Why is BTC in the toilet right now?

[fcmatt]

I know it sounds trite... but the simple reason is that most of the market has decided BTC is not as valuable as many here think.
It was a bubble and this is how bubbles burst. Often taking the price lower then what the majority are willing to pay if they like
it or not.

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[fornit]

actually its very simple. europeans have a hard time getting money into the system without sepa transfers.

[Morebitcoinsplease]

Excluding hardware costs, what is the USD cost of electricity required to generate 1 BTC?

That's the price around which BTC will stabilize, I think. If the price is higher than that cost, miners will generate new coins and sell to push the price down. Below that cost and the miners will turn off their mining rigs. Since they are not mining at that point, they won't have new BTC to sell. Of course other sellers could continue to aggressively push the price down but at least the miners won't be the ones doing the selling.

Yup, I can see already by the next difficulty prediction difficulty might actually go down potentially, but I agree with your overall assessment that miners will continue to mine as long as they can pay for electricity.

[adamstgBit]

Excluding hardware costs, what is the USD cost of electricity required to generate 1 BTC?

That's the price around which BTC will stabilize, I think. If the price is higher than that cost, miners will generate new coins and sell to push the price down. Below that cost and the miners will turn off their mining rigs. Since they are not mining at that point, they won't have new BTC to sell. Of course other sellers could continue to aggressively push the price down but at least the miners won't be the ones doing the selling.

miners want to sell high like everyone else, the last thing they want is to push the price down.
if the miner start turning of the rigs the difficultly will go down making it possible for small time miners to get back in the game.

the cost of btc will always be as high as poeple are willing to pay, and not as low as the miners are willing to sell. IMO

[Morebitcoinsplease]

lol, are you going to buy durning this disaster?

i for one think, bitcoin will only get stronger, faster because of this... its had so many disasters,  good news coming soon!

Nope, buying the coin is way cheaper than to mine the coin =)

[JohnDoe]

Honestly I think that with all the stuff that has happened $8 is a pretty decent price. To me it means that Bitcoin is already well bootstrapped with true believers like me.

[FXRiot]

Probably a combination of many things.  I don't think the Mt.Gox effect has gone away fully.

And as someone else noted, the MyBitCoin.com situation.

[GeniuSxBoY]

All it takes is one big fish with 25,000 to wipe out the market.

They can take all the money, and leave none. Who's going to buy a coin at $2 if the price is $0.50.


Only 25,000 coins needed and there is 7 million coins out there?


My magic eight ball knows the answer to this: "Outlook not so good."

[Cryptoman]

I think there are a few large actors selling stolen coins which is driving the market down and spooking some of the smaller players, who are then also selling.  The security breaches of late aren't helping either, and many people probably feel more comfortable having their assets in a traditional bank.  The lower prices have given me an opportunity to buy back some of the coins I wish I hadn't sold, so I'm not complaining.  Until someone comes out with a better decentralized, peer-to-peer currency, I'm not going anywhere.  We will eventually work through the problems.

[adamstgBit]

All it takes is one big fish with 25,000 to wipe out the market.

They can take all the money, and leave none. Who's going to buy a coin at $2 if the price is $0.50.


Only 25,000 coins needed and there is 7 million coins out there?


My magic eight ball knows the answer to this: "Outlook not so good."

lets say the price goes to 0.01$ because some stupid person sold all 25,000 btc all at once

ok now i go on and i set my price I'm wiling to sell at, i put 15$, and i wait. will my order be filled? if everyone feels their btc have value then they do, doesn't matter what the last poor fools sold their bitcoins at

[Tasty Champa]

the only bubble was when it went from 16 to 30, that was the bubble.
However, due to either vengeance or pure greed someone has a strangehold over mt gox.
This strangehold cascades out into the other exchanges simply because of everyone else arbitrating.
What we are witnessing is simply the end, unless the method and manner of which makes this possible is outlawed, and that won't happen. So, thanks for the fish! xD

