What have you been doing with your Bitcoin in light of the price drop?

[puwaha]

My miner doesn't generate enough BTC to matter what happens to the price.  It's dismaying to see the price drop, but it doesn't hurt me in the long run.  It's the investors who are worried... generally not the miners, unless they are upside-down on that as well.

If it rallies, then my meager mined coin will be worth more.  If not, then it was a fun experiment, and I learned a lot.

This seems to be a fairly common point from miners. What I don't understand is this: if you need the price to rally for your mining to be profitable, aren't you just better off buying bitcoin? Much less hassle plus you can liquidate whenever you want, unlike your mining equipment which probably has very little resale value given how rapidly the technology is improving.

I'd say no.  There is no guarantee that there will be a rally.  Buying and holding is just as dangerous as mining in this respect.  Now, if you spent a small fortune on your mining gear, then yeah... maybe you should have just bought your coins.  The simple fact is... there will be winners and losers in the buy/hold game.  Most will lose.

The way I see it, mining increases (albeit, slowly) your holdings in bitcoins sort of like an automatic faucet that will eventually dry up.  Buying coins requires a lot of willpower to drop it in an investment, and is a bigger mental hurdle.  I didn't invest a lot of money in mining, and I'll probably lose out over the long run.  But I don't see mining as an investment... just a good way to get your feet wet and generate some coin.

[RodeoX]

Buying and spending. Just like when the price is up.  
When it's down I do a little more buying than spending. When the price rises I do a bit more spending. Basically everything I buy, I buy at a discount.

I would hope that the drop in price would somewhat encourage people to spend some of their coins. I think one problem that the bitcoin related economy has is the fact that there are too many people hording coins. I would argue that this is preventing merchant adoption from expanding faster then it is because even though accepting bitcoin is very cost efficient, less people spend it then there really should be.

Holyshit, the stupidity coming out of your mouth.

Spending btc is just like selling btc on the exchange because all merchants are using gateways such as bitpay or coinbase. If the price drops, that means theres MORE selling than buying.

I think your forgetting that bitcoin is a currency and was invented to be spent. It was not invented to make you rich. Indeed, if people are not spending bitcoin then it's days are numbered as it would be nothing more than video game credits.

[ErnieX]

Hold and buy some more every day. 

[Scoremaster]

i do nothing. i am fresh out of btc

[Ayers]

holding since my first btc, i want to accumulate a good amount, i don't care about the current price to be honest

[Rampton]

holding since my first btc, i want to accumulate a good amount, i don't care about the current price to be honest

This is the best mindset to have. These fluctuations are probably just minor teething problems in the grand scheme of things. If yousee the potential value in bitcoin just keep holding and don't worry about it.

[bornil267645]

Just waiting for the price to rise again.

[Ayers]

Just waiting for the price to rise again.

it's only a matter of time, it will rise, i'm pretty confident

[MyPotPlantDied]

I have been hodling it safely in my local wallet 

[2GOOD]

Since no more fiat left for buyin... I just HODL 

[johnyj]

For long term invest, an easy way to buy all the way down is to create a ladder

At $500 you buy 2 coins, at $250 you buy 4 coins, and at $125 you buy 8 coins and at $62.5 buy 16 coins... So you put in same amount of fiat money all the way down at each price halving, and at each level you buy double amount of coins, and your average cost will always close to the lowest purchase price

Of course crash from $500 to $250 is a bit too much, and to $125 is even more insane, you could use smaller steps, like a purchase every $50, all the way down to $100

[Emperion]

The recent price drop has left many people worried. The crash has been attributed to a report by the Consumer Financial Protection Bureau, margin trading on major exchanges, and a flash crash on BTC-e. All of these factors and potentially more have been negatively impacting Bitcoin’s price over the past week.

So I ask, With the heavy turmoil in the market, what have you been doing with your Bitcoin holdings?

Go to The Cryptocoin Chronicle to complete the poll: http://cryptocoinchronicle.com/2014/08/bitcoin-recent-price-drop/

I will be doing a write up in the next few days based on the results of the poll and discuss any changes to the market from the time of this post.

Thank you for the input everyone! I will be doing the write up on thursday with the results from the poll and the responses here. Stay tuned for the article, I will be posting it in the link in this thread and create an additional thread after publication.

Please check out The Cryptocoin Chronicle (http://cryptocoinchronicle.com) for more news and polls!

[Thekool1s]

I am getting as much as i can . I have also started to give loans

[boraf]

Price swings do not affect my long term holdings.

I think there are still users who remember the dramatic crashes from ~$31 and ~$260 and the following "depressions".

Also, intraday volatility was a lot worse before 2013.

The strong user base back then is the reason why bitcoin survive this long and have strong support price.

New waves of users will be tested for 100+ range, non-believer will be flushed out.

[Mightycoin]

I stored my bitcoins, and even bought new ones, knowing the price will surely rise back again

[Hashforfun]

The price drop didn't worry me at all. I read some articles and found it normal. Glad I didn't dump

[CozyLife]

I try to hold more in a price drop or I'll buy bitcoins. I try to transact when the price is higher. I doubt anyone would be any different.

[itsAj]

For long term invest, an easy way to buy all the way down is to create a ladder

At $500 you buy 2 coins, at $250 you buy 4 coins, and at $125 you buy 8 coins and at $62.5 buy 16 coins... So you put in same amount of fiat money all the way down at each price halving, and at each level you buy double amount of coins, and your average cost will always close to the lowest purchase price

Of course crash from $500 to $250 is a bit too much, and to $125 is even more insane, you could use smaller steps, like a purchase every $50, all the way down to $100

This is a good idea, but there is no guarantee that bitcoin will ever recover in price. I personally think it will go up a lot over the long term, but this is far from certain. I think it would be better if people were to spend some of their coins to grow the bitcoin related economy and marketplace.

[Justin00]

It isn't much of a drop.. like what was it.. low $600's to low $500's ? Not quite $1400 down to $500
seems to just be a normal month/week, right ?

People will no doubt come up with crazy reasons as to why... but doesn't this same thing happen like every 2 weeks pretty much ?

[Nawaytes]

holding since my first btc, i want to accumulate a good amount, i don't care about the current price to be honest

This is the best mindset to have. These fluctuations are probably just minor teething problems in the grand scheme of things. If yousee the potential value in bitcoin just keep holding and don't worry about it.

of course holding is the best way to keep our btc , sell when price is up,
and when price is drop buy some to increase the profits.
it's simple, but sometimes some people impatient and choose to sell it, for fear the price is down again