Bitcoin Crashes, Loses Half Of Its Value In Two Days

FlySolo
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 demand is created by our current fiat currency failure...that's it. You didn't seem to know for certain so you threw up a whole bunch of other stuff that nearly buried the actual answer.
Around these parts we call that: spray & pray.

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.

"Just because something takes X resources to create does not mean that the resulting product will be worth X. It can be worth more, or less, depending on the utility thereof to its users."

Utility was the correct answer and you never even mentioned it once.
I wish you the best of luck on your mining efforts but I'm gonna stick with PM's anyways.

-Peace-

reply to post by Eryiedes

You didn't seem to know for certain so you threw up a whole bunch of other stuff that nearly buried the actual answer.

Those are all valid reasons I know for certain. There's probably lots more. Instantaneous money transfers, low fees and no middle men come to mind.

I wish you the best of luck on your mining efforts

I'm not mining but somehow I think you want BTC to hit rock bottom. Then the one guy who listened to you might not resent listening to you. Better hope it doesn't get past 2000..ouch I wouldn't want to be responsible for that advice.

FlySolo
I'm not mining but somehow I think you want BTC to hit rock bottom.

That's silly.
I have no vested interest in whether it suceeds or fails.
And FYI...like any good investor, he didn't vacate his entire position but instead sold on my advice and even used some of that cash to buy more BC at a lower price. He just applied my advice on PM's to BC:

"Buy the dip"

Since he has a new Dodge Hemi to show for it, I seriously doubt he'll be cursing my name.

-Peace-

reply to post by Eryiedes


Nice. Well, guess we'll have to return to this thread after some time when the heat cools off. If it falls again, which it probably will, I'm just going to hold 'cause I'm in it for the long run.

Interesting. Well, value has been climbing back up. It's at a $900.00 plus average, with a high of High:$980.17 according to Mt.Gox.

reply to post by dreamingawake


Value was never the problem.
Volaility is.

-Peace-

reply to post by dreamingawake


The more its worth the less they sell.

Its so simple its crazy.

Until transaction frequency goes up then it WONT stabilize.

So if an economy isnt built around supporting them then its just going to be a pump and dump until the fade fades.

reply to post by dreamingawake


The more its worth the less they sell.

Its so simple its crazy.

Until transaction frequency goes up then it WONT stabilize.

So if an economy isnt built around supporting them then its just going to be a pump and dump until the fade fades.

this whole bitcoin thing is really funny .
Ok as always a bunch of people jumping on the newest in thing (should have been me : (
lol anyway every one here can say all day long how bitcoin is so great.
Thing is no matter if its excepted EVERY ware if bitcoins really lucky maby 25% of teh people in the world will have accsess to bitcoin .
now feit money or not a dollar bill is someing you can carry around in your pocket .
and is excepted almost every place on the planet .Only thing you need in order to USE a dollar is
((wate for it)) a DOLLAR . now lets says I have one bitcoing YEA get to store sure we except bitcoing yeaaa.
turn on cell phone humm battery dead Umm could I borrow a outlet ? lol
yea I can see it now lines of red necks wating to use there bitcoins .Never going to happen .
Try selling this to ooo 1/3 of the US people lol .
A electronic coin ?? hu?? its worth 900$ you say ? so you wnat me to pay you 900$ for ?? a electronic coin?
whats that . I think your bitecoin people are nuts lol other then the lucky few who rid this band wagon and get off at teh right stop .

I have a friend who is right now getting into mining, despite my warnings to him not too.

The whole idea of the bitcoin is flawed from the start. The idea that its a currency that is safe from value manipulation because its released at a constant rate is just as untrue as saying that the value of precious metals can't be manipulated. We know that wallstreet investors manipulate the value of precious metals all the time, and the same will hold true for this. The more that the banks see this as a threat, the worse they will manipulate the market value of them. If it ultimately ends up being a stable currency, they will still manipulate the market (spike and crash) until they have all the bitcoins in their pockets.

I don't care what the currency is; bitcoins, cattle, gold, corn, whatever, those with the money today will be those who own and control all those commodities (and their values) tomorrow. The only folks who will make any money off these are the one who got in early and got out before they drew the attention of the rich.

Eryiedes
reply to post by dreamingawake

 

Value was never the problem.
Volaility is.

-Peace-

Not as much as you think. Here's a good article.
Here’s why volatility isn’t a big problem for Bitcoin


cheers!

reply to post by dreamingawake


That's just a speculation piece.

-Peace-

Eryiedes
reply to post by dreamingawake

 

That's just a speculation piece.

-Peace-

Your opine is not? Okay...

Peace to you.

reply to post by dreamingawake


Perhaps...but I STILL knew the price would drop after it crossed the gold price threshold didn't I?
Can you make the same claim?

-Peace-

Eryiedes
reply to post by dreamingawake

 

Perhaps...but I STILL knew the price would drop after it crossed the gold price threshold didn't I?
Can you make the same claim?

-Peace-

Yeah, from being in the market long enough from experience I'm not going against that, I KNOW the price fluctuates. I don't believe anyone claimed it would not.

reply to post by dreamingawake


All you said was that you price fluctuates.
That's a far cry from knowing when.

-Peace-

Eryiedes
reply to post by dreamingawake

 

All you said was that you price fluctuates.
That's a far cry from knowing when.

-Peace-

Who does exactly know when? Doesn't mean sell off during the first bubble, or second for some, is all.

reply to post by dreamingawake


Peter Schiff knew...how do you think I knew?
What now?

-Peace-

Eryiedes
reply to post by dreamingawake

 

Peter Schiff knew...how do you think I knew?
What now?

-Peace-

edit on 10-12-2013 by Eryiedes because: Added Sentiment

That's fine. And he can think it's a tulip mania all he wants. Many who sold off as similar with the last bubble will regret that, others will move on.

lol anyway Peace

reply to post by dreamingawake


I love how you characterize one of the most prolific investors in the world today as a "tulip maniac".
That said, I'll still listen to him before I listen to anyone else on the topic.
I'm not trying to denegrate your position.
He just has a much better track record on calling the markets and their trends is all.

-Peace-