7

There are really only two things driving the increase in price you are talking about. Supply and Demand Greed and Fear Supply and demand is simple, there is a virtuous cycle at work here: Increasing demand drives price increase due to limited supply Increasing price drives increasing demand as knowledge spreads in the media Repeat Greed and Fear are ...


7

Well, Litecoin's main aim is to make mining easier for the common man. The problem with pure SHA-256 mining is that it is not very hard to design hardware that can perform mining at an astonishing speed. We can see this with the currently very much ongoing rise of the ASIC mining industry. Since scrypt is more complex when it comes to hardware - scrypt not ...


6

As famous as it is, I believe Silk Road isn't the reason for Bitcoin's existence or its success. There are plenty of private individuals who value Bitcoin for international money exchange, its low cost trading capability, its irreversability, its lack of a central authority and its upper limit on the number of bitcoins. If you analysed the transactions ...


6

Short selling is essentially an agreement between you and Bitcoinica where Bitcoinica pays you if the BTC/USD price decreases, and you pay them if the price increases, in an amount equal to the price difference multiplied by the number of bitcoins you sold short. Presumably you trust Bitcoinica to hold up its end of the deal, but they don't know you and don'...


4

Bitcoins are easy to hedge against delivery by pre-selling, provided your working capital calculations are properly sorted, and you understand timing constraints throughout the systems you're dealing with. We will sometimes be delivering digital goods through an intermediate currency as well, and we will use existing financial markets to sort/hedge that leg....


3

The default answer to scaling is SPV (lightweight) clients, which allow very good security and control of funds without the entire blockchain. Full nodes will still exist but the cost of running one will not be prohibitive. In practice many people will use some sort of bank service. If the funds are in full control of the bank it has some disadvantages, but ...


2

You can access the data for each currency on each exchange with the Markets API from BitcoinCharts: For example, for USD: http://bitcoincharts.com/charts/chart.json?m=thUSD http://bitcoincharts.com/charts/chart.json?m=mtgoxUSD


2

Certain clients like MultiBit, don't download the block history. They chain for them is stored in the cloud. That is one solution. Also, with interest from companies in things like google fiber, once we get to this point most people's internet speed will hopefully be fast enough to download it


2

So, there may be some benefits to a country with a very troubled currency, but I don't think those benefits would outweigh the drawbacks right now. Firstly, because the exchange rate of BTC is still too volatile. While an increasing exchange rate may seem like a benefit to us that have some BTC in our wallet, think about someone trying to price a service. ...


2

The Speculation board on the BitcoinTalk forum is nonstop speculation. That would probably be the best place to share your theories and analysis and to collaborate. Enjoy!. There is a fair amount of discussion that falls under the category of speculation that also occurs on the #bitcoin-otc IRC channel. And /r/bitcoin on Reddit seems to get its share of "...


2

Possible, yes. Probable, no. If such a scheme were tried it would cost the perpetrator a significant amount to execute (Billions of $) and if successful would almost certainly result in a loss of a significant fraction of the initial investment in the "destroy bitcoin" venture. There is also no guarantee of success, as the bitcoin price could just re-...


2

Well for one, it's almost impossible to get money off of Mt.Gox. (I had a wire transfer pending for 3 months and finally decided to just cancel it and take the loss.) Some bitcoin exchanges refuse to do business with the US (btc-e) and some only do business with the US (coinbase). Bank transfers are not cheep and the exchanges take a somewhat large fee for ...


2

Whenever I am looking into an ICO, there are some things I generally take into consideration. 1. Team -Make sure the team is real, and verifiable. Check linkedin, or other sites to verify the teams identity. 2. Token allocation and funding -Check their practices and see if they are common. Pundix’s ICO is a great example. Removing total investments as ...


1

You only own a bitcoin, if you control the private key. What happens when the online bank (a much more lucrative target than regular joe for hackers) gets hacked, and the bitcoins are siphoned away via monero or other methods? What happens when the bank makes a poor gambit and fails? Compare that to the risk of losing your own private key, getting mugged/...


1

Possible, yes. Probable, no. 12+ million Bitcoins, Bitcoins value 1077. Multiply these and you get 13 000 million dollars. This is a lot of money... Even if they had the money and they would be too late. They probably didn't know about this Bitcoin thing from the start. Even if they would try this this would skyrocket the value of Bitcoin. Because the ...


1

I think that time prevents people from exploiting your schema. It takes from few days to may be a month to withdraw money from mtgox. Delay from transactions sounds negligible in comparison to this.


1

If something is both useful and scarce then it'll be worth something and a market for it will emerge. Ripples are more scarce than bitcoins (absolute numbers dont matter while quantity of bitcoins continues to grow, quantity of XRPs is basically constant). The question is: how fast will ripples' usefulness grow ? Since ripples serve a lot of indispensable ...


1

Major hacks or attacks on key exchanges or Bitcoin services can cause Bitcoin's price to fall quite dramatically. Increase in popularity will slowly make the price rise. Another speculation bubble can cause the price to go up quickly. Major investments made to Bitcoin can greatly increase the price. All of those quick changes don't appear too likely at ...


1

The whole point of money is/was to provide a stable and diversely exchangable store of value. We now simultaneously inhabit a global, national and local community within which to trade. So lets value the world. Each country presently has a share of the global pot which is represented by the relative value of its currency. So call this day one. Set the median ...


1

Following the Fisherine quantity of money... Applying the thoughts of the Fisherine quantity theory of money to BTC could be a possible answer: P = Fair value of a BTC (denoted in a foreign currency) Y = Volume of trade (denoted in a foreign currency) -> Goods and Services bought! V = Velocity of BTC M = Quantity of BTC P = Y/(V*M) -> e.g.: USD 5/BTC= ...


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