A new emerging commodity / currency : Bitcoins (BTC)

Hi Everyone,

there is a new commodity / currency emerging that is rising strongly: BITCOINS (BTC).

Before repeating all what has been written about it, here 2 links so you get the background:

http://www.bitcoin.org/
http://www.bitcoin.org/smf/index.php?topic=1493.20

I am planning to issue technical updates ("Bitcoin technical analysis") regularly here and discuss it with you.

Daily chart looks very strong.

Weird idea to generate coins, I try to understand their idea.

Somebody has to use our pc to generate coins. Who is that " somebody ".
And what about the privacy, can we trust that " somebody"

To be succesful they need absolutely a " Cyber army "

The beauty of this system is that the bitcoin mining is so attractive financially (like gold mining), that there will always be so many people having their computer working for the BTC generation that this is the ultimate security against attacks from others.

Here a very good link to a charting tool for bitcoins (BTC/USD, BTC/RUB)

http://chart.bitcoinwatch.com/cgi-bin/form.pl

I've been watching BTC/USD over the last several weeks and the price action has been astounding. I thought when that funny business with PayPal happened at MTGox that price would have dropped after that, but it seems to have picked up momentum.

Is there any way of knowing how many people are participating in the bitcoin economy?

Weird idea to generate coins, I try to understand their idea:

Bitcoin is the bittorrent of currency.

Separate nodes contribute cpu power to secure the integrity of the bitcoin network and there is no central point of failure or need to trust anyone at all - you are your own bank .

SETI looks for aliens while bitcoin mines for coins. http://www.bitcoin.org/smf/Smileys/default/grin.gif

Somebody has to use our pc to generate coins. Who is that " somebody ".
And what about the privacy, can we trust that " somebody"?:

It is you who uses your PC to generate coins, so you don't need to trust anyone else for this. However, it might take months before your PC generates a bundle of coins, so you may prefer to trade goods for bitcoins, or buy bitcoins from someone who already has some.

Also, if you just want to experiment, you can get 0.05 bitcoins absolutely free from people who are giving them away at the Bitcoin Faucet.

there are about 1100 people in the bitcoin.org forum. Not sure how they participate in the economy , but the trend is up, indeed.

I don't know how many folks are registered on the exchanges (I.e. Mtgox), maybe he will reveal it to us...?

Looks like another triangle is forming in the hourly chart since early Sunday (Nov 7). Breakout on the upside will enable a target of 0.6 - 0.8

BTC/RUB is showing a very strong rally as well.

Soon, one BTC will buy one bottle of Vodka :-)

This can be our next religion

Well, I would certainly put more 'faith' in a non-inflationary currency not under the control of a bunch of politicians than in most of the fiat currencies flying off the printing presses these days!

Looks like a breakout from the consolidation pattern to the upside is the next move.

Now the biggest Exchange is fully operational again.

http://www.bitcoin.org/smf/index.php...99.0;topicseen

http://mtgox.com


Adding funds is now possible not only with LibertyReserve but also wire transfers.

This may spark the next big rally, as many people could not add funds for at least 1 month.

That's good news. I was starting to wonder what was going on over there.

A breakout of the triangle will clear the picture.

Trying to make the trendline visible.

Here is the triangle

To be clear, prices can break out of the triangle in both directions.

If prices break 0.3 significantly to the downside, we enter a correction that has strong targets of 0.17, and then the channel trendline around 0.13 (as I highlighted in my previous updates)

To get a significant breakout, new buyers need to come in and spend approx. $50k.