Mtgox exchange in free fall $$$$

[Bitcoincrazy]

Well I bought in at 16.10 and just sold at 13.00 after mtgox kept going down, now the price is very unstable got to 12.50 now it's at 13.00

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[smokie128]

I hope this is just the usual jitter... It'd be bad if prices went down for a longer period.
Bought some Coins just the other day just to see prices drop down today 

[Alex Beckenham]

Well I bought in at 16.10 and just sold at 13.00 after mtgox kept going down, now the price is very unstable got to 12.50 now it's at 13.00

a) Why did you buy them?
b) Why did you sell them?

[zerokwel]

I sold at 17 something. And Have my buy order in for when it hits a number I like.... love people who panic sell..

[flattyfrog]

I sold at 17 something. And Have my buy order in for when it hits a number I like.... love people who panic sell..

Indeed.  I just wish that it didn't take so *LONG* for $ to get to Dwolla from my bank.  I'm new at this and don't have funds available where I can get them into the 'bitcoin system' quickly.  I want to scoop up some of these panic sells!

[Bitcoincrazy]

In my case it wasnt panic I think its trending down time to bale, now 12.75 @ mtgox

[totedati]

well, i hope nobody expect stable exchange prices to bitcoins when is all so new and prices is not so much coupled with real goods markets

right now we sell $ or € for bitcoins or buy bitcoins in exchange of $ or € ... until will begin to sell and buy bitcoins to real goods, real meals, real popcorns, real houses and so on, will be a wild market

mtgox 12.75 $

[Superform]

i blame the hackers who are zombie farming btc and dumping them on the market.. this shizle could go on for years

[SlipperySlope]

I liquidated my 12 month mining hoard at $15.5.

As I write this, the price on Mt Gox just dropped through $13 and is at $12.75.  Way back in April, 2011, one could buy a bitcoin for a dollar.  I speculate that we will return to at least the April price level as the bubble deflates.

[smokie128]

There should be a way to exclude botnets...
For example, some kind of notification once a week that's hardcoded into the miner. Also, pools should only accept miners that have this notification feature (e.g. by checking the hash of the miner code).
At least, this would ensure that the pools are bot-free...
Further, the original Bitcoin client should have the same feature.

I know that this would only temporarily stop the botnetters, but at least it gives us time to invent a better solution to protect the real Bitcoiners from hordes of Bots.

[SlipperySlope]

There should be a way to exclude botnets...
For example, some kind of notification once a week that's hardcoded into the miner. Also, pools should only accept miners that have this notification feature (e.g. by checking the hash of the miner code).
At least, this would ensure that the pools are bot-free...
Further, the original Bitcoin client should have the same feature.

I know that this would only temporarily stop the botnetters, but at least it gives us time to invent a better solution to protect the real Bitcoiners from hordes of Bots.

My mining operation is currently affected by the botnet problem.  Here is my understanding of what is being discussed on the BTCGuild pool thread.

A botnet consisting of thousands of nodes was configured by its operator to conduct CPU mining and used BTCGuild as the pool.  These CPU mining workers earned a very low amount of coins each, but in total overwhelmed the pool servers operated by BTCGuild.  As a result of analyzing the situation, the BTCGuild operator blacklisted the IP addresses of the CPU miners - no doubt affected a few legitimate miners who do not care about inefficient mining.

The botnet operator, now denied his bitcoin earnings from BTCGuild, retaliated by performing a distributed denial-of-service attack against BTCGuild.  In such a DDoS attack, each botnet node pretends to be a real pool mining client, but floods the victim server with an overwhelming number of fake requests - thus precluding access by the legitimate clients.

At the time of this post, BTCGuild is offline, and being enhanced to cope with this DDoS attack.  Details can be obtained from the BTCGuild forum thread in the pool section.

[supersonic3974]

Well I bought in at 16.10 and just sold at 13.00 after mtgox kept going down, now the price is very unstable got to 12.50 now it's at 13.00

You only lose money trading if you sell lower than you buy.  The only exception to this is if a company goes bankrupt or the price never recovers.  This goes for any market.

