Bitcoin Forum

With all the good news this week (below) I'm surprised we are at $850... I'm planning to buy some more right now but I'm wondering if we are falling into another dip for some reason?

Any thoughts?



Good new form this week:

I think this entire week was full of good news, the 5 main ones that come to mind in no particular order:
1. Switzerland voting to make BTC a foreign currency
2. Baidu (china's yahoo) adding a section for bitcoin in their main page
3. http://www.usatoday.com/ adding a bitcoin logo on their main page (their high traffic, along with baidu's will definitely help increase awareness)
4. News about WallStreet and hedge funds getting into bitcoins in 2014
5. Fidelity allowing customers put bitcoins in IRAs

Zero or many zeros, nobody knows ;-)

“On an individual basis, we allowed an investor to invest in that Bitcoin Investment Trust,” said Rob Beauregard, director of public relations at Fidelity, in a telephone interview Thursday morning. “We are no longer allowing that.” -MarketWatch about 2 hours old

When the FIdelity IRA news came out I don't think it caused much pop in the BTC price so I don't expect it will hurt it much.  If you look at Gox it looks like it's in a slight downward channel.  Might want to wait and see if it goes down a little further before buying but who knows what news could come up?

So much noise these days :(

People are taking profits along the way up.

Some big holders decided to cash out their millions and retire.

Long term trend is higher. These dips are buying opportunities.

plus, weekend dip incoming again...

1. Not true.
2. Unaware of.
3. Means little.
4. Suspect.
5. Not true (at least not any more).

Switzerland voting  to make bitcoin a foreign currency?

Do you even know how long it takes, that we can vote about something?
There was a postulate in september, but it had nothing to do with voting or accepting bitcoin as foreign currency. It was about risks and potential chances of bitcoin for switzerland including legal regulations. It was just to gather informations.

Voting would take another 2-5 years from now and the implementation of a positive voting outcome would take additional 2-5 years. We are really slow with such things  ;D

So I am right, then, friend?

Most of the over optimistic rumors are just out of reality, Schwitzerland and Wall Street to name few

For all the 'good news', I flip Bitcoins in GBP on LocalBitcoins. I am usually amongst the most competitively priced vendors and I usually get my hands bitten off.

But lately, it has been very very slow indeed.

Not a lot of appetite for fresh Bitcoin investment at the moment from what I can tell.

2. should be hao123.com/bitcoin.  Not sure if that's a baidu site.

Yes. Rumor 1 is complete BS! But it's still spreading..

Double top is currently limiting upside potential
More than 6 Mio USD on loan for bitfinex on BTC long margin positions
Most news are already priced in
Lots of govs are giving warnings on bitcoins
Exchange infrastructure still fragile
start of downtrend
... and almost everybody is sitting on profits, apart of the guys who bought higher than 950...


there might be even more reasons....

EDIT: and this poll does not look pretty, next to the article...

http://finance.yahoo.com/news/european-union-warns-bitcoin-120707180.html

Its not easy to get bitcoins for some people, it took 11 business days for my money to reach an exchange, maybe its easier and faster for some people but i really didnt have many other options besides a  7-10 business day wire transfer.  I miss dwolla, and if you want a large chunk transfered you have to be verified on these exchanges, which also takes time.

I wouldn't use any of your listed items. I think the most positive news so far is Andreessen investing $25 million in Coinbase. Anyone who is shouting "Ponzi/Pyramid scheme" will have a hard time explaining that. The other positive news I've seen is that the number of merchants accepting bitcoin is skyrocketing, so it is very likely that bitcoin will see its real mainstream breakthrough in 2014, but it requires the wallet functionality to be a little bit more user-friendly (even though blockchain.info is a great start).

So why is the price going down? Here are some reasons I speculate on:

1) The Chinese are still hesitant as the PBoC gave a clear statement that bitcoin is very risky and financial institutions in China should not invest in them. This warning spills over to regular individuals, so the buying pressure from East is greatly reduced and if the selling pressure is the same the price goes down.

2) Early adopters may cash some bitcoins out for X-mas. The volume is quite low, and selling 1k of coins (which is nothing for an early adopter) can cause the price go down quite a bit because the buying power is low. Long-term this is a good thing. The more bitcoins that come into circulation, the better.

3) Europe banking authority said it was going to issue a warning against bitcoin (and now it has done so publicly). This will reduce the number of investors going into the field. For them is a sane thing to do, because I believe that most politicians don't understand exactly how Bitcoin works, and anything that you don't understand it is just common sense to be skeptical. I still think they are wrong, but bitcoin requires maturity. Many were skeptical to Internet when Internet was young as well.

4) Then it could also be speculators/price manipulators selling bitcoin en masse to create panic and then vacuum all the cheap bitcoins.

Nevertheless, the future of bitcoin long-term looks extremely bright. Having VCs like Andreessen pumping into bitcoin businesses, and seeing new merchants accepting it every day, and all the incredible not yet invented ideas based on bitcoin (e.g. who thought about Facebook when Internet was young?). Just look at the underpinning technology in bitcoin with the scripting language to setup transactions; it's light years ahead of the traditional banking system. When you look at bitcoin it makes so much sense to have an open platform for transferring value.

