# Last edited on 2014-08-26 18:05:08 by stolfilocal
# NOT POSTED
# POSTED SOMETHING SIMILAR

People here keep asking why the price does not go up with all those good news. 

Well, first, they are not very relevant to the Chinese speculators, and it is they who are keeping the price at the current level.  Withouth them, the price would be less than 350 USD (as we have seen briefly in March).

Second, those news are not as good as they are claimed to be. As it has been pointed out, all those stores "adopting bitcoin" is good news to people who already have bitcoins, and tempts them into selling their hoarded coins.  Bitcoin payments are still not advantageous to people who would have to buy the bitcoins for this purpose.

The creation of bitcoin investment funds is not necessarily good news either.  For one thing, the funds are likely to buy the coins they need off-market, so they  may reduce the demand on the open market (by taking clients who could have bought on exchanges instead). 

Moreover, people who create bitcoin-based funds must be people who own largish bitcoin hoards and [b]want to sell them[/b].  The sale will be indirect -- the clients will buy shares from the fund, and the fund will buy their personal bitcoins; but even so the end result is that the fund creators will no longer own their bitcoins; if the bitcoin price soars, it will be the fund clients who benefit, not them.  But why are those fund creators (the Winkles, Silbert, Matonis, Tim Draper, etc.) doing that?  If they believed in bitcoin going to the moon, they would be buying more for theselves, no?  So the creation of funds can be read as a sign that those big owners are losing faith in bitcoin.