Bitcoin Crashes, Loses Half Of Its Value In Two Days

reply to post by Eryiedes

According to what you posted, if I was REALLY into porn, buying illegal drugs online or casinos then yeah...perhaps BC would be perfect for that.

The fact that the BTC price hardly changed when Silk Road was taken down by the feds proves that there is a solid foundation of businesses which accept bitcoin for legitimate products and services. Even Wordpress accepts bitcoin now and if you really want to see how useful bitcoin is for buying electronics and hardware then checkout bitcoinstore.com.

ChaoticOrder
The fact that the BTC price hardly changed when Silk Road was taken down by the feds proves that there is a solid foundation of businesses which accept bitcoin for legitimate products and services.

Problem being "solid foundation of business" is not the same thing as a "stable non-fiat currency".

-Peace-

reply to post by Eryiedes


The list is generated by people adding their own services to it and is not a final list of everything that accepts bitcoin. The final list is much larger.

Of course 90% of it wont apply to you , who buys 100% of all the services in the world anyway?

The list includes children's toys, food, web hosting, computer, scripts, VPN's, holidays, cigars etc etc.

you of course have picked a very, very tiny percentage of the list to try say its full of porn and drugs. You do realize that people can look at the list themselves and see you are trying to over exaggerate the bad parts of it don't you? here is the list again so everyone can make up their mind 1500+ places that directly accpet bitcoin

Also i dont know if you realized but there has always been quite a bit of porn for sale on the internet..not that the list has much on it, but its in case you haven't used the internet much and just didn't know.. A very strange attitude to single out porn as being evil from a person who claims to know strippers that accept his silver

PhoenixOD
A very strange attitude to single out porn as being evil from a person who claims to know strippers that accept his silver

I never said porn was evil.
I just don't pay for it.
You are making wild ascertions and have even added passive-aggressive insults to the roster.
I take it this discussion is over then?

-Peace-

reply to post by PhoenixOD

A very strange attitude to single out porn as being evil from a person who claims to know strippers that accept his silver

Lol now that is funny...

So.... if ya want projections of the price of Bitcoin....there's probably two more down-moves before a retracement...like down to $118 dollars.

reply to post by GBP/JPY


It would not surprise me if there is a bit more of a down move to come yet. I was expecting a small drop in mid December anyway due to other factors outside the China situation. So if that happens more people might start to panic again.

So yes i would agree there might be 2 more small drops in price before the rebound happens when things stabilize. Im not sure it will go that low though.

The important thing to realize here is that BTC has shown what it is capable of when things are going good. The sharp rise a few months back was fueled by demand, not by something dodgy like a Ponzi scheme. So i wouldn't call it an artificial bubble. If BTC can hit $1250 by normal supply and demand then it will certainly go there again in the future.

Chinese investment banker says what nobody in the USA could seem to understand

The above link is a response to the China crackdown in past days as per the link below.

People's Bank of China ruling

This excerpt is what really caused the panic.

"Notice" requirement, at this stage, financial institutions and payment institutions are not allowed to Bitcoin price for the product or service, may not be sold or traded bitcoins as a central counterparty shall not be covered with bitcoin-related insurance business or insurance will be included bitcoin range not indirectly provide customers with bitcoins other services, including direct or: to provide customers with Bitcoin registration, trading, clearing and settlement services; accepts bitcoins or bitcoins as payment and settlement tools; carry with bitcoins RMB and foreign currency exchange services; conduct Bitcoin storage, hosting, mortgages and other services; issue with bitcoin-related financial products; would bitcoins as trusts, investment funds and other investment targets.

Sounds pretty much like a done deal but a new perspective has been shown.

It's excellent news for bitcoin. Essentially bitcoin exchanges in China and bitcoin itself is going to be treated as a "commodity" rather than a "currency" and therefore not going to be subject to banking and currency control regulations. The only restrictions on bitcoin exchanges is that they will be subject to the standard internet censorship rules and they will need to get the identity of all users to prevent money laundering. Existing financial institutions will not be able to trade bitcoin, but this is a great thing for entrepreneurs.

Reading on, it explains:

The PBC has basically given the green light for bitcoin trading and exchanges. They are trying to keep bitcoin trading "separate" from the other parts of the financial system so that if bitcoin blows up, then nothing bad will happen...
The strategy of creating a ring fence around new markets is a very standard one in China. Hong Kong is an entire city that is ring fenced.

