Bitcoin Forum

Prices have dropped nearly 10% today, that's pretty big, but is it a crash?

I guess mining is about to become unprofitable so shit should stabilise as all the miners turn off their
pointless rigs?

Miners turning off their rigs will not slow down the amount of bitcoins being produced.  It will just make mining easier for those left in the game.  Miner's holding coins instead of selling immediately would push prices up.

Is this the great DJI crash?  I doubt it

Kind of, imo.

There's just no one buying any more. BTC are just not worth $10/coin as an anonymous trade tool, so they'll go back to their mean of like $4 or something, all will despair, and it'll get back to business building from scratch. It'll take about a year to shake off the resentment from speculators, which is probably a good thing giving time for the currency to sort out a few more of its issues.

$4 is starting to look likely, MtGox ask has just dipped below $10 already, holy shit!

and tradehill is now below $9.

... sigh $50 in electricity wasted for my 5 bitcoins ...

It is not a crash.

It's the free market correcting itself.

The crash from 30 already happened. I think people are getting bored with bitcoin, maybe they expected the "bitcoin economy" to rise in no time at all. Too little patience. Maybe after some time speculators got scared about the risks.

Dude you are definately doing something wrong!!! 

Thanks for that, it makes poverty much easier to live with.

Personally I believe bitcoins were raised in price too quickly because of the press.  I would like to see them in the single digits for a while, it would make them more stable.  For some reason when a person sees them drop from 10 to 8...it is harder than watching them drop from 8 to 6, even though percentage-wise the 8 to 6 was a larger drop.  Bitcoins are still new and if they are to survive they must grow steadily and slowly, instead of in bursts.

and we're back up to 11 now.

Bull run!!

or a dead cat bounce.

The word among the horde in UK that bitcoin will vanish by the end of august. I dunno how they got that idea and where from .. but with these prices it sounds just about right!

Hey, Walid, if you keep posting the same sentence in lots and lots of different threads, maybe it will turn out to be true...

Magical thinking, the last refuge of a small mind, really.  ;D

This should be in speculation.

maybe it is! :D

anyways miners have bills to pay. price tanking is bad for business!

Same old, same old.  Read and learn some before panicking about bitcoin crashing.  Or perhaps just look at charts of bitcoin history.

ME GOING TO BUY!  ;D

I have no doubt someone is gaming bitcoin. Look at the 10 dollar wall. There is no intention to sell that many coins. Someone has been setting up a wall trying to squeeze the price down for 3 weeks. Evertime we get close to the wall a huge lower sell order comes in to push it back down.

Everybody start buying and nobody start selling go go go!!. Problem fixed.

words like crash on this forum
does not do good to increase buyer confidence.

counterproductive; esp since theres like 5 posts like that.
a good percentage of bit coin holders probably have accounts here.
stop causing a frenzy.

My random new conspiracy theory for the day:

That guy's CIA visit a few weeks ago resulted in them deciding they want to shut bitcoins down. Since they couldn't close any central servers, they would attack the market and watch people leave of their own accord. Their investment would have to be small to push the price down to nothing ($1m would be nothing, I imagine), make it less than the cost of electricity, and watch people's own fear weaken the system. All they need are some people who know how to manipulate markets (and they're all smart people, right?).

Doesn't make sense but ok. I mean seriously, the CIA? >.<

Possible? Yes.

Viable? Initially.

In order to suppress the price, the pressure must be applied continuously. With this the case, money would flow from USD to BTC. Since BTCs cannot be destroyed, buyers could pick them up at $0.01 until all currently existing ~7 million have been bought at a total market value of ~USD$70,000.

As the number of Bitcoins continue to rise, if the value were to continue being suppressed, the total market value could be kept at ~USD$210,000.

However, consider the issues currently facing the US and its currency. Debasement raises the cost of suppression.

Also, there is a maximum amount of BTCs that can be bought. They have to be subsequently mined. Unless the US is going to set up a mining farm to maintain control of all the BTCs generated, sellers will be unlikely to settle for $0.01/BTC. If the lowest price accepted per Bitcoin were to be $1,000 and a block of 50 were being sold, that's $50,000 that the US gov't would have to part with. Taking into consideration the likelihood that people will wise up to this game, the price may very well escalate much higher.

Imagine the minimum asking price at $100,000/BTC or greater. Is the US gov't going to blow $5mm every 10 minutes on this, or will that money wind up in the pockets of cronies and other criminals as they raid the treasury while the nation burns?

If you really want to take this for a spin, let's assume all 8 digits of expansion have been utilized. That comes to about 700 trillion Satoshis. If each one were to sell for $0.01, the grand total would be USD$7 TRILLION! If you buy in now at $0.01 and the suppression continues to the final conclusion, your end asset would be 100 million Bitcoins or $1,000,000 in fairly worthless USD.

In conclusion, if politicians and bankers were to truly be so stupid, I would be first in line to accept what amounts to free money. Hey, this is effectively what they're doing with the banks, only with them it's debt instead of Satoshis.