Bitcoin Forum

Hey I am new to bitcoin, getting used to it and going to invest soon. The prices dropped today @Bitstamp to under $600 a piece. Is this good if you are going to buy them for that price? What is causing this huge price drop? Should I buy?

Thanks!

Last i heard, it was because some unfounded rumors about China banning Bitcoin; people that don't understand Bitcoin's long term potential panicked.

ahh, do you think the U.S. will ban bitcoin too?

Even if the rumor was true (i don't think they are), it shouldn't affect Bitcoin's long term value.

Regarding the U.S., news from that side have been relatively positive. Not as good as if they had just let it be, but they seem to indicate they are willing to let people use it, as long as they pay taxes on it.

I too am curious about the price drop. Normally whenever there is major news that effects the price majorly, there are thousands of links circulating to media announcements. I can't seem to find any besides the coindesk article which everyone keeps referencing.

It may just be me hoping that BTC goes back up, but I'm thinking that there is some major price manipulation going on by someone who knows how to spark panic. Same with then China said that Bitcoins weren't currency, people got all panicky and then the price went back up.

Salty, your a veteran and a moderator, is this price drop good or bad, and what aesthetic chances of me getting a profit off buying right now?

Buy now, odds are a year from now you'll thank me.

The problem with the U.S. taxing us for our usage of BTC is that the whole goal was to decentralize the currency, correct me if I'm wrong. Plus, the mining difficulty has gone to shit, thus I have decided to move to LTC mining, and I would recommend you do the same.

So I guess its a good time to buy some bitcoins.

China of course. I wouldn't buy now though, guess the price will continue to go down

The thing is, it will eventually go up again. And sometimes things move quite fast with Bitcoin. Only wait to buy if you're confident you will manage to get the purchase done before it rises back past the current price.

Well see thats the problem, if I knew, I'd be a multi millionaire. In my opinion, there are two likely outcomes

1) The rumors are debunked by someone who can actually verify what they are saying, and the price goes back up

2) The rumors are true, and the price drops even further

In my personal opinion, I think we are at a median point between holding and hoping for the price to go back up when we all find out this is an elaborate hoax, and getting ready to sell off before BTC drops back down to what it was before the Chinese rush.

The interesting thing with Bitcoin is that a lot of psychology and sociology principals apply to how the market is doing, but every so often all scientific logic is defied, and things just happen. I, like many others believe the Bitcoin price will be $1000+ in the medium to long term, so I'm strictly discussing my speculation on the value in the immediate future. Personally, I'm holding, because I haven't found enough evidence to convince me that what coindesk is reporting is true, and that people are getting caught up in hysteria. But, the hysteria would continue even if debunked until enough people knew to spread the news, so we could be in for a rough couple of days, even if BTC is still openly traded in China and set to rise.

If I didn't stress it enough, these are my own opinions, and I have been wrong in my speculation more than once in the past, so I'd advise looking for some info regarding the drop, think about the factors and the possible outcomes, and rationalize the senarios by your own logic. (Thats my way of saying don't hold me liable if you buy in now and lose money due to a drop, or buy in late and miss out)

I just sold my bitcoins I didn't want to take the risk. Got a decent price on them anyway at www.c-sale.tk thought it was a scam at the price they offered but maybe it's just a crappy businessman at the helm haha.

Hi I also am new, I just retired and hated using paper in business, was really hopeful when Kaiser & other HMOz started going paperless charting.
Somehow Bitcoin really makes sense 2 me.
I am a real Apple fan & wish Steve Jobs was still around, I think he would c the future benefit if it, 2 bad they removed it 4m the App Store .
I thought of mining but decided 2 wait until the price dips, really glad I did.
I really feel it's the future...
Glad 2 b a part if this 4ward thinking group!😊

1.Price dropped because the "money makers" simply do not like competition.
2. People are greedy fools and this makes them part of the problem.


Bitcoin in the future being made illegal is also something that can not be discounted as a possibility.


