Post
Topic
Board Economics
Re: what caused the rise to $1100 last year?
by
Ron~Popeil
on 03/06/2014, 03:28:11 UTC
hello, i'm relatively new to the bitcoin scene and wanted to ask a kind of noob question to introduce myself to the forum.

what is the general consensus around the cause of bitcoin reaching a valuation of around $1100 in november 2013 - looking at this chart it seem like a pretty accelerated spike in a short period of time.
http://bitcoincharts.com/charts/bitstampUSD#rg730ztgTzm1g10zm2g25zv

i'm guessing the 50% drop in january was related somehow to the mt.gox fiasco but i wasnt too sure what had caused the price to go up so much in the period of roughly 1 month around november 2013, any insights would be appreciated!

The primary reason behind the dramatic rise in the price of BTC was the media attention that was given to silk road. In this attention bitcoin was discussed. The discussion of bitcoin lead to more public awareness which lead to greater public adoption. 

That was pretty negative attention. I think it is the positive stuff that brings new adapters. Luckily in the cases of Silk Road and the Gox meltdown the average westerner has the attention span of a gnat.