Falling price of Bitcoin

[pinksheep]

Anyone have any idea what is contributing to the almost relentless decline of bitcoin at the minute? I thought it had got over the collapse of Mt Gox & rumours of a ban in China.

[Crypto.Savage]

I'm wondering the same thing… Kind of makes no sense considering there has also been positive news with a couple companies gaining funding. Other than the IRS declaring the bitcoin is property for tax purposes in the USA than not sure what gives. On the plus side though getting me some extra coins on the cheap yay! 

[colocation]

Anyone have any idea what is contributing to the almost relentless decline of bitcoin at the minute? I thought it had got over the collapse of Mt Gox & rumours of a ban in China.

It heard the same thing months ago

[jollyriffic]

rumors of china ban + IRS taxing in usa.
then a few people panic and everyone panics.
market will bounce back in a week or two.

[Flashman]

Yes the situation in China has got "mysterious" again. Huge cloud of FUD developing from that, even Charlie and Bobby Lee have no clue WTF is going on yet.

Anyway, expect a roller coaster of pumps and dumps until April 15th when it's clear one way or the other whether it's going to be viable to hold, mine or use BTC in any manner in China.

The good news is, if this is total bannage, there's nothing else left and they can't screw with the market again.

Also there should be quite a bounce back after April 15th as the rest of the worlds markets realise that the huge volumes generated by the Chinese exchanges were due to high frequency trading, and thus don't represent a particularly huge pool of bitcoin about to be dumped on the world. i.e. one maybe an order of magnitude lower than one might suppose from exchange volumes.

[Sithara007]

rumors of china ban + IRS taxing in usa.

I thought that the IRS taxing was positive for BTC. At least they are recognizing and regulating Bitcoin and are indirectly saying that the possession and trade of BTC is not illegal.

[Flashman]

Yah the IRS position is extremely logical and long suspected, by anyone who had enough braincells to blow their eardrums on the gunpowder equivalence scale.

[Kluge]

rumors of china ban + IRS taxing in usa.

I thought that the IRS taxing was positive for BTC. At least they are recognizing and regulating Bitcoin and are indirectly saying that the possession and trade of BTC is not illegal.

It'd be nice if the IRS's guidance fundamentally matched FinCEN's, but they seem to be coming from different directions. FinCEN says Bitcoin's like a dollar bill, and the IRS says it's like a goat, which have totally separate rules. The whole point of the "tax me" movement in the community was so there'd be clarity. Now, we have two directives telling us to do different things or be tried as a criminal, which is even worse than no clarity because it effectively DOES make it illegal in certain instances.

Say we're talking the immediate situation after Prohibition, where a harsh mish-mash of local, state, and federal rules were still all over the books, and you're selling Bushmill's. We'll say there are two organizations governing alcohol sales, both of which can file criminal charges and revoke your liquor license: the CBA and the ABC. The ABC says Bushmill's is governed under the "general liquor" rules and you can only sell Bushmill's in government-operated liquor stores during daylight and not on Sundays. The CBA says Bushmill's is governed under the "imported whiskey" rules and you can only sell Bushmill's in government-and-privately-operated liquor stores between 6pm-10pm, and only on Friday, Saturday, and Sunday. No matter what you do, you're doing it wrong. Meanwhile, your attorney says Bushmill's should be governed under the "domestic-distribution import law of 1933" if you pay and file for a "Class 7-FC liquor import license" and be able to be sold night and day, every day except the weekend and not before 10am on Monday. Your friendly competitor down the street tells you he stopped stocking Bushmill's altogether after the IRS told him to wait for guidance on the new tax rates for imported liquor sales and went back to only selling domestics. After enjoying his import stock he's since moved to his private office, you realize his approach is definitely the most reasonable, though clearly non-ideal, and move your own stock of Bushmill's to your office to enjoy a happy - and slightly less profitable - two-year blur until a frontiersman liquor distributor appeals his prosecution by the CBA to the Supreme Court, the "imported whiskey" guidance is deemed invalid, and everyone accepts the "general liquor" rules.

[jollyriffic]

rumors of china ban + IRS taxing in usa.

I thought that the IRS taxing was positive for BTC. At least they are recognizing and regulating Bitcoin and are indirectly saying that the possession and trade of BTC is not illegal.

personally i don't consider anything "tax" related a good thing.
the us government has become a tyrant. we founded this nation on the idea that the government has no power over the people other than what, we the people, say they have power over. they work for the people, the people do not work for them.

