How low can we go?

[ThomasV]

the price drop was not caused by miners ; it was caused by large sales of 5k to 10k, which suggests that early adopters have been cashing out.
not sure how long this can go on, but it cannot last indefinitely.

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[fastandfurious]

the price drop was not caused by miners ; it was caused by large sales of 5k to 10k, which suggests that early adopters have been cashing out.
not sure how long this can go on, but it cannot last indefinitely.

Think again, I have a mining rig and sell pretty much everyday. We all together create 7200 bitcoin/day, thats a lot of dollars that are created per day compared to the exchange price of 12 dollars. More exactly 12 x 7200 =  86 400 dollars are "created" everyday. With that creation we MUST have dollar/fiat currency buyers, if not it will go down. Easy math.

[fastandfurious]

At this pace it gives us a money creation per year that looks like this 365 x 7200 x 12 = 31 536 000 dollars

If you add this things:

*All the issues with Mt.gox, mybitcoin, wallets lost at exchanges, dwolla etc.
*Cost of heavy investments in rigs the last 1-2 months, they want to cash in as a first phase of their investment
*Early adopters that bought in not many months ago at a couple of cents to a dollar (returns of 1000-10000+ %)
*Early adopters that have bought in heavy (50 000 bitcoins or more) and have profits of 500 000 dollars + already

That tells me that 31 million dollars is just created by the mining/inflation in the next year (that will need USD buyers), plus the chance of the early adopters selling massive amounts of bitcoins and all the other things I mentioned (that will also need USD buyers). Just look at the market depth (that seems to miss USD buyers).

12 dollars is a very high price with all the information we have right now.

[TrainDeluxe]

The price of 12$ is still way too high for a bitcoin. The first big hype is cooling down and less $$ arrive at the market. Holding to BTCs and not selling is just plain stupid because it does not reverse the trend anway.

A price of 6-8$ is a fair deal and a matter to come!

[molecular]

Why would they? They will continue to put their orders in, and if miners continue to sell at outrageously low prices, traders will continue to buy. If all the miners secretly got together tomorrow and halted selling for 2 weeks the price would double. However this is a small market, and when you have thousands of people trying to make back thousands of dollars in equipment things will get ugly fast. The market is being flooded by cheap coins because of the new miners that have come into the game. Anyone who bought in with equipment should seriously consider holding on to their coins for at-least a couple of months, cause selling now doesn't help anyone including themselves...

I think the biggest problem is that you have a bunch of finance people literally praying on a bunch of nerds (I include myself thank you). They know how to manipulate this small market, and seriously work us to their advantage. The money that we trade on a daily basis is JOKE money to these people. You think your $10,000 is hot stuff? These people have millions... And they can easily manipulate us into making stupid decisions and giving up our Bitcoins for prices that are simply unacceptable! Just because your fiat reality has you under the ropes doesn't mean your Bitcoin reality needs to look the same way...

We are a community of IT professionals, and IT people are known for knowing "everything". It's time for everyone to start picking up some day trading books, and learn how trading markets work. I don't mean that in any detrimental way, but the facts are true. These *firms* are running huge games on us, and everyone seems to be following them like lost puppy's...

cool story bro  

Anyone telling anybody anything less is LYING.

If you're a miner STOP SELLING YOUR COINS, they are more valuable than you think. Hold them or if you need to buy stuff buy it in Bitcoins. There is literally enough stores now where you can find almost anything you need in BITCOINS https://en.bitcoin.it/wiki/Trade.

Keep the money in the Bitcoin economy till at-least prices stabilize.

And start thinking about how to explain this to you (grand-)children one day when they ask: "Daddy, why did you sell bitcoin worth a small city back then just to be able to buy food for the year 2011?"

[Cluster2k]

And start thinking about how to explain this to you (grand-)children one day when they ask: "Daddy, why did you sell bitcoin worth a small city back then just to be able to buy food for the year 2011?"

That's one possible future.  The other (I think more probable) future is your grandchildren asking where bitcoin went, along with Flooz, Beanz, e-gold, Euros, and P2P currencies yet to be created.

[cloon]

That's one possible future.  The other (I think more probable) future is your grandchildren asking where bitcoin went, along with Flooz, Beanz, e-gold, Euros, and P2P currencies yet to be created.

great, that you put the Euro on your list^^ but cant find the USD...

