What is wrong with BTC today?

[williamj2543]

Hey,
I have this BTC ticker on my google chrome browser, and I was surprised and in shock with today's massive drop. It went from around 900$ (yesterday) to 650$ now as I write this. I don't have very much money in my BTC wallet, only about 100$, but this is quite a big drop in price. I really don't want to do the math, so I would say that is around a 30% drop! Thats quite a bit if you have lots of bitcoins. For some people bitcoins are their bank, so imagine if you had 1 million in your bank account, and the dollar just dropped randomly to 70 cents. Thats a loss of 300,000 which is quite a lot. Of course this would probably never happen with the dollar (at least not soon) but with BTC, yes it is quite volatile. I think that for BTC to work as a curreny, it needs to be stable. The reason some people aren't buying this and using this for paying things is because it's instable. Its almost like gambling money with every purchase. Imagine if you bought a ps4 with BTC, when they were 200$. So thats 2 bitcoins. If you waited a few weeks, you could have bought 5 PS4s for the same cost, when they get to a thousand dollars. Also, if someone sells you something, and then bitcoin completely crashes to a dollar, you pretty much got that item stolen from you. You made absolutely no profit off of it. Again, for BTC to be successful for business and civilians, unlike us, it needs to be stable. Buisinesses can't risk losing money beacuse of a BTC crash.
Thats my opinion on these drops.
May the BTC be with you!

[1715501785]

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[1715501785]

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[1715501785]

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[joyyen]

China Bans Payment Firms from Working With Bitcoin Exchanges


http://forexmagnates.com/china-bans-payment-firms-from-working-with-bitcoin-exchanges/

[porc]

China Bans Payment Firms from Working With Bitcoin Exchanges


http://forexmagnates.com/china-bans-payment-firms-from-working-with-bitcoin-exchanges/

Anonmint tried to spin the china news hard (the news on december 5th). I voted on his pole with a "china banned bitcoin". Now we have clarification, China obviously does not want bitcoin to be used. Its so obvious, they are protecting their money monopoly.

[asiabtc]

take a look of the news posted by me.

[williamj2543]

Wow,
Do you guys expect that it will climb back up again within a few days? I'm a bit scared with my precious BTC in that wallet. Let's all pray that the US government doesn't shut down BTC, if they do, we're f*cked... But hey, at least they can trade them. They should all probably send them to their american friends to deposit the money and send it back. If I lived in china and had thousands of BTC I would probably do that...

[Sam-Os]

It is extremely volatile man, I mean it went up to a grand in a week or so so expect big drops also., best course of action is to invest in it then forget about it. If it is really all it is cracked up to be it will be worth a lot in 10 years or so.

[porc]

It is extremely volatile man, I mean it went up to a grand in a week or so so expect big drops also., best course of action is to invest in it then forget about it. If it is really all it is cracked up to be it will be worth a lot in 10 years or so.

Hint: Its not worth what it is cracked up to be.

[williamj2543]

Hint: Never trust some random currency that some random guy made, to be a main money source until it is stable, and is proven. Until BTC sits at the same price with a fluctuation of 5$, I will not put any money into it or use it as a currency. Let's mine now so that we can use it for our future!

[Sindelar1938]

Just some selling by speculators who bought for a quick flip that didn't happen

Good in the long run that they are checking out

[420]

Hint: Never trust some random currency that some random guy made, to be a main money source until it is stable, and is proven. Until BTC sits at the same price with a fluctuation of 5$, I will not put any money into it or use it as a currency. Let's mine now so that we can use it for our future!

so if it goes up from $596,755 to 596,749 in one day you're still not see it as safe?

[williamj2543]

Hey,
Haha, at that price I would say more in the 100's range. Im talking about in the thousands range about maybe 10 or so.

[gamybtc]

It is big loss to people who bought bitcoin at $1000 per coin. They are loss nearly 30%. Hope it doesn't go again back to $100 or $200. It will be complely loss to bitcoin, if it goes down.

People will be in massive losses, if it goes to $100 or $200. Especially people who mine the coins, because they buy hardware, chips at pretty high cost.

So they will be in huge losses.

[empoweoqwj]

It is big loss to people who bought bitcoin at $1000 per coin. They are loss nearly 30%. Hope it doesn't go again back to $100 or $200. It will be complely loss to bitcoin, if it goes down.

People will be in massive losses, if it goes to $100 or $200. Especially people who mine the coins, because they buy hardware, chips at pretty high cost.

So they will be in huge losses.

If you can't accept risk, don't play with bitcoins. Simple as that. Everyone wants to ignore the risk when the price is rocketing, human nature.

[deisik]

Hint: Never trust some random currency that some random guy made, to be a main money source until it is stable, and is proven. Until BTC sits at the same price with a fluctuation of 5$, I will not put any money into it or use it as a currency. Let's mine now so that we can use it for our future!

