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Ask HN: Why is Bitcoin surging in Price

30 points by MediumD 9y ago

Most recent average across all bitcoin markets is over $2300! What are the reasons behind this, other than pure speculation?

spolu 9y ago
I've read new Chinese regulations and financial sector getting into it despite the ETF being refused... also speculation I guess!
- bbcbasic 9y ago
  Like Sydney real estate
nugget 9y ago
Increased capital controls from China and increased speculation from the US. In speculative markets, rapid price increases can become self-reinforcing as they kick off press and attention which draw in even more speculators.
- xiaoma 9y ago
  Many of China's recent capital controls have been aimed at cryptocurrencies. This run is fueled by Japan and Korea (where the price actually went ~10% higher than on US-based exchanges).
xiaoma 9y ago
This run is being driven by a huge increase in usage in Japan and Korea due to work from their largest conglomerates to support it. Peach Airlines even accepts btc now. In total, the two markets hold over 48.6 percent of the global bBtcoin exchange market share and represent the vast majority of institutional investors within Asia. https://cointelegraph.com/news/bitcoin-price-hits-2087-trading-in-japan-south-korea-for-2350 https://cointelegraph.com/news/bitcoin-price-hits-2087-tradi...
pdog 9y ago
Tulip mania[1] and crowd psychology[2]. It's not only Bitcoin. Every cryptocurrency is surging[3] for the exact same reason. [1]: https://en.wikipedia.org/wiki/Tulip_mania https://en.wikipedia.org/wiki/Tulip_mania [2]: https://en.wikipedia.org/wiki/Crowd_psychology https://en.wikipedia.org/wiki/Crowd_psychology [3]: https://coinmarketcap.com/ https://coinmarketcap.com/
- Rmilb 9y ago
  Don't forget about FOMO.
- ca98am79 9y ago
  It isn't a bubble yet - I think we have years before that. A sign of this will be when your neighbors tell you to buy bitcoin - that it is the safest investment, and that you can't lose with cryptocurrencies.
  - rootsudo 9y ago
    Yep. If the shoe shine buy says to buy, you sell. http://archive.fortune.com/magazines/fortune/fortune_archive/1996/04/15/211503/index.htm http://archive.fortune.com/magazines/fortune/fortune_archive... "JOE KENNEDY, a famous rich guy in his day, exited the stock market in timely fashion after a shoeshine boy gave him some stock tips. He figured that when the shoeshine boys have tips, the market is too popular for its own good, a theory also advanced by Bernard Baruch, another vested interest who described the scene before the big Crash: "Taxi drivers told you what to buy. The shoeshine boy could give you a summary of the day's financial news as he worked with rag and polish. An old beggar who regularly patrolled the street in front of my office now gave me tips and, I suppose, spent the money I and others gave him in the market. My cook had a brokerage account and followed the ticker closely. Her paper profits were quickly blown away in the gale of 1929.""
- RichardHeart 9y ago
  https://news.ycombinator.com/item?id=14400440 https://news.ycombinator.com/item?id=14400440 " Tulips, Myths, and Cryptocurrencie"
ca98am79 9y ago
Because people want to buy more than is currently being sold. I think it is because cryptocurrency is a revolution in the making, and more and more people are starting to realize this and want to invest. It is also very useful for a variety of reasons
RichardHeart 9y ago
Most bitcoins are purchased at exchanges. Unless you work at an exchange, and know the identities of the people placing buy orders, I find it highly unlikely you can guess their motives for placing their buy orders. Not guessing and being humble leads to better decisions. I could give a long list of positive reasons why, however I too would be guessing. I can do that if you like.
big_spammer 9y ago
Maybe because Peach became Japan's first airline to accept Bitcoin. https://www.bloomberg.com/news/articles/2017-05-22/peach-becomes-japan-s-first-airline-to-accept-payment-in-bitcoin https://www.bloomberg.com/news/articles/2017-05-22/peach-bec...
madamelic 9y ago
I bought $50 because I have been calling Bitcoin a pump and dump scheme for a few years. I figured if others were going to do it, why not me? Plus if someone wants to buy some at $5,000 / coin or whatever it ends up at, go ahead. You all should check out /r/Bitcoin. They are "predicting" $1m / coin already.

