Bitcoin Forum

I understand that the price of bitcoin is slowly dropping, but is there real need for panic?

And also, if anyone knows the mechanics of bitcoin, why is it failing?

Nobody can tell you why it's dropping and when that stops. But when you have put all your retirement capital in BTC january 2014 then there is reason to panic.  :o I mean, for someone there is reason to panic and for an other person is it just an normal movement of the marketprice.

Did you just buy lots of btc a few month ago? If you buy yes you will panicked but for collector of btc just think that as part of market

dont worry if you bought bitcoin a while back when the price was 300 dollars or what ever it will rise again.

The price will recovery.

there are many reasons for the price movements for example today the price surge was cause by the removal of the swiss franc exchange cap.

Read the article below for a better understand how things can affect the price.

http://insidebitcoins.com/news/bitcoin-price-rebounds-and-swiss-franc-surges-as-snb-removes-euro-exchange-rate-cap/28805

It has nothing to do with "Bitcoin". There's no algorithm or anything that dictates the price. It's purely dictated by how much people are willing to pay for a Bitcoin. It's nothing more than just another commodity for which people have to agree on a common price.

Nobody knows why the price is dropping, though there are some guesses.  But Bitcoin isn't failing at all, so to answer your first question - no. 

And also by how much people are willing to sell bitcoins for. Without a seller there is no buyer.

I haven't even got a single bitcoin  :P

But yeah, that was what I was guessing. Hopefully more people trust and use bitcoin in the future (In God we trust currency everyone?)

At these prices, might be time to grab a few and forget about them for a decade.

the reason for panic is some people bought large amounts a couple of month back and now that the price is falling they are panicing also mostly start panic selling so it further increases the drop in price

You only need to buy some btc or buy moree :D
Swing time will happens soon :D

Bitcoin price is determined by market forces. The price dropped, simply because there were a lot of sell orders.
If you check https://bitcoinwisdom.com/, you will see a lot of bitcoin was sold on the exchanges at round 7:30 UTC on 14th, causing the price to go down very quickly.

Bitcoin will prevail!

It can be depressing watching the btc price drop, you really need to think long term and not dwell on the current downturn. I'm still buying as much bitcoin I can afford regardless of the price.

I dont know why these fools are selling their btc at that too much low price. Why dont they wait for next few montha and sell btc at 400 above. Its the time to buy as much as you can. No one determine its price it spaculation it will go higher in just next few months. Lets hope for the best

Bitcoin is rising again now and I don't think it will be reaching $200 any time soon again.

No idea.
Probably some bitcoiners panic-sold their bitcoin after seeing the price crashed over 20% in a day (bitstamp price went from $250 to $200) and further crashed another 20% within 30 minutes (bitstamp price went from $205 to $152).

Well maybe no need to panic but it certainly is alarming. Depends on your position really. Short term price matters long term it doesn't really but some people need to make money off bitcoin now.

but now the price has slowly rising  :)
This hopefully sustainable  ;D
and stable  :D

Not really. It feels quite bad, but if you look at the graphs you realize that for the most time bitcoin price is going down. So we should just get used to it and patiently wait for nicer times :)

Nice, the price is rising again, 205 for 1 now.

Even with the lower prices now, it's still better when a bitcoin was only a few cents.

Now a days markets like to move from one extreme to the other.
Look at gold/miners last 2-3 years.... Or Oil last few months.
Equity gets pushed beyond the boundaries most participants believe it is possible and only then it turns around...

Oh yeah, the oil prices are absolutely monkey farts right now.

Maybe the difficulty of mining will decrease in the future to encourage production of bitcoin (I know the simple algorithm, but its a possibility)

I wouldn't say this would be a guarantee. It is very well possible that the price will decline further from here until it hits bottom. No one truly knows where it is going to go.

Bitcoin is really not the most stable investment out there so anyone investing should do so for the long haul

The fools are the people that can't see the writing on the wall, not the people selling at 200.  Why do you think the price can't dip below 100?  Anything can happen.

It can, but that is what every true bitcoiner and a believer in BTC won't expect to happen... As we all want it stable, and not this liquid... You should have checked how many traders who had millions of Euros sold for Francs would have had such huge loss that no one expected, just due to SNB taking back their decision on continuing CAP of 1.20...

not that bad imho, we are still in 3-digit zone, when it will decline to 2 digit, you can start worry about

bitcoin is a currency, and like any other it can drop and its happened before. its also risen before. people are panicing because they lose fiat price as the price fluctuates. If it can go from 150 to 200 (now) in a few days we just have to wait and see where it goes

No the halvings will bring the price back up heck there is about to be a halving.

If you consider holding for a long time, then there is no reason to panic. But to some people who bought in between the $300-$500 price range must be worrying right now. There are no certainties in the market, only changes and volatility. That's why most people here in btt always say: never ever put your life savings into bitcoin. A moment the price is high, and another moment it will collapse. No one knows when will those phenomena happen.

I coded Bitcoin such that it would reach a million dollar before 2015. I never coded this price drop, don't know why it's happening.

Probably something I overlooked, I'll get back to work and will let you know ASAP.

https://i.imgur.com/CLHmc3A.jpg

This is a great time to be adding btc to the portfolio
Historical opportunity to go long cheaply

There were much worse crashs in bitcoin price in the past, and bitcoin is still here. And so I don't see why we should be worried.

You've done some pretty lousy coding bro, it
 has been falling like 60% of the time ;D

it should go up, im looking to buy more at this low price and then re-sell for higher and with X*(High price - lowprice)

It does this from time to time it will go back up.

Price fluctuations are usual in bitcoin. Trade and make profit.

wait for it to fall more and then buy it up.

Remember the pattern? Just check the charts from 10th May, 2014 to 11th June, 2014... The same pattern is going on currently, what do you think?