Oil prices between 2003 and July 2008 rose steadily, reaching $100 per barrel in late 2007 and culminating in an all-time high of $147 on 11 July 2008. By September 2008 though, prices fell to $110 and then collapsed to below $35 in February 2009, i.e. more than four times within half a year...

Would you not trust nature made oil either?

[theecoinomist]

Wow,
Do you guys expect that it will climb back up again within a few days? I'm a bit scared with my precious BTC in that wallet. Let's all pray that the US government doesn't shut down BTC, if they do, we're f*cked... But hey, at least they can trade them. They should all probably send them to their american friends to deposit the money and send it back. If I lived in china and had thousands of BTC I would probably do that...

Let's hope the US Government doesn't find the switch that shuts the bitcoin network down..

[jeppe]

this is the effect of china not allowing bitcoin for commercial use :/

[hilariousandco]

Wow,
Do you guys expect that it will climb back up again within a few days? I'm a bit scared with my precious BTC in that wallet. Let's all pray that the US government doesn't shut down BTC, if they do, we're f*cked... But hey, at least they can trade them. They should all probably send them to their american friends to deposit the money and send it back. If I lived in china and had thousands of BTC I would probably do that...

It has climbed back up several times. The US government cannot shut BTC down, they can only regulate it, and that still isn't going to stop people from using it.

[greenlion]

I would look at the price of Bitcoin as very irrelevant to long-term success/adoption, other than maybe bursts of media attention whenever an ATH catches interest.

The central economic planning that controls almost the entire world right now is basically a gigantic bubble-creation machine. QE and other such monetary policy strategies throw the rate of return on savings into the negative, and the artificially-low interest rates create an almost endless supply of monopoly money for institutional investors to throw at whatever they can to make some kind of return on money produced by the system out of thin air.

Hence every kind of bubble you can possibly imagine: oil, real estate, stocks, etc. Right now the US stock market is in one of the most insane bubbles in history.

The saving grace on the price of Bitcoin is that most likely, the influx of capital is not coming from those kind of investors with privileged access to the early stages of fiat creation. There is a strong case to be made from the example of China right now that Bitcoin is acting as an escape for savings.

Basically TL;DR: everything in the world is a volatile bubble because fiat has unlimited supply.

The real test of Bitcoin's price is going to be once we reach the stage where all that easy credit Wall Street money pours into Bitcoin. All this price fluctuation right now means basically nothing in the grand scheme of things. However if we make it to that point, and say we're seeing a price of $50k without any kind of very compelling value proposition relating to the infrastructure surrounding Bitcoin and concrete market penetration (at least Forex, money transmission, maybe some POS), then THAT is the point where people need to start crying bubble and dumping their bags.

[deisik]

I would look at the price of Bitcoin as very irrelevant to long-term success/adoption, other than maybe bursts of media attention whenever an ATH catches interest.

The central economic planning that controls almost the entire world right now is basically a gigantic bubble-creation machine. QE and other such monetary policy strategies throw the rate of return on savings into the negative, and the artificially-low interest rates create an almost endless supply of monopoly money for institutional investors to throw at whatever they can to make some kind of return on money produced by the system out of thin air.

Hence every kind of bubble you can possibly imagine: oil, real estate, stocks, etc. Right now the US stock market is in one of the most insane bubbles in history.

The saving grace on the price of Bitcoin is that most likely, the influx of capital is not coming from those kind of investors with privileged access to the early stages of fiat creation. There is a strong case to be made from the example of China right now that Bitcoin is acting as an escape for savings.

Basically TL;DR: everything in the world is a volatile bubble because fiat has unlimited supply.

This doesn't explain much as to why prices remain volatile even if you denominate them in, say, ounces of gold (or any other metric for that matter). Yes, financial derivatives of all kinds and speculation do contribute to this instability, but I have reasons why this would not be enough...

[empoweoqwj]

I would look at the price of Bitcoin as very irrelevant to long-term success/adoption, other than maybe bursts of media attention whenever an ATH catches interest.

The central economic planning that controls almost the entire world right now is basically a gigantic bubble-creation machine. QE and other such monetary policy strategies throw the rate of return on savings into the negative, and the artificially-low interest rates create an almost endless supply of monopoly money for institutional investors to throw at whatever they can to make some kind of return on money produced by the system out of thin air.

Hence every kind of bubble you can possibly imagine: oil, real estate, stocks, etc. Right now the US stock market is in one of the most insane bubbles in history.

The saving grace on the price of Bitcoin is that most likely, the influx of capital is not coming from those kind of investors with privileged access to the early stages of fiat creation. There is a strong case to be made from the example of China right now that Bitcoin is acting as an escape for savings.

