Originally Posted by PostalTwinkie
What in gods name is driving this rise in pricing? Is it a self created bubble that is just going to pop?
It isn't as if I am seeing more places take Bitcoin as payment; I really really really don't get it! My only guess is that due to the increased difficulty in mining them, and the desire to have a Bitcoin is the force behind it. Not that they have 'value', but just a situation of "Well that guy has them, so I want them too."
Next crash, I am buying a ton of these things....just to sit on.
Bitcoin ATM in Canada --- the biggest driving force
More public exposure (see gov't regulation to make it "legit" .... http://www.usatoday.com/story/news/nation/2013/11/17/congress-explores-bitcoin-pitfalls-potential/3621445/
Increasing difficulty (skyrocketing difficulty due to ASICs)
People buying and holding and not selling = more demand than supply
Originally Posted by Zhood
Wow. Now my boss is kicking himself in the ass for not building a couple machines haha. Oh well. You live and learn.
He just doesn't understand it. How someone just creates a currency like that and then it's worth USD, and it's a digital thing. Mind blowing for him.
Currency can be anything as long as people attach value to it. Second Life is a good example of this.
I had this discussion with a bunch of older people, they think that their money in the bank savings, CDs, mutual funds are any different. The only difference is you have a bank that has physical branches : all the "money" you have is a bunch of digits on a database that can be wiped out (see Cyprus).
Diamonds for example, are the biggest overvaluation ever. They're good for machine bits but the ones that are worn aren't used for their thermal conductivity or hardness properties...Edited by AlphaC - 11/18/13 at 1:36pm