Bitcoin economy passes US $1 Million!

[Anonymous]

http://www.stumbleupon.com/su/2Z0rOH/bitcoinwatch.com//r:t

Ill just leave this here

[jgarzik]

Selfishly, I'd prefer the non-obfuscated URL

http://www.bitcoinwatch.com/

[Anonymous]

Selfishly, I'd prefer the non-obfuscated URL

http://www.bitcoinwatch.com/

lazily I copy and pasted that one 

[ShadowOfHarbringer]

http://www.stumbleupon.com/su/2Z0rOH/bitcoinwatch.com//r:t

Ill just leave this here

Actually as far as i understand currency calculations, [all bitcoins in existence] x [current exchange USD] != [total value of all bitcoins in USD].
So the whole market is probably worth less than 1.000.000 USD, but i have no idea how much exactly.

How does one calculate such things ?

[Bimmerhead]

http://www.stumbleupon.com/su/2Z0rOH/bitcoinwatch.com//r:t

Ill just leave this here

Actually as far as i understand currency calculations, [all bitcoins in existence] x [current exchange USD] != [total value of all bitcoins in USD].
So the whole market is probably worth less than 1.000.000 USD, but i have no idea how much exactly.

How does one calculate such things ?

4.5 million BTC in circulation x $0.2899 USD (last trade on MTGox) = $1,304,550 USD.

[jgarzik]

Bitcoin Watch creates an average USD/BTC price by looking at mtgox and bitcoinmarket, then multiplies the result by the number of bitcoins in existence.

[ribuck]

I think ShadowOfHarbringer is alluding to the fact that if all the bitcoins were sold at once, it would depress the price below the current price, so that $1 million wouldn't actually be achieved.

Of course it's impossible that everyone would sell their bitcoins at once, and this kind of thinking doesn't stop people talking about the "total stock market capitalization" of a company even though it's equally theoretical.

[FreeMoney]

I think ShadowOfHarbringer is alluding to the fact that if all the bitcoins were sold at once, it would depress the price below the current price, so that $1 million wouldn't actually be achieved.

Of course it's impossible that everyone would sell their bitcoins at once, and this kind of thinking doesn't stop people talking about the "total stock market capitalization" of a company even though it's equally theoretical.

Of course if you tried to buy them all at once it would cost way more than $1M.

It's not a useful measure for anything serious, kind of like measuring GDP in dollars.

[jgarzik]

I think ShadowOfHarbringer is alluding to the fact that if all the bitcoins were sold at once, it would depress the price below the current price, so that $1 million wouldn't actually be achieved.

Of course this is true.

However, that is the standard definition of market cap elsewhere:  share price times number of shares.  Obviously, if everybody sold MSFT, their market cap would not be $229 billion.  It's merely a snapshot of "right now" and nothing more.

[nanotube]

I think ShadowOfHarbringer is alluding to the fact that if all the bitcoins were sold at once, it would depress the price below the current price, so that $1 million wouldn't actually be achieved.

Of course this is true.

However, that is the standard definition of market cap elsewhere:  share price times number of shares.  Obviously, if everybody sold MSFT, their market cap would not be $229 billion.  It's merely a snapshot of "right now" and nothing more.

haha, that's exactly the example i gave on irc when this topic came up - microsoft.

[bober182]

Hahaha! Expect, I know as a fact that 0.5 bitcoins are missing as my friend used the bitcoin faucet, but then forgot to backup his PC and he reinstalled Windows.

[FreeMoney]

Hahaha! Expect, I know as a fact that 0.5 bitcoins are missing as my friend used the bitcoin faucet, but then forgot to backup his PC and he reinstalled Windows.

But now that we know this we will bid up the price. See 1.25M already.

[ShadowOfHarbringer]

Hahaha! Expect, I know as a fact that 0.5 bitcoins are missing as my friend used the bitcoin faucet, but then forgot to backup his PC and he reinstalled Windows.

But now that we know this we will bid up the price. See 1.25M already.

ROTFL.

[ribuck]

... my friend used the bitcoin faucet, but then forgot to backup his PC ...

He should be more careful. It's now up to $1.5 million.

[SmokeTooMuch]

down to 968724 USD )-;

[ShadowOfHarbringer]

down to 968724 USD )-;

Too much speculation.
~0.20$ is the real current value. The rest is speculation.

[MoonShadow]

down to 968724 USD )-;

Too much speculation.
~0.20$ is the real current value. The rest is speculation.

That's an opinion, and it might be a fine one, but I have one as well.

I think that a lot of this run up was pent up demand due to the MtGox PayPal scandal.  Once payment processing was solved, dollars were trying to get into MtGox to find it's level, and now it has.  I imagine that the slow march back towards parity will continue, but the voltility of the past two weeks will be dampened for a time.