Bitcoin Forum

I think the price is dropping to make all GPU miners think twice about mining. Meaning if the price drops far enough it will not be profitable to keep mining with a GPU.

You guys really need to stop worrying about every little price movement Bitcoin makes and be glad it's above £50/$70.

Who decides the price? God?



I'm not glad it's above $70 :)

Why does prices vary in any direction? A good starting point to answer that would be price theory:

Economic theory asserts that in a free market economy the market price reflects interaction between supply and demand: the price is set so as to equate the quantity being supplied and that being demanded. In turn these quantities are determined by the marginal utility of the asset to different buyers and to different sellers. In reality, the price may be distorted by other factors, such as tax and other government regulations.

(from http://en.wikipedia.org/wiki/Price#Price_theory)

Couldn't agree more.

Maybe silkroad cashout?

I think, in the long run, the price will raise. Im not worried about the little ups and downs...

silkroad is being held hostage apparently

Just one of the many growing pains episodes. Nothing to worry about, it'll most likely rise again and we'll surely see more of these kind of dips.

Miners do not determine price. The amount of BTC they generate is insignificant at this point. Price determines amount of hashpower, definitely not the other way around. (JIC you were going on that train of thought -- not sure if you were)

GPU miners are in the worst spot, because the FPGA and ASICs sure aren't shutting down when price decreases. GPU miners are soon to be phased out of the market -- we're just waiting for more ASICs to ship.

As for why it's declined... no clue. I don't think anyone really thinks SR's down for the count, or even for a long period of time, so I don't think it's a reaction to that news. Bitcoin's an extremely speculative currency, and I think it's a bad idea to consider it "a long-term investment." I just bought a bunch, and I generally dislike holding many coins anymore, so I figure that's a decent indication to buy. With margin trading back on the rise, movements are going to start becoming more dramatic. When there's a small move, positions will be forced closed, creating a domino effect until they run into a bid/ask wall the orders can't chew down. For months after Bitcoinica shut down, there weren't very large competitors to fill the void, but that's changing, for better or worse. Incidentally, when people are force-liquidated out of loans they have with me on BFX, I take that as a good indication to take their old position, just at the new price (and since the loan closed, that money's released back to me to do just that!).

the price comes from the market  ;D

Ty kind sir for your insight. You are 100% correct.

Watch it for several days, it flucuates like this alot, it's not profitable with GPU anyway

it went from 130 to 104 in one day

my guess and I hope im right is that before janruary the price was like 10-20 dollars and it had bounced around this mark for years. im hoping it will slide steadily to this again or maybe just above 20-30 then slowly recover, maybe another bubble then. having prices this high so early on cant be good people will just mine, mine, mine. until theres none left. plus I don't have any btc and I want in but im scared to buy now because were in the aftermath of the bubble.

slow down bitcoin, nice and slowly.

I don't think you quite understand "difficulty". If more people are mining, difficulty goes up and the same amount of bitcoins get dished out. It makes it less profitable to mine, but it doesn't make it burn through all of the coins.

WTF are you talking about? Do you even understand Bitcoin?

Hi guys! I would like to remember you that usually, during week-ends and festive days, BTC value goes down because banks are closed, so wire transfers aren't executed. Is pretty normal during the International Workers' Day, BTC drop down... am I right? :)
I was expecting this trand! ;)

Bye!

libertine:  I just wrote this up for another noob.  Please read it:

https://bitcointalk.org/index.php?topic=192266.msg1991776#msg1991776

it has no value anyway

Why are you here then?

Obviously he's here to talk the price of BTC down so he can buy some!

You clearly need to first, learn about bitcoin before you post an uneducated opinion, and second, go buy some so you can at least feel like you're entitled to have an opinion!

The bubble is still bursting. The rebound to $166 was just a fool's rally. I think it's going to be a slow decline to the mid double digits before the bubble fully deflates.

LOL, yes! Clearly that dude had no firggen clue what he was talking about! As for why it went down I dont have an answer but anything over a $9 bitcoin is proffit for me! :)

Best time to buy in.

Indeed

My thoughts exactly.

Anyone's guess.

So you're thinking around $50? Isn't that about the lowest is got after the crash?

I read somewhere it was because of Silk Road being ddos'd. Who knows. It'll climb back up eventually.

Price seems tightly bound to bitcoin's popularity on the web...

It has value. It has huge value. The value that people attribute to it. The power it holds is it's value.

And it has huge power. No taxes, instant transfers all around the world. It cannot be traced by the police. You can buy all sorts of shit from drugs to computers with it.

And you're saying it has no value when it offers many things that normal currency cannot.

How can you DDoS an .onion site to which you do not have an IP for?

You would need to DDoS the entire TOR network with all of it's exit nodes to drop an .onion site.

nah, people are cashing out because of the technical analysis on the market. Seems bearish for now. No newcommers willing pay let say 200 for Bitcoin are comming

For a full expalination of the recent drop see here: https://bitcointalk.org/index.php?topic=193194.msg2002817#msg2002817 (https://bitcointalk.org/index.php?topic=193194.msg2002817#msg2002817)

Market cap. of the BTC is still quite low so pump 'n' dump bonker mentioned is still feasible for wealthy individuals and organizations. I guess it takes time to reach maturity to see that effect decreasing.

i have no idea

It is dropping for technical reasons, as in charting. It never deserved to be at $200 to begin with, which is why it went down to $50.  IT will find a price eventually but until then it will drift up and down. I personally feel it should be about $40 but we will see in time.