Chatters chatting with trolling trolls on forums abroad eagerly watched over night as each pricing index and exchange rate of the digital currency known as the Bitcoin shot over $300 for the first time since July and folks worldwide took notice.
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| October 28th 2015 |
News headlines from crypto-rags and mainstream outlets alike rang out in announcement of the break this morning, while others took to Reddit and other forums to join the discussion. The main topic of discussion being; why?
The common question was and is "why did the price go up"? Some were buying and holding as if they knew something that nobody else knew. Why was that?
This is just the way things always work and some of this activity could be trading strategy, but so far the majority of the insights on this have been partially, or completely, inaccurate or just a wild guess.
For instance the Eupoean VAT is one theory and China's legal standpoint on digital currency is another. While these may well have contributed to a rise in price these past few days, it doesn't explain what happened last week.
Other ideas range from a weakening US dollar to governments clamping down on economic freedoms to the easy-out of "nobody knows". The latter being most realistic.
The Double Header
There have been two specific rallies of late. One being that of last week and the other being the past few days which brought us to the 300 mark of today. Various outlets have reported OkCoin, and others in China, to be the dominant reason for the increase in price. However, other than volume, no further specifics other than the aforementioned government tax and legal theories have really been offered.
The Chinese exchanges along with just about every single other exchange on earth certainly show volume increases. However, what they are not taking into account is what people actually do with bitcoin, how hard it remains for the average individual to obtain, or how coin gets from the large exchanges to the common household.
Supply Demanding
This rally really isn't about tax or stubborn Chinese officials. This rally isn't about gold value or weak dollars.
This rally is about good old fashion supply and demand.
Bitcoin and the Blockchain are simply being used for more things. Likewise, more coin is needed where it previously was needed due to growing popularity and it's needed in new places where it previously wasn't needed at all. Very simple.
This rise should continue as well. There is no bulletproof investment and it can certainly fall, but the most likely scenario is that it will remain stable.
This is all fantastic news as Bitcoin and the Blockchain continue slow and steady acceptance and growth, but what is really going to be interesting are a few upcoming events that will most certainly affect the price next year in 2016. However, let's not go there right now and just enjoy the return of 300.
The Rising Reason
The supply and demand theory is quite probable and technically it is the exact reason why commodities rise on the market, however, in reality the "nobody really knows" theory is likely the most accurate.
Nobody knows where Bigfoot or the Lockness monster are, nobody knows what Colonel Sander's secret recipe is, and nobody knows if Justin Beiber's music will ever not suck.
These things just are the way they are and nobody knows the answer. The one thing we do know is that today Bitcoin returned to 300 and that ... does not suck.
These things just are the way they are and nobody knows the answer. The one thing we do know is that today Bitcoin returned to 300 and that ... does not suck.
Story by dinbits
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good piece , ta. Rev
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