why the price of the bitcoin arises rapidly?

[tinyfox266]

The price of the bitcoin arises from the 45$/bit to 90$/bit in less than one month.
What reason promotes persons to buy bitcoin?

[Bendex]

The price of the bitcoin arises from the 45$/bit to 90$/bit in less than one month.
What reason promotes persons to buy bitcoin?

It has been getting a bit of press in recent times. Lots of bloggers talking about it as an alternative as Cyprus invalidates their citizens' bank deposits.

[NF414]

The price of the bitcoin arises from the 45$/bit to 90$/bit in less than one month.
What reason promotes persons to buy bitcoin?

Global Financial Crisis, Cyprus, The Media^TM, current bubble-building, greed

[davidgdg]

The price of the bitcoin arises from the 45$/bit to 90$/bit in less than one month.
What reason promotes persons to buy bitcoin?

It has been getting a bit of press in recent times. .

In the UK last week, there was a 7 minute feature on bitcoin on "Newsnight", the main BBC news and analysis program. The presenter interviewed a journalist from the Economist who said that bitcoin was a bad thing because its supply was limited like gold and so its value would tend to increase.

With enemies like that, who needs friends ? ;-)

[NF414]

http://historicalmarketmovement.files.wordpress.com/2011/03/tulipmania.jpg

Lest we forget.

NF414

[NF414]

The price of the bitcoin arises from the 45$/bit to 90$/bit in less than one month.
What reason promotes persons to buy bitcoin?

You might want to delete the poll though 

Regards, NF414

[jackjack]

Lest we forget.

NF414

Implying the data are correct

[tutkarz]

What if bitcoin will start to slowly became global currency and people will stop using other currencies?
Why you have to always point to a bubble and never take another possibility in to consideration, that maybe other currencies are now in bubble state and they will loose its value and vanish in the end? Then suddenly bitcoin will not be a bubble because it will be only currency left.

Im not saying that it will happend, but it might.

[NF414]

http://historicalmarketmovement.files.wordpress.com/2011/03/tulipmania.jpg

Lest we forget.

NF414

Implying the data are correct

The Tulip Mania, taking place in the 17th century, is pretty much common knowledge.

Regards, NF414

[NF414]

What if bitcoin will start to slowly became global currency and people will stop using other currencies?
Why you have to always point to a bubble and never take another possibility in to consideration, that maybe other currencies are now in bubble state and they will loose its value and vanish in the end? Then suddenly bitcoin will not be a bubble because it will be only currency left.

Im not saying that it will happend, but it might.

Because it is always different this time^TM

Regards, NF414

[NF414]

What if bitcoin will start to slowly became global currency and people will stop using other currencies?
Why you have to always point to a bubble and never take another possibility in to consideration, that maybe other currencies are now in bubble state and they will loose its value and vanish in the end? Then suddenly bitcoin will not be a bubble because it will be only currency left.

Im not saying that it will happend, but it might.

Because it is always different this time^TM

Regards, NF414

and, btw:
http://www.bitcoincharts.com/charts/chart.png?width=940&m=mtgoxUSD&SubmitButton=Draw&r=&i=Daily&c=1&s=2011-01-29&e=2012-01-30&Prev=&Next=&t=S&b=&a1=&m1=10&a2=&m2=25&x=0&i1=&i2=&i3=&i4=&v=0&cv=0&ps=0&l=0&p=0&



Regards, NF414

[jackjack]

Lest we forget.

NF414

Implying the data are correct

The Tulip Mania, taking place in the 17th century, is pretty much common knowledge.

Regards, NF414

That's my point, did you read the article?

[NF414]

That's my point, did you read the article?

What are you implying? That there was not a Tulip-Bubble in the 17th Century?

Regards, NF414

[tutkarz]

That's my point, did you read the article?

What are you implying? That there was not a Tulip-Bubble in the 17th Century?

Regards, NF414

Sorry but your comparison is wrong. You showed graph but why not all but first half? If it would be a bubble then it would fall and never got up. But bitcoin not only incrased in price but is more worth than before.

[NF414]

That's my point, did you read the article?

What are you implying? That there was not a Tulip-Bubble in the 17th Century?

Regards, NF414

Sorry but your comparison is wrong. You showed graph but why not all but first half? If it would be a bubble then it would fall and never got up. But bitcoin not only incrased in price but is more worth than before.

