Bitcoin Forum

Bitcoin prices on the popular exchange mtgox dropped to a record $220usd per bitcoin early this morning.  While i write this the price is current $270usd, a more than 10% gain in only an hour.

With the shortfall of bitcoin prices on mtgox, other bitcoin exchanges like bitstamp are doing much better.  Bitcoin investors are fleeing the marketplace at mtgox and heading for alternative exchanges.

It is only time now that will tell what will happen with new launch of the exchange at mtgox.  The market and trading at this exchange is so volatile that even the slightest glitch in their new system may cause an indefinate crash of their exchange and send all investors elsewhere.

Chat about this topic LIVE at: www.bitcoinstock.info

^THIS.

we havent seen the bottom yet for Mt.Gox.... If there were many believers that the marketplace will succeed we would definately see a massive spike and then a leveling off in price. 

Likely many online stores accepting bitcoin will hault the payment option.

Since MtGox has gotten all the news media coverage it will survive only because all the noob investors will not know any better option (unless the company is insolvent.)

Not really. If you sell bitcoins instantly after getting paid and adjust daily, bitcoin price doesn't affect you. The only ones that are worried now are those who kept money on gox and they are dragging the price down.

I would think that with the daily price fluctuating so much it is too high of risk for online stores to accept bitcoin.  Prices would have to adjust with the ticker price of the bitcoin market for it to be safe.

Don't forget that taking bitcoins gives you free advertising and there are many people who are waiting to finally buy something other than mining hardware with their coins, this outweights the risk IMO

If MtGox can do what they haven't done to date and prove that their exchange can function, then there's little reason why they would not be able to continue. Given their poor communication to date, having confidence in them is a problem but that might have also been uncertainty their end about what the problem was.

New users will not care what previous user experience is; if they are confident that the exchange can deliver for them, then they will use what is available. The function of an exchange is a simple one, moving fiat into Bitcoin. There is no issue for most users about which exchange is used to buy Bitcoins, there's no requirement that they are loyal to the exchange as it is unlikely to be needed again; it's just a necessary hoop that we jump to get into BTC. If you are using exchanges to store your BTC or other currency, then you might need to worry more but I'd expect any exchange that has BTC for sale and can accept fiat and provide withdraws in a timely fashion, will do ok.

If MtGox doesn't do a push to communicate that what it has now is different and give new users a good experience, then yes it'll struggle to survive where others can provide. Also if there is a liquidity problem now; if they have lost coins to someone exploiting the problem, then that could be fatal.

I don't think so.

Most businesses that accept bitcoin do so in a way that near-instantly converts to fiat, so it doesn't matter what a bitcoin is worth.

Those that hold bitcoin themselves tend to be bitcoin enthusiasts.

And bitcoin enthusiasts know to HODL.

In my opinion the price of bitcoin doesn't matter to businesses. Only the public image. When people stop paying for things in bitcoin or talking about bitcoin, that's when businesses who have already implemented bitcoin payments will pull it.

That or if it becomes illegal, obviously.

They do that.

interesting to see how many people believe gox will not survive this downfall...

This is the end for sure. Fuck you whatever your name is (the CEO). I myself didn't have any money there but I hope he get sued and end up killing himself.

Luckily i had only 0.1btc invested there, which i purchased at a high price unfortunately.  So far i lost only $50

Until yesterday i was trusting MtGox, but because i had not noticed something obvious:

If the bitcoin transaction bug is the problem, why there is a need to block fiat withdrawal? There is absolutely no legit reason.
Bitstamp blocked bitcoin withdrawal only as it should.

There is something VERY WRONG.

i still believe that "em-{p}ty" gox will continue and the price will rise as now it is the opportunity to buy cheap
we have seen great fluctuations there, so believe me it will fluctuate more as they return back to normal.
they have to offer their clients some piece of cake - a present or something  though!

YES i agree, something definately wrong.  Unless the bug was not selling bitcoins at the correct price, then i could see a freeze on fiat withdrawals.  

Likely the best they will do is free transactions for the first couple

After one day of trading the price has gone up and right back down again.  Not a good sign for mtgox

not a good sign for them, but surely it was to be expected?

Writing in capitals doesn't make you more right!

Your point is an obvious one; I was talking relative to what most people interested in Bitcoin want to see, which is the overall action and function of exchanges moving fiat into Bitcoin. We should want to see MtGox and any other thrive. That then in the spirit of wanting to see Bitcoin market cap expand to its full potential - an inwards flow. Naturally having an option for move back into fiat, is necessarily evil for new merchants and those of a nervous disposition.

IOU for YOM (you owe me) maybe this is better ;)