Bitcoin Prices Continue To Plummet

I thought that Bitcoin was massively overvalued when it hit $100.
Even with current prices, it's ballooned over 400% since last year.

...And it seems like every week, another exchange has folded and everyone lost their investments.


While I don't own any bitcoin, if my back could fold at any moment, I'd withdraw everything and put my savings into gold or something. I have no faith in something as unstable as bitcoin.
 
dandirk said:
lol

you are funny, technically speaking your $200 in your pocket this morning can be worth less or more at any time. The most obvious example is gas prices but that too is tied to a market so its not the best example only the most obvious.
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If you go off the literal dollar figure on the $200, he is correct. That $200 worth of bills didn't magically lose their literal monetary designations/amounts. (ie any $20's didn't magically become $10's, etc.)

The price of stuff bought with said cash is a 2nd factor and moot in this analogy vs. bitcoin values.

At least that's what I am getting out of the analogy. :D
 
Ducman69 said:
That's not the problem at all.

Regulated government currencies, INCLUDING the United States Dollar have had flucutations in the thousand %-es in their history. Remember after WW1 the Deutschmark for example was so devalued that my grandparents family's liquid life savings went completely up in smoke, and they had to be paid daily and used suitcases of cash to buy groceries.

Its not about regulation, its about STABILITY. The stability of the currencies future is at risk BECAUSE of government regulation in China against it.

If it were completely unregulated, with no risks to its adoption as an acceptable currency, it would rise with its rise in adoption and eventually stabilize.
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I don't really see a problem. A currency's value is only relative to other currencies. Countries work VERY, VERY hard to give a perceived value to their currency over, or under, another.

BTC does not have a "formal" country backing it hence the ups & Downs while everyone adjusts. Reminds me of when the EURO was introduced, gooooood times for forex traders until people as a planet really eventually came to a value, and that was with massive backing by many countries.
 
spintroniX said:
we do not have capitalism in the united states. We have fascism / crony capitalism. Any critiques you offer may be legitimate, but they are not of capitalism itself.
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No it's better described as off-book Socialism. Instead of nationalizing companies, we hyper regulate or otherwise obligate financially or legally to be extension of the government. And instead of patronage appointments, government officials help favored companies or industries.
 
mastaBlasta said:
If i had had 200 bitcoins this morning in my wallet, now i would have....180. I can't make purchase and budgeting decisions on that!
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No, you would still have 200 bitcoins, just like you would have $200. What those each can be traded for might change, but that's not surprising. During phases of inflation (e.g. the early 80s), your dollars in your pocket can be worth less over time. Think about it this way: at the beginning of the month, you can buy a unit of one good for $1.00, but by the end, the same good costs $1.20. Your dollar decreased in value, not in number.
 
Also for people still bringing up price gouging for the most part it is gone you can get parts at or below msrp and miners are leaning out the farms for the summer/asic. I'm sorry I did not cash out my aur when I did half of it if I had cashed it all out for btc I would have had 1000 but now my aur is worth like 30
 
atp1916 said:
Communism hates freedom and loves control. Centralizated heaven.

It is a naive pipedream to believe that China is "the next big thing" for Bitcoin market penetration. Bitcoin requries freedom from capital controls to survive.

That being said, the technology behind Bitcoin will revolutionize how units of value are sent electronically and completely eliminate the estimated global $1.5 trillion a year transaction fee tax.

Bitcoin isn't going anywhere, not ever and not now.
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No one is ever going to seriously use a deflationary currency.
 
I wonder if the people that said their mining paid off their expenses said that based on the dollar value of the bitcoins they have in their wallets and that as bitcoins continue to lose value, if they'll be able to say that or of they waited too long to convert it to actual money. It would seriously suck to have said that and be like :eek: and then :( now because they still existed as coins that no one was willing to exchange for anything.
 
CreepyUncleGoogle said:
Not for money, just for bitcoin tranactions and I think it should be a globally funded organization that does it and uses like a percentage of the value of each transaction, like maybe 10 - 15% to fund live humans and systems that would log and process it. That'd really help improve the security of btc and make it a lot more legitimate while discouraging or even eliminating criminal activity.
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Congratulations. That might just have been the dumbest comment I've read on any BTC thread ever.
 
Ducman69 said:
Could say the same about gold in silver. Sure people trade it, but many keep it as an investment when prices are on the rise, as they have been for a while.

