Bitcoin is clearly in a bubble, there as been a degree of flight from fiat, but owners of Bitcoin are showing an increasing reluctance to sell. After all who wants to be holding large amounts of Venezuelan Pesos at the moment. The same is true of other currencies seen to be under the control of heavy handed governments. The demonetization being carried out in India leaves few willing to be left holding the rupee in cash or in banks. Few who hold Bitcoin will give them up for a weakening currency.
The upsurge of Bitcoin above the USD 900 has been driven by last minute investors trying not to miss the boat. Expect demand to fall back below the USD 800 level as the market calms in the face of memories of previous Bitcoin market collapse.
The new year will probably be peppered with announcements of moves to regulate Exchanges and introduce controls of the type money transfer services face.
ColdMonkey mines Gridcoin through generating BOINC computations for science...
Bitcoin is gaining traction in the minds of the masses. I hear your thoughts and we can all be wrong. I would like to see the price of an option to buy Bitcoin at $5,000 in 2 years time - exotics are needed for this burgeoning market
That's a great thought indeed. My personal "Swag Theroy" is we will see a test level of $5K near September 2017, with a 'Bear Trap' pull back, and then a continued growth pattern - less than 2 years. ...But again I am an optimist, with realistic expectations.
I'd have to respectfully disagree with you, understanding that it's not an investor driven event. (Unless you count the population of China & India which just over 3 Billion, as "Investors") ... Dwindling supply, high demand, the 'fear' talk of regulation, and suppression during the beginning phase of Bitcoin drove down pricing (that and a lack of knowledge & understanding @ that time). Today, eh... "Not so Much"! As well it still is trading "sideways" so 'No Bubble'. Video:
I'd have to respectfully disagree with you, understanding that it's not an investor driven event. (Unless you count the population of China & India which just over 3 Billion, as "Investors") ... Dwindling supply, high demand, the 'fear' talk of regulation, and suppression during the beginning phase of Bitcoin drove down pricing (that and a lack of knowledge & understanding @ that time). Today, eh... "Not so Much"! As well it still is trading "sideways" so 'No Bubble'.