Re:China and the soaring price of Bitcoin
by stanleydrew on Thursday November 21, 2013 @04:38AM
(#6773846)
Rational and stable markets will tend to price in future usage. But even those suffer bubbles every once in awhile.
But that's beside the point. The argument being made is that the future usage being priced into Bitcoin in the current craze depends on China not doing things that would make it less useful to hold Bitcoin.
Is there progress being made every day with bitcoins ? Yes.
Is there global potential for bitcoin to be used as some form of currency ? Yes. (it is already being used in small amounts in several places)
Markets tend to price these things in. Investor sentiment is optimistic. Bitcoins current position certainly doesn't justify this price. But the market has priced in the future.