I'm sure everyone knows what I'm referring to when I say the "recent surge" in Bitcoin prices, although now they have somewhat leveled out. A couple weeks ago they were about $17 and like overnight they didn't drop again below $20.
My question is this: I feel like people are hoarding their BTC. I frequent the marketplace and there is no where near the type of commerce going on that there usually is-except for expensive items like ounces of gold (another testament to the recent surge). Obviously, this is a contributing factor to the surge. So what happens next? Will prices go back down? I know Butterfly Labs is sending their mining rig out soon-how drastically will that affect the supply of bitcoins? Also, is it true that there are about 6 million in circulation and 21 to ever be in circulation?
Obviously bitcoins are ultimately a deflationary currency. But will we see inflation at all in the near future, with the release of new mining rigs? My final question is a tough one that probably can't conclusively be answered now. As mentioned, bitcoins are a deflationary currency. That means I should get as many of them as I can before they are gone. But-is the bitcoin truly too big to fail? Should I spend my bitcoins now and take advantage of this surge, or continue on my pursuit to acquire and not spend as much as possible?