Are we to say that a gold currency, something that is actually based on a physical good of limited quanity, isn't viable because its price fluctuates?
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Yes. Not to mention the deflationary nature of a fixed quantity currency. Look at the Great Depression, and how much more quickly those countries that moved away from the gold standard recovered vs. those who didn't.
 
CreepyUncleGoogle said:
I wonder if the people that said their mining paid off their expenses said that based on the dollar value of the bitcoins they have in their wallets and that as bitcoins continue to lose value, if they'll be able to say that or of they waited too long to convert it to actual money. It would seriously suck to have said that and be like :eek: and then :( now because they still existed as coins that no one was willing to exchange for anything.
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I doubt most of them will make their money back. I read an article some time ago that said more than half of all mined bitcoins are sitting around unused. The bitcoin 'economy' was practically non-existent even before the hyper-deflation phase started.

I've pointed this out in several bitcoin news threads. Had significant numbers of people tried to cash out the whole thing would just have crashed sooner. Where do people think the money comes from? The bitcoin economy wasn't large enough to sustain the exchanges via transaction fees and bitcoins have no real value. The bitcoin fanatics tried to rationalize away the failure of Mt. Gox as a localized problem and that 'people should have known better than to trust them,' even though people had been trying to get their money out for months before hand. It ended up just being the start of the collapse, and it's no surprise seeing how it was the largest exchange operating in an unsustainable system.

It's destined to fall back down to the mean like all bubbles, and since bitcoins are useless and anybody can make their own alternative crypto currency I'm guessing that mean is pretty close to $0.
 
pcjunkie said:
If you have to worry about a daily/gain loss as a form of currency your doing it wrong.

/done
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Its in reference to the guy's quote about 200 bitcoins magically turning into 180 bitcoins without any transaction.
 
CreepyUncleGoogle said:
Not for money, just for bitcoin tranactions and I think it should be a globally funded organization that does it and uses like a percentage of the value of each transaction, like maybe 10 - 15% to fund live humans and systems that would log and process it. That'd really help improve the security of btc and make it a lot more legitimate while discouraging or even eliminating criminal activity.
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The awesome thing is you can make this fork yourself and offer it to the world. Whether or not you get voluntary global miners remains to be seen.

Go for it!
 
Kueller said:
Did you really just propose that law enforcement be notified and required to pre-approve me spending my own money?
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Ha ha ha... you were just trolled by Creepy the resident anti-privacy, government knows best expert.
 
DeathFromBelow said:
I doubt most of them will make their money back. I read an article some time ago that said more than half of all mined bitcoins are sitting around unused.
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There are going to be a lot of sad pandas out there in the not very distant future.

tinate said:
Unlike our education system, you don't get a cookie for saying something stupid.
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You're from France, aren't you? :D

aardvark sandwich said:
The awesome thing is you can make this fork yourself and offer it to the world. Whether or not you get voluntary global miners remains to be seen.

Go for it!
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Since EA Games is still in business and microtransaction MMOs exist, I'm pretty sure just about anything is possible. Though I do agree it'll be really hard to get a lot of support quickly like the bubble of bitcoin that just popped because a regulated and managed crypto currency would scare off the criminal elements that benefited the most from btc before it died out.
 
FiveFig said:
Hey you anti-knowledge people, please read something before you start a dribbling diatribe.

Let's see what the IRS says: IRS Says Bitcoin Is Property, Not Currency

So, considering it's not classified as a currency, but more like a commodity, the heavy fluctuating value is par for the course, just look at precious metals on a timeline.

Here's what I think about the stock market analogy as carefully explained by Zoidberg.
How does the conservative sandwich heavy portfolio look NOW huh???
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...the difference being that if society crumbled today, commodities like gold and silver will actually have value, as they always have. Nobody will care that your Bitcoin wallet showed that you were a millionaire before the collapse of civilization.
Oh, and I love Zoidberg.
 
Ducman69 said:
That's not the problem at all.

Regulated government currencies, INCLUDING the United States Dollar have had flucutations in the thousand %-es in their history. Remember after WW1 the Deutschmark for example was so devalued that my grandparents family's liquid life savings went completely up in smoke, and they had to be paid daily and used suitcases of cash to buy groceries.

Its not about regulation, its about STABILITY. The stability of the currencies future is at risk BECAUSE of government regulation in China against it.

If it were completely unregulated, with no risks to its adoption as an acceptable currency, it would rise with its rise in adoption and eventually stabilize.
Click to expand...

