This morning I woke up to see that the Bitcoin/US$ exchange rate is now above $200 for the first time since I started following the crypto currency. It’s almost scary to see how fast it goes up, but the more I learn about Bitcoin the more I think it’s purely demand based. I now have a dedicated Bitcoin app on the homepage of my iPhone and check the rate several times per day, trying to understand whether there is a pattern.
I have the feeling the rate goes up more in the evening/night Pacific Time, which is day time in China. This could mean that the current rally is mainly based on increased demand in China (next to increased demand elsewhere of course). So the short-term risk is not whether the US will ban the currency, but what China will do. I keep on being bullish, although I would not be surprised if their would be a temporary price correction after this huge rally, and will again add more Bitcoin to my portfolio today.
If you are still skeptical about Bitcoin (like most people at this stage), take a look at this wiki with myths about Bitcoin. Very useful information, especially if you are new to the currency.