the rise and fall of...

[mistersheep]

Wow, great article in Wired!

OK, I am trying to verify - please tell me - true or false?

"The high point in the https://www.coinbase.com/charts bitcoin price graph ($1145) around Dec. 1st 2013, and subsequent decline since, coincides with the rise and fall of Silk Road...?

[TheGr33k]

Wow, great article in Wired!

OK, I am trying to verify - please tell me - true or false?

"The high point in the https://www.coinbase.com/charts bitcoin price graph ($1145) around Dec. 1st 2013, and subsequent decline since, coincides with the rise and fall of Silk Road...?

This was around the time I joined the bitcoin community. The price rose higher to 1.2k in January I believe. I'm not 100% certain but wasn't the crash partially due to the fall of BTCchina and Chinese banks not accepting bitcoin purchases.

[minerpumpkin]

It doesn't really have anything to do with Silk Road. Silk Road was operation way before the rise in late 2013. If that bubble and the downslide since then can be attributes to anything or anyone, my bets would be on Gox being responsible for this. I'm quite certain that they indeed caused the price to go up in such an inflationary manner.

[Purple Wayne]

I don't think anybody knows what caused the crash. Bitcoin's value seems to have a mind of its own most of the time but I think there were several theories on what caused the crash. The biggest one was the mt gox fiasco.

[RodeoX]

I believe the bubble and subsequent crash was caused by speculation. Very typical to see this behavior in an unregulated market. Speculators try guessing future prices and often drive the prices up to silly highs. When this is realized the price starts to fall apart and oscillate until settling on a more reasonable estimate. It looks like $230 is that price.

The article was written by people who want you to look at the adds, not by scholars trying to educate you. Including the sexy and interesting idea of secret black markets is too much to resist. It is also why the title is the rise and fall of bitcoin. A fall is far more interesting than a normal, predictable market correction.

Fall indeed, that thing was written Nov 23, 2011. The fall was from $30 then. Did it end anything?

[randy8777]

i think the china drama made bitcoin go down so much. a lot people were thinking bitcoin china would really take off. after all the bad news people for some reason lost faith. merchant adoption also had and still has a huge impact on the price.

[SpanishSoldier]

Wow, great article in Wired!

OK, I am trying to verify - please tell me - true or false?

"The high point in the https://www.coinbase.com/charts bitcoin price graph ($1145) around Dec. 1st 2013, and subsequent decline since, coincides with the rise and fall of Silk Road...?

This was around the time I joined the bitcoin community. The price rose higher to 1.2k in January I believe. I'm not 100% certain but wasn't the crash partially due to the fall of BTCchina and Chinese banks not accepting bitcoin purchases.

That price rise actually attracted a lot of common people at that point of time, who by bitcoin understand nothing but its price.

[Jakesy]

It was really a perfect storm of things.

Willy bot from Mt. Gox was driving the price up (it should have been around $250 all along).  Silk Road. Chinese regulations.  Etc...

[SpanishSoldier]

It was really a perfect storm of things.

Willy bot from Mt. Gox was driving the price up (it should have been around $250 all along).  Silk Road. Chinese regulations.  Etc...

Read this and you'll know why the storm was perfect

http://www.businessinsider.com/the-richard-wyckoff-stock-trading-method-2013-2?op=1&IR=T

[oblivi]

I believe the bubble and subsequent crash was caused by speculation. Very typical to see this behavior in an unregulated market. Speculators try guessing future prices and often drive the prices up to silly highs. When this is realized the price starts to fall apart and oscillate until settling on a more reasonable estimate. It looks like $230 is that price.

The article was written by people who want you to look at the adds, not by scholars trying to educate you. Including the sexy and interesting idea of secret black markets is too much to resist. It is also why the title is the rise and fall of bitcoin. A fall is far more interesting than a normal, predictable market correction.

Fall indeed, that thing was written Nov 23, 2011. The fall was from $30 then. Did it end anything?

It was a mix of various factors. Mainly being something new where you can't really draw a ceiling, you aren't sure what is a fair price, so people got caught on a huge rally.
Now time will bring us back to 1K+ territory, but it will be under a more reasonable timeframe.

[Amph]

I don't think anybody knows what caused the crash. Bitcoin's value seems to have a mind of its own most of the time but I think there were several theories on what caused the crash. The biggest one was the mt gox fiasco.

it's obvious that the crash was caused by willy bot, after he pumped the price to the sky, he wanted to make profit of it, he did it, by sucking who joined the wave of his pump

[SpanishSoldier]

I don't think anybody knows what caused the crash. Bitcoin's value seems to have a mind of its own most of the time but I think there were several theories on what caused the crash. The biggest one was the mt gox fiasco.

it's obvious that the crash was caused by willy bot, after he pumped the price to the sky, he wanted to make profit of it, he did it, by sucking who joined the wave of his pump

Though MK made some profit, more benefited were other exchange owners at that time, especially BTC-e. They are now sitting on a pile of coins.

[mistersheep]

Actually, the article I was referring to is in the latest (May 2015) issue of Wired, and is called "The Rise and Fall of Silk Road - part 1"

[GTO911]

It was just a bubble, its at real value now

[Sakarias-Corporation]

It was just a bubble, its at real value now

Not Even close. we're so far away from its ''real'' value now.

[GTO911]

Not Even close. we're so far away from its ''real'' value now.

Until people pay more for it, this is the real price

[Sakarias-Corporation]

Not Even close. we're so far away from its ''real'' value now.

Until people pay more for it, this is the real price

No, its the ''Current'' Price there's a difference

[pereira4]

I don't think anybody knows what caused the crash. Bitcoin's value seems to have a mind of its own most of the time but I think there were several theories on what caused the crash. The biggest one was the mt gox fiasco.

it's obvious that the crash was caused by willy bot, after he pumped the price to the sky, he wanted to make profit of it, he did it, by sucking who joined the wave of his pump

A single bot couldn't do that, the volume was big enough to not enable a single bot to move the market in such a ridiculous way. It was a mix of bot + people losing it on a super rally.

[MicroGuy]

I think there's a very real chance that Bitcoin won't see $500 again in my lifetime (I'm old).

Sorry for the bearish attitude, but it seems like we've somehow reached a stalling point. Not sure how, but we need some momentum to get things turned around.

[AGD]

Wasn't it "Willy the bot" at MtGox that drove the price that high?