If the price drops below what you bought it for, just WAIT.

[Agozyen]

@ Slipperyslope or anyone that knows...

 Dumb question here, but what's to prevent the botnet operator from creating his own mining pool that is exclusivly used by the bots?  

[dvavasour]

You only lose money trading if you sell lower than you buy.  The only exception to this is if a company goes bankrupt or the price never recovers.  This goes for any market.

If the price drops below what you bought it for, just WAIT.

No, if you realise the loss, it falls still lower, and you buy in then, your loss is minimised. The fact you're already sitting on a loss shouldn't stop you selling if you think it's going lower still.

[Swishercutter]

@ Slipperyslope or anyone that knows...

 Dumb question here, but what's to prevent the botnet operator from creating his own mining pool that is exclusivly used by the bots?  

Nothing...it would have to be quite the botnet to compete with the current pools.  Btcguild for instance is ~2500gh/s...when its running that is.

[gjy4ygfds]

Well I bought in at 16.10 and just sold at 13.00 after mtgox kept going down, now the price is very unstable got to 12.50 now it's at 13.00

You only lose money trading if you sell lower than you buy.  The only exception to this is if a company goes bankrupt or the price never recovers.  This goes for any market.

If the price drops below what you bought it for, just WAIT.

That sounds great and all, but it doesn't really make sense. The price may never come back up, in which case he would lose far more by not selling now. Taking a small loss is better than losing everything.

Of course in this case prices will more than likely be back up in a few days, but that's another topic.

[supersonic3974]

You only lose money trading if you sell lower than you buy.  The only exception to this is if a company goes bankrupt or the price never recovers.  This goes for any market.

If the price drops below what you bought it for, just WAIT.

No, if you realise the loss, it falls still lower, and you buy in then, your loss is minimised. The fact you're already sitting on a loss shouldn't stop you selling if you think it's going lower still.

That still doesn't negate the fact that you lose money if you sell lower than you buy.  You don't know what is going to happen in the future, so waiting to buy in doesn't guarantee that the price won't keep dropping.  What's better than minimizing a loss is not accepting a loss.  That's the reason most day traders fail.

[zerokwel]

Well I bought in at 16.10 and just sold at 13.00 after mtgox kept going down, now the price is very unstable got to 12.50 now it's at 13.00

You only lose money trading if you sell lower than you buy.  The only exception to this is if a company goes bankrupt or the price never recovers.  This goes for any market.

If the price drops below what you bought it for, just WAIT.

yea if the price drops I normally buy some more depending on how much of a risk. that way it it has to go up less to make yourself come out even.

anyway 12.40 is around my magic number.

[supersonic3974]

Well I bought in at 16.10 and just sold at 13.00 after mtgox kept going down, now the price is very unstable got to 12.50 now it's at 13.00

You only lose money trading if you sell lower than you buy.  The only exception to this is if a company goes bankrupt or the price never recovers.  This goes for any market.

If the price drops below what you bought it for, just WAIT.

That sounds great and all, but it doesn't really make sense. The price may never come back up, in which case he would lose far more by not selling now. Taking a small loss is better than losing everything.

Of course in this case prices will more than likely be back up in a few days, but that's another topic.

That's why I included those two exceptions in the original post.  Losing a little money over and over again can lead to losing it all.  Also, the number one rule of trading is to not use money that you aren't willing to lose.

[Swishercutter]

Well I bought in at 16.10 and just sold at 13.00 after mtgox kept going down, now the price is very unstable got to 12.50 now it's at 13.00

You only lose money trading if you sell lower than you buy.  The only exception to this is if a company goes bankrupt or the price never recovers.  This goes for any market.

If the price drops below what you bought it for, just WAIT.

yea if the price drops I normally buy some more depending on how much of a risk. that way it it has to go up less to make yourself come out even.

anyway 12.40 is around my magic number.

That is what I was always taught by people who actually end up making money...panic sellers are the same ones who tell you not to invest ever.