ALERT: Bitcoin Crashes 60% in one day after setting another record.

Originally posted by ChaoticOrder
Only idiots buy at a high price and then panic sell and lose money. If they do that it's their own fault. They should hold onto the bitcoins instead of panicking.

And that is the whole point of bitcoin - that is ISNT a tool for speculative trading, but is in fact a day to day currency that you buy and then never get rid of.

I would think most Americans dont sell USD and buy Euro on a day to day basis depending on the currency market. I would think the same is of most Europeans with the Euro. You get some currency, and then you buy stuff with it, and unless it crashes to nothing you dont really care what the day trading looks like.

In theory.
In practise it seems more like a buying and selling the currency itself is the game.

I think a lot of users are in it to make money, the fact trojans are mining kinda points to this.

EDIT
could of guessed the media would be talking about it in light of the news.

i will invest in the bitcoin right after I get done investing in North Korean Currency. They are about as equally stable as it gets. Bitcoins are a joke.

If you dont think they are I have three internet stores willing to take two bit coins tomorrow.........

reply to post by alfa1

In practise it seems more like a buying and selling the currency itself is the game.

Well it's just a popular thing to do with bitcoin because it's so volatile, but as I said that's only because it's so new and novel, the demand is skyrocketing and causes the value to swing all over the place... it's only to be expected for a currency this new. At least is continues on an upward trend rather than a downward trend. The US dollar has lost more than 95% of its purchasing power since 1913.

Let me ask you this: would you prefer a currency which constantly loses value year after year but has a low level of volatility on a day to day basis, or would you prefer a currency which constantly increases in value year after year but has a high level of volatility on a day to day basis?

And that is the whole point of bitcoin - that is ISNT a tool for speculative trading, but is in fact a day to day currency that you buy and then never get rid of.

Of course it's a tool for speculative trading, isn't that the point you were making in the last quotation? All I'm saying is that if you aren't smart about when to buy and sell you will lose out. Panicking the instant the price goes down is obviously a dumb move. You've got to know when to hold and when to sell.

Commodity or currency ?

Originally posted by ChaoticOrder
Well it's just a popular thing to do with bitcoin because it's so volatile, but as I said that's only because it's so new and novel,...

Actually I think it has more to do with the demographic of people who own it rather than its "newness".

Take the US dollar as a counterexample. The overwhelming vast majority of people who own some of it have no way of trading it on a daily basis, nor do almost any of them have any interest in trading it for another currency. The vast majority of it sits around in pockets, wallets, or bank accounts (virtually).

Bitcoin on the other hand, appeals exactly to the technically adept, computer literate types, and because it sits on computers, is rather easy to trade on the internet. And a high percentage of owners are also wanting to do so. A higher percentage of the owners have it for no other reason than to trade it.
A much larger percentage of that currency will therefore be traded on a daily basis.

Thus... volatility.

Hehe, I bet these people are kicking themselves....

A father and son from Austin say they've just sold their 2007 Porsche Cayman S for approximately 300 Bitcoins. That's $39,000 (not including a 0.99 percent processing fee). Blane, an IT specialist and software engineer, and his father say they sold the car last night to an anonymous buyer who cashed out his Bitcoins using the site Bitpay.

Source

Perhaps Bitcoin should change its logo (obverse coin design) to that of a Tulip bulb.
Here is a link to a current chart (a picture is worth 1000 words):
bitcoin.clarkmoody.com...

reply to post by ken10

Even currencies (foreign exchange currencies or fx) are traded as a commodity (on either the commodity exchanges or thru the bank/fx market)....in either case we were witnessing the bursting of a bubble.

IF a lot of btc users were in it to make money (speculators) then I surely some were on the "short" side of the market (altho I am not sure that one can do that unless they are a market maker, can they?).

reply to post by Ameilia

I am not sure if we saw a short squeeze of dealers caught short bitcoins or if it was a classic "pump and dump" scheme but one could see that this bubble would burst (it never is "different this time").

reply to post by CosmicCitizen
Bubble type economics are playing out. But they wont kill Crypto Currencies. All these panic sell orders are being heightened by DDOS attacks on exchanges as well as massive global interest peak. Exchanges were not multi million dollar companies for very long and have not been able to keep up with the demand. This is exaggerating the lack in confidence people are showing.

Also note. This has happened before.....

When we pass $50,000 a BTC and crash to $20,000 a BTC it will happen again .

reply to post by ChaoticOrder

So far it is an extreme correction (60%) albeit "crash-like" given the speed of the sudden decline. FWIW, most bubbles eventually "correct" 90% of the range which suggests a drop back to the 26.5 area but there is strong support at around double that price (50-52) so it will take a while......

Originally posted by CosmicCitizen
IF a lot of btc users were in it to make money (speculators) then I surely some were on the "short" side of the market (altho I am not sure that one can do that unless they are a market maker, can they?).

edit on 11-4-2013 by CosmicCitizen because: (no reason given)

unless the actual owner of bitcoin did it.....that would be cheating.....but...no SEC...no outside watchdog....no counter-controlling force, hence, no repercussions....only a profitable scam. guess what? people lie on the internet, and there are so many other reasons why I wouldn't touch bitcoin. if you have been a daytrader, you will already know those reasons. my advice, get out as soon as it's beneficial to you, because bitcoin WILL BE taken down, don't be the sucker that's left holding the proverbial bag.

reply to post by Mandrakerealmz

I can intuitively make a case for a bitcoin at the 1/20(.90) the price of gold....or the amount of gold in 1/20th of a $20 gold piece US Double Eagle) or $1 out of $20 gold. There is about 96.7% of an ounce of pure gold in a double eagle but considering fabrication costs let's just assume that it is one ounce. The price of gold is approx $1562/oz so 1/20 of an ounce would be $78~ which is a fair price for the bitcoin and where it will eventually stabilize (assuming the current price of gold)....but that does not mean that it cant over-correct on the downside like it was extremely overvalued at the recent top either.

reply to post by CosmicCitizen

So far it is an extreme correction (60%) albeit "crash-like" given the speed of the sudden decline.

Except the speed of the increase from $180 to $260 happened in like less than 48 hours or something. There's no way a correction brining it back to how it was only a day or two before can be labeled a crash.

reply to post by ChaoticOrder

The speed up (unsupported) is one reason that prices "crash" so quickly vs a controlled correction and return to the point of initiation of the hyperbolic rise.

Current Elliott Wave assessment: A wave down to 105~; a:B back to 200~ and now nearing completion of b:B in the low 100s...this should be followed by another attempt at the upper 100s for c:B (completing the B wave counter trend move) where it should fail and then drop to lower lows for the move in the C wave (these waves are often the worst)....The downside target is 70 +/-20.

Bitcoins = Beanie Babies

Them at the TOP, big banks.
have Made this happen.

they are destroying bit coins credibility.
kill the competition.

Just got a VIRUSES from this page?
I am using AVG.

The Bitcoin network just shut down for the day....at least that is what I just heard.