More on 1: bitcoin was suppose to be an alternative to the establishment and not some speculative instrument traded by bots to later...transfer it all back to fiat and make a quick buck from it at the expense of everyone else...not to mention...that as in fiat...also in bitcoin....few own the large majority of it.     

I don't think we have reached the bottom yet.

Just wait for official announcement. Speculation about China situation just helps the fear and uncertainity.

Hi,

I think the price drop is fordue to Christmas. People use the opportunity to be able to buy gifts.

very true. everyone sold their coins on the same day cuz they all just realized that they havent bought gifts yet XD

FUD.  Lot's of different opinions here but it's obvious you're either a Bull or a Bear during moments like this though.  Can't wait to see how this unfolds and is probably the most exciting the charts have been in quite awhile.

lol.
How can I forget the x'mas present effect lol :P

seems to be going back up but wtf is going on???

New Chinese regulation prevents the Chinese people from buying BTC ... dropping large volumes ... probably because all the automatic trading bots have a loss order. Expected to go up but slow, so if you want to enter, this is the moment ;)

I agree with what SaltySpitoon said, after 2 days we still cannot find anywhere a valid piece of official documentation.
Combine China FUD with the general slowness around Christmas (hey, bitcoin is trading 24/7!) and you have what we see now.
I don't think we will go much lower than this, we are at 17/11/13 levels where the buig spike started (1D chart)

It's typical that after a boom in prices, new inexperienced investors get on board, watch the price start tanking, and panic. The coins were simply way overpriced on hype and are returning to find their true value. There is always some bit of news you can try to pin it to, but the fact is it's the same process every single time.

Youy guys forget about who's actually participating in BTC exchange. Sure, there are many people who actually do some research and listen what is happening in the world about BTC. But in the end, the most "brokers" are just noobs. They have no idea of nothing. They get scammed, they act impulsive. If price drops, they will panic sell, if they think prive will rise, they will blatantly buy.

Now is christmas - many ppl are collecting their winnings. Price drops. Panic Selling, price drops even more, even more panic selling. This year is done, wait for after xmas.

And always remember WHO is participating (and therefore shaping) the market. There is no reason to use the same logic in BTC xchange like you would do on good old xchange.

Two words, X-mas and panic.

Well, its good time to buy now... remember the silkroad panic? :)

Seems China might ban buying Bitcoins, so this Christmas I will be able to buy some new cheap Bitcoins.

http://imgur.com/VEQaSXp?desktop=1

They can try :P

It's all about what we think bitcoin is worth. My mind like 3 month ago, was that bitcoin will not go over 500 dollar mark but it did and went up way more that i thought was reasonable to me. But hey, soon enough it maybe will come up to that price range again. on the other hand is that the news about china and everything (cuse they sell and buy a lot of coins) got spooked about the government policy and went all bananaz.  (see the crasch of 1929) But news that demmark is allowing bitcoins and litecoin is a good news.

and the best part right now is just to buy in to bitcoin so that the price will go up :) 

Not because of this, just buy if you think Bitcoin have higher value to you

It's funny that you mention this.. a lot of things that were intended for a specific use aren't used for that specific purpose; take Viagra for example.

Many traders do not end in profit. So those who does, deserve it for good predictions.

Means its time to buy....

All the talk about china has been bad for btc, we need some good news now :o

It looks like they are hovering around $550...? Could this be the stabilizing price??  50 ys ago i had quite a coin collection as a kid...any 1 have any idea where i can get an actual physical coin??? Peeking my numismatic interests.

I think the price will go lower short term.  It's partly because of China, and partly because it was simply overbought.  Use the opportunity to buy at a low price.

Bitcoin Drops 50% Overnight As China’s Biggest BTC Exchange Stops Deposits In Chinese Yuan

China’s biggest Bitcoin exchange, BTCChina, has stopped accepting deposits in Chinese yuan. The shutdown has sent the currency into a downward spin, stripping it of half its value overnight. It is trading at $572 on Mt.Gox, down from a high of about $1,200 last week.