[Wendigo]

Can somebody clarify what is happening on April 15th cause I don't have a clue?

[Eadeqa]

rumors of china ban + IRS taxing in usa.

I thought that the IRS taxing was positive for BTC. At least they are recognizing and regulating Bitcoin and are indirectly saying that the possession and trade of BTC is not illegal.

personally i don't consider anything "tax" related a good thing.

Move out to Somalia if you don't like any taxes.  Live happy ever after.

Taxes pay for

transport (roads, bridges, infrastructure)
research (NASA)
education
law and order (cops, prisons, judges)
housing
sport
culture
Military, defense, national security

[rohnearner]

Can somebody clarify what is happening on April 15th cause I don't have a clue?

Why you mentioned this date..? have you heard that something will happen of April 15.? I haven't yet..! this is the first post i saw claiming such thing

[Kiki112]

rumors of china ban + IRS taxing in usa.

I thought that the IRS taxing was positive for BTC. At least they are recognizing and regulating Bitcoin and are indirectly saying that the possession and trade of BTC is not illegal.

personally i don't consider anything "tax" related a good thing.

Move out to Somalia if you don't like any taxes.  Live happy ever after.

Taxes pay for

transport (roads, bridges, infrastructure)
research (NASA)
education
law and order (cops, prisons, judges)
housing
sport
culture
Military, defense, national security

what makes you think there's no tax in Somalia?

[g4c]

What you are witnessing is what has happened several times before.

It's the correction after the over enthusiastic rise.

I find it incredible that Bitcoin has survived so many dramatic rises/corrections and stayed within a logarithmic growth channel.

LOGARITHMIC!

In fact I challenge anybody to find any other security that has exhibited such a behaviour:

[Eadeqa]

rumors of china ban + IRS taxing in usa.

I thought that the IRS taxing was positive for BTC. At least they are recognizing and regulating Bitcoin and are indirectly saying that the possession and trade of BTC is not illegal.

personally i don't consider anything "tax" related a good thing.

Move out to Somalia if you don't like any taxes.  Live happy ever after.

Taxes pay for

transport (roads, bridges, infrastructure)
research (NASA)
education
law and order (cops, prisons, judges)
housing
sport
culture
Military, defense, national security

what makes you think there's no tax in Somalia?

No functional govt .. no taxes.

Besides, in most third world countries you can easily scam govt out of taxes anyway.

The guy not happy with taxes (even though he uses everything that comes from taxes, -- see my list) should move to any third word country. He won't have to deal with taxes (or at least very little).

[xypos]

I will buy some btc next week, the price will go up

[BitCoinDream]

What you are witnessing is what has happened several times before.

It's the correction after the over enthusiastic rise.

I find it incredible that Bitcoin has survived so many dramatic rises/corrections and stayed within a logarithmic growth channel.

LOGARITHMIC!

In fact I challenge anybody to find any other security that has exhibited such a behaviour:

This is a real good mathematical explanation brother. Can u please give me the bitstamp links from where u got the basic graph ? Is it the same feature shown at other exchanges ?

[g4c]

This is a real good mathematical explanation brother. Can u please give me the bitstamp links from where u got the basic graph ? Is it the same feature shown at other exchanges ?

Thanks. Yes any historical bitcoin price chart will look very similar provided you have log scale turned on.

I used all bitstamp data on bitcoincharts as the basis for my graphic:

http://bitcoincharts.com/charts/bitstampUSD#tgSzm1g10zm2g25zvzl

Another exchanges chart might have micro-differences but the overall view should look almost identical (when you have log scale turned on).

[Flashman]

Can somebody clarify what is happening on April 15th cause I don't have a clue?

Why you mentioned this date..? have you heard that something will happen of April 15.? I haven't yet..! this is the first post i saw claiming such thing

Well that's when supposedly the Chinese banks cut off exchange customers for good, i.e. nobody can get "out" of BTC after that date.

However, BTC-e just enabled "overseas yuan" trading, basically Hong Kong yuan, so don't know how many Chinese customers with HK contacts might decide to trade there.

[Flashman]

What you are witnessing is what has happened several times before.

It's the correction after the over enthusiastic rise.

I find it incredible that Bitcoin has survived so many dramatic rises/corrections and stayed within a logarithmic growth channel.

LOGARITHMIC!

In fact I challenge anybody to find any other security that has exhibited such a behaviour:

Dammit, somebody else noticed

Yah, we were "due" to scrape arse, but in the 400s is a bit lower than I was expecting "naturally".