[adamstgBit]

the only bubble was when it went from 16 to 30, that was the bubble.
However, due to either vengeance or pure greed someone has a strangehold over mt gox.
This strangehold cascades out into the other exchanges simply because of everyone else arbitrating.
What we are witnessing is simply the end, unless the method and manner of which makes this possible is outlawed, and that won't happen. So, thanks for the fish! xD

omg he said it this is the end people! SELL SELL SELL 

[Tasty Champa]

the only bubble was when it went from 16 to 30, that was the bubble.
However, due to either vengeance or pure greed someone has a strangehold over mt gox.
This strangehold cascades out into the other exchanges simply because of everyone else arbitrating.
What we are witnessing is simply the end, unless the method and manner of which makes this possible is outlawed, and that won't happen. So, thanks for the fish! xD

omg he said it this is the end people! SELL SELL SELL  

hahah, I know, but what is really dangerous right this moment is the amount of coverage bitcoin is getting in the press from somewhat reputable sources. can't expect the person or person(s) doing it are ever going to stop.

bad thing is, anyone with enough money can use the method.

the more people buy in, the bigger the fucker gets, then when it gets low enough, and people still don't see it or recognize it, even more people will buy in thinking it's going to go back.
eventually are our base are belong to them.

if you want financial advice.
Hold your money very firmly.

[DrKennethNoisewater]

Just curious... stopped paying attention for a week, and now all of a sudden we're at 8 bucks.

most likely all of the stolen bitcoins from mybitcoin are being laundered and converted to cash.

Agreed, there's a direct correlation every time there is a heist of coins.

Regular equity markets should have no effect; people are selling their coins now so that they can get "something" for them
instead of letting them go to 0.

CLASSIC PANIC SELLING

Bitcoin will more than likely rebound until the next scam hits.

[Tasty Champa]

Just curious... stopped paying attention for a week, and now all of a sudden we're at 8 bucks.

most likely all of the stolen bitcoins from mybitcoin are being laundered and converted to cash.

Agreed, there's a direct correlation every time there is a heist of coins.

Regular equity markets should have no effect; people are selling their coins now so that they can get "something" for them
instead of letting them go to 0.

CLASSIC PANIC SELLING

Bitcoin will more than likely rebound until the next scam hits.

but that is too easy, why would crooked hats sell?

[adamstgBit]

the only bubble was when it went from 16 to 30, that was the bubble.
However, due to either vengeance or pure greed someone has a strangehold over mt gox.
This strangehold cascades out into the other exchanges simply because of everyone else arbitrating.
What we are witnessing is simply the end, unless the method and manner of which makes this possible is outlawed, and that won't happen. So, thanks for the fish! xD

omg he said it this is the end people! SELL SELL SELL  

hahah, I know, but what is really dangerous right this moment is the amount of coverage bitcoin is getting in the press from somewhat reputable sources. can't expect the person or person(s) doing it are ever going to stop.

bad thing is, anyone with enough money can use the method.

the core of the bitcoin community will not be affect by media.....its like star trek! at first it tanked and then the die hard fans brought it back to life. i foresee something similar with bitcion. what they did for star trek with special effects we will do for bitcoin with high end security.

hehehe

[SmokeAndMirrors]

Excluding hardware costs, what is the USD cost of electricity required to generate 1 BTC?

That's the price around which BTC will stabilize, I think. If the price is higher than that cost, miners will generate new coins and sell to push the price down. Below that cost and the miners will turn off their mining rigs. Since they are not mining at that point, they won't have new BTC to sell. Of course other sellers could continue to aggressively push the price down but at least the miners won't be the ones doing the selling.

miners want to sell high like everyone else, the last thing they want is to push the price down.
if the miner start turning of the rigs the difficultly will go down making it possible for small time miners to get back in the game.

the cost of btc will always be as high as poeple are willing to pay, and not as low as the miners are willing to sell. IMO

This is true. The only reason price has been so god damned volatile in the past is because bitcoins were being sold for X10 what it costs to actually produce them, giving people plenty of options for pricing. Once the btc cost to mine is just break even, price will not fluctuate too much. People won't be selling for less than they're worth (an individuals cost to mine them)

[adamstgBit]

is the market on a rebound ?

BUY BUY BUY!

damn i wish i had some money in the Canadian Virtual Exchange... i sent money today, by the time it gets there the market will have recovered

[bitrebel]

is the market on a rebound ?

BUY BUY BUY!

damn i wish i had some money in the Canadian Virtual Exchange... i sent money today, by the time it gets there the market will have recovered

Story of my life! Every time!

[Piper67]

is the market on a rebound ?

BUY BUY BUY!

damn i wish i had some money in the Canadian Virtual Exchange... i sent money today, by the time it gets there the market will have recovered

I did too... Got there in 30 minutes! Got to love interac!