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techman05 (OP)
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October 22, 2013, 02:01:25 PM |
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I had to ask since I'm not quite clear if the bitcoin to U.S.D is because more are using bitcoins or less are using bitcoins. I was thinking about buying something and they want payment in static bitcoin price (same price regardless of local conversion) and went "wow!!!" ,what did I miss  ? |
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"If you don't want people to know you're a scumbag then don't be a scumbag." -- margaritahuyan
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vpitcher07
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October 22, 2013, 02:18:55 PM |
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I had to ask since I'm not quite clear if the bitcoin to U.S.D is because more are using bitcoins or less are using bitcoins. I was thinking about buying something and they want payment in static bitcoin price (same price regardless of local conversion) and went "wow!!!" ,what did I miss ? I think a lot of it has to do with speculation and day trading. The more people who use it the higher it could go, but there's a lot more factors involved than just the number of people using it. |
Bitcoin: The currency of liberty
1HBJSf3Lm9i8KxjZ7fuoN9FJ8hniniFbv4
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hayek
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October 22, 2013, 02:33:43 PM |
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Economics.
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Dealer
Newbie
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Activity: 41
Merit: 0
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October 22, 2013, 02:43:20 PM |
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You really want a full explanation on economics here ^^? Go read up a paper, that'll do more good. Bitcoins are just another currency, so (most of the) general economic laws are in effect here.
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balanghai
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October 22, 2013, 02:44:47 PM |
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Large scale pump and dump?  |
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waltermot321
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October 22, 2013, 03:46:03 PM |
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I had to ask since I'm not quite clear if the bitcoin to U.S.D is because more are using bitcoins or less are using bitcoins. I was thinking about buying something and they want payment in static bitcoin price (same price regardless of local conversion) and went "wow!!!" ,what did I miss ? Pump and hold, if everyone do that it will be $10,000 in no time.. |
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techman05 (OP)
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October 22, 2013, 03:55:47 PM |
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Just for other thought. Is this the week dwolla completely pulls use for exchanges? I've been trying to keep up with bitcoins and the world but the last time I saw this high was when MtGox stopped paying out in U.S.D.
If bitcoins are anything like gas prices they'll hit some point and people will start riding bikes to work and they will have to come down.
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spiral_mind
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October 23, 2013, 06:29:01 AM |
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As uncertainty over whether Bitcoin will survive longterm subsides the #1 determining factor will be how many people are currently interested in Bitcoin. As more people learn about it the price will continue rising (barring the encryption being catastrophically broken).
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Erdogan
Legendary
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Activity: 1512
Merit: 1005
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October 23, 2013, 09:09:45 AM |
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Supply and demand, where supply is inelastic and demand increases with number of users. The prospect of continouous appreciation adds to the demand.
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m3ta
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October 24, 2013, 08:26:54 AM |
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imrer
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October 24, 2013, 12:38:10 PM |
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It's lot of things. Biggest is I believe the idea itself which is spreading. Illegal market has also influence. Smallest are casinos and other projects.
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Rival
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October 24, 2013, 01:27:59 PM |
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I would not ignore the cost to mine a bitcoin/hour. This has been increasing at a level far faster than the price to just purchase one. This inequity cannot be maintained indefinitely.
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petersiddle98
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October 24, 2013, 02:18:14 PM |
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Greed, economic weakness and luck  |
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jeppe
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November 08, 2013, 11:59:44 PM |
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If more and more people want to buy bitcoins the value of it rises like now as the chines want bitcoin the price rises but when things like the silk road crash happened the value went down because people were scared that all the people trading on SR would sell there bitcoins and let to manny bitcoins on the market the price goes down.
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superdork
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November 09, 2013, 09:47:20 PM |
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Greed, economic weakness and luck BINGO! 1- People are hearing about how others are making money and want a piece of the action 2- Fiat currencies are a DISASTER As major economies are falling apart people are looking for a place to put their savings or investments, so Bitcoin, which is up what 3000+% in the last year.... yeah that looks like a decent investment. It is definitely not without risk, but no high yielding investment ever is. |
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Shallow
Sr. Member
Offline
Activity: 938
Merit: 255
SmartFi - EARN, LEND & TRADE
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November 10, 2013, 01:11:11 AM |
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Currently, the Chinese 0 fee exchanges are causig rise
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Samir_H
Member
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Activity: 83
Merit: 10
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November 11, 2013, 01:15:45 PM |
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Speculation, trading, usage, pump and dump, chinese...
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Martijnvdc
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November 11, 2013, 06:36:32 PM |
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economy, scarcity by design, speculation, hype
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hazenyc
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November 13, 2013, 06:04:37 PM |
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[/quote]
I think a lot of it has to do with speculation and day trading. The more people who use it the higher it could go, but there's a lot more factors involved than just the number of people using it.
[/quote]
The more people that use a currency don't necessarily make its value go up, however it does help with stability and social acceptance
. What is making the value of bitcoins go up is a combination of things: 1. it constructed to be a limited resource where each bitcoin is marginally more difficult to mine than the one that came before it. 2
competition amongst miners in growing the network hashrate geometrically 3. when it no longer becomes profitable to mine, people who want bitcoins are forced to buy from sellers -- the sellers being the miners who have an inventory, this drives up the market price 4. when the market price rises sufficiently, it becomes profitable again to mine, steps 2-4 repeat.
5. The velocity of money of bitcoins is very slow. Many bitcoins never enter circulation or are exchanged for goods/services, but rather are hoarded in the expectation that their buying power will increase
6. They have an anonymity premium in that taxes are not paid and that transactions cannot be tracked. Some people pay a premium for those features.
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