Are people getting greedy again so soon??

[MatTheCat]

I'd say people aren't anymore or less greedy than they were before. Many people believe we simply had a much needed correction, and a bottom arrived in the 50s. There is plenty of media still taking bitcoin seriously rather than just dismissing it as a failed bubble. They discuss volatility and 'last weeks high' rather than laughing it off. That causes other people to take is seriously too including the 20,000+ a day of new people signing up to MtGox. Many of these people are get quick rich newbs, but plenty of others will genuinely love the concept and will join as new 'true believers.'

If Bitcoin is to grow, then it must stagnate and find a stable base at any given price. I would suggest that it would be very unlikely that this stable base remains around the $100 mark, as their as still plenty holders of Bitcoins seeking short term profits and once these hands see that Bitcoin isnt going anywhere anytime soon, they will pull out, thus lowering the price further. Such people may be those who rushed in to capitalise on the dead cat bounce, those who have already seen the opportunity to make glittering profits and seen their equity savagely reduced, or indeed those who have infact lost money on bitcoin (often the most stubborn sellers). As it becomes obvious that the price is only going to slip lower over time, practically everyone holding Bitcoin as a store of value will seek to take some gains and or cut losses.

Whatever the price turns out to be, a stable baseline price is needed in order that real Bitcoin economic transactions have time to recover (yes, many business people have been totally fucked over by the April crash, as was totally predictable, just nobody knew for sure when this would happen), and time to further develop itself which will result in a steady flow of price insensitive Bitcoin users, i.e. people like myself who buy them and then spend them right away, rendering anything other than wild flucatations as inconsequential to our financial health. Either this happens, or Bitcoin continues to be hijacked by the spirit of parasitic speculation, which will destroy the fundamentals upon which Bitcoin relies, and the whole thing goes up in smoke and goes down n history alongside Dutch Tulips and French Colonial Bondsi as another classic lesson in self imploding speculative mania.

[ManBearPig]

I used to be a huge bull up until the crash.

That sounds like you lost money.

Fastest way to become a bear is to lose money.

[NamelessOne]

Not everyone agrees that this is a deadcat bounce. Even bears like Proudhon have gone bullish now. I've been through so many of these 'crashes' now it doesn't phase me, and I think it doesn't phase many people. A correction was needed badly anyway. Sure this could end up being a bulltrap/dead cat bounce, no one knows the future, but we may simple continue the upwards trend that hasn't been broken yet.

[superduh]

keep on crashing as long as the price keeps going up
i think what everyone learned is as the price falls keep buying. foolish people selling

[MatTheCat]

Not everyone agrees that this is a deadcat bounce. Even bears like Proudhon have gone bullish now. I've been through so many of these 'crashes' now it doesn't phase me, and I think it doesn't phase many people. A correction was needed badly anyway. Sure this could end up being a bulltrap/dead cat bounce, no one knows the future, but we may simple continue the upwards trend that hasn't been broken yet.

Perhaps.

But for this to be the case, Bitcoin needs to attract a steady supply of fresh capital and i will tell you what, I wouldnt touch Bitcoin with a shitty bargepole right now, not until I have seen some long term stability, at whatever price. I think after the spectacular crash that Bitcoin has had, that most wise money feels the same way.

Due to the fact that Bitcoin is not going to appear overly appealing to fresh capital, I say it will stagnate lower over the near/medium term. Of course, the same cabal of parasites working to line there own pockets|bring Bitcoin down may have other ideas and could once again, move to drive the price exponentially higher in the near future. If this happens, as most people here are hoping, then it spells long term death for Bitcoin.

[cilphex]

Like somebody mentioned earlier, the selloff was caused by greed.  Short-term speculation and the desire to make a quick buck.  It doesn't just go one way - greed isn't something that only exists when the price is going up, and it isn't gone when the price is stable.

The fact that bitcoin has not completely disintegrated and seems to have landed somewhere between $70 and $90 is a clear sign that it's not going anywhere.  Investing at this point is simply an acknowledgment of that.  The bust scared a lot of speculators; what remains is a growing number of people who believe in bitcoin's long-term potential.

[NamelessOne]

Like somebody mentioned earlier, the selloff was caused by greed.  Short-term speculation and the desire to make a quick buck.  It doesn't just go one way - greed isn't something that only exists when the price is going up, and it isn't gone when the price is stable.

The fact that bitcoin has not completely disintegrated and seems to have landed somewhere between $70 and $90 is a clear sign that it's not going anywhere.  Investing at this point is simply an acknowledgment of that.  The bust scared a lot of speculators; what remains is a growing number of people who believe in bitcoin's long-term potential.

+1 I believe this to generally be the case. There are still people this week learning about BTC that didn't even know about it until AFTER the correction/sell off. They could very well be watchful and careful but still very curious. As they watch the price rise they may very well want in. Others won't be careful at all and will see get rich quick possibilities. All kinds of new people coming to the table.

[phoenix1]

+1

All sorts of new people in the casino now with different strategies and agendas ... interesting times indeed

[w00t]

Seriously guys does it make any sense? I have some fiat ready and really don't know what to do... In like 12 hours we jumped almost +20 %.

