Saitekman12345 (OP)
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August 05, 2012, 03:51:31 AM |
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Bitcoin prices rise...
Lately the price of BTC has sore above the roof!
(4-5$USD to 10USD)
Why is that and what is the factor that will stop the rise?
Are more people investing in Bitcoins or somewhat "hoarding" them?
Not sure what the problem is, I would love to know why.
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Nesetalis
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August 05, 2012, 03:52:52 AM |
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Right now, i'm selling a handful, hording the rest... oh and buying some things.
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ZOMG Moo! ![](https://bitcointalk.org/Smileys/default/azn.gif)
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FreeMoney
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Strength in numbers
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August 05, 2012, 04:29:17 AM |
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Heh, I'm not sure what the problem is either.
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Play Bitcoin Poker at sealswithclubs.eu. We're active and open to everyone.
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bittenbob
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August 05, 2012, 04:34:15 AM |
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Heh, I'm not sure what the problem is either.
Problem? I'm not quite sure I would call this a problem.
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mobile4ever
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August 05, 2012, 05:59:01 AM |
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Some people claim it is because of Paul Graham of YCombinator starting a Bitcoin project.
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FreeMoney
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August 05, 2012, 08:23:58 AM |
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Heh, I'm not sure what the problem is either.
Problem? I'm not quite sure I would call this a problem. Neither would I. Bitcoin prices rise...
Not sure what the problem is, I would love to know why.
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Play Bitcoin Poker at sealswithclubs.eu. We're active and open to everyone.
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Graet
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August 05, 2012, 08:47:32 AM |
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I too am curious to know why a rise in price is perceived as a problem.
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JoelKatz
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August 05, 2012, 09:03:51 AM |
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I too am curious to know why a rise in price is perceived as a problem.
Use as a medium of exchange is critical to Bitcoin's long-term success. Instability in value makes a currency harder to use as a medium of exchange. Imagine, for example, if you placed a large purchase on a Bitcoin credit card and the value of Bitcoins doubled. Or imagine if your rent was in Bitcoins and then the value of Bitcoins doubled.
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Vitalik Buterin
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August 05, 2012, 11:04:53 AM |
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Rises in price aren't a bad thing. They have some harmful effects in the case of merchants who set fixed BTC prices, but their good massively outweighs the bad - they make using Bitcoin as a currency exchange intermediary essentially free or even negative cost, they encourage general interest in Bitcoin, and they make Bitcoin holders, the largest of whom are also Bitcoin businessmen, richer. But we're not worried about the rise. We're worried about the fall after the rise. At this point I doubt Bitcoin will fall to less than $7, but if Bitcoin goes up to $40 and then back down to $7 that would seriously disrupt the Bitcoin economy in many ways - it was a big problem the first time it happened in late 2011.
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Argumentum ad lunam: the fallacy that because Bitcoin's price is rising really fast the currency must be a speculative bubble and/or Ponzi scheme.
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gilgil
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August 05, 2012, 12:23:43 PM |
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High BTC price is mainly a good thing, as it stabilizes the price - a 1$ movement in price is huge when price is 5$, and a minor thing when price is 100$
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Bitrated user: gil.
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Vitalik Buterin
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August 05, 2012, 12:46:35 PM |
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High BTC price is mainly a good thing, as it stabilizes the price - a 1$ movement in price is huge when price is 5$, and a minor thing when price is 100$
That's not really a good argument - there's no reason why the absolute volatility of the price should be constant, rather than proportional to the price itself. What is a good argument is that higher price implies more people which implies a more diffuse community and therefore more stability due to the random walk effect.
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Argumentum ad lunam: the fallacy that because Bitcoin's price is rising really fast the currency must be a speculative bubble and/or Ponzi scheme.
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ice_chill
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August 05, 2012, 07:30:44 PM |
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It started rising after Butterfly Labs started taking payment in BTC for their new mining equipment.
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Portnoy
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My money; Our Bitcoin.
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August 05, 2012, 07:39:59 PM |
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"Correlation does not imply causation"
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bg002h
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August 05, 2012, 07:43:55 PM |
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It started rising after Butterfly Labs started taking payment in BTC for their new mining equipment.
Are they hoarding?
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Lethos
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August 05, 2012, 08:08:59 PM |
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The cause?
More people with traditional market trading experience are getting into bitcoin, not as miners, but investors. Making money the same way they use to (or maybe still do) trading bitcoin as a currency at the right times for the right price for a profit.
Also speculation of difficulty changes due to new hardware coming to the market in the coming months, plus the block halving soon is a reason for influencing the value of each bitcoin.
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istar
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August 05, 2012, 09:23:54 PM |
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Its a combination of several factors. Bitcoin surviving the previous crash. Paul Graham of YCombinator Bitinstant making bitcoin available at Walmart and Seven Eleven. Nordic Bitcoin making Bitcoins available to 300 million people Manipulation Expectations More investors Bigger investments Bitcoin slowly starting to spread across the globe. The Great Euro Crash - 2012 http://www.youtube.com/watch?v=dyNekAJ6rA8&feature=player_embedded#! But really, if Bitcoin can be expected to be at $50-$150 in 4-5 years or $1000 in 10-15 years. It has to start going up sometime.
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Bitcoins - Because we should not pay to use our money
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markm
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August 05, 2012, 09:37:51 PM Last edit: August 05, 2012, 10:10:16 PM by markm |
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It is still ridiculously underpriced, only now starting to recover from the big loss of confidence that brought it down from the $30+ it was at last year...
-MarkM-
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augustocroppo
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August 05, 2012, 09:48:00 PM |
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Bitcoin prices rise...
Lately the price of BTC has sore above the roof!
(4-5$USD to 10USD)
Why is that and what is the factor that will stop the rise? Unexpected dumps: ![](https://ip.bitcointalk.org/?u=http%3A%2F%2Fanonymouse.org%2Fcgi-bin%2Fanon-www.cgi%2Fhttp%3A%2F%2Fimg802.imageshack.us%2Fimg802%2F5613%2Fnovo3.png&t=665&c=ZDT3iqnhX9kATQ) Are more people investing in Bitcoins or somewhat "hoarding" them?
Not sure what the problem is, I would love to know why.
Yes, there were more people securing investments and buying Bitcoins in the last two months: ![](https://ip.bitcointalk.org/?u=http%3A%2F%2Fanonymouse.org%2Fcgi-bin%2Fanon-www.cgi%2Fhttp%3A%2F%2Fimg21.imageshack.us%2Fimg21%2F9679%2Fnovo2i.png&t=665&c=EP4zPUFuPNcZGQ)
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mobile4ever
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August 05, 2012, 10:39:56 PM |
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"Correlation does not imply causation"
But its interesting to factor in...
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niko
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August 06, 2012, 03:56:57 AM |
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I too am curious to know why a rise in price is perceived as a problem.
Use as a medium of exchange is critical to Bitcoin's long-term success. Instability in value makes a currency harder to use as a medium of exchange. Imagine, for example, if you placed a large purchase on a Bitcoin credit card and the value of Bitcoins doubled. Or imagine if your rent was in Bitcoins and then the value of Bitcoins doubled. Isn't it the case that with low (even if stable) prices, any large transaction in an exchange will move the market, thus causing volatility? The recurring joke here is that current btc economy cannot even sustain a fancy yacht or a house being traded without volatility. The only way to a more stable and functional market is increase in "market cap" (a misnomer) - and since supply is set in stone, this means increase in exchange rates (influx of fiat capital).
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They're there, in their room. Your mining rig is on fire, yet you're very calm.
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