, Government regulation, or something new and better coming along superseding bitcoin, just to name the obvious ones. If it wasn't for this, I would invest my life savings in a heart beat. But for those that take the chance, just might hit the jack pot. And for those sitting on the fence will forever regret their missed opportunity.

What the hell, I'm going to invest everything. Go for broke. Better buckle in for a bumpy ride

[Rincewind]

I agree Bitcoin is not a good life savings plan at this volatile stage in its life. But as the number of users increases, I suspect it will stabilize.

Yes, you shouldn't buy when it unrespectably fluctuates between $45 to $62. You should buy when it respectably stabilizes within $16,300-$16,400 range.

Yes very funny, ok I get your Sarcasm and your Absolutely right. So I guess the real reason I'm reluctant to invest life savings in Bitcoin, or recommend others to do so, is because of the exponential threats to bitcoin. Systems failure, Government regulation, or something new and better coming along superseding bitcoin, just to name the obvious ones. If it wasn't for this, I would invest my life savings in a heart beat. But for those that take the chance, just might hit the jack pot. And for those sitting on the fence will forever regret their missed opportunity.

What are you going to invest your money in then? The Euro? The Greenback? American Entreprenuership? Whiskey, guns, and ammo?

Every option right now looks awful. PMs and Virtual are the least-worst.

[FreedomCoin]

and amazing that guys that had high end radeon gaming rigs in 2009 that would mine when they werent gaming are millionaires now... well the ones that didnt sell before a year ago.

[chriswen]

I doubt it'll stabilize.  It's a deflationary coin.  But, for sure less volatile.

[Questing]

I agree Bitcoin is not a good life savings plan at this volatile stage in its life. But as the number of users increases, I suspect it will stabilize.

Yes, you shouldn't buy when it unrespectably fluctuates between $45 to $62. You should buy when it respectably stabilizes within $16,300-$16,400 range.

Yes very funny, ok I get your Sarcasm and your Absolutely right. So I guess the real reason I'm reluctant to invest life savings in Bitcoin, or recommend others to do so, is because of the exponential threats to bitcoin. Systems failure, Government regulation, or something new and better coming along superseding bitcoin, just to name the obvious ones. If it wasn't for this, I would invest my life savings in a heart beat. But for those that take the chance, just might hit the jack pot. And for those sitting on the fence will forever regret their missed opportunity.

What are you going to invest your money in then? The Euro? The Greenback? American Entreprenuership? Whiskey, guns, and ammo?

Every option right now looks awful. PMs and Virtual are the least-worst.

My money is invested in my business. Just moved premises at great expense, so not allot of money lying around for bitcoin investment right now. But your right, if there is such thing as a safe investment in this day and age, then I dont know about it. So Bitcoin is one of the bester options, or perhaps guns

[Rincewind]

and amazing that guys that had high end radeon gaming rigs in 2009 that would mine when they werent gaming are millionaires now... well the ones that didnt sell before a year ago.

Not me, since I'm one of the dumbasses that thought, "What the hell am I going to buy with a bitcoin?" so passed on mining. 

[BTC Books]

My money is invested in my business. Just moved premises at great expense, so not allot of money lying around for bitcoin investment right now. But your right, if there is such thing as a safe investment in this day and age, then I dont know about it. So Bitcoin is one of the bester options, or perhaps guns

Guns aren't bad - one of the last bastions of fine machine work.  And useful, on occasion.

Long-term, you might want to think about rare wood, too - if you have the space and proper atmospheric conditions to store it.  Padouk, zebrawood, amaranth; like that.  As climate change and deforestation in the third-world areas where most of it grows take their toll, the stuff has been gaining value very nicely.

Wood far outperforms most investments; and has, for as long as I've been paying attention to it.  It doesn't outperform bitcoin, of course; but it is diversification.

[ufmace]

You forgot:
- Cypress
- NZ
- Italy

All three countries are planning or attempting to plan to confiscate a percentage of their citizens' savings accounts.  People in those countries are going to be fleeing the national currencies like a bat out of Hades, you just watch.

You're out of your fucking mind if you think people who would be effected by that have any idea Bitcoin exists. This is a self fulfilling price, people have an idea of what Bitcoin is worth therefore they won't let it reach below a certain point. Bitcoin has little to no practical and no tangible value. There is no reason it should be at this price.

When given hard thoughts, euro's do not have tangible value either. It all boils down to trust, the same as with Bitcoin.

