Bitcoins have lost $174,108,376.60 since June 9th 2011

[bitterness]

The market is figuring out what these weird things are worth. We know they're worth somewhere between $0 and $1 billion each, right?

I would recommend to express the value in baskets of wheat/rice/potatos, unless you know the future value of the USD. In which case i would appreciate a hint.  

[1714050534]

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[1714050534]

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[1714050534]

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[evoorhees]

The market is figuring out what these weird things are worth. We know they're worth somewhere between $0 and $1 billion each, right?

I would recommend to express the value in baskets of wheat/rice/potatos, unless you know the future value of the USD. In which case i would appreciate a hint.  

Hehehe yes I know the future value of the US dollar, and thus I'd put the exchange rate closer to $1 billion / btc ...  Of course, it may also be $1 billion/potato as well =)

[the founder]

See again,  everyone combined spent 210,000,000 in coins...  either by trading, mining, selling....  so yes,  EVERYONE spent $210,000,000

Flatout wrong.
If I create a new currency, P4coins, I mine 10M then sell one for $1 to my idiot neighbor. Does that mean P4coins are worth $10M ?

yes!  it does.. why do you think these private "wanna go public" companies try to find VC firms that will buy .01% of their firms for a million bucks... because it values them at a billion.

[zer0]

good

flush all the speculators out of bitcoin

then you get a stable trading price

[PatrickHarnett]

um, is the web calc flawed?  From the calculator:
_______________________________________________________________________________ ____________________________
This represents a net loss of $209,999,965.00 from peak to this exact moment (updated in real time) of the entire bitcoin economy.
If Bitcoins were stable at their peak of $35 on June 9, 2011 , the bitcoin economy would be worth $257,530,000.00 rather than $35,846,278.50
_______________________________________________________________________________ ____________________________

My simple math notices the 209,999,965 number doesn't change and $257,530,000.00 minus $35,846,278.50 = $221,683,721.50

Also, if the market was worth $210million and is now $35million, most people would say it is $175million lower. 

[Littleshop]

::sigh::

When price is rising, people complain about "deflationary spirals" and the failure of Bitcoin to not match up with demand.

When price is falling, people complain about inflation and the failure of Bitcoin to not match up with demand.

Are we so enmeshed in a centrally-planned, price-controlled economy that the first sign of true free-market price discovery simply scares us to death?

Bitcoin  is/will be the most volatile asset the world has ever seen. Set your expectations accordingly. Relax.

+1

It has been a wild ride and we are just starting! 

[FreeMoney]

Wow, that is a crazy stat, think of the huge loss of the early adopters, glad I wasn't one of those.

[the founder]

um, is the web calc flawed?  From the calculator:
_______________________________________________________________________________ ____________________________
This represents a net loss of $209,999,965.00 from peak to this exact moment (updated in real time) of the entire bitcoin economy.
If Bitcoins were stable at their peak of $35 on June 9, 2011 , the bitcoin economy would be worth $257,530,000.00 rather than $35,846,278.50
_______________________________________________________________________________ ____________________________

My simple math notices the 209,999,965 number doesn't change and $257,530,000.00 minus $35,846,278.50 = $221,683,721.50

Also, if the market was worth $210million and is now $35million, most people would say it is $175million lower.  

This represents a net loss of $174,108,376.60 from peak to this exact moment (updated in real time) of the entire bitcoin economy.   You did find a bug.  it had it pulling from variable A instead of B ..

So the net loss was $174,108,376.60

Now that's out of the way

[P4man]

yes!  it does.. why do you think these private "wanna go public" companies try to find VC firms that will buy .01% of their firms for a million bucks... because it values them at a billion.

Cool I just fed a horse a few million then.

[dsp]

Well using this math every time BTCUSD moves $0.01 its costing someone $73K.

Correct!!   it's costing the market $73,000 (or increasing the value of holders by an aggregate amount of $73,000)

So looking at mtgox I can move the price up a penny by buying $800 of coins right now. Makes you wonder why no one is doing this. $800 = $70K. Its like a printing press with this new math.

