Bitcoin Venture Capital warned you guys months ago. Without an economy around Bitcoin it will continue to drop in value.
All of these people trading have just fueled a massive bubble of speculation and bologna..
Several months ago, I posted the follow rant - when Bitcoin was at about $25/BTC --
Money and I have had a love-hate relationship, I've always had an interest in it. I got a job at 14 as soon as I could mostly so that I would be able to buy cool things like the fastest modem on the market, but I quickly realized money was always going to be necessary for things.
It has always killed me that although currency and debt is central to our lives, few people understand exactly how their assets and debt play into the currency system as a whole. Think about that for a second. You spend 1/3 of your life at your job (if you're lucky) to make money, and you don't even understand the extent of how that account balance plays into the financial system of my country.
I consider myself to be somewhat altruistic but also libertarian, so I've always been very conflicted with the reality that some people get to do very little work and enjoy lots of money based solely upon the virtue of having money in their family. Reconciling the idea that "working hard" and "working smart" with the obscene profits possible in the stock market and options market is very hard to do.
I've spent a couple of hours today watching a satirical video called  "The American Dream" after someone posted it to my facebook will. It's essentially a light conspiracy video, but there may be a tinge of truth in it.
I found where someone had posted it to reddit, and that led me to a documentary called  Money as debt which explains that the biggest threats to the financial system of the world are a lack of productivity and out of control interest rates.
This is what made me think of bitcoin. I'm very afraid that bitcoin is going to die unless people find a way to start seeding the production of goods only available in bitcoins.
The reason for this is simple. Right now the biggest thing I see people trying to use bitcoin for is making money without doing anything, as an investment. This is fine, but long term makes bitcoin inevitably tied to other currency systems. All of these people investing in mining rigs accumulating thousands of BTCs are eventually going to decide enough is enough and the end will come VERY quickly if there are no stores operating only on bitcoin. All of these ideas about bitcoin acting essentially as a forex alternative is great, and people gambling or buying things anonymously using bitcoin is good for the market, but these kind of endeavours will never generate the amount of continuous interest in bitcoin that a few prominent online marketplaces could.....
So here's what I'm thinking.. What we need are Bitcoin venture capitalists. That means people who have been running mining rigs and have accumulated several thousand BTC, but are currently just sitting there looking at is as an asset. Lets be honest, there’s a chance that you’ll get rich with your BTC sitting there, but it’s remote. At this point BTC is too niche, and with it getting coverage in places like forbes magazine and with an OPTIONS MARKET opening up, it’s just a matter of time before people start to look at is as a place to invest (see GAMBLE) instead of becoming a place where anything of value is actually created.
The plan is simple: You agree to fund a small start-up project in BTC. That start-up project agrees to conduct transactions on the internet PRIMARILY in BTC, offering a surcharge for any business conducted in any currency outside of BTC. The other details are specific to the individual agreement that is set up between the bitcoin venture capitalist and the management of the start up.
I have created an organization that's dedicated to matching early adopters with potential startup possibilities. I want to add forums, etc, but I'm very concerned about having to police spam, etc. I feel that by keeping it very simple, clean, and above board we can open up a unique place where individuals who are serious about the advancement of BitCoin can work together towards that end. With that in mind, check out the link
I'd be interested in input from people
It's still as true as ever.