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It's back up and for right now, I was wrong, prices seem to have dropped. I believe that there are a small but significant group of people who actually need to
by vessenes 16y ago
It's back up and for right now, I was wrong, prices seem to have dropped. I believe that there are a small but significant group of people who actually need to use BitCoin to conduct their business. Liquidity problems hurt them, and their demand is inelastic.
There are certainly plenty of speculators, though, and I wish I'd bought more than I did back at $.07/BTC. :)
There's some lag between reading about BitCoin and actually driving demand, so I tend to see news response as driving up BTC a bit by speculation, and then a longer slower ride up.
That said, BitCoin has zero elasticity on the supply side, and it has for some time seemed extremely likely to me that prices will continue to rise drastically for some time.