Bitcoins over $40 and still Rising! Here is why it will go to $100Submitted by PeacefulAnarchism on Thu, 02/28/2013 - 11:04
Whatever you think of Bitcoin you can not deny the rapid price appreciation and continued growth in popularity of the Crypto Currency. If you look at it from a completely objective standpoint there is plenty of reason for Bitcoin to continue to rise in dollars.
Well besides it's absolute stellar characteristics as a currency it is specifically the demand for products on the black market that continue it's assent. Bitcoins allows you to transact anonymously with anyone around the world. There are records of the transaction but unless you somehow reveal your link to the account used it's virtually anonymous. This provides a great median of exchange for those wanting to transact anonymously for fear of prosecution from a tyrannical unjust government.
Here is the main reason it could rise to $100 or even $200. Right now these transactions are handled in Bitcoins but the products are denominated in Dollars. So what does it matter to the purchaser of something what the price of Bitcoins is if he is receiving the same value as if were priced in Dollars. For example, I want to buy $300 worth of weed and I'm going to use Bitcoins for this transaction. well what does it matter to me If Bitcoins is priced at $30 or $100. I will still be buying $300 worth of weed. If I have to do that with 10 bitcoins or 3 bitcoins it doesn't matter. Therefore dont be surprised when you see $100 bitcoins. As long as there is demand to go through bitcoins to transact in dollars the price could really be anything. It's not until people lose trust in the dollar and start pricing in Bitcoins that it becomes it's own independent currency.