Silk Road forums

Discussion => Newbie discussion => Topic started by: Secret_Squirrel on April 09, 2013, 06:44 pm

Title: Why is bitcoin going up like 10 bucks a day?!
Post by: Secret_Squirrel on April 09, 2013, 06:44 pm
whats going on?!
Title: Re: Why is bitcoin going up like 10 bucks a day?!
Post by: balltripper on April 09, 2013, 06:47 pm
Supply and demand my friend.
Right now everyone wants to buy and no one wants to sell, I'll leave it to your imagination what happens the other way around!
Title: Re: Why is bitcoin going up like 10 bucks a day?!
Post by: hojo on April 09, 2013, 06:48 pm
hA....NUTS for sure. I had like 40 bucks in my account and now it's up to 140. Makes me wish i left like 500 in there and let it grow. It's like investing in stocks to make money to buy drugs. God bless the bitcoin market.
Title: Re: Why is bitcoin going up like 10 bucks a day?!
Post by: clearance on April 09, 2013, 07:02 pm
hurray
Title: Re: Why is bitcoin going up like 10 bucks a day?!
Post by: visionenergy on April 09, 2013, 07:15 pm
this should really be working out for everyone right now.  Buyers can just hold on to coins for a week and get a nice discount, and sellers, by the time they receive payment have quite a bit more than what they asked for for their product.  I like the way things are going right now.  I have made an extra 2000+ dollars just by holding off on buying for 2 weeks.
Title: Re: Why is bitcoin going up like 10 bucks a day?!
Post by: max12345 on April 09, 2013, 07:26 pm
iTS more like $50 dollars per day up tick
Title: Re: Why is bitcoin going up like 10 bucks a day?!
Post by: dudemcduder on April 09, 2013, 07:32 pm
econ 101

like balltripper said... google supple demand graph, but the basic premise is that as supply goes up, demand goes down, and vice versa. right now demand is high but supply is limited!
Title: Re: Why is bitcoin going up like 10 bucks a day?!
Post by: Secret_Squirrel on April 09, 2013, 07:43 pm
Yeah my local cvs has two piles of receipts in a drawer under the cash register, one pile is marked zipzap the other pile had 3 receipts and just said other money grams.  hmm should I be worried...
Title: Re: Why is bitcoin going up like 10 bucks a day?!
Post by: Stealth Kr00zer on April 09, 2013, 08:38 pm
Mining difficulty has been increasing as miners miners have been increasing hashrate using ASICs. Since it's profitable for them, they can reinvest in more equipment, increasing hashrate even further. As this happens difficulty increases to balance it out. This increases the investment needed to begin mining, which makes bitcoins more scarce. Imagine how cheap gold would be if everybody could dig it up in their back yard.

Once the hashrate starts to level off that "scarcity" will level as well, and the BTC price will level out. However once it levels miners will likely want to cash out earnings since they are no longer making money. Additionally, on sites like SR more people will hedge transactions in USD since there will be no benefit in keeping BTC. This could cause BTC to drop, causing more people to cash out. Mining may become unprofitable for some, causing miners to stop mining, and lowering difficulty.

Whether or not BTC crashes will depend upon liquidity. As long as people are still buying BTC for transactions, there should be enough liquidity to maintain confidence. However, if there is not enough liquidity in the market to cover miners and investors selling off then the price will certainly fall drastically.