Re:Bitcoin market cap now +$200M as prices keep rising
by derrida on Thursday January 24, 2013 @03:01PM
(#5111822)
Stuff just goes up in January, people are optimistic. https://ssl1.washingtonpost.com/opinions/why-do-stock-prices... Markets aren't rational. I bought in December & exited about a week ago on this strategy.
I think short term (1-3 years) there is a real issue with liquidity in the Bitcoin market (moving between currencies) & acceptance. I suspect to see a dip dropping below November prices March-July as people need access to cash later in the year (due to January optimism wearing & credit bills to pay) and in the process of trying to make liquid their bitcoin reserves discover the problems with liquidity, which have to do with shady exchanges: causing further dip. In person cash transactions are best at this stage, but require effort. Bitcoin has solid value though and isn't going anywhere.
Basically: what places that do accept bitcoin for currency are shady and uncertain, and few accept for goods.
Re:Bitcoin market cap now +$200M as prices keep rising
by gigq on Thursday January 24, 2013 @03:20PM
(#5111934)
While I agree it used to be very difficult to move between USD and bitcoins, https://coinbase.com (YC S12) has made this pretty easy at this point.
Why would one expect that? The demand is increasing, and given the fact that the supply is increasing at a much slower rate, then it's quite normal for the value to increase.
That being said, I don't know what caused the "sudden" (few weeks) increase from $14 to $18, as I don't read about Bitcoin that often. But I do expect the value to keep rising as more companies start adopting Bitcoin payments and more people then get interested in it. And I also expect Bitcoin to remain relatively volatile at least until its market value is counted in billions or tens of billions of dollars, when each individual transaction will have a much smaller impact on its value, in either direction.