bitcoin limbo - how low will we go?

[pandemic]

I started my bitcoin adventures in June when the price was 10-30 per btc. Now we're at 2.50. I'm not even sure it'd be worth mining anymore because it'd cost me $1.50 or so to run my machine for 24 hours and I'd only get about .5BTC per 24 hour period.

Who is in the same boat? Are you still mining with hopes it goes up in value again? I have to say, it's looking like BTC is plummeting and I've no idea how it'll recover.

[kwukduck]

Grats on cheap power!

I had to quit mining when it dropped under 8 USD.

[BitVapes]

I have to say, it's looking like BTC is plummeting and I've no idea how it'll recover.

it will recover when there are more buyers than sellers.  Supply and demand, my friend.   Unfortunately at this time, supply is outpacing demand.   I'm glad I didn't invest in mining equipment back in June around $30/BTC.

[phelix]

just for the fun of it you could try to compare it to paypal value and number of transactions. ebay bought paypal for 1.5billion back in 2002. it was already big on ebay then, though.

[pandemic]

It's possible my power will be paid for pretty soon - if that happens, I'll be mining a lot more.

Supply is constant so I guess the big question I have is how do we get demand to go higher?

[ElectricMucus]

Well from the long term chart there is strong support @1 USD.

But that's a obvious statement.
inb4 troll permabear reply

[memvola]

Supply is constant so I guess the big question I have is how do we get demand to go higher?

A year ago, none of us could have imagined Bitcoin to become so popular in so little time. There were some services built around Bitcoin, but they were more like volunteer work than serious businesses. People were toying with new ideas, it was mostly about fun and passion than substantial monetary gain. Everyone was caught off-guard when exchange rates went off the scale, DDOS attacks, then serious cracking attempts, scams and theft begun. It was too early. If you asked, my most optimistic bet would be $2 per BTC around this time.

I think the community will continue building the structure as always, and Bitcoin will become more and more appealing to users. We need to concentrate on real life uses of the currency. That's what "backs" Bitcoin. There is no other "easy" way to get demand to go higher.

I also don't think Bitcoin commerce will diminish with low exchange rates, but time will tell of course. It would be nice if we had a tool to measure the trend.

[mpfrank]

I have to say, it's looking like BTC is plummeting and I've no idea how it'll recover.

it will recover when there are more buyers than sellers.  Supply and demand, my friend.   Unfortunately at this time, supply is outpacing demand.   I'm glad I didn't invest in mining equipment back in June around $30/BTC.

What would create demand is if the entire BTC community signed a legally-binding contract promising that each of us will forever accept, say, 0.00001 BTC as full payment for US$1 worth of whatever goods & services we provide; this would instantly "bootstrap" the BTC price to a floor of US$100,000/BTC, and make mining very lucrative (for a while), and millions of new people would rush into Bitcoin.

[anu]

I started my bitcoin adventures in June when the price was 10-30 per btc. Now we're at 2.50. I'm not even sure it'd be worth mining anymore because it'd cost me $1.50 or so to run my machine for 24 hours and I'd only get about .5BTC per 24 hour period.

Who is in the same boat? Are you still mining with hopes it goes up in value again? I have to say, it's looking like BTC is plummeting and I've no idea how it'll recover.

I guess putting a line from Dec 2010 to April 2011 and extending it will give a good answer where the rate should be. So there was a bubble. Now we're back to normal.

[jjiimm_64]

I have to say, it's looking like BTC is plummeting and I've no idea how it'll recover.

it will recover when there are more buyers than sellers.  Supply and demand, my friend.   Unfortunately at this time, supply is outpacing demand.   I'm glad I didn't invest in mining equipment back in June around $30/BTC.

What would create demand is if the entire BTC community signed a legally-binding contract promising that each of us will forever accept, say, 0.00001 BTC as full payment for US$1 worth of whatever goods & services we provide; this would instantly "bootstrap" the BTC price to a floor of US$100,000/BTC, and make mining very lucrative (for a while), and millions of new people would rush into Bitcoin.

YOU CANNOT control markets.  they must be free to go up and down with market forces.  btc will be worth what people are willing to pay for them, that it is, period.

my problem now is..  I am generating them basically at the cost of electricity. I will know for sure when I get the next power bill.  last bill was 1320.

[anu]

YOU CANNOT control markets.  they must be free to go up and down with market forces.  btc will be worth what people are willing to pay for them, that it is, period.

my problem now is..  I am generating them basically at the cost of electricity. I will know for sure when I get the next power bill.  last bill was 1320.

You must be extremely libertarian if you believe that issuing options goes against the free market.

[anu]

Someone is seriously selling - this is now the 3rd batch.

[jjiimm_64]

I am not against options at all,  I was referring to the following:

this would instantly "bootstrap" the BTC price to a floor of US$100,000/BTC, and make mining very lucrative (for a while), and millions of new people would rush into Bitcoin.

[Rassah]

At this point I am debating on whether to keep spending $50/month on electricity, or just buy $50 worth of BTC a month. If I mine, at current prices I will only get $43 worth of BTC for that $50 worth of power, but I never sell my mined BTC, paying for power out-of-pocket, and I do get the benefit of freshly minted coins and good feeling of supporting the network.

[anu]

I am not against options at all,  I was referring to the following:

this would instantly "bootstrap" the BTC price to a floor of US$100,000/BTC, and make mining very lucrative (for a while), and millions of new people would rush into Bitcoin.

It sounds like an option to me. Bad thing is: My limited funding does not allow me to issue such a blanket option because this would not work as a bluff. We'd have to cough up the money until the market is saturated. Better ask Bill, Warren & George. But even they might run out of cash.

[Jalum]

At this point I am debating on whether to keep spending $50/month on electricity, or just buy $50 worth of BTC a month. If I mine, at current prices I will only get $43 worth of BTC for that $50 worth of power, but I never sell my mined BTC, paying for power out-of-pocket, and I do get the benefit of freshly minted coins and good feeling of supporting the network.

Please explain the benefit of "freshly minted coins". 

[Rassah]

At this point I am debating on whether to keep spending $50/month on electricity, or just buy $50 worth of BTC a month. If I mine, at current prices I will only get $43 worth of BTC for that $50 worth of power, but I never sell my mined BTC, paying for power out-of-pocket, and I do get the benefit of freshly minted coins and good feeling of supporting the network.

Please explain the benefit of "freshly minted coins". 

They smell like dust and slightly singed electronics. Plus are not traceable to exchanges.

[jjiimm_64]

They smell like dust and slightly singed electronics. Plus are not traceable to exchanges.

LOL,  mine also have a slight smell of burnt bugs, althought not as much now as 2 months ago.

[jago25_98]

how do we get demand to go higher?

get the heck down to #OccupyWhereever and hand out some paper wallets!

Good grief!

[stick_theman]

Someone is seriously selling - this is now the 3rd batch.

From the desk of Tom Williams... in Poland.