Of course the Deutschmark went under. There was hyperinflation and the currency was destroyed. They had to pay back reperations and the country was left in shambles thus again proving my point that a currecies might/acceptance is backed up by military power and geopolitical factors. No currency can survive on just pure GDP alone. The Germans were/are a very productive people, but they were forced to pay back reperations by force so they printed the marks in an effort to pay back their debt. In their desperation they destroyed the currency almost overnight.

Bitcoin has no country or military power backing in hence it is subject to manipulation or destruction by foreign and domestic powers. Bitcoin is not a place any sane person invests significant assets in. If aliens landed on earth, setup a small country with advanced weapons that no country on earth could touch, and they decided to use bitcoin for commerce, you might see Bitcoin prices stabalize as long as the aliens kept up their military might, had sound monetary policies and stable GDP.

While I understand how some folks here dream of a future like Star Wars were you use "Republic Credits" its just no going to happen in our lifetime. Human kind has a hard wired desire for safety and security. Money is part of that security and it must been tangible to have faith in. Money is the storage of work. You can see it, its tangible. Bitcoin is not tangible regardless of how many times some folks click their heels together and wish it.
 
Not to state the obvious, but in the world of Bitcoin/Cryptocurrency, things happen fast. The "drop/plummet" the article (and caption) were for yesterday. Bitcoin has since recovered. A 24hour delay on reporting with this stuff just makes the reporter look foolish.


Wednesday: Bitcoin was at round $425ish
Thursday: Bitcoin dropped to $325 (what I saw)
Friday: Bitcoin is back to $425


See the difference of what 24 hours makes?
 
Ducman69 said:
Remember after WW1 the Deutschmark for example was so devalued that my grandparents family's liquid life savings went completely up in smoke, and they had to be paid daily and used suitcases of cash to buy groceries.
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You can't be serious. Comparing Germany's economy after WWI to Bitcoin fluctuation. You realize there were some pretty extraordinary factors influencing the devaluation of Germany's currency correct?

Bitcoiners will convince themselves anything they want to believe. Just like others in pyramid schemes before they collapse.
 
Spidey329 said:
Not to state the obvious, but in the world of Bitcoin/Cryptocurrency, things happen fast. The "drop/plummet" the article (and caption) were for yesterday. Bitcoin has since recovered. A 24hour delay on reporting with this stuff just makes the reporter look foolish.


Wednesday: Bitcoin was at round $425ish
Thursday: Bitcoin dropped to $325 (what I saw)
Friday: Bitcoin is back to $425


See the difference of what 24 hours makes?
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Keep dreaming buddy. Sell now while you can.
 
I don't know how things are in the US of A, but in Brazil every once in a while there's this new revolutionary business that no one understands but you have to recruit people and gets loads of money. This goes on until it collapses.

Happened in the past, is happening right now and will happen in the future. Does not matter if you point that out, people still fall for it and comes up with lots of excuses to do so.

The more I read about Bitcoin, the more I think it's just one of those schemes. And the reactions of people who defend it are the same that people falling for the periodic scams around here use.
 
KingSmoth said:
...the difference being that if society crumbled today, commodities like gold and silver will actually have value, as they always have. Nobody will care that your Bitcoin wallet showed that you were a millionaire before the collapse of civilization.
Oh, and I love Zoidberg.
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Actually if society crumbled today -- gold and silver would only be valuable to those stupid enough to carry around heavy non useful metals. In a situation like that the only real valuable things are water/food/medicine/ammo/friends

Sitting on a mountain of gold isn't that great if you are staving or dying. But I do get your point.

I believe in Bitcoin, i have 15GPU's hashing away at home as I type this -- power is cheap (5 cents) and I'm still making profit even in these dark times. How? I didn't overextend myself, I didn't put down money I couldn't lose, and I bulit my setup slowly but surely. Everything paid for itself and then some. Cashed out multiple times when I felt the time was right and have always been "in the black"

If it crashes to zero -- so what? I'll still have a ton of hardware that cost me nothing out of pocket. People are entitled to the opinions, but I think it's hilarious the people here that don't understand and take a hateful and sometimes violate approach to any discussion.

Video card prices are dropping like rocks -- that only legit argument most people have against mining is pretty much gone at this point. I can totally understand those people who are risk averse but for all the haters, is there anyone who's putting a gun to your head and saying "buy bitcoin"

Some of the arguments are hilarious -- gas prices fluctuate wildly on a day to day basis in some areas. Shot up 25 cents overnight here -- does that mean I should fly off the handle at the clerk how the money in my pocket doesn't buy as much?

