[mehwoot]

> In Bitcoin's case, I believe demand is rising because of fundamental advantages it has over other forms of virtual currency that won't soon be rivaled.

So demand has increased 1000% since the low of $3 less than a year ago? I don't buy that reasoning. I think it is 90% speculation and 10% increased demand. Demand is increasing, but nowhere near the amount to explain the large price shifts.

Disclaimer: I have a reasonably sized investment in bitcoins.

[ankeshk]

Yes. The demand has increased 10x.

Last year, 6,000 bitcoin transactions occurred each day. Today, 60,000 transactions occur each day. Source: http://blockchain.info/charts/n-transactions