The climb in price is actually a bad thing for you bitcoin lovers. I actually originally got them to buy things with them (i think that's the actual use for these little things, I'm not sure though), but then the price started climbing so I decided to hold them instead. What use is a currency if no one is willing to spend it?
Although I want bitcoins to succeed, the hoarding is what will probably kill the practical use of these things. Having said that, I pulled out 1/3rd of my coins @190 to get my money back plus a small return. Gonna leave the rest on the table and gamble with house money so I don't feel bad when the government makes them "illegal" and public loses trust. I know they can't really shut it down, but they can prevent real business based in US from accepting them.
I also don't like the very limited scarcity of the coins for when there is nothing to mine anymore. This again will lead to a hoarding mentality driving prices up and reduce spending. slight deflation is a good thing, imo. Causes people to spend this "fake" wealth on real things instead of saving it as if it were the real wealth itself. Plus scarcity gives power to the rich letting them control the supply and demand. But then again, the knock off coins could add a bit of variety.
TL;DR: no one knows what will happen to the bitcoin, yet. Only buy if you realize this is a gamble and not a "real" investment.
But what do I know.. I'm just a gay webmaster.
Update: Thank god I sold at the second peak to get my money back! However will still continue to hold on to the coins that i have left.
