Why bitcoin price dropped ?

[mateo]

Because BTC isn't a real currency yet. And thus the confidence goes down and up, as people are unsure if it's gonna change the world or we gonna forget about it a year from now.

[TiagoTiago]

Because BTC isn't a real currency yet. And thus the confidence goes down and up, as people are unsure if it's gonna change the world or we gonna forget about it a year from now.

What in your opinion is required for somthing to be called "a real currency"?

[nildram]

I posted what I think is a decent response to this question on Quora recently:

http://www.quora.com/Bitcoin/Is-bitcoin-crashing-as-of-early-July-2013

The long and short of it, is that you can find all sorts of reasons for it, some of them are pretty believable, but in the end, even more so than in most places, it's all just conjecture, and humans tricking themselves into thinking this is knowable.

Ultimately, the price dropped because people started paying less for it.

[h0lybyte]

A friend and I came to the conclusion that there were multiple issues:
  - Mtgox
  - Asic Block Eruptor (Marking the death of GPU Mining)
  - GPU Miners moved out of bitcoins and towards altcoins
  - A massive increase in Mh across multiple networks (Mainly due to the increase of general hardware)
  - Small ASIC scares throughout key media (Things includes forums, reddit, blogs ect..)
  - ASIC Miners flooding the market with a bigger supply (goes along with the increase in Mh across multiple networks

All these theories are enough to cause a bubble to deflate a bit, but as you can see right now, all of these issues were pointless because the coins are back at around $90-$100.

[1dannyboy]

Price don't matter.... Question is did you buy / sell at the correct points?

The last month has done me well. Crypto is the future and next couple years will see many changes and mass adoption of smaller countries.

You should be holding as much BTC or favourite Alt as you can afford and don't be put off by minor dips. They are there to shake out the weak holders so we can have your coins cheap!

If holders don't sell so low the price will go up. If holders want to drive the price down they will sell cheap and buy out the panic sellers.

As said before, never sell them cheaper than you bought them.. If we all follow this the price will go up fast and that is what all the holders want ;-)

[Apollo28]

I think with Bitinstant suddenly coming to an essential standstill, leaving a lot of people (myself included) out of luck when it came to getting bitcoin. Now I hear that coinbase is going to start offering instant bitcoin purchases for level 2 members, so that might help drive the price up a bit more as trade picks up.

[timmmers]

1st post here, but can't resist an opinion (which is all any of have).

If you are prepared to spend thousands on hardware to mine you must have a long term mindset.
IF you mine to spend the coins right away you will probably kick yourself in years to come.
I don't think BTC will ever be a choice of payment system for the average person because the average person can have trouble trusting and understanding Paypal so it's going to be too much for them as it works now. However there are enough uses and users (and speculators) to make sure it grows and probably rises in value.
Example, the 1st purchase I am told was 2 pizzas? Value of coins back then was insignificant because they were easy to mine. Now..it's hundreds of thousands of dollars value. Tell that guy that they fell in value

Even when the value is so volatile and rises and falls tens of dollars over days it's a chance to make money trading them ...yesterday a rise of over 10 dollars with leverage would have left you laughing. It left me a bit miffed, only because I only saw it when it had already happened.

I'm sure I'm not alone in thinking that in a few years time people who kept hold of as many as possible will be happy with the decision...but it's a gamble that you need to do your own DD on and make a decision based on that (knowing that the future could be painful if you're wrong).

Basically my view is:-
Mine for the long term gains. (Lower risk, easier to research)
Trade for the short term gains. (High risk, hard to research and basically gambling)

What I can't figure is why anyone with no confidence in BTC being somehow more valuable in the future is doing involved with them?

[mateo]

Because BTC isn't a real currency yet. And thus the confidence goes down and up, as people are unsure if it's gonna change the world or we gonna forget about it a year from now.

What in your opinion is required for somthing to be called "a real currency"?

Something that has a stable value, can be used to buy almost anything and can be used to store wealth long-term. Bitcoin currently doesn't meet any of these criteria.
Don't get me wrong, I'm very excited about BTC and definitely want it to become a mainstream currency, but these speculators are currently the biggest problem with Bitcoin, that keeps it from mainstream adoption.

[gambit1]

The volatility is normal. The price of petroleum was that volatile after its initial discovery. Volatility goes away due to increased market depth. That will happen with bitcoin.

[BuySellCrypto]

It's dropped for huge sellers and less buyers. Just now it is climbing up.

[mateo]

The volatility is normal. The price of petroleum was that volatile after its initial discovery. Volatility goes away due to increased market depth. That will happen with bitcoin.

I really hope that will happen.

[ikajud]

all the way to 1000 please

[Boleans]

ASIC's 

[Grandcoin]

it going back up now

[Adrenalin]

by the end of july bitcoin willl easily reach 100$

[atasmrk]

Doesn't matter what kinda currency it is...all go up and down. When the buyers will step in again the price will go up again as they did a few days ago. Is that a change in trend or just a pullback in a down trend is yet to be seen.

[xezirone]

it needs to get momentum

[TrentFear]

Because BTC isn't a real currency yet. And thus the confidence goes down and up, as people are unsure if it's gonna change the world or we gonna forget about it a year from now.

What in your opinion is required for somthing to be called "a real currency"?

Something that has a stable value, can be used to buy almost anything and can be used to store wealth long-term. Bitcoin currently doesn't meet any of these criteria.
Don't get me wrong, I'm very excited about BTC and definitely want it to become a mainstream currency, but these speculators are currently the biggest problem with Bitcoin, that keeps it from mainstream adoption.

Speculators are crucial to speedy price discovery. The degree to which they correctly forecast the equilibrium price (granted it is always changing based on changes in individual's values) is the degree to which the good reaches the equilibrium price in a timely manner. Even when the speculators find themselves in error, whether it be speculators buying or selling the good, the surpluses and scarcities created in their erroneous forecasts drives the price to equilibrium.

Murray Rothbard has a great section on speculation in his book Man, Economy, and State, which is available for free through the Mises Institute.
Chapter 2, section 7: Speculation and Supply and Demand Schedules

Here's the link to the book: http://mises.org/document/1082/Man-Economy-and-State-with-Power-and-Market

[Ginduliai]

Because liberte Reserve down 

[Velcroso]

I think the fact that the price droppes was because of the new ASIC's miners getting released if obvious that they had to do it or the people with ASIC's would get too much profit, but the BTC price is on the raise again since they also raised the difficulty factor to balance out the new ASIC's, the only bad thing about this, GPU mining is not viable anymore