This last price fluctuation is doing more harm to bitcoin than a moratory does to a country.
No one can even explain formally why this is happening. Lack of liquidity? Penny stock behavior? Are there sharks driving the prices to make a spectacular exit?
Why isn't mining regulating the prices? Is it too costly?
My personal and completely uninformed opinion is that bitcoin is doomed.
It's happening because more and more people are buying Bitcoins are fewer are selling. Supply and demand. This interview talks about the real-time increased demand. https://news.ycombinator.com/item?id=5517634
Seems to me the more valuable bitcoins are, the more attractive it is for vendors to accept them as payment. And the more vendors accept them as payments for real stuff, the more attractive and established they become as a currency.
Also, concluding that bitcoin is doomed because too many people want them seems backwards.
No one can even explain formally why this is happening. Lack of liquidity? Penny stock behavior? Are there sharks driving the prices to make a spectacular exit?
Why isn't mining regulating the prices? Is it too costly?
My personal and completely uninformed opinion is that bitcoin is doomed.