Will it still be bad now?

When it comes to the markets, be greedy when others panic...

no, it is not bad.

fundamentals are still untouched. Money keep coming. And GEMNI might come to live and create another bubble

Price goes down and up. It's what happens when a governing body isn't controlling the price. I guess you could say that, no, it isn't that bad. The way i see it, bitcoin's price fluctuation is just a little compensation for it's anonymity and freedom.  :)

Yeah right, its a nice price us flutuating and some one can buy btc when its price is low like below 200 and sell it at 230$.
So what you think will it go below 200$ this time ?

Probably not for now. Nobody knows. I speculate a slow price hike for now  :P Just my 2 satoshis.

its falling because of chinese people dropping bitcoins everywhere.

It's not just the chinese, mind you. I think people are panicking because others are dropping. It's all a game of pass the bag.

Price fluctuations are normal for any traded asset.  The price drop on the Euro is also quite impressive.

So I don't have to look up the prices from last year, would you just tell what happened?

@tins
The price bounced back up after hurtling down, almost symmetrical 'v' shape.

And the bitcoin price is now already back up to the $250 level while it was $160 just 10 days ago. :)

last year the Gox influence was way bigger than now. I think compare last year patterns to current patterns might be misleading

The price has been going down in 2014 from the very high price we reached at the end of 2013 but the price is still relatively high compared to anytime before November 2013 and all the arguments for the price to increase are still valid.

You can find a lot of similarities with many months if you want to. It's hard to realize what will happen with such a short time fram of comparison.
And you can also compare this to the SilkRoad crash, which had very high volume and led to happier times :)

The price is high and everyone is crazy, the price is low and everyone is depressed; sentiments unrelated to fundamentals!

It's always funny to see how quick people can change the way they see Bitcoin. Such people are here for the profit.

Those who believe in Bitcoin don't panic or change their mind with a lower or higher price.

I prefer thinking about bitcoin as an investment, as a sort of stocks if you may.

It`s not bad today. Do not panic, that`s best recommendation.

There are always many different factors in a market. If you believe Bitcoin will work out in the long term, then invest long term.

It's looking a lot better now.  The 190-200 dollar coin price just makes mining hard.  At current price I can actually mine feeling ok.   I hope it goes up more but either way were doing a lot better now then a week ago.

Is there a stabilizer sort of thing to compensate the price vs. difficulty? Cause if not, mining will be dead to the majority of newcomers.

i don't think mining is yet profitable, at this moment. the bitcoin price needs to go higher than this for mining to become profitable

BTC raise up a little bit, so don't need to panic, hope it reach 1000$

Let's enjoy the journey to 1000$ then more, if it was going there too fast it would not be as enjoyable.

It is OK to be upset right now. But one should consider it a 5 year investment.
Any fluctuation in between is just plain numbers.
It was also hard to foresee the bloom of Internet back in 1995.

So true about the internet.

Anyone remember when that was man of the year?

And also, really? 5 years? Is it really gonna take that long for bitcoin to recover?

price is not included in the protocol.

But the hash rate is, and it might drop if prices are too low and many people unplug their mining stuff, decreasing the hash rate and sooner or later the difficult.

The difficulty changes every 2016 blocks and the hashrate is a market so actors make their own conclusions and can stop mining or increase their hashrte if they want to.

I think that some poeple panic sold, but some of the price decline has to do with people trying to day trade and people buying on margin.  As for the panic sellers, people need to realize that trading any crypto requires that you have courage, no anxiety, and patience. I believe that BTC along with good alts will recover when the big boys start buying in, which should be soon.

Because there is not enough new comer.

Well the price spike we saw a couple of days ago was just the market's reaction to the Coinbase announcement. That was really awesome news but not enough to bolster the value, truth of the matter is we're lacking big investors. But then who would invest millions knowing that at any time their millions could be worth a few thousands?
Still the Coinbase news is a great way to start 2015, hopefully we'll get a few big names on board this year  :)

There is really no need for any panic, the price is always this volatile. The price may just rise or nose-dive to a crash in the future. No one should invest more than they can afford into Bitcoin as it isn't backed by anything and it is not backed by anyone.

Its relative, I dont see it as bad, I see it as an excellent opportunity to buy. This is how sound investors think.

I couldn't agree more. All I see is opportunity.
Buy low sell high! Pretty simple. 

Mining has been dead for newcomers for months. Once ASICs took over, the days of mom and pop mining bitcoin were gone.

There are still a few cloud mining companies that are worth the investment if you can wait a few months for ROI.

I think Bitcoin is falling because lack of user adoption.

In particular, mining brought a huge number of people into Bitcoin that weren't there before. Stories about how people had made tons of money getting into bitcoin early and mining bitcoin with their gaming computers brought a pretty large contingent into the fold.

A lot of those hobbyist miners put money into additional GPUs and ASICs, and then got burned by companies like Butterfly Labs and MtGox. This let to a lot of people slowly leaving bitcoin and many of those that remained have become a bit cynical.

That's not to say that Bitcoin can't or won't recover, but I do think it has a bit of a user adoption problem. There are a number of tech and financial companies that are looking to leverage the technology behind bitcoin to solve problems like remittance and in the process build new institutions. However, most of these companies make money off of transaction fees or trading fees. These companies won't rely on the price of Bitcoin going up hugely per se, but rather on the idea that people will make transactions over the network.

Put simply, the price of bitcoin has been going down because less people are coming into bitcoin. In fact, I think there is probably some net attrition going on.

This may change, their may be some other factor that causes bitcoin to jump up and more users to join, but for the moment there appears to be a net attrition corresponding to a decline in price.

That is true, I adopted bitcoin early 2013-2014, so at that point, mining was dead to newcomers.