There are several factors driving the bitcoin prices up, including people from European countries converting their money to bitcoin because it makes it harder to seize.
But since the beginning of the year bitcoin has doubled nearly 3 times, and this past month has seen additional acceleration. Bitcoin has been in the news a but I don't see any legitamate reason for the dramatic spikes of the past few weeks... except for speculaiton.
I posted this because I think that today's extraordinary spike is preceeding a crash of the market. At some point, all of the serious speculators will have put all their money into the coin, and they will be looking to cash out. A huge spike like this would seem like an optimal time to cash out.
And if there aren't enough people to buy the coins, the market will plummet.
Bitcoin has been succesful recently because the value has continued to go up. When the price takes a hit, people will lost confidence, and non-speculators will also start to sell. I don't know how hard the initial hit will be, but the last time that Bitcoin started losing value, it spent almost 3 months declining.
I believe that the same thing will happen again, and bitcoin will (after the initial hit) decline for several months before starting to make its deflationary recovery.
> There are several factors driving the bitcoin prices up, including people from European countries converting their money to bitcoin because it makes it harder to seize.
I doubt many people are stupid enough to trust Bitcoin with their savings.
The thing with Bitcoin is that identities are easily made, and transactions are hard to track. Nothing is stopping you from creating a whole load of transactions between addresses you own, essentially creating a lot of traffic and faking interest in the currency. I'm sure there are lots of Bitcoin bots out there propping up prices, run by speculators who bought low.
> At some point, all of the serious speculators will have put all their money into the coin, and they will be looking to cash out.
You are assuming that the price rise is due to short term speculators looking to make a quick buck. I think a lot more people are buying into the philosophy, politics, and revolutionary technology and won't be so quick to sell.
I think that most people buying know fairly well that it can crash, so they dont acquire more than they are willing to loose completely. So in the event of a crash, they are not necessarily going to sell, they might just keep them around in the hope that it will go up later.
Comments
There are several factors driving the bitcoin prices up, including people from European countries converting their money to bitcoin because it makes it harder to seize.
But since the beginning of the year bitcoin has doubled nearly 3 times, and this past month has seen additional acceleration. Bitcoin has been in the news a but I don't see any legitamate reason for the dramatic spikes of the past few weeks... except for speculaiton.
I posted this because I think that today's extraordinary spike is preceeding a crash of the market. At some point, all of the serious speculators will have put all their money into the coin, and they will be looking to cash out. A huge spike like this would seem like an optimal time to cash out.
And if there aren't enough people to buy the coins, the market will plummet.
Bitcoin has been succesful recently because the value has continued to go up. When the price takes a hit, people will lost confidence, and non-speculators will also start to sell. I don't know how hard the initial hit will be, but the last time that Bitcoin started losing value, it spent almost 3 months declining.
I believe that the same thing will happen again, and bitcoin will (after the initial hit) decline for several months before starting to make its deflationary recovery.
> There are several factors driving the bitcoin prices up, including people from European countries converting their money to bitcoin because it makes it harder to seize.
I doubt many people are stupid enough to trust Bitcoin with their savings.
The thing with Bitcoin is that identities are easily made, and transactions are hard to track. Nothing is stopping you from creating a whole load of transactions between addresses you own, essentially creating a lot of traffic and faking interest in the currency. I'm sure there are lots of Bitcoin bots out there propping up prices, run by speculators who bought low.
>I doubt many people are stupid enough to trust Bitcoin with their savings.
You should have more faith in human stupidity. It has a proven track-record.
> At some point, all of the serious speculators will have put all their money into the coin, and they will be looking to cash out.
You are assuming that the price rise is due to short term speculators looking to make a quick buck. I think a lot more people are buying into the philosophy, politics, and revolutionary technology and won't be so quick to sell.
Just wait until there is a run on its value.
I think that most people buying know fairly well that it can crash, so they dont acquire more than they are willing to loose completely. So in the event of a crash, they are not necessarily going to sell, they might just keep them around in the hope that it will go up later.