Please elaborate a little more on what you mean. It does not come quite across.

Regards, NF414

[davidgdg]

That's my point, did you read the article?

What are you implying? That there was not a Tulip-Bubble in the 17th Century?

Regards, NF414

Sorry but your comparison is wrong. You showed graph but why not all but first half? If it would be a bubble then it would fall and never got up. But bitcoin not only incrased in price but is more worth than before.

Please elaborate a little more on what you mean. It does not come quite across.

Regards, NF414

It seems that the tulip bubble between October 1636 and February 1637 was not all it appears to have been. See the fascinating paper by Thompson: http://www.econ.ucla.edu/thompson/Document97.pdf

In short, the "bubble" was the result of a general (and correct) expectation that the law would be changed to allow buyers to cancel futures contracts if the spot price fell below the futures price. The only cost to the buyer would be a fee of a few percent of the futures price. This, in effect, compulsorily converted futures into call options. The result was simply that sellers of such "futures" contracts (now in reality call options) increased the contract prices 30 fold to reflect the fact that the "price" was now a strike price rather than a sale price.  The underlying spot price in tulips hardly moved at all. 

[DigitalDroid]

First there's the increase in media attention over the last +-6 months. Bitcoin got some MSM attention when the ECB's report on bitcoin got released and bloggers like Jon Matonis have been talking about it on a regular basis (in his case on a high profile site: forbes). So, even among people who had never used bitcoins before, there was a significant number who knew what bitcoin was or had at least heard of it. People tend to distrust and stay away from new things and we've now reached a point where bitcoin simply isn't "new" anymore for a lot of people.

The reason for the sudden spike: Cyprus. The events there took almost everyone by surprise. There's plenty of people who understand the problems with our "manipulated economy", but even a lot of those had become "complacent". Now that government paper is failing at a faster pace than anyone imagined would have happened in the past year or so, a "sense of urgency" seems to have taken hold of some and they are rushing into bitcoin.

[martynw2000]

Maybe the Cypriots should have converted all their money to bitcoin. Seriously though, I hope it all works out over there.

[nobbynobbynoob]

The reason for the sudden spike: Cyprus. The events there took almost everyone by surprise. There's plenty of people who understand the problems with our "manipulated economy", but even a lot of those had become "complacent". Now that government paper is failing at a faster pace than anyone imagined would have happened in the past year or so, a "sense of urgency" seems to have taken hold of some and they are rushing into bitcoin.

Sounds plausible, but in these types of "financial Armageddon" scenarios, one might expect the gold price to skyrocket, which has not happened at all. Yet.

The "Cyprus effect" may have had some bearing on bitcoin, but simple increased general demand and small-scale venture capital might explain the bulk of the price hike, assuming it's not just another good old bubble like June 2011.

[DigitalDroid]

The reason for the sudden spike: Cyprus. The events there took almost everyone by surprise. There's plenty of people who understand the problems with our "manipulated economy", but even a lot of those had become "complacent". Now that government paper is failing at a faster pace than anyone imagined would have happened in the past year or so, a "sense of urgency" seems to have taken hold of some and they are rushing into bitcoin.

Sounds plausible, but in these types of "financial Armageddon" scenarios, one might expect the gold price to skyrocket, which has not happened at all. Yet.

The "Cyprus effect" may have had some bearing on bitcoin, but simple increased general demand and small-scale venture capital might explain the bulk of the price hike, assuming it's not just another good old bubble like June 2011.

I think there's a few different factors to consider here:
- liquidity, divisibility, portability,... Bitcoins are easier to store, carry around, split up and "put back together" than gold. This could explain why some people see bitcoin as an alternative to buying gold, or as an additional way to protect themselves.
- bitcoin app downloads went up in Spain right after a Spanish minister said a Cypriot type of levy would be possible in Spain (but at a much lower rate). 
- Anonymity. Governments have been known to confiscate physical gold (and force people who said they had already sold their gold to pay the equivalent of the physical gold) when the SHTF. for example: FDR did it in 1933. Add the fact that in some eurozone countries the government has started to crack down on the use of cash and forbids its use  to make large purchases (such as a few ounces of gold). Worried citizen could see bitcoin as a safer way to quickly store their savings outside of the government run monetary system.
- The manipulation of the gold price. The last few years, there's been a lot of speculation about governments and central banks using their gold reserves to keep the price of gold down (as a way to hide the problems associated with their own paper).