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think33 | 13 years ago

It is being used as a currency, and any metric on this far exceeds where people thought it would be a few years ago. It's also having massive adoption from a wide number of people. The reason the price is moving is not "speculation" as people seem to assume, but adoption.

MtGox said they were getting 20,000 new accounts a day recently. By definition, new accounts are not "speculators" putting in trades to manipulate the price, they are people putting in trades to acquire their first bitcoins.

People rushing into a currency, right after the EU forced bank depositors to lose %40-%60 of their money in a state run bank (which was only insolvent because they were forced to buy greek debt by the very same EU) is not "speculation" -- it is seeking a safe haven.

A lot of people hope bitcoin will be a safe haven away from these increasingly manipulated and untrustworthy national currencies.

That's a huge level of success, given the limited expectations for bitcoin only a few years ago.

Suddenly it's actually considered a viable store of value for some segment of the population. Sure, it's a small percentage, but still, it's massive.

discuss

order

andyakb|13 years ago

"By definition, new accounts are not "speculators" putting in trades to manipulate the price, they are people putting in trades to acquire their first bitcoins."

What definition are you talking about? That sounds exactly like speculation. You do not need to manipulate anything to be a speculator, you simply need to be making a gamble that what you are betting on will increase [or decrease if youre betting against] in value.

penny500|13 years ago

"It is being used as a currency"

Do you have a source for this? As far as I know, and I know this is a theory but I suspect a good theory, people used bitcoin as a currency when it was relatively stable and before it skyrocketed in value, and became extremely volatile. I highly doubt they're using it as a currency now because the value of a bitcoin changes dramatically within a day. Say it stabilizes at this price (~$95), you won't be able to transact with everyday goods because the price of 1 bitcoin is close to $100. Who would buy a hamburger for 1 bitcoin right now?

andyakb|13 years ago

You can use fractional bitcoins for pricing

deadairspace|13 years ago

You seem to be hellbanned; I'm not sure why. This is the last comment of yours I can reply to.