Commodity Blog |
- Hopes for Stronger Demand Boost Prices for Copper & WTI Oil
- Volume Soars on Bitcoin Price Spike; Trader Psychology Drives Rally
- Bitcoin Continues Rapid Ascent Above $300 As Bitcoin Foundation Assuages Fears “Bitcoin Is Broken”
| Hopes for Stronger Demand Boost Prices for Copper & WTI Oil Posted: 07 Nov 2013 07:13 PM PST Copper rose today as China’s imports increased, promising steady demand for the industrial metal. Imports were up 7.6 percent in October from a year ago, exceeding analysts’ estimates of 7.4 percent. Stable growth of the Asian economy means demand for the metal used in construction and manufacturing. Meanwhile, global inventories were dwindling. December contract for delivery of copper advanced $0.0095 (0.29 percent) to $3.2580 per pound as of 3:01 GMT on COMEX today. West Texas Intermediate crude oil gained as US economic growth accelerated and exceeded forecasts. US gross domestic product grew 2.8 percent on the third quarter of 2013 after expanding 2.5 percent in the preceding quarter. The median forecast promised just 2.0 percent growth. The United States is the biggest oil consumer in the world. December futures for WTI crude rose $0.36 (0.38 percent) to $94.56 per barrel on NYMEX today. (Visited 1 times, 1 visits today) |
| Volume Soars on Bitcoin Price Spike; Trader Psychology Drives Rally Posted: 07 Nov 2013 04:26 PM PST What's perhaps even more remarkable today with bitcoin prices topping $300 is that the volume of bitcoin traded is also very high. With over 86,000 bitcoin traded at Mt. Gox and 63,000 at BTC-China, and over 50,000 at Bitstamp, the volume for the top 10 exchanges is clearly over $15 million, whereas just a few months ago $3–5 million was more typical. Quickly rising prices tend to have a sedating effect on rational thought, while having a stimulating effect on adrenaline and the emotions that go with it, from positive exuberance and excitement to dangerous aggression and reckless risk-seeking. It can particularly lead to fuzzy accounting: For example, I just bought a game on Steam called the Stanley Parable. In it, you "play" a wholly unremarkable office worker named Stanley who goes about the building to discover some fiendishly clever twists and turns outside his office. And while it was definitely a brilliant and very funny satire, it didn't take more than an hour or two to discover most of the endings. But $15 isn't even 0.05 bitcoin at current prices, right? So it's not too much to pay for the game. Now, I don't think it was necessarily too much to pay, but that would be the wrong way to think about it. With such frenzied trading and quickly rising prices, some folks even more prone to errors, separate from the issue of whether or not buying at an all-time high price works out alright for them. For example, two trades were filled at the Kraken exchange at rates of $3,472 and $3,472. Clearly, the orders were erroneously inputted, as the buyer didn't get much more than 0.1 bitcoin for same amount as he could have gotten more than 1 bitcoin at another exchange.
About the blogger: Michael Ivers enjoys writing about Bitcoin and all of the issues surrounding it from technology, economics, and politics to the world news and developments shaping its destiny. If you enjoy these posts about Bitcoin, please consider sending a tip or donation to show your appreciation or even voice your discontent, depending on the amount. The bitcoin address for today's post is: 18ogPaAXfaJRTeCu1Y9HJtg2NgMe5bNFDP Posted on Commodity blog.(Visited 1 times, 1 visits today) |
| Bitcoin Continues Rapid Ascent Above $300 As Bitcoin Foundation Assuages Fears “Bitcoin Is Broken” Posted: 07 Nov 2013 03:00 PM PST At the moment, prices for bitcoin seem to be rising faster than it is possible to report, but at least Mt. Gox went as high as $324.20, while Bitstamp was nearly as high as $300 at $297.80 and pulled back a bit to last trade at $293.35. It's not clear if a bubble is building upon its own momentum, or if buyers are responding to positive developments in Bitcoin, from wider acceptance and regulation to Chief Scientist of the Bitcoin Foundation, Gavin Andreson, responding to concerns about a recent paper claiming Bitcoin is broken. While the price of bitcoin has become much more valuable, consider spending some, for example, by donated to the Internet Archive, which recently suffered a fire in its scanning building. They claim to have lost $600,000 in equipment, but fortunately no people or data was lost. Additionally, one is reminded of the particular security concerns of digital money when it appears more valuable, especially as an online wallet service, Inputs.io, reported that it was hacked into and had all of its 4,100 bitcoin stored irretrievably lost. At the intersection of a novel technology and the often irrational exuberance which accompanies it, particularly where money is involved, traders could not be more strongly urged to use caution: Caveat emptor! And one piece of advice on the r/bitcoin forum in response to the Online Wallet theft was to keep a separate "Savings" in cold storage, offline that is, while having a modestly funded "hot wallet" online and possibly even smaller amounts for smartphone or brainwallet apps. From a trading/investment perspective, it doesn’t appear, at least from a logarithmic view, that the latest move upwards in price is yet on par with either the bubbles of 2011 or of April 2013. Of course, history doesn’t repeat, but sometimes rhymes.
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