All of the markets stumbled yesterday and people like me are rushing in. I doubled down on my stocks and today bought a tremendous amount of BTC between 52-59usd. I believe that the rate will hold around 80-100 in the coming weeks with dips to 70 and spikes to 120. This is a currency but one as volatile as unregulated gold trading. Speaking of which, my friends who live and die by gold prices are none too happy these days.
When playing the stock market you must use hardcore business analytic skills and weight it with mass psychology(i.e. public reactions to unrelated events causing drops and spikes). With BTC it's pure psychological analysis. For example, I know that human behavior trends dictate that during tax season a lot of money ends up in the hands of people who are bad with money. They spend it on entertainment, illicit goods/services, get rich quick schemes, and general asshattery(disclaimer, some people save it or pay off bills). All of that was expected to drive up BTC prices while conversely, you would anticipate a plateau or drop in late summer as people vacation and have less revenue and prepare for college costs for themselves or children. At the Christmas/Hanukkah holidays you will also see a big drop in late November up until late December with a spike following to account for the influx of cash many receive as well as compensatory spending following the standard depression cycle. There are 2-3 major dip/spike cycles a year and many smaller ones. I actually love when the public panics and sells off as it creates a great opportunity for wealth. The only real threat to BTC is if for some reason Silk Road goes away and is not replaced. That accounts for 15-35% of reported use of BTC and would be devastating.
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Topic: Bitcoins, worth investing in? (Read 14102 times)