Bitcoin value set to surge according to expertsSpeaking at the Coin Summit in London yesterday, Geoff Lewis, partner at the Founders fund, estimates the value of the Bitcoin will skyrocket, "I'm really bullish when there is low volatility" but stated that there will definitely be a rise".
Millionaire investor Roger Ver, dubbed 'Bitcoin Jesus', told the Telegraph: "I actually think $2000 is a pretty conservative estimate.
"We don't know if it will happen this year but there's no doubt in my mind that Bitcoin's price is going to be thousands of dollars and, almost for sure, tens of thousands of dollars for one."...
If they really did believe that, they would be buying every coin in sight, and the price would be at least 1800$ now.
Every fund owner like Lewis of course wants other people to believe in 2000$ coins, so that they will buy shares of his fund so that he can collect fees. Every bitcoin hoarder like Ver wants others to believe it, so that they will buy bitcoins and raise the price so that he can sell at bigger profit.
I don t see smart money investing in bitcoin directly. Most if not all the VC investment in "bitcoin infrastructure" is actually going to ventures that will take money from ordinary bitcoin users and private investors as they move their bitcoins around -- exchanges, payment systems, funds, mining, software, etc -- and thus will make a profit whatever happens to the price.
By the way: looking at the charts, I can correlate most of the major price movements to specific events, like the Chinese "bans" and Mark's announcement of a "bug in the protocol . Only this mini-bubble that started on May 20, about 02:00 UTC does not seem to have such a correlation. The bubble seems to have been created by 10--20 concentrated episodes of heavy buying that pushed up the price, sometimes by tens of dollars in the space of one hour. Opposite events (sudden dumps) were rare and mostly in the past few weeks. Between those pumps the price drifted rather randomly, often with a downward bias.
I wonder what caused those positive spurts. One guess is that they are due to individual OKCoin clients saving money offline and depositing large sums all at once; their broker system seems too cumbersome for small deposits. Another guess is that the fund owners are trying to keep the price more or less stable in order to increase the chances of approval of their funds by the SEC.
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