Bitcoin Forum
December 10, 2016, 10:47:45 AM *
News: To be able to use the next phase of the beta forum software, please ensure that your email address is correct/functional.
 
   Home   Help Search Donate Login Register  
Pages: « 1 [2]  All
  Print  
Author Topic: the real, actual, true, accurate reason the price dropped  (Read 2845 times)
druid
Jr. Member
*
Offline Offline

Activity: 54


View Profile
September 09, 2011, 03:16:31 AM
 #21

I agree on the part "they saw the price go down so they decided to sell"
but for those price down runs there are some other factors responsible as well:
Bubble people, one or two larger thefts and relatively small market...All these things have caused turbulence and made climate for someone who wanted "free card" as you nicely noticed to step out and take $.
1481366865
Hero Member
*
Offline Offline

Posts: 1481366865

View Profile Personal Message (Offline)

Ignore
1481366865
Reply with quote  #2

1481366865
Report to moderator
Advertised sites are not endorsed by the Bitcoin Forum. They may be unsafe, untrustworthy, or illegal in your jurisdiction. Advertise here.
1481366865
Hero Member
*
Offline Offline

Posts: 1481366865

View Profile Personal Message (Offline)

Ignore
1481366865
Reply with quote  #2

1481366865
Report to moderator
1481366865
Hero Member
*
Offline Offline

Posts: 1481366865

View Profile Personal Message (Offline)

Ignore
1481366865
Reply with quote  #2

1481366865
Report to moderator
1481366865
Hero Member
*
Offline Offline

Posts: 1481366865

View Profile Personal Message (Offline)

Ignore
1481366865
Reply with quote  #2

1481366865
Report to moderator
grod
Full Member
***
Offline Offline

Activity: 154


View Profile
September 09, 2011, 05:48:20 AM
 #22

The bitcoin network takes about $1000/hour to run.  And that's not even paying for "free cards (and power supplies, and motherboards...)" for miners.  If you think the total amount of $ invested is still the total amount in people's accounts in mtgox... Well, I know for a fact you're wrong.  There's nearly $700 that I've extracted just by myself, with my tiny mining operation over the past 4 months -- and that money is NEVER going back to buy bitcoins.  It's going to AMD, Antec and possibly Xilinx.

Not only do your shares get diluted by 3% a month but money is actively being siphoned out of the pool to pay for power and hardware.  As I've said before, simply breaking even on a $ investment in bitcoin is being ahead of the game.  Long term, sure, greater fools *SHOULD* arrive.  Maybe.  For now you'll just have to sit back and hope they arrive as the total real world currency worth of your bitcoins keeps shrinking.

Minsc
Full Member
***
Offline Offline

Activity: 210


View Profile
September 09, 2011, 07:21:42 AM
 #23

The bitcoin network takes about $1000/hour to run.  And that's not even paying for "free cards (and power supplies, and motherboards...)" for miners.  If you think the total amount of $ invested is still the total amount in people's accounts in mtgox... Well, I know for a fact you're wrong.  There's nearly $700 that I've extracted just by myself, with my tiny mining operation over the past 4 months -- and that money is NEVER going back to buy bitcoins.  It's going to AMD, Antec and possibly Xilinx.

Not only do your shares get diluted by 3% a month but money is actively being siphoned out of the pool to pay for power and hardware.  As I've said before, simply breaking even on a $ investment in bitcoin is being ahead of the game.  Long term, sure, greater fools *SHOULD* arrive.  Maybe.  For now you'll just have to sit back and hope they arrive as the total real world currency worth of your bitcoins keeps shrinking.




How much money is spent on paper and coin money?  On credit cards such as the cards, the processing machines, visa & mastercard fees, the cost of fraud, the cost of internet gateways?  On tax collecting?

1DcXvfJdeJch9uptKopte5XQarTtj5ZjpL
Cluster2k
Legendary
*
Offline Offline

Activity: 1512


View Profile
September 09, 2011, 11:08:23 AM
 #24

How much money is spent on paper and coin money?  On credit cards such as the cards, the processing machines, visa & mastercard fees, the cost of fraud, the cost of internet gateways?  On tax collecting?

How much money is spent?  A lot.  The question is, why should bitcoin duplicate the existing efforts?  Credit cards aren't going to disappear now that bitcoin is here.  Bitcoin would require duplicated efforts in cards, processing machines, there are fees in bitcoin (I often can't transfer bitcoins without tossing in at least 0.01).  There is fraud in bitcoins too (mybitcoin, MtGox, negligence like Bitomat, etc). 

Bitcoin isn't free of taxes either.  As soon as funds from your bitcoin activities reach the real world there's a paper trail of capital gains that can be traced.  It's the individual's choice whether they choose to declare this income, or face possible consequences.


Do not send bitcoins to me: 16b8s7pBJ9rUmsExNW25qD5VUqVqRPZuXu
100% solar powered bitcoin generation
cbeast
Donator
Legendary
*
Offline Offline

Activity: 1722

Let's talk governance, lipstick, and pigs.