Just think what Microsoft tried to do; they were planning to build their own computer network (MSN) which miserably failed. Once they realized this, they jumped on the Internet bandwagon. The same will happen for banks and bitcoin. Today banks the use their proprietary networks to transfer value which is extremely slow (and banks take fees among themselves in the process). Yet, banks don't make much money on money transfers, but more on issuing loans, so I believe banks don't care if their old technology of value transfer is replaced with something that is much more modern.

I know this for a fact as I have some insider bank connections. The reason why banks are scared of bitcoin is not what you first think. They are not threatened by the bitcoin technology, as it is just another currency for them (who cares?). They could (and will) just buying bitcoins with their tons of fiat if they think it is valuable for them. The reason why banks are hesitant is because of all the regulations on money laundering. They fear that they can lose their bank license if the government thinks that banks don't prevent money laundering, and it is unclear what precautions a bank needs to take for bitcoin to be on the safe side. Therefore, the safest option is not to deal with bitcoin at all, until governments have some firm rules.

My guess is that some nation will take the lead. I don't know if it is going to be Switzerland or some other nation, but once we have at least one nation that goes all bitcoin friendly, it is likely that other nations will follow. We're still waiting on that first nation, and whatever nation that will be, will get an incredibly head start on bitcoin adoption. If that nation plays their cards well, it will become one of the wealthiest nations on Earth. It will basically get the same financial status as London has today.

Well is it BTC really worth more than $850 right now??? or was it way over speculated before.

It is all down to personal opinion. In my view, no and yes. But most people here believe the opposite

London has a financial status?!?  So...ignored?

I have a simpler and quicker explanation for why the price is going down: it was and still is in a gigantic bubble.
[/quote]

I do like efficient people... !

Another reason is that Bitcoin is inflating at 3600 coins per day, approximately $3 million dollars worth at $850.

I partly cashed out, spent some money for christmas, some for me and wait with the rest for drops. I guess I'm not the only one.

I expect a drop like on last weekend or even deeper. I got burned too often with buy high, sell low and waiting for a further drop that didn't happen before I buy in again.  ;D

More action will maybe happen after new year.

Most newly mined coins are sold off exchanges.

I doubt now is BTC really worth $850, it is currently overvalued because Bitcoin is not much actually used. It migh change, but now the Bitcoin price is just speculation it happens later...

Furthermore, the OP's point about Baidu was factually incorrect by the time he / she posted it: http://www.bloomberg.com/news/2013-12-07/baidu-stops-accepting-bitcoins-after-china-ban.html (dated 7 December)

we are up like 10,000% longs need to cover.

don't panic, this drop is sure to shake out some weak hands and create a nice buying opportunity.

hope so :)

I think probably a lot of people are selling "just a little" for christmas shopping.

Yes, I did sell a bit of my coins for Christmas shopping, as I'm sure many of you did.

You may want to add to those very real reasons that

6. USA officially declared bitcoin as a currency
7. EU already replacing euros with bitcoins

 :P :P :P :P :P :P :P :P

I'm actually going to gift BTC to family for christmas. I wouldn't really care if they turn it to fiat right away, if it spreads awareness I'm happy. Sure money might be a bit boring gift, but it's hard to shop the right presents for my family. :)

I don't think we will see mtgox hit the high of 1242 USD for awhile. However it seems like that whenever BTC dips, it winds up bouncing up next day as people buy up "cheap" coins. And people who have been holding BTC for awhile have already cashed out, they did that in November according to the "BTC days" destroyed graphs and it didn't stop the value from going up. However they might spring into action of the price spikes up again. At the moment I feel the price will be stable, or worst case there be temporary dips but longterm slow if maybe somewhat slowly going down in value as it corrects itself.

There been two correction events during this rally, but neither "popped" the bubble. However I say that if we see BTC suddenly rise up to 1300+ USD again soon (within 3 months), it wouldn't be sustainable. :P

(Looking at charts, there is way more buy orders than sell orders. I'm not sure if this is currently a good sign, or if it's meaningless for the volatility of BTC)

It goes down because there are more sellers than buyers.

I'm doing the opposite, buying coins for Xmas presents. I don't want to touch my paper wallets.

Bitcoin- the gift that keeps giving.

BTC is going up in the long run. People are usually short sighted and tend to overreact. BTC lost a lot in the past week so people converted to fiat and wait for it to go down more so they can buy back. If it doesn't they will eventually buy back anyway. Just be patient.

Or not at all...I'm not selling anything significant that I mine.

denial phase

So fresh and original.

Never heard that one before...now if only we had an infographic to post.

Or maybe returning confidence  :)

I doubt, I dont sell the coins I mine, mining is just different way of buying Bitcoins

monday here so price will go up after the weekend dip

There is no weekend dip or beginning of each month dip... Price is on a downfall for more than 2 weaks already...

looks like the price wants to go below $800 today.

A bit of an understatement in hindsight (but in the right direction!) - was touching $600-type levels; lowest I saw on bitstamp was $612

Looks like China had some even more negative "rulings", and Norway had some unhelpful things to say
http://motherboard.vice.com/blog/whos-afraid-of-bitcoin-these-countries
http://www.businessinsider.com/china-bitcoin-crackdown-intensifies-2013-12