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Does anyone have an explanation for why the price is going up so high so fast? Is there something legitimately pushing the price up or is it pure speculation?

by nilkn 13y ago

vpeters25 13y ago
My very speculative theory is that lots of "bandwagon miners" who started GPU mining after the price spike of April were unloading their coins as quick as they were making them therefore keeping the price sort of stable. But now, with mining being 50+ times harder only serious miners with their multi-TH rigs are earning any significant amount of coins and they are likely holding to them.
fleitz 13y ago
Is there a difference?
- deleted 13y ago
  [deleted]
3pt14159 13y ago
There isn't much depth to the market. I have some bitcoins, but since I've already made 50 times my original investment I'm holding the rest. Some people have super fat stacks though (10s or 100s of millions of dollars worth) they are trying to use the money by spending it because they are trying to build up the bitcoin merchant community.
evilduck 13y ago
That Cryptolocker virus demands payment in Bitcoins.
lectrick 13y ago
China discovered Bitcoin, I believe it was featured on its state news recently, and the main Chinese bitcoin exchange (which is only 2 months old or so) is already the largest in the world. China has been hurting for any kind of financial investment vehicle of late, and historically they are big savers. This is what happens with global phenomena. The soil (global internet) is already there, anything that will grow in that soil (like bitcoin) can spread VERY quickly like a wildfire. What happens when India discovers it is perfect for remittances? What happens when Africa discovers they can exchange payments with just a mobile phone without even having a bank or credit card or any credit period? What happens when parents the world over realize this is a perfect way to give their kids money to buy stuff online with? Or for online retailers to be able to sell to the unbanked and to those who don't have good credit or a credit card? Anywhere in the world, to anyone with BTC? What happens when new uses for Bitcoin that haven't even been thought of yet, are? Trivia: The head of the Chinese exchange is a Stanford graduate and his brother invented Litecoin.
- foobarqux 13y ago
  Since such an exchange can circumvent Chinese monetary policy it is unlikely that it can keep doing so and become popular.
  - vinchuco 13y ago
    Wouldn't a country lose by placing restrictions on BTC if BTC became widely used in a global setting?
    - foobarqux 13y ago
      Countries place all kinds of restrictions that don't exist in other countries, they don't end up "losing".
kaonashi 13y ago
Deflation. The volume of transactions has droppped and the price per unit has increased.

Does anyone have an explanation for why the price is going up so high so fast? Is there something legitimately pushing the price up or is it pure speculation?

by nilkn 13y ago

Does anyone have an explanation for why the price is going up so high so fast? Is there something legitimately pushing the price up or is it pure speculation?

vpeters25 13y ago

My very speculative theory is that lots of "bandwagon miners" who started GPU mining after the price spike of April were unloading their coins as quick as they were making them therefore keeping the price sort of stable. But now, with mining being 50+ times harder only serious miners with their multi-TH rigs are earning any significant amount of coins and they are likely holding to them.

fleitz 13y ago

Is there a difference?

deleted 13y ago
[deleted]

3pt14159 13y ago

There isn't much depth to the market. I have some bitcoins, but since I've already made 50 times my original investment I'm holding the rest. Some people have super fat stacks though (10s or 100s of millions of dollars worth) they are trying to use the money by spending it because they are trying to build up the bitcoin merchant community.

evilduck 13y ago

That Cryptolocker virus demands payment in Bitcoins.

lectrick 13y ago

China discovered Bitcoin, I believe it was featured on its state news recently, and the main Chinese bitcoin exchange (which is only 2 months old or so) is already the largest in the world. China has been hurting for any kind of financial investment vehicle of late, and historically they are big savers. This is what happens with global phenomena. The soil (global internet) is already there, anything that will grow in that soil (like bitcoin) can spread VERY quickly like a wildfire. What happens when India discovers it is perfect for remittances? What happens when Africa discovers they can exchange payments with just a mobile phone without even having a bank or credit card or any credit period? What happens when parents the world over realize this is a perfect way to give their kids money to buy stuff online with? Or for online retailers to be able to sell to the unbanked and to those who don't have good credit or a credit card? Anywhere in the world, to anyone with BTC? What happens when new uses for Bitcoin that haven't even been thought of yet, are? Trivia: The head of the Chinese exchange is a Stanford graduate and his brother invented Litecoin.

foobarqux 13y ago
Since such an exchange can circumvent Chinese monetary policy it is unlikely that it can keep doing so and become popular.
- vinchuco 13y ago
  Wouldn't a country lose by placing restrictions on BTC if BTC became widely used in a global setting?
  - foobarqux 13y ago
    Countries place all kinds of restrictions that don't exist in other countries, they don't end up "losing".

kaonashi 13y ago

Deflation. The volume of transactions has droppped and the price per unit has increased.