Modern money is backed up by the ability of the country to which it belongs to backup the given worth/value most notably through factoring things like GDP/debt/deficit. Bitcoin has nothing behind it and is given value purely through speculation and an assumed worth. It is more of a penny stock or commodity than a currency and an extremely volatile one at that. I think it has its uses but I think they are niche and anyone investing their life savings or mortgage into it has lost their damn minds.


The pair of socks I'm wearing right now is pretty rare as they are one of a kind but that doesn't make them valuable.

This isn't even mentioning how bad of an idea deflationary currency is as an actual currency.

I actually agree that the deflationary nature/fixed supply rate of Bitcoin and all similar currencies will limit their ultimate growth to well below the nation-state level. However, in places like Cyprus, Bitcoin seems to be better backed up and a safer investment than conventional bank accounts for the moment. You can put your money wherever you please, but would you rather put it in Cyprus savings accounts or Bitcoins right now?

[johnyj]

I think mostly related to network difficulty, market participants are now almost certain that ASIC mining equipment will reach end user in large scale and the difficulty will skyrocketing. Historically difficulty and price have close relationship

[jaybny]

Its a USD short squeeze on MtGox. Since MtGox is selling US client base and moving USD to coinlab, nobody wants to hold USD in MtGox. Everyone wants to get their money out of BTC.

Easiest way to do this is to buy BTCs with your MtGox USD and then transfer it out.

Its a short-term squeeze and the whole move will be retraced. At least to 47. 

[Spaceman_Spiff]

My money is invested in my business. Just moved premises at great expense, so not allot of money lying around for bitcoin investment right now. But your right, if there is such thing as a safe investment in this day and age, then I dont know about it. So Bitcoin is one of the bester options, or perhaps guns

Guns aren't bad - one of the last bastions of fine machine work.  And useful, on occasion.

Long-term, you might want to think about rare wood, too - if you have the space and proper atmospheric conditions to store it.  Padouk, zebrawood, amaranth; like that.  As climate change and deforestation in the third-world areas where most of it grows take their toll, the stuff has been gaining value very nicely.

Wood far outperforms most investments; and has, for as long as I've been paying attention to it.  It doesn't outperform bitcoin, of course; but it is diversification.

Sad cause, but interesting investment advice.

[BTC Books]

Guns aren't bad - one of the last bastions of fine machine work.  And useful, on occasion.

Long-term, you might want to think about rare wood, too - if you have the space and proper atmospheric conditions to store it.  Padouk, zebrawood, amaranth; like that.  As climate change and deforestation in the third-world areas where most of it grows take their toll, the stuff has been gaining value very nicely.

Wood far outperforms most investments; and has, for as long as I've been paying attention to it.  It doesn't outperform bitcoin, of course; but it is diversification.

Sad cause, but interesting investment advice.
[/quote]

I've been paying attention to fine wood since I was a kid.  I read an SF story in the late sixties by one of the big three - Heinlein, I think - where wood was at the apex of the jewelry/craftsmanship chain.  A desk was worth a lifetime of work by a small village.  A sad cause; you're right.  All that beautiful stuff going away.

I have a little stash for my kids, at a relative's place inland on the west coast.  A thousand pounds, maybe.  The value of it's gone up about twenty times since I bought it, back in the eighties.

[Spaceman_Spiff]

The value of it's gone up about twenty times since I bought it, back in the eighties.

That's quite a return.  I live in urban area, and I don't have lot of storage space or any knowledge about wood really, so I guess it's not for me, but kudos on your investment decisions so far (both wood and btc   )

EDIT: just out of interest: is it hard to find a buyer/seller at a good price?  What is the typical "spread"/cost of transaction so to speak?

[BTC Books]

The value of it's gone up about twenty times since I bought it, back in the eighties.

That's quite a return.  I live in urban area, and I don't have lot of storage space or any knowledge about wood really, so I guess it's not for me, but kudos on your investment decisions so far (both wood and btc   )

EDIT: just out of interest: is it hard to find a buyer/seller at a good price?  What is the typical "spread"/cost of transaction so to speak?

I wouldn't have much trouble finding an end-user (i.e., craftsman/woodworker) buyer, but I spent a few years working wood myself, and I have contacts.  Other than that I couldn't say.  I know there are a few bourses for wood here and there, if you want a middleman.

[Frequency]

Get Bitcoins or die trying..

Hold on to some 500btc and speculate with everything above that number and u will be one of the few in the future that was an early adopter...    

[MagicBit15]

I feel like especially after the department of treasury article, it is only good things to come!!

[Questing]

I feel like especially after the department of treasury article, it is only good things to come!!

Would you mind posting a link to the article please? I'd love to see it