It's more the reverse I think. If it is used more widely then the value relative to other currencies will go up. But there is causation the other way too.

It would be pretty hard to buy a house with bitcoin right now since you would need more than all of them, but as you went to get them you'd drive the price up yourself. The trouble is that the deal is hard to work out, what do you say buy bitcoins until you've spent $2M USD and give me that many? That doesn't exactly give incentive to get the best price on them. The other way has the same problem "Keep giving me coins until I've sold them for a total of $2M" now I don't have much incentive to get a good price and we're denominating in USD anyway.

So wider trading will allow bigger trading which will open up more opportunities making the economy wider... but it won't happen all at once.

Speculating (by buying now) that it will happen eventually will help it to happen faster too. Offering to trade goods and services will help the most though.

Yes, we are in an acceleration phase of a big , high volume rally.
At this stage, selling is not really needed from a technical perspective (unless people really need cash or need to buy sth with bitcoins in the short term)

Hey, magic must be involved. You consulted with *censored* and must be burned alive.
D:>   <---Tin Hat

LOL just joking. This is awesome! Going to start a market here in Mexico when I figure RoR out.

what you say is pure speculation.
how do you know when to define it as a bubble?
we may talk about a bubble when BTC/USD is at current value, at 100$, at 10,000$, etc.
currently, there is no technical evidence for a bubble

Yes, all pricing in a free market is the result of supply and demand.  The problem is determining which part of demand is reasonable and which part is "irrational exuberance."

It could be a bubble, on the other hand if the increase in price, even if driven purely by speculation, encourages more businesses to accept bitcoin as a form of payment that can serve as a real foundation for a bitcoin economy.

I don't think there is a bubble either, but why would high volume imply that? For example, didn't houses turn over faster during the bubble than during other times?

$8500 just crossed the tape, 40c - 44c

Psychological barriers can be strong too i guess

Guys, why do you buy bitcoins at such high prices? The rate may still fall down and it can bring great losses.