Bitcoin Forum

Some months back I was very bearish and mostly everybody on the forums was very bullish. They swore that bitcoins would never go to $2.00, or even lower than $10 for that matter.

So here we are, bitcoin dropped below $2.00 today. 

So what are the reasons that bitcoin dropped so much?

Because it was manipulation that got the price so high in the first place. Greed is the reason.

I think it is totally because of your own personal shitty attitude.  If it were not for Edward50, there is no doubt that we would be at or above $100/BTC.  See what you've done?  You've ruined the only hope we as a society have ever had or ever will have of breaking free from the shackles of the evil banking cartels.  I hope you are happy.

Too many bears.  I jest, but there are a good number of people who will say it with a straight face.

IMO: The fundamental need for coins very low and will not increase until it's in much more widespread use.  Until then, high prices are based on speculative buying, and speculative bubbles pop.  So here we are.

as a wise man once said... "suckers.. we need more suckers."

right...


We need Big questions answered

like, is bitcoin legal?

once these question can be answered, demand will go up. and a new speculative bubble will form and this time it will go higher then ever b4

Of course bitcoin is legal. Legal tender? Thats another question. Even if one country outlaws it will never be outlawed everywhere. If some country goes through the effort of making it illegal then it legitimizes it more than anything because it would be because they see it as a real alternative to their own fiat currency.

What we need is more investors and more people to buy and sell their services for bitcoins. We need to grow the bitcoin economy. An economists on here?

Lets not forget Nagle!!!

Is bitcoin legal?  AFAIK no country has declared it to be illegal.  Even then, does it really matter?  Online poker is illegal in the USA but thrives world wide.  Alcohol is illegal in Saudi Arabia but it doesn't stop me enjoying wine in Australia.

Speculative bubbles rarely reinflate.  What people hope and wish happens is usually different to what is a realistic proposition.

It's rather simple actually.  At the moment supply is outpacing demand for btc.  That is THE real reason why any market rises and falls.  Manipulation is a function of supply/demand, as are all trades.  Don't overthink this, it's simple ;-)

I am curious to see if bitcoin supply will suffocate demand too much, making the never to recover.

If? Already happened, sir.

Maybe, but just because something is a certain way doesn't mean it will always be that way.  Demand isn't a static thing.

A better question is probably why did they go up so much. When I bought my first bitcoins a year ago for 24¢ each, I never dreamed they'd reach USD parity within a year.

I believe a few investors with deep pockets pumped money in to create a bubble and many of us saw the price rising so quickly that we panic bought. Then the investors got out quickly (drop from $32 to $17 was within about 24 hours if I recall correctly, BEFORE the Mt Gox hack).

Then the price has dropped steadily back to actual demand. Not sure whether we've arrived there yet or not. Only time will tell.

Nail, head, hit.

+1

Something to keep in mind is that bitcoin was created to be a currency, not an investment. Theoretically, it is a store of value because there is a fixed supply (that is dribbling out to us slowly over decades). It will only be a store of value, though, when enough people/businesses are accepting bitcoins that prices are fixed in bitcoins, not in USD converted to current USD/BTC rate.

Remember, bitcoin is still in beta, and could be for a very long time. That's okay.

What I think will be interesting to see is whether Bitcoins are picked up as a major medium of exchange between people in the next country to see its currency collapse the way the Zimbabwe dollar did.

If bitcoin keeps shrinking at this rate we'll have to move the decimal point further to the right.  :o

lol good one...


bitcoin is getting bigger,

the stock price doesn't reflect the growing community.

Bitcoin sites are trying to out do each other, and so the quality of the services bitcoin provides grows and becomes better every day.

when bitcoin was worth 30$ there was hardly anything you could do with a coin expect buy and sell it on Gox or trade hill

ironic!

I've seen a lot of growth of Bitcoin financial services, but I'm honestly quite disappointed by the lack of growth of commerce.  It's become an amazingly sophisticated currency that still has very few realized applications.

BTC 2 CD-key is nice, and have been reviewed:
http://www.thebitcoinreview.com/site.php?site_id=750 (http://www.thebitcoinreview.com/site.php?site_id=750)

click "Visit Bitcoin 2 CD Key"

I'm not convinced that that is true.  I cannot see it being a very powerful stand-alone currency (that is, without legal state sponsorship) without a claw-back capability.  The designer(s) seem to me to have been thoughtful enough to have considered this.


It's potential as a store of value is as strong as the value people place in it.  Just like USD, property, gold, pork bellies, or just about anything else.


Agree.  I theorize that it is actually much better in the long run if Bitcoin plays opossum for as long as it takes for it to be obviously useful, and for all of our sake that it never happens.  My main trouble is that I am having difficulty actually enjoying this, but that's my own problem.


I had never thought of the potential for a conflagration to start in that way, and it is an interesting point to ponder (and possibly one to put some consideration into facilitating.)  I guess it would need to happen in a place where people had pretty good access to technology.  Greece?  Hmmm...

/thread in third post. This answers the posed question completely.

Boom, Bubble, Burst, Bust. And here we are, show has gone as expected with all the phases pretty plain in the price history alone, and people STILL ask what happened?

It even seems that the undervaluation phase is being executed even though everyone expects it? Or maybe I'm just speculating wrong for a change.

alot of people think the undervaluation phase is going to be below 1$ ... wishful thinking

After reading this, would you have sold and waited for the price to drop below $1 back in November 2011?

I have wet dreams about going back in time to the OP's post date and buying 15,000 bitcoins with the $30k I had sitting in SAE's.  My problem would have been I would have sold at $20 btc

People sold for $ is the only reason.

I remember shorting at $4 waiting to close the short at $3.50.

It reached $3.60 then shot up to $4.50....short squeeze.

That was with several hundred bitcoins.

How were you doing that?

On Bitcoinica.

After seeing this happen a few times I pulled out the remaining 400 or so bitcoins leaving "only" about 40 bitcoins on the site.

The next week it was "hacked".

It was later found that blatant manipulation was happening so that trades such as mine were short squeezed.

Greed.

The only way to get "cheap" coins is to push the price down.

I believe its mining companies trying to run the small timers out of the mining business. Therefore they get a larger hash rate and get more coin. They shorted a ton, dropped the price, and are now able to mine more and even buy more at lower prices.

So there were people with characteristics similar to fallling even in the early stages of bitcoin.  ;D

Edward50 was less frothy, genuinely believed what he was saying and argued his case well. Even if I disagreed with him, he gave food for thought.

Infinitely better than the likes of faillling, Chuckee, fewcoins, xioxao.

I hope we won't relive the $2 era. It took so long for that too pass  :D