Bitcoin Forum

anyone knows what happend to btc??? from $260 to $60 in 5 days!!! can anyone explain me what was the problem

People sold.

very similar question
https://bitcointalk.org/index.php?topic=177947.0

A bubble, but they called it a snowball to fool more ppl.

The price was simply returning to where it should have been before being manipulated by greed

It was kind of overrated..returns to normal

yep...

Speculation is what happened. That is, people buying bitcoin as an "investment".
Play with the big boys and you will likely loose your shirt. Then come the threads from those in disbelief who think bitcoin must be a scam; otherwise how could they have lost their money?

People bought, exactly the same number of coins. All in all, people traded, and they were willing to trade at lower and lower prices.

To answer the OP question, here is another question: why did the price triple over only two weeks? It's all completely irrational speculative gamble. The fundamentals have not changed before, during, and after the bubble. Just like in 2011, this will shake out get-rich-fast ignoramuses, and Bitcoin will finally have time again to grow, develop business infrastructure, etc. - without dramas like trade lags, backlogs of unverified new accounts, hacks...

+1

This is another event needed by BTC.  Fling out the get rich quick schemers (who likely trade emotionally) while learning the weak points (MtGox, DDOS, getting Fiat into an exchange, exchange malfeasance, etc).

Now we can continue to create the scaffolding that MAY support a real economy of BTC users in the future.  If BTC could have an associated human age (anthropomorphic metaphors are easy) it would be anywhere from 4-9 years old.  There is a LOT of maturing yet to happen for users, exchanges, economy, etc.

Luckily, the blockchain will survive all of our mistakes and learning curves.  :)

Bitcoin has a SEVERE problem with "exchanges" that want to try to behave as "stock markets".

What they are doing with their BTC "Future Securitized Derivative Contracts" now is:

• Punishing small buyers and all new "casual" users adopting the currency with the highest fees
  
  
• Punishing small sellers and all new "casual" and small retailers adopting (redeeming) the currency with the highest fees
  
  
• Rewarding speculative traders, leeching off of the daily spreads or ramps of the currency value with lower fees for greater churning "volumes over days" rewards
  
  
• Rewarding big, huge-trader Pharaohs for staking out far riskier out of bounds idle-preying positions, not actually expected to "exchange", that would facilitate steep uncontrollable risks to the currency value by extending sudden random ramps or slides to ludicrous and/or disastrous extremes.
  
  
• They are actually encouraging and rewarding speculation and volatility with their risky, counter-productive and suicidal, totally ignorant volume-discount fee nonsense.

This BTC future-securitized derivative-contract was intended as OUR transnational MEDIUM OF LABOUR-EXCHANGE CURRENCY not as somebody else's silly common commodity-resource share! (or wasn't it?  ???)

Well regulating the Bitcoin  future-securitized derivative-contract's currency value "automatically" is a simple trick that can easily be done through the trading (vs exchanging) fee structures. You simply punish people progressively and exponentially more through sliding fees for staking-out asks and bids further out of bounds, to negate the benefits of pump and dump, while still allowing a bit of churning reward for day-value trading and/or price reward for patient bargain-seeking bid-ask haggling.

Everything is a "scam" unless you do your homework, and find out it's perfectly legal and legitimate.

Read this:  Bubbles with bitcoins
https://bitcointalk.org/index.php?topic=175708.msg1832923#msg1832923

We are not doing anything nearly as lawless nor clearly as fraudulent as pawning off Mortgage Backed Security Future Derivative Contracts! Our contracts have real utility as a physical security.