posted on Feb, 25 2014 @ 12:36 PM
I would like to weigh in on this a bit, if you guys dont mind.
Bitcoin has been in flux due to Russia stating that it has banned the use of it.
Mt Gox had it's own issue recently where under 200k bitcoins came up missing and earlier noticed some activity they deemed suspicious which led to
them closing down last night.
Mt Gox is only responsible for the sudden drop early this morning. I caught wind of this and bought when the prices fell to 200$ per bit coin. For
the most part, this ONLY affected bitcoin and very few other coins. But since bitcoin is the base for all the other coins, you could say the price
went down across the board, but the trading itself was not affected on the other currencies. What you find on the crypto currency site is not
accurate except for bitcoin. There was not a drop in induvidual prices, per say, but only bitcoin.
There is a difference between vs Bitcoin and vs USD. Vs USD was all crypto overall, but there was not an induvidual price drop on crypto vs
Anyways, for everyone that didn't get a chance to make million on bitcoin, this was their chance to get in with the prices being low.
I am so confident in what was going to happen, I bought $1,000 worth of bitcoins at $198 per coin. As I suspected, Bitcoin is back to normal based on
what it has been the last few weeks. Just under $600. I made $350-400 per coin. Why, you say?
Mt Gox is ONLY a place to buy bitcoins and store them. It's a lot like Coinbase. So why would this affect bitcoins value? Because any bad news is
bad for any stock.
Why wont it hurt bitcoin overall?
As I mentioned, it is only one of a few places to buy bitcoin. It was known that these guys had lax security and anyone could have seen that it
probably wasn't a good idea to store your coins here. Not to mention, I never bought from them because the prices to buy were more expensive than
any other source. Coinbase is way more secure as well and much cheeper to boot. Plus, I don't store my coins on these sites. I use them only to
transfer to and from USD. Bitcoin will not suffer because the problem is NOT bitcoin but the people who were buying and selling bitcoin from and to
you. Bitcoin will continue on. Great news = high prices, bad news = temporary low prices, but in the end, they will average out because bitcoin is
till the dollar for all other coins with few exceptions.
Lets say it this way....
If you buy a camero from a dealership and you found out that this one dealer was getting hit by bandits that store parts from their cars, you might
stop buying from that dealer and go to another. The camero itself is not the problem, but that one dealer. The bad publicity might make people think
it's a problem with the cameros but after they realise what really happened, they will contnue as normal.