Title: For the "Long-Haulers" Post by: johnniewalker on April 10, 2013, 11:50:45 PM First of all, keep in mind this is the speculation thread. I would love to debate with anyone. But please, let us refrain from personal attacks on eachother.
Not even two weeks ago people were debating whether or not the bitcoin was going to break $100. And since that time it's gotten up to (give/take)$240. The bitcoin market is hands down the most volatile market there has probably never been. No one knows what caused this most recent The bottom line is bitcoin is big and getting bigger. It is a deflationary currency, so when all 21 million coins are in circulation, that's it. Considering the intrinsic value of bitcoins (their multiple utilities), I believe their value-over a long period of time-will go up. As a long-hauler, I don't fret about things like this, and if you are one you don't need to either. Shit, we could all take all of our bitcoins, go into a cave, come out 20 years later and be rich. Only CONSIDERABLE (say to below $100) drops over a SUSTAINED (say 2 weeks) period of time would cause me to worry. And I really *knock on wood* don't see any of that happening. Title: Re: For the "Long-Haulers" Post by: myrkul on April 11, 2013, 12:04:36 AM Now, if you want my opinion on why this price drop happened, it's probably only one or a few agents acting (because the majority of bitcoins are held by only a few entities) purposely manipulating the market. They probably sold a bunch of coins (to themselves) for a very low price, causing a panic (think Great Depression). So, then average Joes get scared and try to sell their coins (at this artificially low price) as fast as possible. Then those big entities swoop in, buy them and own even more of the market share. Which actually is a good thing for people like us who are in it for the long haul. Does that make sense? Yep. People who have a lot of money to begin with usually know how to manage that money (or hire people who do), and they want that money to grow. With a panicky market, you can do so by scaring the herd and causing a stampede. So you see a lot of these sort of "dive and recover" dips as the big money throws it's weight around, and shakes out the weak hands. Then the market stabilizes, and anyone who gets too greedy and tries to do it again just hands their money over the smarter players. Then you get a major news hit, and there's a lot more new players, some of whom are smart, some of whom are too greedy, and some of whom are panicky. Somebody says "Boo," and it all happens again. Hang in folks, there's a lot of stupid, panicky, and greedy people out there, and not all of them have heard about Bitcoin yet. It's gonna be a bumpy ride, but we'll get there. Title: Re: For the "Long-Haulers" Post by: johnniewalker on April 11, 2013, 12:07:13 AM Now, if you want my opinion on why this price drop happened, it's probably only one or a few agents acting (because the majority of bitcoins are held by only a few entities) purposely manipulating the market. They probably sold a bunch of coins (to themselves) for a very low price, causing a panic (think Great Depression). So, then average Joes get scared and try to sell their coins (at this artificially low price) as fast as possible. Then those big entities swoop in, buy them and own even more of the market share. Which actually is a good thing for people like us who are in it for the long haul. Does that make sense? Yep. People who have a lot of money to begin with usually know how to manage that money (or hire people who do), and they want that money to grow. With a panicky market, you can do so by scaring the herd and causing a stampede. So you see a lot of these sort of "dive and recover" dips as the big money throws it's weight around, and shakes out the weak hands. Then the market stabilizes, and anyone who gets too greedy and tries to do it again just hands their money over the smarter players. Then you get a major news hit, and there's a lot more new players, some of whom are smart, some of whom are too greedy, and some of whom are panicky. Somebody says "Boo," and it all happens again. Hang in folks, there's a lot of stupid, panicky, and greedy people out there, and not all of them have heard about Bitcoin yet. It's gonna be a bumpy ride, but we'll get there. |