It may have been because of the Winklevoss twins saying that Bitcoin will be bigger than Facebook.
Posted from Bitcointa.lk - #eXG5IM0j3IYU7DML
Heh, might be because of that
Bitcoin price raised a lot too, more good words from Winklevoss twins
reminds that facebook market captalizations is 152.54B ... and we ..
http://blockchain.info/charts/market-cap FB is 25 times bigger ... people invest in something because the potencial ROI ... I do agree that the whole bitcoin ecosystem can be bigger than that ... just look how big linux community became ...
Facebook is a company that brings in revenue.
Bitcoin is simply a form of currency. You can't even begin to compare the two because they are so different.
you are so far off
Bitcoin is so much more than simply a currency, it's a protocol that can and will host many applications, currency is just one of many things bitcoin can do
Saying bitcoin is just currency is like saying the internet is just email.
Also, owning bitcoins is lke owning a little bit of the bitcoin network and mining is also like being a stakeholder in the bitcoin network. Both will pay off if bitcoin gains popularity and utility. Since people have financial incentive in spreading bitcoin, they will be likely to convince others to also look into bitcoin. This will cause an exponentially growing amount of people who will use bitcoin (due to the network effect) and like facebook it will grow at an exponential rate, which will also cause the price to grow at an exponential rate. At least until we hit the upper limit because there are only so many people on the earth and not every single one of them will use bitcoin.
So let's say about 3 billion people will eventually use bitcoin in the end. For that to happen the price needs to increase many times over (probably about 2000~4000 times or so)
Is 3 billion far-fetched? I think it can happen, since facebook already has 1.2 billion users or so (and is still growing, although at slower rate) and although facebook is a great platform for applications and sharing, bitcoin is has so much more utility. Anyway we are currently not even close to a billion users, in fact we're most likely still under a million users (hard to tell exactly) so there's a lot of room left for exponential growth.
