QUOTE (Y2HH @ Apr 12, 2013 -> 03:43 PM)
Bitcoin is an unstable virtual currency ripe for hack. It's backed by nothing, not even a governments word. It'll be a short term fad, such as is being displayed in it's value fluctuation.
Currencies should never rapidly fluctuate in value to such a degree, it shows instability, and when it comes to currency, the last thing you want is instability.
A loaf of bread costs 2$ today, you expect it to cost 2$ tomorrow, and 2$ in a few months, etc. You don't expect it to cost 2$ one day and 240$ the next. Bitcoins are a currency being traded as a commodity. And the reason they're able to swing them so much is because there aren't enough of them out there.
I think the total value of all current Bitcoins combined are like 2 billion dollars? Essentially, that means any fortune 1000 business, or practically any government in the world can buy the entire market. Bad.
Yep. It is certainly more like commodity. It was down to 50 today and I fully expect it to go closer to 0 or at least to where it was trading at before this month.
I'm not sure if bitcoins cap is that big. I talked to a guy from a trading firm and he said they were a big part of the move. Wouldn't surprise me.