My thoughts on Bitcoin price skyrocketing to $800 and it’s not even December end of the year 2013 yet, why?

I know a lot of people new and old, favor to bitcoin and against bitcoin, all wondering the fact the Bitcoin price skyrocketing, but why and how? This is a very hard question to answer, people can only speculate. If they really know the reason, then they can predict on when it will rise and fall accurately, they would make a ton of money buy and sell bitcoin. So, my point is, do not believe what you read or see, no body can predict accurately on when bitcoin will rise and fall. There are a lot of factors involved, probably a lot more than the stock market. Being that bitcoin isn’t regulated in any way at all. Just those exchanger must follow proper rules and protocol for business, not necessary bitcoin trading solely.

I might not be the expect, but I’m speaking as a miner, and did some bitcoin trading, buy and sell and even arbitrage a few times buy from campbx and then sell it on mtgox, until mtgox had that issue with not being able to bank wire transfer to users account, and up to today still no update, all they say is taken longer than expected, but already been more thank four months people money stuck. By the way if you still have bank wire transfer status at mtgox might want to cancel, buy bitcoin and cash it on bitstamp btc-e or campbx, very fast transaction.

So should people sell their bitcoin now? Honestly I don’t know the answer, but each person can do their own analysis asking themselves, do they really want to sell it? but sell it take cash for what? buying a new car? impress a mate or what? if for those reason, I wouldn’t sell the bitcoin, but rather hold on to it. However if you need the money to pay rent or electricity or any other necessity then sell it. Sell it also if you plan to do day trading, as there will be possibility that bitcoin will go down again to the 100s, and you can buy more during that time, but if it doesn’t go down and continue to climb, you still have those cash for yourselves, no loss there, just that you could have gain more.

How about mining for Bitcoin? yes if you can spent a hefty amount of money to get a good bitcoin that sustain your income for a year or so. I’m talking about Bitcoin miner that will ship in the next couple of months for sure, not those pre-orders that doesn’t have an accurate date such as BFL, never have accurate date, they’re way off by 6 months to a year, so be careful. KNCminer appears to be better. Then there are those other one such as AVALON, then new one like hashfast and teracoin something, I don’t know about the new one. There could be potential scam fraud because people are taking advantage of the popularity of bitcoin to make profit by coming up with fake company mining manufacturers, so be careful.

So what about me? Well I’m mining bitcoin but I don’t make a living out of it, I did it just for fun, I had to sell my bitcoin to pay for electricity and get some return of investment. By next month I should have purse profit, no longer need to sell because I will get my ROI back. However by next year the difficulty level of mining will be up so high that instead of making $1000 a month, you will be making $200 to $500 the most even if the bitcoin price rise to $1000 per BTC. No one really know, we can only speculate 🙂