It's not new math,  it's how things have been done since the Egyptians and Romans measured their relative Money Supply

Yea but until you execute a trade it a unrealized gain/loss. So its not real....ized

The point being is in the short term inflation is out of hand cause if you or the market don't have the 73k per Penney to hold the price where you want it, your at the whim of the market. But even this is a lie as well as not everyone is in agreement with the current buyers/sellers or price. To further complicate this they may not show their hand and give you a hair cut until you push it far enough oooooo like lets say $35. If you buy coins at that price and did not do the simple math that satoshi put right in-front of your face. Now consider this that only what it takes to hold the price in the face of 1/3 of the coins being issued. Had the coin supply been cut off the inflation would not have choked out the parabolic move and it would have collapsed much further maybe to zero in a panic. So as a currency it is better to have a smaller run and a smaller collapse. Bulls can take a 50% short term loss if the prospects are still good. But if it droped by 95%, you would get people to cut run and never come back. And by looking at the weighted price most people paid around $10. In the short run the bears are right as we have to wait for economic activity to cause the shortage and spike the price. In the long run the bulls win out. The issue then is to figure out the growth rate so you can reasonable predict when this might happen, all i know is it wont be a linear run so in the next 24 months I bet some one will be-able to fit a log scale that can predict within +-10%.

[buttcoin1]

good

flush all the speculators out of bitcoin

then you get a stable trading price

It would probably be close to zero. Have you see how much volume is drying up on the exchanges?

[Littleshop]

So you now just called this a 'report' , posted it to your own ad agency (?) and got it being reported as news. 

http://www.tribbleagency.com/?p=8278

[BitcoinPorn]

So you now just called this a 'report' , posted it to your own ad agency (?) and got it being reported as news. 

http://www.tribbleagency.com/?p=8278

That is too damn funny.   I didn't even notice the credit on that was TheFounder, the link to Flexcoin's calculator page as the report was funny to me for whole other reasons.    Own the bank and the media, smart.

[the founder]

That is too damn funny.   I didn't even notice the credit on that was TheFounder, the link to Flexcoin's calculator page as the report was funny to me for whole other reasons.    Own the bank and the media, smart.

You have no idea...    

We have about 20 media outlets,  most of them in Google News,  about 600 websites (like Tribble) that we control,   most of our clients are fortune 500 firms...  we do marketing, SEO, Advertising , Digital work for them...   

[BitcoinPorn]

You have no idea...    

We have about 20 media outlets,  most of them in Google News,  about 600 websites (like Tribble) that we control,   most of our clients are fortune 500 firms...  we do marketing, SEO, Advertising , Digital work for them... 

So does being open about all this negate the conflict of interests lol

[the founder]

You have no idea...    

We have about 20 media outlets,  most of them in Google News,  about 600 websites (like Tribble) that we control,   most of our clients are fortune 500 firms...  we do marketing, SEO, Advertising , Digital work for them... 

So does being open about all this negate the conflict of interests lol

Nahh... man it's what I do for a living....   I get paid by clients to sweep bad news to page 20 in Google,   or promote their stuff on page 1 ..  depends who you ask.

[BitcoinPorn]

Nahh... man it's what I do for a living....   I get paid by clients to sweep bad news to page 20 in Google,   or promote their stuff on page 1 ..  depends who you ask.

I know the work of SEO all too well, wordpress theme with a logo or two thrown in full of content and coded right

With that in mind, you should do something to that /calc page if you are going to keep linking to it.  Some kind of static content or information relating to the page, just to give it some added natural value for those who are going to be looking at it.  Might as well lower the bounce rate.

[Elwar]

Your math has helped me to understand that we do not need $1 million per month to maintain the current price.

As the traders are just a fraction of the total Bitcoin market so the price can be maintained at a fraction of that cost.

[lettucebee]

This is all quibbling.  What has happened to bitcoin since May is a tragedy.  One embarrassing disaster after another, no wonder the price has collapsed.  Thanks MtGox, thanks mybitcoin, thanks Bruce.

[kgo]

See again,  everyone combined spent 210,000,000 in coins...  either by trading, mining, selling....  so yes,  EVERYONE spent $210,000,000

Flatout wrong.
If I create a new currency, P4coins, I mine 10M then sell one for $1 to my idiot neighbor. Does that mean P4coins are worth $10M ?

yes!  it does.. why do you think these private "wanna go public" companies try to find VC firms that will buy .01% of their firms for a million bucks... because it values them at a billion.

Then why don't they just have the VC's give them a billion dollars for more stock?  It's because market cap is only one measure of value, and neither the VC or the company believes the true value of the company is anywhere near that.  (The VCs are betting on the future value going above a billion dollars, but they don't think the company is worth anywhere near that much today.)