Quote from: Macho on June 16, 2011, 03:02:17 AM

Who in their right mind believes the bitcoin economy (that is real products and services exchanged) is anywhere near $120,000,000 which is the current value of all bitcoins?

Some people confuse market capitalization (that is total bitcoins times the current market price) with the money so far invested in Bitcoins. You see, I believe much less than 50% of bitcoins have been traded at these prices. In other words, most of the bitcoins have either never been sold (they are kept by miners), or have been sold at much lower prices some weeks ago. So really the money that has come in to the Bitcoin economy is much, much, much less than 120 millions. Say 30 millions, that is peanuts in any start up like this, that has had so much attention from the media, and that promises to change the world.

Also Russia and other countries are supporting Bitcoin, judging from their TV broadcasts. So for a couple of billions of dollars to come to Bitocoin in the following months, I think its an easy bet. Of course if bitcoin security is breached, or severe legal problems happen, then real and permanent crashes could ocurr, but not until then bro.

Also I dont see why you equate the total products and services exchanged with bitcoin (over which timeframe by the way?) with the market value of bitcoins. These are no comparable units.

Regards.