I could be wrong, but this looks like an ASIC fueled bubble to me.
Avalon, the first ASIC producer to market, require payment in bitcoin. I believe BFL require payment in bitcoin for orders outside of the US.
This created demand for bitcoin, which raised the price against the dollar. Others saw the rise and were encouraged to buy in or order ASICS, rinse and repeat.
As far as I know the only service that is turning over serious numbers is Silk Road. I guess you could also count Satoshi Dice, but I am sceptical about their long term future.
Due to the nature of bitcoin, it's entirely possible that the black market and wealth transfer functions of bitcoin have grown to support the current value, but the arrival of ASICS is too big of a coincidence for me.
People buy BTC to buy ASICs, but then the ASIC vendor immediately sells the BTC to cover their costs. It should have no net effect on the exchange rate.
Avalon, the first ASIC producer to market, require payment in bitcoin. I believe BFL require payment in bitcoin for orders outside of the US.
This created demand for bitcoin, which raised the price against the dollar. Others saw the rise and were encouraged to buy in or order ASICS, rinse and repeat.
As far as I know the only service that is turning over serious numbers is Silk Road. I guess you could also count Satoshi Dice, but I am sceptical about their long term future.
Due to the nature of bitcoin, it's entirely possible that the black market and wealth transfer functions of bitcoin have grown to support the current value, but the arrival of ASICS is too big of a coincidence for me.