View Profile
September 09, 2011, 11:32:59 AM
 #25

Lots of charge cards have disappeared to be replaced by Master Charge (now Card) and the later VISA. Things change. Maybe bitcoin will be the next change.

Any significantly advanced cryptocurrency is indistinguishable from Ponzi Tulips.
Minsc
Full Member
***
Offline Offline

Activity: 210


View Profile
September 09, 2011, 02:44:47 PM
 #26

How much money is spent?  A lot.  The question is, why should bitcoin duplicate the existing efforts?  Credit cards aren't going to disappear now that bitcoin is here.  Bitcoin would require duplicated efforts in cards, processing machines, there are fees in bitcoin (I often can't transfer bitcoins without tossing in at least 0.01).  There is fraud in bitcoins too (mybitcoin, MtGox, negligence like Bitomat, etc). 

Bitcoin isn't free of taxes either.  As soon as funds from your bitcoin activities reach the real world there's a paper trail of capital gains that can be traced.  It's the individual's choice whether they choose to declare this income, or face possible consequences.

No chargebacks.

And bitcoins should stay in bitcoin.  I hope to buy vehicles and land with bitcoin when I get the money to buy either.

1DcXvfJdeJch9uptKopte5XQarTtj5ZjpL
Jixtreme
Full Member
***
Offline Offline

Activity: 121


View Profile
September 09, 2011, 03:00:47 PM
 #27

And bitcoins should stay in bitcoin.  I hope to buy vehicles and land with bitcoin when I get the money to buy either.

It would be phenominal if this was a realistic possibility.

Someday, hopefully.
netrin
Sr. Member
****
Offline Offline

Activity: 322


FirstBits: 168Bc


View Profile
September 09, 2011, 04:39:59 PM
 #28



There's cheap cards, you say? And cheap coins? Previous to this remarkable analysis the only real world I've heard had something to do with Silky Gawker (1 June 2011, $8/BTC). Has despair brought us well below the bear trap?




Greenlandic tupilak. Hand carved, traditional cursed bone figures. Sorry, polar bear, walrus and human remains not available for export.
Jixtreme
Full Member
***
Offline Offline

Activity: 121


View Profile
September 09, 2011, 04:50:04 PM
 #29

Remarkable.
cbeast
Donator
Legendary
*
Offline Offline

Activity: 1722

Let's talk governance, lipstick, and pigs.


View Profile
September 13, 2011, 11:36:30 AM
 #30

That is a nice graph. I suspect though that bitcoin is something new and will see that pattern reiterate many times as the mean value grows. It looks like traders may be helping the value grow over time.

Any significantly advanced cryptocurrency is indistinguishable from Ponzi Tulips.
molecular
Donator
Legendary
*
Offline Offline

Activity: 2142



View Profile
September 13, 2011, 12:32:08 PM
 #31

I'd fall into that category but I never held any coins, always sold in 1 to 2 BTC increments as I earned it.  I did just get to the break-even point a few days ago.  Any miner that held the coins with the intention of getting a free video card should have done the same, holding coins was a bad gamble.

To date I've sold 55 BTC for a total or 816.77 USD.  Not bad at all.  Thanks BTC investors.

Also, you all can rejoice that I've stopped mining and removed 1.2 GH from the mix.  Current market prices aren't worth it when electric is $0.15 kWh (thanks Progress Florida), even though it'd be profit from this point.

You know you don't get paid USD for mining, right? Tongue it's not a loss until you sell it.  So if you ever think that the price of BTC at any point in the future will rise into the retroactively profitable range, keep mining.

I will not stop to point out that in such a case it's more profitable to simply buy BTC instead of mining them.

PGP key molecular F9B70769 fingerprint 9CDD C0D3 20F8 279F 6BE0  3F39 FC49 2362 F9B7 0769
molecular
Donator
Legendary
*
Offline Offline

Activity: 2142



View Profile
September 13, 2011, 12:34:06 PM
 #32

By the way, for all you former miners, the best thing to do right now is perform services or sell products for BTC.  Then you're slowly causing the amount of BTC available on the exchange to lower since it's going to you instead of an exchange.  Less available BTC on an exchange means higher prices.  That means you're raising the price of the BTC that you just acquired simply by acquiring it and you didn't have to mine anything.  Talk about a good investment!

Or: simply take the USD from selling your rig and buy BTC for it.

PGP key molecular F9B70769 fingerprint 9CDD C0D3 20F8 279F 6BE0  3F39 FC49 2362 F9B7 0769
Pages: « 1 [2]  All
  Print  
 
Jump to:  

Sponsored by , a Bitcoin-accepting VPN.
Powered by MySQL Powered by PHP Powered by SMF 1.1.19 | SMF © 2006-2009, Simple Machines Valid XHTML 1.0! Valid CSS!