A Great Thing Happened Today

[wobber]

Today, 17th October 2011 Bitcoin went to a $2.20 per unit low. Lowest point so far. Lower than the average price needed to produce a coin. On the way down, almost all of the speculators sold. I know lots of people lost money and I'm sorry for them. Some made profit, but nothing to blame.  Now there is a real change, and people will start to use bitcoin as a currency and buy things otherwise not available easily or anonymously.

Rally? Dunno, don't care. I do care about shopping for Christmas with some coins.

EDIT: Oh, and try to differentiate us from bitcoin. Bitcoin is still a success, has a great price and now major flaws were discovered. It was just speculators (in all their forms: traders, miners, hoarder) got screwd. Including I. Never sold a coin until $6. And generated some with CPU...

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[Rassah]

Why would they, if they only see it going down? Why risk buying the currency to buy something else, if what they buy is expected to lose value in a day?

[wobber]

Why would they, if they only see it going down? Why risk buying the currency to buy something else, if what they buy is expected to lose value in a day?

You are right, but value cannot simply drop forever. If it goes to 0.5 many people will buy. And it's up to $1 again. If it goes to $1.5, fewer than "many" will buy, but still the price can stabilize or rise to 1.7. Anyway, we need stability after this decline.

[jwzguy]

Today, 17th October 2011 Bitcoin went to a $2.20 per unit low. Lowest point so far. Lower than the average price needed to produce a coin. On the way down, almost all of the speculators sold. I know lots of people lost money and I'm sorry for them. Some made profit, but nothing to blame.  Now there is a real change, and people will start to use bitcoin as a currency and buy things otherwise not available easily or anonymously.

Rally? Dunno, don't care. I do care about shopping for Christmas with some coins.

EDIT: Oh, and try to differentiate us from bitcoin. Bitcoin is still a success, has a great price and now no major flaws were discovered. It was just speculators (in all their forms: traders, miners, hoarder) got screwd. Including I. Never sold a coin until $6. And generated some with CPU...

You need to check your facts, bitcoins were trading for less than 2.2 for quite a long time.

Excatly...Bitcoins traded for under 2.2 for the majority of the time.

And what's the "average" cost to produce a coin?

[BitMagic]

You are right, but value cannot simply drop forever. If it goes to 0.5 many people will buy. And it's up to $1 again. If it goes to $1.5, fewer than "many" will buy, but still the price can stabilize or rise to 1.7. Anyway, we need stability after this decline.

Yes, it can. Volume can drop to the point that MtGox decides the cost of running the exchange outweighs the money they make, and they close up shop. I promise you nobody will be around to dance with your BTC without MtGox.

[kokjo]

Today, 17th October 2011 Bitcoin went to a $2.20 per unit low. Lowest point so far.

WHAT? oh please! N00b!

[Rassah]

You are right, but value cannot simply drop forever. If it goes to 0.5 many people will buy.

You mean, like, speculators and hoarders?

[wobber]

LOWEST POINT SO FAR SINCE 32. I'm not a moron that thinks bitcoin traded first for $10.

[wobber]

You are right, but value cannot simply drop forever. If it goes to 0.5 many people will buy.

You mean, like, speculators and hoarders?

Could be. But if they saw this decline, won't do big moves. Big moves will do people that want to move funds. Easily, securely and maybe anonymously.

[kokjo]

LOWEST POINT SO FAR SINCE 32. I'm not a moron that thinks bitcoin traded first for $10.

yes you are. sorry mate!

[BitMagic]

There are other exchanges. You think they will all close? People will still be able to trade bitcoins outside the exchanges, it just is a bit more difficult.

It's not "just a bit more difficult," it's magnitudes more difficult. And enormously more risky, considering you need to trust people with complete anonymity.

Don't expect the past diehards to keep things rolling. I've watched many of them bolt.

You and everyone else need to stop pretending like BTC was anything other than one more internet meme.

[Rassah]

You and everyone else need to stop pretending like BTC was anything other than one more internet meme.

How can you tell? I mean, how could people tell that email, HTTP, and online retail like Amazon weren't just internet memes? (All claims put forth at the time) What makes the bitcoin protocol different?

[RodeoX]

Just a reminder that the price of bitcoin is irrelevant if you are using them instead of hoarding them.

[kokjo]

You are right, but value cannot simply drop forever. If it goes to 0.5 many people will buy. And it's up to $1 again. If it goes to $1.5, fewer than "many" will buy, but still the price can stabilize or rise to 1.7. Anyway, we need stability after this decline.

Yes, it can. Volume can drop to the point that MtGox decides the cost of running the exchange outweighs the money they make, and they close up shop. I promise you nobody will be around to dance with your BTC without MtGox.

mtgox started when bitcoin was worth 0.07 do you really think that they would quit a 2, 1 or 0.25?

they still have a bigger volume, then when they started.
they will not quit, as long they have a big usd volume.

[Shinobi]

The complete failure of its adoption more than 6 months after front-page articles have been written about it. Bitcoin, in its execution, is not of the same utility that the Internet was. The last 6 months have made this clear. I don't doubt that cryptocurrency will become widespread, but I highly doubt Bitcoin will be the iteration that gets it there. This was a nice proof-of-concept, and useful in showing the hurdles that the next iteration will need to overcome, but nothing more.

[whothefuckareyou]

Just a reminder that the price of bitcoin is irrelevant if you are using them instead of hoarding them.

Exactly !!

[Shinobi]

But theres nothing of note to use them on besides drugs, and a smattering of overpriced goods.

[Stephen Gornick]

On the way down, almost all of the speculators sold.

These must be speculators who had their money at the exchanges, because had they held funds in their own wallets the BitcoinDays Destroyed metric would increase.  Instead it has been showing further accumulation over the past month.

When those coins that haven't moved since June start to move, then you can make your claim that there is selling.   But for now there seem to be a lot of iron stomachs out there.
 - http://banana.mine.nu/daysdest.html
 - http://abe.john-edwin-tobey.org/chain/Bitcoin?count=2016
 - http://en.bitcoin.it/wiki/Bitcoin_Days_Destroyed

[Rassah]

Just a reminder that the price of bitcoin is irrelevant if you are using them instead of hoarding them.

Everybody hoads them, except for merchants who sell them as soon as they get them. And even they just sell it to another person who will hoard them.  If you buy 5 BTC for your wallet with the intention of using them to buy something tomorrow, you are hoarding them, and would likely avoid doing this out of fear they will drop 10% overnight.

[OgNasty]

Just a reminder that the price of A STABLE bitcoin is irrelevant if you are using them instead of hoarding them.

Fixed that for you.