[Peter Lambert]

I used to be a huge bull up until the crash. I am no longer trading due to personal circumstances.

To translate: "I was speculating and lost everything. Ignore everything I am about to say because it will make you lose all your money too."

[awakening]

Seriously guys does it make any sense? I have some fiat ready and really don't know what to do... In like 12 hours we jumped almost +20 %.

I'm waiting myself for some kind of speedy dump to buy lower. But the news about Money Gram and Western Union are very bullish indeed..
Probably the best news that had happened till the moment to bitcoin if they became some kind of local exchangers of bitcoins all across the globe.

[w00t]

Seriously guys does it make any sense? I have some fiat ready and really don't know what to do... In like 12 hours we jumped almost +20 %.

I'd put my bids in the mid-nineties and pray for some kind of weekend dip. Otherwise, I'd just buy at market on Sunday.

Thanks for the constructive input. Sounds reasonable.

[phoenix1]

Seriously guys does it make any sense? I have some fiat ready and really don't know what to do... In like 12 hours we jumped almost +20 %.

I don't know what you 'should' do ... but what you should not do is panic. If you are going to do anything, do some research, read some (diverse) opinions, and then form your own so you have it mapped out in your mind and it is your own plan. If you only ever act on other people's advice or opinions you will never know what to do ... in the long run that is likely to be expensive

[DeathAndTaxes]

But for this to be the case, Bitcoin needs to attract a steady supply of fresh capital and i will tell you what, I wouldnt touch Bitcoin with a shitty bargepole right now, not until I have seen some long term stability, at whatever price. I think after the spectacular crash that Bitcoin has had, that most wise money feels the same way.

Then wait 5-10 years.  It is that simple.  Bitcoin will never be stable with an ultra-tiny money supply.  It isn't going to happen.  Wanting and wishing for a sub $1B highly stable currency is just a pipe dream.  Look at the volatility of the silver market, although less volatile than BTC it still has some gut wrenching moves from time to time and that is with a "money supply" valued at around $30B.  Now gold with $7,000B "money supply" is rather stable (most days).

There never has been and likely never will be a tiny market which is also highly stable.  What makes something stable (in the free market) is huge sums of wealth on both sides.  "Bid walls" if you want to use that terminology in the tens of millions of dollars.   To move gold (May futures contract) $1 per ounce takes about $250,000,000 (short or long).  When Bitcoin has that kind of market depth it will be stable (or at least stable-ish).   Now how do you get that kind of market depth when the Bitcoin money supply is less than $1B?  (Hint: you don't).  So if you want stable ... then wait.  In 5-10 years Bitcoin will have a lot less volatility.  The BTC money supply will probably be in the tens of billions of US dollars ... or it will be zero.  Either way it will provide the stability you are looking for.  In the interim if BTC is either going to tens of billions or zero over the next decade how exactly would that happen in a gradual low volatility manner?  (Hint: it won't).

Note: this isn't to say one should be bullish on the price change in the short term.  That is a different debate.  However Bitcoin isn't going to be any more stable if it declines another 80%.  It is going to be just as volatile at $20 USD:BTC as it is at $100 USD:BTC.

[w00t]

Seriously guys does it make any sense? I have some fiat ready and really don't know what to do... In like 12 hours we jumped almost +20 %.

I don't know what you 'should' do ... but what you should not do is panic. If you are going to do anything, do some research, read some (diverse) opinions, and then form your own so you have it mapped out in your mind and it is your own plan. If you only ever act on other people's advice or opinions you will never know what to do ... in the long run that is likely to be expensive

Oh, I learned my lesson and it was expensive (at least for the moment). So I was looking for some well explained/defended opinions.

edit:
To put it in perspective:


My point is if we are looking at "likely?"

[smoothie]

are people getting butt hurt too soon?? Lol

[adamstgBit]

are people getting butt hurt too soon?? Lol

ya man just wait till we start making new all time highs again and then be but hurt about selling

[Anth0n]

There is likely still tons of new money coming in, based on the huge queue for Mt. Gox. The new guys are probably hoping for the price to shoot back up again, and I think it will. People who got burned in the crash might be more wary. Personally I've been in the Bitcoin game for a while so this volatility doesn't bother me much.

[awakening]

are people getting butt hurt too soon?? Lol

ya man just wait till we start making new all time highs again and then be but hurt about selling

I bought, bull now. The Western Union news are very good. And if It comes down, well, I suppose that we are gonna hit maximums again, so fuck that.. If It dips, more fiat to buy btcs.

[NamelessOne]

There is likely still tons of new money coming in, based on the huge queue for Mt. Gox. The new guys are probably hoping for the price to shoot back up again, and I think it will. People who got burned in the crash might be more wary. Personally I've been in the Bitcoin game for a while so this volatility doesn't bother me much.

Exactly, I've been in this for years and have watch 'corrections/crashes/bubbles' of various sizes happen many times now and bitcoin has always come out on top. Right now we have more positive media coverage than ever... and that s AFTER this latest correction. It is really quite incredible.