So far, what we've seen are two opposing ideologies from China and US in recent days with these stories:

Bitcoin Gain Legitimacy with Government
Bank of America says bitcoin "serious competitor" for money transfer providers.

Bank of America's research report gave a mixed outlook for Bitcoin. On the plus side, it noted that Bitcoin can help users avoid high taxes, regulations and government seizures of assets. But the report also noted that the currency's value remains uncertain. The report placed the maximum value at $1,300 per Bitcoin. On Thursday, one Bitcoin fetched a low of $870 to a high of $1,240 on the Mt. Gox Bitcoin exchange.

There are also many many other facets to BTC which aren't seen. Contracts can be implemented into the cryptocurrency without the need of a lawyer. For example, you can stipulate that payment will be returned if a service has not been done. Can fiat money do that?

One more link to a bloomberg video from Nov 18.
www.bloomberg.com... -agencies-to-say-bitcoins-offer-legitimate-benefits.html

FlySolo
For example, you can stipulate that payment will be returned if a service has not been done. Can fiat money do that?

Gold & Silver can be used in a black out.
Can BC do that?

-Peace-

reply to post by Eryiedes


G&S will always be valuable. But if a blackout were to ever occur where we had to switch our currency, it would have to be a disastrous event where money would be useless anyway. Doesn't matter if you have millions in the bank cause you'd never be able to get it. Never mind getting your hands on G&S.

Think about it. A cryptocurrency that bypasses the middle man. Brokers, lawyers, etc. Unless you're in the investment industry, it's a great modification to the current system.

reply to post by Eryiedes


A Subway in Allentown, PA accepts BitCoin. The number of retail businesses that take them is continually expanding. Organized crime has always welcomed them for money laundering purposes. It is like cash, but cash that you can send across the world for nothing or a very small fee, and it clears in about 15 minutes. If you want, you can actually print them off on a piece of paper and keep it under your mattress. Right now, BitCoin is making a bit of money for speculators and early believers, but it will have long periods of stability, punctuated with these bubbles when the price has to rise, which it does because the number of BitCoins is limited.

sorgfelt
Right now, BitCoin is making a bit of money for speculators and early believers, but it will have long periods of stability,

"Long periods of stability"?
The wildly fluctuating value is not evidence of stability...it is evidence of instability.
BC hasn't been stable yet and still has a LONG way to go before it can make any such claim.
Assuming it will become stable without any facts to substanciate that claim is just an ascertion.

-Peace-

reply to post by Eryiedes


It's a lot more steady now since China pump'ndumpers quit their shenanigans. Its been on a nice steady increase all day and not the erratic 400% increases we've seen in the past. Bitstamp has now passed the 800 mark.

reply to post by FlySolo


More steady does not equate to stable the same way not as wet doesn't equate to dry.

-Peace-

reply to post by Eryiedes


naaa it's not going to be "stable" for a long time. But it's not going to wildly fluctuate like it was.

reply to post by FlySolo


You don't know that for fact.
But the good news is neither does anyone else.

-Peace-

Wheres the demand and what regulates the price?

reply to post by onequestion


Sorry, but that's two questions onequestion, you've exceeded your limit.

reply to post by FlySolo


So, if I understand this now:

1) You don't know what creates the demand.
2) You don't know what regulates it's value.

But...

3) You know for a fact that somehow BC's price won't drop again?

Seriously?

-Peace-

reply to post by Eryiedes


Seriously? You can't tell when someone's making a joke?

What creates the demand is multi-faceted. All of S. Africa for one with no central banking system. Google Africa and bitcoin. China drives up the demand. Simple supply and demand drives the demand. The need for a decentralized currency drives the demand, the fact it's worth 800 bucks drives the demand.

The value is determined by perception. The more that use it, the more valuable it becomes. The value is also determined by how many blocks have been mined. Each block contains 25 BTC and each block is a harder mathematical algorithm to solve requiring sophisticated hashing, computing trillions of calculations a second. This alone is the main driving force behind its value. The BTC cap of 21 million drives its value as well because it will never be over printed deflating its value like paper is.

Answer your question?