Hi R2R and welcome,Originally Posted by ;
You raise a Fantastic point. The liquidity is tiny as well as the market is immature but that has its own advantages:
1) sudden predictability in the PA standpoint in addition to textbook adherence to classic indior adjustment signals
2) the main trade Mt Gox charges a commission on buys (but maybe not on sells) and that is all it costs to participate - you will find no account fees, the access for their feed and its API is free of charge and there are no intermediaries: buy and sell BTC and convert into fiat currencies as you wish. Transactions are instantaneous whenever you wish and you can transfer your holdings all into your desktop.
3) volatility (for its nimble and quick)
It's not really a traditional trade tool - that the buy commission and lack of short selling makes intraday trade unprofitable, instead I see it like a longterm buy-and-hold wealth shop On shirts I convert Bitcoins into USD and at bottoms buy BTC again and again possibly add.
Longterm that the Bitcoin should love strongly (if there is demand) or fade away into the dustbin of history. But I believe that the arguments in favor of appreciation are more powerful than those in favor of disuse and worth a couple of hundred dollars speculation.
BTW - to my eyes it doesn't link to the USD index and charts more like a stock - look at the online startup bubble around April!