Why is the bitcoin value skyrocketing?

[CryptikEnigma]

What is causing this?

After being involved with bitcoins for a few weeks and seeing the rate staying at the usual .77, I deiced to use the bitcoin4cash service with an open rate(thinking it'll only rise maybe ten cents tops.) Literally the next day the value started skyrocketing, climbing like 5 cents a day. So while I was expecting ~55-60BTC now it looks like I'm getting around 35BTC when my order finally goes through.


FML

Should have done fixed rate but at the time there was really no reason to want to do that.

[tomcollins]

What is causing this?

After being involved with bitcoins for a few weeks and seeing the rate staying at the usual .77, I deiced to use the bitcoin4cash service with an open rate(thinking it'll only rise maybe ten cents tops.) Literally the next day the value started skyrocketing, climbing like 5 cents a day. So while I was expecting ~55-60BTC now it looks like I'm getting around 35BTC when my order finally goes through.


FML

Should have done fixed rate but at the time there was really no reason to want to do that.

Someone wants to buy a lot of BitCoins and not many people want to sell them.

[kiba]

There is no rhyme and reasons as to why bitcoin rise, except from its fundamental.

[bitlotto]

I think too, that as more people know about it, the value will go up. It's been covered in a few online sites lately.

[marcus_of_augustus]

Two words is all you need to know ....


SUPPLY ...... DEMAND



remember these above all else

[c-rock]

I think because of whats going on with the US dollar.  Look at the prices of energy, food, and gold and silver.   

Folks are getting out of the dollar.   

[marcus_of_augustus]

Bitcoin and crypto-currencies could be the pinnacle monetary development of the 300 year Elliot wave going back to the Enlightment, Newton's gold standardisation and widespread paper money ...

... if that is the case, we gonna ride the rocket baby!

[Steve]

LOL...you knew someone was going to cite the Elliot wave.  I think in reality, most people that are putting some money into bitcoins understand that it could collapse at any time and hence only put in what they're willing to lose.  The flip side of that is that they're also not in any hurry to sell (and probably think bitcoins have enormous potential that far outweighs the risks of losing the small amount they've put in).  In addition, you probably have new people discovering bitcoins that reach similar conclusions and want to build a position.  And, at this early stage a wealthy individual or two that are willing to put a significant amount into bitcoins can really drive up the price (but it could fall just as quickly when they stop buying).

[tomcollins]

LOL...you knew someone was going to cite the Elliot wave.  I think in reality, most people that are putting some money into bitcoins understand that it could collapse at any time and hence only put in what they're willing to lose.  The flip side of that is that they're also not in any hurry to sell (and probably think bitcoins have enormous potential that far outweighs the risks of losing the small amount they've put in).  In addition, you probably have new people discovering bitcoins that reach similar conclusions and want to build a position.  And, at this early stage a wealthy individual or two that are willing to put a significant amount into bitcoins can really drive up the price (but it could fall just as quickly when they stop buying).

If people are concerned about collapse, they aren't buying bitcoins.  They are buying gold, guns, toothpaste, etc...

People buying bitcoins are gamboooling hoping it goes up 20x.

[Nefario]

well I'm just trying to only deal in bitcoins, which avoids a lot of problems trading in and out of the currency. Although it helps that I mined 1000btc before it became too difficult.

[marcus_of_augustus]

LOL...you knew someone was going to cite the Elliot wave.  I think in reality, most people that are putting some money into bitcoins understand that it could collapse at any time and hence only put in what they're willing to lose.  The flip side of that is that they're also not in any hurry to sell (and probably think bitcoins have enormous potential that far outweighs the risks of losing the small amount they've put in).  In addition, you probably have new people discovering bitcoins that reach similar conclusions and want to build a position.  And, at this early stage a wealthy individual or two that are willing to put a significant amount into bitcoins can really drive up the price (but it could fall just as quickly when they stop buying).

If people are concerned about collapse, they aren't buying bitcoins.  They are buying gold, guns, toothpaste, etc...

People buying bitcoins are gamboooling hoping it goes up 20x.

One can prepare for the collapse with gold and real goods .... and hedge for success with bitcoins.

Who wouldn't want to be buying the possible money of the future at today's prices? that 5-10% of portfolio recommended in precious metals could easily become 5% precious, 10% bitcoin.

Big money has hardly noticed bitcoin, if at all I reckon. If they make a move for bitcoin it will blow your mind out your ears.

[asdf]

I think because of whats going on with the US dollar.  Look at the prices of energy, food, and gold and silver.   

Folks are getting out of the dollar.   

This might account for about %5 of it.

[kgo]

I hope people are buying BTC as a real investment, but my fear is that you have people who are basically day-trading.  Buying 100 at $1.10, and then immediately putting in a sell order for $1.20.  That wouldn't just inflate the price, but also the volume, where (for example) that 30,000 daily volume is really only the same 300 or 3000 coins getting shifted around.   The mtGox 30 day volume is over half a million BitCoins.  I'm not sure if I believe that anything close to 1/10th of all bitcoins have been bought with USD by investors in the past month.

[kiba]

I hope people are buying BTC as a real investment, but my fear is that you have people who are basically day-trading.  Buying 100 at $1.10, and then immediately putting in a sell order for $1.20.  That wouldn't just inflate the price, but also the volume, where (for example) that 30,000 daily volume is really only the same 300 or 3000 coins getting shifted around.   The mtGox 30 day volume is over half a million BitCoins.  I'm not sure if I believe that anything close to 1/10th of all bitcoins have been bought by investors.

And a half million dollars.

[kgo]

And a half million dollars.

Not sure if you're agreeing with me or not, but yeah, is that really a half a million dollars, or the same 50,000 getting shuffled back-and-forth?

[Steve]

I hope people are buying BTC as a real investment, but my fear is that you have people who are basically day-trading.  Buying 100 at $1.10, and then immediately putting in a sell order for $1.20.  That wouldn't just inflate the price, but also the volume, where (for example) that 30,000 daily volume is really only the same 300 or 3000 coins getting shifted around.   The mtGox 30 day volume is over half a million BitCoins.  I'm not sure if I believe that anything close to 1/10th of all bitcoins have been bought with USD by investors in the past month.

Well, if they buy at $1.10 and the price doesn't rise to $1.20, I guess that makes them an investor.

[marcus_of_augustus]

If the quants get a sniff of the volatility in bitcoin it'll be feeding frenzy time ... it's all liquidity.

Ticks lots of boxes, anyone can own it, if you have a networked device that is.

[kiba]

Not sure if you're agreeing with me or not, but yeah, is that really a half a million dollars, or the same 50,000 getting shuffled back-and-forth?

Does it matters?

[steelhouse]

Volume and more buyers than sellers. 

[kgo]

Does it matters?

I think it does.

People look at the volume and say that half-a-million dollars have been dumped into the bitcoin economy in the past month.  And that provides some level of confidence about the bitcoin economy.  But that number could be very misleading.  It could be nowhere near that much.

Also, if a majority of the transactions are quick-money day-trading then a bubble is being created.  Sure there will be some of this on any exchange, but if it's a vast majority of the trades the same people who are racing to make quick money now will be racing to sell when they decide to cash out.

I'm personally not concerned if BTC hits 2 USDs in the next month.  I'm more concerned that it isn't worth 0.02 USD two years from now.

To be clear, I'm not saying that the exchange rate and volume are misleading, or that there is a bubble, but it's just something I'm concerned about as I see the exchange rate skyrocket.