Bitcoin Forum

The big indices in US are down around 5 % at closing. What kind of impact do you guys think this have on the bitcoin economy (if we think that the turmoil continues)?

None.

Profit taking + panic = selloff

Sounds oddly familiar to something ..........

Meh...just went to the beerstore and beer is still the same price.  No effect here.

wooo baby, nothing like the smell of a little panic and fear at the end of the day.

sure glad I doubled down on SDS a few weeks ago with the impending debt talks about 2nd quarter GDP.

Just wait until the chain of European defaults starts.....

I'm more curious to see what happens when the global fiat train wreck compiles at the bottom of the cliff.

That will be the real test for BTC.

Impact could be on individuals who are long stocks. If they get wiped out / lost a lot of money in the stock market, and have a lot of BTC, they may sell some BTC to get back some cash.
But I doubt that so many BTC holders are also big Stock holders.

 

i fall into this category.....stocks are my major investment, and im definately long (buy and hold :) ). right now my positions are up 1% for the year...saw a lot of profit disappear this week   


BTC is more speculation for me (though i have no intention of cashing out anytime soon) and ive only invested a small amount due to risk....

I'm super long stocks and have 95% of my assets in them.  I've more than doubled my initial investment since I started buying in Feb/March 2009 (held cash until the Citigroup memo leak that started the rally).

Bitcoin gains are like taking steroids - you might double or triple your size, but in the end you'll end up with nothing and disappointment.  Stock market gains are, well, awesome, and buying during historically 'bad' times for the market yields an average of 10%/year in return, even if you just randomly buy companies.  Anyone putting more than a couple of bucks in a technology which is in early beta and based upon encryption that's going to be obsolete in four years is nuts.

Agreed
I love FUD too
The sky is falling SELL SELL SELLLLLLLLLLLLLLLLL!11!!!!11!

You're a liar.
https://en.bitcoin.it/wiki/Myths#Quantum_computers_would_break_Bitcoin.27s_security
Bitcoins security mechanism can be upgraded at any time... It is SHA 256 at the moment because that is current industry standard.

LOL @ anyone long stocks. You better pray for inflation, in which case your money would be better in PMs anyway. I agree it is silly to think of bitcoins as they currently stand as a good store of value, but if ppl want to think of them as a high risk high reward investment that's fine.

You do realize the entire global economy is on the verge of another large tailspin right (by which of course I mean we never actually left the first one, only ignored it for a bit). The longer you delay the inevitable, the more violent the contraction.

I feel the same.  Stocks are the last thing I'd be in, long. 

Dow 4000 here we come.

Bank of New York Mellon is charging to deposit money in an account.....

T-Bill's are paying ZERO interest....

Mutual Funds have the lowest cash on hand since .... ever....



Yesterday's Bitcoin panic was a blip compared to what is happening in other markets....


Viva la Bitcoin!

how rapacious is that?

Been waiting for this POMO-Fattened market to roll over. We're getting some dip-buying early today, but it looks like the erosion will continue towards the close. Woe to anyone thinking equities is a 'safe' haven.

For the first time, yesterday, I saw the new sized Folger's Coffee tubs. I first thought there was a sale till I reached for it. And I was only joking the other day when I posted about the individual ketchup packages soon to be priced the same as the old 12(16)oz GLASS bottled Hunts.

looks like to me they're trying to take down gold and silver...

Taken a look at the Dow:gold ratio over the last 10 years? You think you're making money? lol

It's more of a margin liquidation. If they really want to smash the crap out of silver though now is the time to raise the COMEX marging requirements.

Of course all they'd do is force a lot more physical metal off the market.

whats interesting is that yesterday i sold a bunch of Krugerands to my local coin dealer.  at first he tried to cut his offer price to $5 below spot.   his excuse was that there was a ton of Krands coming to market.  eventually he gave me spot but only b/c i run alot of biz thru him.

they've already raised Comex margin reqs a few times b/c of the leverage involved.  i think they're going to be successful.  they have no choice but to get it down b/c too much money has been heading into them for the last 11 yrs b/c of their reckless policies.  everything comes to an end.

agree with you with a target extension: take away another 0.
400 we come by 2014-2016

ah yes, a fellow Prechter disciple. ;)

Not a chance. Try Dow 4,000,000.

Gold, $10,000,000,000,000
Silver, $xtrillion
BTC, ?

:-) correct.  lets see who is right. The 400 target makes sense to me.

Global currencies are getting stronger, especially the cornerstone established ones like the Euro and USD, as the market increases in volatility.  This is due to people selling stocks in panic and buying up government debt, which is much safer than holding your assets as equity.

As a result, bitcoin's price will become volatile as well and drop rapidly over time - bitcoin is a digital commodity, not a currency, driven 99% by the greed, stupidity, and recklessness of speculators, with 1% real world application as a functional medium of exchange.  Bitcoin is the opposite of gold, FDIC-insured fiat currency, and government bonds, when it comes to extreme market volatility.

