Looks like insider buying bots caused (mostly) the big run up to $1200 and not supply and demand. Sure there was the China effect and general growing interest in cryptos and get rich quick, but the major factor was "Willy", the buying bot: http://willyreport.wordpress.com "It needs to be recognized that, whether intentional or not (though plausible ignorance only goes so far), Mt. Gox has effectively been abusing Bitcoin to operate a Ponzi scheme for at least a year. The November âbubbleâ well into the $1000â²s â and possibly Aprilâs as well â was driven by hundreds of millions of dollars of fake liquidity pumped into the market out of thin air (note that this is equivalent to âwith depositorsâ moneyâ). It is only natural that the Bitcoin price would deflate for around 5 months since its December peak, since there was never enough fiat coming in to support these kind of prices in the first place." And before you start to cry and protest, read the whole analyses, it is very good, factual and objective...
Tulips were bought on margin. (If I remember right, buyers only had to put up 3.5% of the price). Now, if you could buy bitcoin and only put up 3.5% of the price...THEN you would see some serious tulip mania in bitcoin.
I just don't get it. I understand the technology and all .... But for me ... and this is just for me? Bitcoins solves a problem that I dont have ... so ..
Does a north face tent solve a problem you have? there are many things that don't solve a problem you have nor are you Aileron ever going to purchase them. Yet the founder of north face owns like 100,000 acres in central America somewhere..
Yeah, probably doesnt solve too many problems for 1st worlders, but it definitely solves massive problems for more than half the world. Thats a pretty large market!
I thought it was "bubble looking" at 50, then at 200.... boy was I wrong. When it went from 200 back down with a 50%+ pullback everyone was saying bubble then too. This I do know, price can only go down 100%.....but it can go up many multiples of that. I like "bubbles"
Also, Silver was $48 bucks not too long ago, now it's like $19. Stuff goes up and down. One persons definition of a bubble and bust, is another's definition of a cycle. Oil, $150 to $35
Most of you kids are offtopic, this thread is not a general discussion about bitcoin... Me too. But it is nice to know what is behind it, mass madness of the people, or fake Gox money.