30 points by MediumD 9y ago

Most recent average across all bitcoin markets is over $2300! What are the reasons behind this, other than pure speculation?

spolu 9y ago

I've read new Chinese regulations and financial sector getting into it despite the ETF being refused... also speculation I guess!

bbcbasic 9y ago
Like Sydney real estate

nugget 9y ago

Increased capital controls from China and increased speculation from the US. In speculative markets, rapid price increases can become self-reinforcing as they kick off press and attention which draw in even more speculators.

xiaoma 9y ago
Many of China's recent capital controls have been aimed at cryptocurrencies. This run is fueled by Japan and Korea (where the price actually went ~10% higher than on US-based exchanges).

xiaoma 9y ago

This run is being driven by a huge increase in usage in Japan and Korea due to work from their largest conglomerates to support it. Peach Airlines even accepts btc now. In total, the two markets hold over 48.6 percent of the global bBtcoin exchange market share and represent the vast majority of institutional investors within Asia. https://cointelegraph.com/news/bitcoin-price-hits-2087-trading-in-japan-south-korea-for-2350 https://cointelegraph.com/news/bitcoin-price-hits-2087-tradi...

pdog 9y ago

Tulip mania[1] and crowd psychology[2]. It's not only Bitcoin. Every cryptocurrency is surging[3] for the exact same reason. [1]: https://en.wikipedia.org/wiki/Tulip_mania https://en.wikipedia.org/wiki/Tulip_mania [2]: https://en.wikipedia.org/wiki/Crowd_psychology https://en.wikipedia.org/wiki/Crowd_psychology [3]: https://coinmarketcap.com/ https://coinmarketcap.com/

Rmilb 9y ago
Don't forget about FOMO.
ca98am79 9y ago
It isn't a bubble yet - I think we have years before that. A sign of this will be when your neighbors tell you to buy bitcoin - that it is the safest investment, and that you can't lose with cryptocurrencies.
- rootsudo 9y ago
  Yep. If the shoe shine buy says to buy, you sell. http://archive.fortune.com/magazines/fortune/fortune_archive/1996/04/15/211503/index.htm http://archive.fortune.com/magazines/fortune/fortune_archive... "JOE KENNEDY, a famous rich guy in his day, exited the stock market in timely fashion after a shoeshine boy gave him some stock tips. He figured that when the shoeshine boys have tips, the market is too popular for its own good, a theory also advanced by Bernard Baruch, another vested interest who described the scene before the big Crash: "Taxi drivers told you what to buy. The shoeshine boy could give you a summary of the day's financial news as he worked with rag and polish. An old beggar who regularly patrolled the street in front of my office now gave me tips and, I suppose, spent the money I and others gave him in the market. My cook had a brokerage account and followed the ticker closely. Her paper profits were quickly blown away in the gale of 1929.""
RichardHeart 9y ago
https://news.ycombinator.com/item?id=14400440 https://news.ycombinator.com/item?id=14400440 " Tulips, Myths, and Cryptocurrencie"

ca98am79 9y ago

Because people want to buy more than is currently being sold. I think it is because cryptocurrency is a revolution in the making, and more and more people are starting to realize this and want to invest. It is also very useful for a variety of reasons

RichardHeart 9y ago

Most bitcoins are purchased at exchanges. Unless you work at an exchange, and know the identities of the people placing buy orders, I find it highly unlikely you can guess their motives for placing their buy orders. Not guessing and being humble leads to better decisions. I could give a long list of positive reasons why, however I too would be guessing. I can do that if you like.

big_spammer 9y ago

Maybe because Peach became Japan's first airline to accept Bitcoin. https://www.bloomberg.com/news/articles/2017-05-22/peach-becomes-japan-s-first-airline-to-accept-payment-in-bitcoin https://www.bloomberg.com/news/articles/2017-05-22/peach-bec...

madamelic 9y ago

I bought $50 because I have been calling Bitcoin a pump and dump scheme for a few years. I figured if others were going to do it, why not me? Plus if someone wants to buy some at $5,000 / coin or whatever it ends up at, go ahead. You all should check out /r/Bitcoin. They are "predicting" $1m / coin already.