The price drop started DAYS before china did anything. .. china has no big influence .. why is it? right, because market is full of noobs, that's why, that's why the general normal xmax exchange dropped the price and thats why many people are panic selling now :-)

You can just consider this as some sort of correction .. each correction is HEAVY because BTC has no actual value. The actual value of BTC is the value it has BEFORE the bubble. The real value of BTC is directly connect to usage of it - and that was more or less stable before the bubble - used in "dark places" as a good currency to exchange illegal goods. Doesn't sound good? Sorry, but that's what it is. And THOSE markets will find another currency which will work better than BTC does NOW - because BTC - with this volatility - is pretty useless for everyone and will keep everyone from using it in terms of payment or good exchange.

But true - you can still buy ASICS with BTC .. and all those funny things directly related to BTC and gold mining fever .. but in the end, that does mean nothing and is just a bubble. Ride the bubble when it is time too and accept reality when bubble is gone.

PS: Doesn't mean, that BTC will drop to zero. Just means, accept that it will drop massivily. I expect that it will lose grip to the state it has 1-2 yrs before. This bubble drop will just eliminate many of the noob players which are responsible for the fast price rise (indirectly)

With more traders and trading volume, Bitcoin will be more stable against another currency.

That's BS - because Traders are not responsible for the stability of a currency. Merchants and Customers are. At least when considering BTC as a currency.

How Many Milk Bottles is 1 BTC? And how many Milk Bottles will it be tomorrow .. you see, nobody will sell you milkbottles when he does not know how much the exchange is worth just 24 hours later. And that's the point of stability.

everyone who panic sold recently or who panics at every bit of news that may or may not
be properly translated from china shouldnt be investing in btc anyway and if some lost money
its difficult to feel sorry  them since it was caused by their own greed
(ie: buying at 1200 - expecting to see 5000-10,000) and then panic  selling at  600 or 500 when it nosedived  )

I believe you could buy 20 USB Block errupters for 1 BTC few months ago when 1 BTC = 150. Surprisingly (for you) you coud buy 20 USB Block errupters for 1 BTC few weeks later when 1 BTC = 600.

If you make the whole supply chain in one currency, it really doesnt matter how much it is trading against another currency.

Bitcoin is meant for future worldwide use as one currency

You didn't get the point. Mining Equipment is pretty linked to BTC, so that is a bad example of real world usage 'cause errupters value rises with demand rises with BTC value.

In the end someone had to buy those erupters from a factory, paying electricity in fiat, paying employes in fiat, paying resources in fiat - so there has to be a stable BTC/Fiat relation - which is not the case. So, for not-directly-BTC-related products BTC is completely useless because the lifecycle of a product (production/distribution/sale) is an unpredictable period of time for BTC value. So there is no chance for any product without massive(!) profit-span to get created/sold solely at BTC level. (except short lifetime products or just in time deliveries - which both is rare)

I know, that most of the current BTC-"Fans" are not aware of this, because they may have no idea how product cycle actually works and what makes a currency valuable at all. A highly volatile currency will drop in price because noone (no merchant/manufacturer) is willed to use it. Simple as that. Do not believe me? Well then visit the next factory and ask if they will produce something for you in exchange of iPads. iPads have a distinct value, but the manufacturer just dont care, because he cannot pay his employes in iPads nor can he pay his bills in iPads. Get the point?

And as long as this problem is not solved for BTC or any other Crypto, no crypto will ever be successful in big scale thinkings.

yes it drops because of china  ::) not like I told you it is dropping because of christmas  ::)

ooops? look at it! it is at 1k again - wohhoo? why is it? did china explode?  .. or was it just christmas as I said .. omg .. btc market is so predictable. please stop technical analysis of BTC because BTC market simply does NOT react to that but instead react on dumb peoples panic selling/buying and/or very obvious facts.

And now you can call me guru. "Mr. Guru" if you want

Everyone who has understood the fact I tried to tell you will have made a 100% percent gain in under 2 weeks without any effort and nearly no risk at all while laughing at idiots in various trollboxes :-)

Excuse my sarcasm - but it is important to understand how BTC market does work and that has nothing to do with stock exchanges or forex or whatsoever. it is just plain and simple psychology - at least at the moment.