Well, there it goes. Where it will stop? I think somewhere around $1000. That’s my target price on this beanie-babie blarney. But hey – who am I not to fleece the sheep? Somebody will, and my participation won’t change the course of this gobble-wobble one iota.
I am wondering how the Flexcoin “bitcoin bank” really works. They are paying dividends (a discount payment) every month and charging rough one-percent fees for transfer out of the bank. Since you can’t loan out bitcoins as a banking transaction and create new bitcoin capital that way to expand the money supply, the only thing that makes sense to me is that Flexcoin was set up in order to trade bitcoins on its own account by borrowing the bitcoins on deposit.
But seriously, who is really driving the bitcoin runup? 2.2 million transaction volume on the charts. That represents, at a rough dollar average, a net batch price of $53 per bitcoin. Total dollar volume of roughly $116 million. (At least according to the charts.)
Mt. Gox charges both ends of the transaction a fee of 0.6% for a take of roughly 1.2%. Let’s cut that in half to be conservative, assuming that some big trader market makers have cut themselves a better deal.
Mt. Gox has made $700,000 this month on fees at minimum. It has probably made around $1.2 million or so.
And that brings me back to Flexcoin again. Who is running that place and what do Flexcoin’s books really look like?