Quote from: Longmarch on June 05, 2011, 08:14:15 AM

Quote from: econotarian on June 05, 2011, 07:20:47 AM

Once the value of speculation is higher than the utility of bitcoin as a transacting currency, the bubble will no doubt burst.

Um, ain't that where we're at now? Speculative activity is far beyond purchasing goods and services right now.

The value of the bitcoin will continue to rise as more individuals decide to enter the bitcoin economy and demand bitcoins. The user base and trade volume of the bitcoin is far below that of any major currency, commodity or stock. Most of the current user base understands this and the fact that if the bitcoin were to become a majorly used currency, its value per unit would have to be many times higher than it currently is given the quantity of bitcoins available (fixed) compared to fiat currencies (rising). So long as the current holders of bitcoins believe the value will continue to rise and new users enter the market, it will. The day you see people taking out mortgages on their homes to buy bitcoins is the day you probably should get out.