Bitcoin exchange rate running up again

[nanaimogold]

Some were hoping the price would stabilise, and for a couple months it looked like it might stick to about $5 - $5.50.

On July 17 the price took a big leap and a huge volume of trade followed.

I can't figure out what was the impetus for this big change. The price of a bitcoin is currently over $9.

Anyone have any theories on what caused this most recent run up? Was there some big press that I missed? Maybe something underground?

[BirdmanAlcatraz]

The price was steadily increasing at a gradual rate for months before the big jump. In my opinion bitcoins have been undervalued for a long time, maybe the market is finally catching up. I think that the huge swings in prices are bad for bitcoin's popularity though. It increases speculation in bitcoin, while simultaneously making it harder for merchants and consumers to trade actual products and services for bitcoins.

[Jason M.]

Originally Posted by nanaimogold

Anyone have any theories on what caused this most recent run up? Was there some big press that I missed? Maybe something underground?

Exactly my thoughts. Absolutely no idea, but there seems to be either of those two.

Or people are hoarding more than average.

Or maybe an investment club got their eye on Bitcoin's pricing changes... and they want a piece of the cake

[XMLGold]

My thought is, it is all about Liberty reserve ambitious actions recently and people are switching a payment systems to more safe and stable one.

[wmXchange]

Originally Posted by XMLGold

My thought is, it is all about Liberty reserve ambitious actions recently and people are switching a payment systems to more safe and stable one.

Inded Bitcoin is safe but only for those that know how to deal with it, I mean making backups regularly, keeping a virus/trojan free computer, use cold storage, etc.

In terms of stability Bitcoin it's not that great considering it's price variation ... today 1 Bitcoin is $11 and next month can be half or double ... its more like in forex speculation without having the hedging tools available in forex market.

[Flauros]

Originally Posted by wmXchange

Inded Bitcoin is safe but only for those that know how to deal with it, I mean making backups regularly, keeping a virus/trojan free computer, use cold storage, etc.

In terms of stability Bitcoin it's not that great considering it's price variation ... today 1 Bitcoin is $11 and next month can be half or double ... its more like in forex speculation without having the hedging tools available in forex market.

Yes, there is too much volatility in bitcoin.
Do you feel comfortable,as exchanger, to keep large amounts of bitcoins?
For large amounts I mean more than 15-20000$

[wmXchange]

Originally Posted by Flauros

Do you feel comfortable,as exchanger, to keep large amounts of bitcoins? For large amounts I mean more than 15-20000$

Not at all, as an exchanger it's like playing Russian roulette if you keep large stock of bitcoins for long time. Sooner or later you can get burned, it's just a matter of time, because no matter how good you are at predicting the financial market you can't really predict the future price of bitcoin. You can end up buying 1k btc from customers for 10k USD and sell the same 1k btc back to customers at 5k USD.

It can be a good business idea if somebody will do a hedging service on the Bitcoin price. In this way merchants, exchangers and long term investors can protect themselves against the Bitcoin price risk.

[Bayview Technical]

Probably the #1 problem with bitcoin is the problem with its price always being so high but always threatening to drop so low! But you have to admit, after the bubble in '11 burst, it has been going up... sorta steadily... I Just hope it flattens out at ~$10 and stays there... its not fun to have to trade forex every time you want to sell something!

[nanaimogold]

Smart merchants are trading out immediately, effectively laying off the risk onto their exchange partners.

It will work out once sellers learn to adapt.

[ETG]

I am extremely surprised Bitcoin hasn't been adopted by MLMs/Hyips in a mass scale yet.