[wndrbr3d]

Think again, I have a mining rig and sell pretty much everyday. We all together create 7200 bitcoin/day, thats a lot of dollars that are created per day compared to the exchange price of 12 dollars. More exactly 12 x 7200 =  86 400 dollars are "created" everyday. With that creation we MUST have dollar/fiat currency buyers, if not it will go down. Easy math.

+1

I can't speak for everyone, but I'm with the above in that I sell BTC as soon as I mine them. Basically as soon as I have 1 BTC, I throw it out to the market at whatever the current price is. That only makes sense, because as a person who's made an investment into the manufacture of a product, I have to sell in order to at least try and make back my investment.

As for the current price slide, I think you can see easily still how out of whack the order book and market depth are. There doesn't seem to be any real support until $10.25 or lower. So my guess is that we'll continue to see the price slide as miners continue to fill the current buy orders at ASK, while the 'investors' keep up their buy walls oping to turn a profit.

[Edward50]

As for the current price slide, I think you can see easily still how out of whack the order book and market depth are. There doesn't seem to be any real support until $10.25 or lower. So my guess is that we'll continue to see the price slide as miners continue to fill the current buy orders at ASK, while the 'investors' keep up their buy walls oping to turn a profit.

I was also looking at the support all the way down to $10.25. All this shows is that market minipulation is in place and the manipulators are trying to keep the price from falling into the $10's, by mostly consolidating their bid wall at $11.00.

They are at their last strength here and have mostly given up, if we break their last defensive stand at $11, they will probably give in and not want to continue taking losses trying to shore up a market with mostly sellers and miners who just want to get return on their investment back.

I love watching the market minipulators take a pounding, they probably have lost tens of thousands of dollars trying to shore up the price of bitcoin.

You guys had your chances to get out when the price was much higher, continued investment in such a losing commodity was just plain stupid. HOw could you expect enough buyers out there to keep pace with all the new coins being mined and entered into the system.

[RandyMarsh]

11$ wall was a phony? now i dont know what to believe

[GenTarkin]

wow that 11$ wall got owned! grrr....oh well Ill hold onto my coins @ 11.025, only 2$ worth HAHA...playin money =P

[proudhon]

Single digits here we come.

[hmblm1245]

Single digits here we come.

Down the slide.

[stic.man]

selling in the high 12s looking ok now, but man i had a lot of trepidation with it

then again maybe it'll bounce back up, shits crazy

[GenTarkin]

yeah, it sucks for miners grr...

[foggyb]

Think again, I have a mining rig and sell pretty much everyday. We all together create 7200 bitcoin/day, thats a lot of dollars that are created per day compared to the exchange price of 12 dollars. More exactly 12 x 7200 =  86 400 dollars are "created" everyday. With that creation we MUST have dollar/fiat currency buyers, if not it will go down. Easy math.

Yeah, too easy.

I am a big miner by most standards. I haven't sold any BTC since mid-June.

[GenTarkin]

I guess it will be good...to buy tons of BTC when it gets really low and wait for the next 3 month bubble =P

[oakpacific]

The mining juggernaut is actually running at unprecedented pace, so I doubt the plummeting ill stop soon. It seems that the price drop recently has go something to do with a new big player in the mining town.

[Hunterbunter]

the price drop was not caused by miners ; it was caused by large sales of 5k to 10k, which suggests that early adopters have been cashing out.
not sure how long this can go on, but it cannot last indefinitely.

Think again, I have a mining rig and sell pretty much everyday. We all together create 7200 bitcoin/day, thats a lot of dollars that are created per day compared to the exchange price of 12 dollars. More exactly 12 x 7200 =  86 400 dollars are "created" everyday. With that creation we MUST have dollar/fiat currency buyers, if not it will go down. Easy math.

There you go, folks...looks like inflation is destroying the purchasing power of bitcoins! Quick! Tell the media bitcoins are not deflationary!!

[Edward50]

The mining juggernaut is actually running at unprecedented pace, so I doubt the plummeting ill stop soon. It seems that the price drop recently has go something to do with a new big player in the mining town.

What do you mean new big player? Even with the low profit margins and plumeting price, there are still people setting up huge mining farms?