You are correct that a rising price does not necessarily imply long-term viability. It indicates a sharp increase in demand. In Bitcoin's case, I believe demand is rising because of fundamental advantages it has over other forms of virtual currency that won't soon be rivaled. It enables new business models and transactions that would not have otherwise occurred (in many cases, for legal reasons). For this reason, I believe that demand (and resulting prices) will continue to rise.
Oh come off it. You mean illegal reasons. You know you do. If you believe people should be free to buy any kind of drug they wish then say so, I don't think HN would view it as too radical a view. But your post sounds like typical corporate bullshit.
"For legal reasons" doesn't mean "because what they're doing is legal", it means "for reasons related to the law" (i.e., what they're doing is against it). That wasn't doublespeak, it was pretty clear.
> In Bitcoin's case, I believe demand is rising because of fundamental advantages it has over other forms of virtual currency that won't soon be rivaled.
So demand has increased 1000% since the low of $3 less than a year ago? I don't buy that reasoning. I think it is 90% speculation and 10% increased demand. Demand is increasing, but nowhere near the amount to explain the large price shifts.
Disclaimer: I have a reasonably sized investment in bitcoins.
