Advertise with us (we do not endorse any site advertised)

Author Topic: economist.com: Daily chart, A Bit expensive  (Read 631 times)

0 Members and 1 Guest are viewing this topic.

Offline bitcoinforum.comTopic starter

  • Administrator
  • Legendary Member
  • *******
  • Joined: Nov 2011
  • Location: bitcoinforum.com
  • Posts: 1458
  • Country: bz
  • Thanked: 13 times
  • Karma: +25/-0
  • Gender: Male
  • The Bitcoin genie is already out of the bottle.
    • View Profile
    • Bitcoinforum.com
economist.com: Daily chart, A Bit expensive
« on: March 19, 2013, 03:59:10 PM »
Daily chart, A Bit expensive



Bitcoin's record price looks like a bubble

NOT MANY fund-managers have heard of Bitcoin, let alone put any of their clients’ money in it. But over the past few months, the world’s first “crypto-currency” has become one of the world’s hottest investments. Since September, when The Economist last wrote about it, the price of a unit of Bitcoin as recorded by Mt Gox, a popular Bitcoin exchange, has soared. Unlike other online currencies—such as the new Amazon Coins—the supply of Bitcoin is not determined by any central issuing authority. Instead, new coins are generated according to a predetermined formula by thousands of computers solving complex mathematical problems. As more coins are generated, these problems get ever more complex, increasing the cost of computing power necessary to generate them, and so setting a floor underneath the price. Mimicking gold, the currency is designed to be deflationary. However, there is every reason to think that the current Bitcoin boom will shortly bust. As the chart shows, online interest in the currency has spiked in recent months. Though an increasing number of legitimate businesses are adopting the currency—one Finnish software developer has offered to pay its employees in Bitcoin—it still has relatively few users. Its primary commercial use is probably to buy drugs from Silk Road, a sort of pirate eBay hidden in the “deep web”. This suggests that the new users are buying Bitcoin as an investment, not as a means of exchange. For any currency to thrive it needs users, not just speculators.

http://www.economist.com/blogs/graphicdetail/2013/03/daily-chart-12
"No man has received from nature the right to give orders to others. Freedom is a gift from heaven, and every
individual of the same species has the right to enjoy it as soon as he is in enjoyment of his reason."
(Denis Diderot)


 

Author and economist David Friedman and Bitcoin

Started by bitcoinforum.com

Replies: 0
Views: 698
Last post January 25, 2013, 11:35:02 AM
by bitcoinforum.com
bloomberg.com: Bitcoin’s Gains May Fuel Central Bank Concerns: Chart of the Day

Started by bitcoinforum.com

Replies: 0
Views: 725
Last post January 28, 2013, 10:42:13 PM
by bitcoinforum.com
BIT LC INC: Closed

Started by bitcoinforum.com

Replies: 0
Views: 515
Last post February 14, 2013, 01:41:42 PM
by bitcoinforum.com
How Bitcoin could destroy the state (and perhaps make me a bit of money)

Started by bitcoinforum.com

Replies: 0
Views: 678
Last post March 28, 2013, 03:19:43 PM
by bitcoinforum.com
CHART OF THE DAY: The Insane Parabolic Rise Of Bitcoin

Started by bitcoinforum.com

Replies: 0
Views: 744
Last post April 02, 2013, 03:38:59 PM
by bitcoinforum.com

Advertise with us (we do not endorse any site advertised)