Post
Topic
Board Bitcoin Discussion
Re: Bitcoin Prices over $7 up to $8/BTC!
by
xf2_org
on 13/05/2011, 15:14:06 UTC
How sustainable is this though?  Are there any analyses out there about this crazy rise in bitcoin value?

Nobody knows -- or can know -- until after the fact.

The price rise is attributable to a large increase in the number of people hearing about bitcoin for the first time, and wanting to get ahold of a few bitbucks.  If you're a trader or investor for whom 50k or 100k is play money, how many bitcoins would you buy after first hearing about it?

It is entirely possible that bitcoin value will rocket up -- and then stick at the new level, simply because that is the new equilibrium where supply has matched demand.

Or value might plummet right back down.  I don't think it will fall back to $1.

There are only 6,000,000+ bitcoins, and plenty of individuals out there wanting them.  Constrained supply == high price.