Basically TL;DR: everything in the world is a volatile bubble because fiat has unlimited supply.

The real test of Bitcoin's price is going to be once we reach the stage where all that easy credit Wall Street money pours into Bitcoin. All this price fluctuation right now means basically nothing in the grand scheme of things. However if we make it to that point, and say we're seeing a price of $50k without any kind of very compelling value proposition relating to the infrastructure surrounding Bitcoin and concrete market penetration (at least Forex, money transmission, maybe some POS), then THAT is the point where people need to start crying bubble and dumping their bags.

Still waiting for any evidence that Wall St is going to start pouring significant money into bitcoins. Hope it happens. Make a wild ride even wilder

[LiteCoinGuy]

the end of bitcoin. thats all. now Litecoin will take its place ;-)

[empoweoqwj]

the end of bitcoin. thats all. now Litecoin will take its place ;-)

hehehe. that would make your year I'm sure

[williamj2543]

the end of bitcoin. thats all. now Litecoin will take its place ;-)

Says the "TheLiteCoinGuy"...

[hilariousandco]

the end of bitcoin. thats all. now Litecoin will take its place ;-)

Says the "TheLiteCoinGuy"...

I think DogeCoinGuy said something similar about Dogecoins  .

[empoweoqwj]

As bitcoin goes down, so do altcoins. To say altcoins are bitcoin's bitches would be an understatement

[Kaligulax]

Bitcoin Drops 50% Overnight As China’s Biggest BTC Exchange Stops Deposits In Chinese Yuan

[empoweoqwj]

Bitcoin Drops 50% Overnight As China’s Biggest BTC Exchange Stops Deposits In Chinese Yuan

The point being?

[williamj2543]

An update on bitcoin and litecoin's prices, LTC has hid 25$ and BTC has hit 730$ as of right now when this post was created. In about a week I would assume that the coins will go back to their prices before crashing, and if we can hope that they can rise even higher!

[empoweoqwj]

An update on bitcoin and litecoin's prices, LTC has hid 25$ and BTC has hit 730$ as of right now when this post was created. In about a week I would assume that the coins will go back to their prices before crashing, and if we can hope that they can rise even higher!

Bitcoin is over $800 on Gox again now .... and trading isn't that light. Maybe we can get back to $1000 by year end.

[williamj2543]

An update on bitcoin and litecoin's prices, LTC has hid 25$ and BTC has hit 730$ as of right now when this post was created. In about a week I would assume that the coins will go back to their prices before crashing, and if we can hope that they can rise even higher!

Bitcoin is over $800 on Gox again now .... and trading isn't that light. Maybe we can get back to $1000 by year end.

Hrm, in 2 days it might be a stretch but Im hoping for at least 800 by then. Maybe my new years resolution is to stop gambling on these things

[yatsey87]

As bitcoin goes down, so do altcoins. To say altcoins are bitcoin's bitches would be an understatement

 The value drops like that because they're pegged to Bitcoin.

[hilariousandco]

An update on bitcoin and litecoin's prices, LTC has hid 25$ and BTC has hit 730$ as of right now when this post was created. In about a week I would assume that the coins will go back to their prices before crashing, and if we can hope that they can rise even higher!

Bitcoin is over $800 on Gox again now .... and trading isn't that light. Maybe we can get back to $1000 by year end.

Hrm, in 2 days it might be a stretch but Im hoping for at least 800 by then. Maybe my new years resolution is to stop gambling on these things

It's not gonna get there in two days, but does it really matter? It'll go above and far beyond in 2014.

[deisik]

As bitcoin goes down, so do altcoins. To say altcoins are bitcoin's bitches would be an understatement

 The value drops like that because they're pegged to Bitcoin.

Has anybody statistically assessed correlation between major cryptocoins on mid to longterm basis? Is it worth hedging some against another? I heard bitcoin and litecoin are not very well correlated against each other...

[williamj2543]

As bitcoin goes down, so do altcoins. To say altcoins are bitcoin's bitches would be an understatement

 The value drops like that because they're pegged to Bitcoin.

Thats completely true and there is no doubt. The only real way you can get real cash out of your cryptos is through BTC. Sites like cryptsy trade tons of alt-coins directly to BTC, and not to cash. Its a lot larger network and way easier to cash out through BTC, and even LTC is getting viable, but theres no way you can cash out coins like junkcoin for real money.

[empoweoqwj]

As bitcoin goes down, so do altcoins. To say altcoins are bitcoin's bitches would be an understatement

 The value drops like that because they're pegged to Bitcoin.

Has anybody statistically assessed correlation between major cryptocoins on mid to longterm basis? Is it worth hedging some against another? I heard bitcoin and litecoin are not very well correlated against each other...

They are pretty much correlated. You can't hedge bitcoin with litecoin.