Prepare to lose money (more of it), fools!! ////GRIN

Dude, if you think the Dow is heading to 400, you're on the wrong forum.  We're inflation folk around these parts.

Lol, your desperate craving to see Bitcoin's demise only makes evident your insecurity about your economic beliefs.

thats exactly the attitude i played off of to get make major gains off of the 2008 US stock market crash (my only losing bet was AIB)...ive since cashed 90% those initial profits out (spent it on a carribean cruise last year :D ).

this year isnt nearly as profitable so far, (this weeks global crash ate almost all of the profits in my portfolio) but buying in now sets you up for future gains....im still long, ill sell off one or two positions, but for the most part, i am in it for the long haul....i expect skeptics...had them last time too...until i bought their shares and sold them off at a profit.... :) contrarian investing...gotta love it.

I am saying the inflationists will be wrong. First we see continued massive deflation (just look at the DJI/Gold chart then you will realize that we have deflation, not inflation.

Right before Argentina went into hyper-inflation they experienced a brief bout of deflation. Deflation is what gives the central bank the excuse to print more money.

DJI/Gold chart shows inflation not deflation. You're misinterpreting it. Gold is simply outpacing the Dow's gains.

Anyone who thinks deflation rules the day and currencies are gaining strength is completely ignorant of the economic model (keynesianism) we are practicing today. BY DESIGN  it is inflationary. If it is not inflationary the model is broke and they'll do whatever they have to do to get it back on track (print).

This will carry on until the currency dies outright. Searching for those happy feelings of Dow gains and currency gains does not change the facts of reality. It is typical normalcy bias rationalization.

"Deal with reality or reality will deal with you".

Anyone who thinks currencies are gaining (especially against gold) should take a look at these charts. Your opinions don't change the facts....

http://www.galmarley.com/Chart_pages/currency_charts.htm (http://www.galmarley.com/Chart_pages/currency_charts.htm)

The euro is the next to implode.

The fat pig Italy is going to roll over, crush Spain and mortally wound Germany, who is already panting like a fat businessman running a marathon after backstopping Greece.

The stock market is a rigged game. Every week a portion of millions of paychecks goes into the market. It has no choice but to go up. Yes I know they go into other instruments but there is a constant flow into the market. The big money players wait for it to go up a a few trillion and then pull out in unison . When it bottoms, they buy back in and wait again to rinse and repeat. They will siphon about 11% of the market cap then it will go back up.They really want SSI in the game so they can double what they are doing now. The market hasn't traded on fundamentals in nearly 20 years. It's a ponzi version of musical chairs except they are already in a chair  next to the record player.

All true. When/IF the majority figure this out and stop contributing to their 401's about the time the baby boomers start pulling out you will see the greatest stock market of all time.

Deflation.

And then the great tidal wave of inflation by the Bernank. And the death of the currency.

http://www.youtube.com/watch?v=Vy5SckoCX9s

You do not need to convince me. In fact, you can't.

We are in a massive deflation. Everything loses value against gold = gold is the only one holding value while all other prices (currencies as you shows very well, goods, other commodities lose in value).

And soon, possible even with the today's high, gold will also decline.

So you know more than Jim Sinclair, Schiff, Marc Faber, Jim Rogers, John Exter (former Fed Chairman), etc?

What info and facts do you have to back this claim up? The deflation you see, I will admit there is deflation out there, is in the price of goods that are leveraged with credit.

The inflation that is out there is in the credit derivatives market. The deflation that we will see will be the decimation of that market and gold will be inflated to levels you cannot imagine.

I'm not trying to convince anyone of anything. I'm always looking for different angles to understand what's happening.

I think where most people get lost is they don't go up high enough on the financial instrument food chain. People don't understand just how much debt is out there that will have to collapse into something.

The derivatives market is a $1Quadrillion + market.

My facts are chart pattern that show that Gold is in a major long term uptrend.

But as in all trends, there are corrections. before Gold will skyrocket, we will see a correction from current or 2000 $ into the broad 600-1400 area.

Further supporting facts is the contrarian indicator sentiment. We see >95% bullish sentiment on gold which indicates that too many are already invested and the short term trend will change soon, as it happened so many times before

Charts? What about fundamentals?

What about the average guy on the street who doesn't own silver or gold?

Of course there will be corrections. A monkey could predict that. What's happening today is a paradigm shift of EPIC proportions. Chartists are getting killed out there.

$600-$1400? Leaving a little room for error there eh?

I'll wager you some BTC right here and now that gold does not go below $1,000. Ever. At least not in our life time.

You are generalizing without showing any evidence or data. I am chartist and have foreseen the recent stock market top (i.e. shorted the DAX at 7300 points and sold the shorts at 5518), solely based on charts, and I know more chartists who have foreseen that than fundamentalists.

As said in the other thread, I am happy to wager. And, the broad range is just a simplification for this thread. I  have clear short, mid and longterm price targets that I do not reveal now.

Whatever. Books are written on fundamentals. And what good is charting something that you cannot reveal and then say you have predictive powers? It's one way to be right all the time I guess...