At the peak of the market, a person could trade a single tulip for an entire estate, and, at the bottom, one tulip was the price of a common onion.
Wouldn't it suck to never have owned a tulip and miss the opportunity to trade that tulip for an estate...
Oh the priceoohh the price..look at the price.the price the price, the price..I can't see beyond the price. My knowledge goes no further than the price. Nakamoto's Bitcoin is actually a breakthrough invention. Price per unit is just one aspect. The payment system functions at any value, thus price is irrelevant. The potential applications go well beyond the currency aspect. Contracts, transparency in accounting, voting systems Australian company Tomcar does not hedge bitcoins, they simply save monies via the lower fees. (over $50,000 AUD saved in fees via the Bitcoin payment network) See link: https://www.youtube.com/watch?v=qXEoRQOqWbg
At the bottom of the market you will probably still be able to buy drugs on silk road and I don't think that demand is ever going to disapear LOB; when he said "we don't hedge bitcoins" I think he meant the actual mechanics of doing it and to out source it in order to not loose sight of the companies core focus, they are hedged because they use a payment processor? (I think) I personally don't care what the price reaches but still find the speculative and techinicall aspect interesting.
just bring along a giant mineral block, and force the horse to licked it, before leading a horse to the water, it will jump in the water [youtube]http://www.youtube.com/watch?v=K8qABEv4OZI[/youtube]
The market dynamics have slightly changed recently. Bifinex has now passed bitstamp in volume and it could get nasty if there is a big fall because and the leveraged long positions unwind. They are bigger than the bids on there order book, which used to use bitstamp for liquidity but now doesn't.
Interestingly litecoin has dipped back to the levels of the bubble during april 2013. The $4 mark, about $270 in BTC
If I remember correctly the flash crash to $100 on bitfinex crash and BTC-E lasted all of two minutes in february, trades were reversed and traders were made whole on losses, since then alot of bugs have been discovered and fixed (lost count, there was many) and they have now publicly stated (both bitfinex and BTC-e) that they will slow down trading like what was visible on the break down to $450 on bitfinex, august 14th and $308 on the 18th. Interesting times it doesn't really take alot of coins to cause troubles, anyone long bitcoin probably needs there head read.