We are in uncharted waters long term with the invention of crypto currency. I've done better than break even long term... because I didn't go balls to the wall crazy on my first day.

If you are the guy who cashes in his 401k, and childs college fund, then flies to vegas and puts it ALL on a spin of the wheel your first time out... nobody would be surprised when you go home broke and angry.
 
I think bitcoin supporters are the same people on this forum who continue to fall into the "$29 for a 4770k OMG!!!" Chinese ebay auctions.
 
Ack, in regards to the Brazil comment above.

And I do find Bitcoin interesting. But at the end of the day, it's just a unique value created by an algorithm. Gas prices fluctuates due to demand based on it's actual value to society, stored energy, along with markups due to rent-seeking. Bitcoin fluctuates solely on speculation; there is some value in a medium of exchange, potentially, but that potential is largely lost with such large fluctuations.
 
Chas said:
No, like all the shyster "investment" guys say:

Now's a great time because you can buy MORE for the same amount of money!

:rolleyes:

Yeah. I don't buy it either.
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LOL

guess you don't believe wall street is a real place then eh?

I don't have any BTC but even I loled at that
 
fdiaz78 said:
Keep dreaming buddy. Sell now while you can.
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Just because you don't believe in the currency, doesn't mean others don't. Infact, some of the wealthiest people have vested interests in Bitcoin. If you don't understand it, or care to learn more about what drives it, you should probably refrain from making asinine comments towards people who are educated on it.

TwistedAegis said:
Yes, a 24 hour 25% fluctuation in prices makes the reporter look foolish. :rolleyes:
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No-one is arguing the volatility of the marketplace. What I was stating is that the article had a "doom and gloom, it's going to $0!" approach, as were some of the comments posted earlier in this thread. But infact, it had already recovered from yesterdays "plummet".

I seriously suggest you go back to school for economics if you can't understand the fundamentals of how a market works. All you do is troll the bitcoin threads, so at least get some perspective or education on the things that you're commenting on.

Just to get you started, I'll go ahead and explain how the markets work on a very basic level here. Market direction is known as being friendly to buyers (bull) or sellers (bear). These directions are often influenced by external factors that play on the emotions of investors, influencing fear or greed. If Fear > Greed, the market will turn bearish. If Greed > Fear, the market will turn bullish.

Real investors understand this (not just Bitcoin) and attempt to remove emotions out of the equation, thus giving them a competitive advantage over all of the emotional traders to know when to buy-in or cash-out.
 
TwistedAegis said:
Ack, in regards to the Brazil comment above.

And I do find Bitcoin interesting. But at the end of the day, it's just a unique value created by an algorithm. Gas prices fluctuates due to demand based on it's actual value to society, stored energy, along with markups due to rent-seeking. Bitcoin fluctuates solely on speculation; there is some value in a medium of exchange, potentially, but that potential is largely lost with such large fluctuations.
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You're comparing two totally different investments. A commodity (like gasoline) is not the same as something like an ETF or a securities-contract. A commodity can be directly driven by consumption (supply/demand). Where as a securities, stocks, etc, are often driven by speculation. Don't think of Bitcoin as much as a currency (although it can be used to buy certain things), think of it more as just another Wall-Street investment-vehicle. Half of the stuff that is traded daily on the markets is based on absolute BS, and just there to take money from one person and give it to another with no real backing. It's why the markets occasionally (see 2008) correct themselves.

Do *I* see Bitcoin as being the future of the US currency? No, not at all. I understand that the US Government will require full control of it's currency for eternity. But I do see upsides investing in it.
 
Spidey329 said:
You're comparing two totally different investments. A commodity (like gasoline) is not the same as something like an ETF or a securities-contract. A commodity can be directly driven by consumption (supply/demand). Where as a securities, stocks, etc, are often driven by speculation. Don't think of Bitcoin as much as a currency (although it can be used to buy certain things), think of it more as just another Wall-Street investment-vehicle. Half of the stuff that is traded daily on the markets is based on absolute BS, and just there to take money from one person and give it to another with no real backing. It's why the markets occasionally (see 2008) correct themselves.

Do *I* see Bitcoin as being the future of the US currency? No, not at all. I understand that the US Government will require full control of it's currency for eternity. But I do see upsides investing in it.
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I was explaining the same thing to someone above comparing BTC fluctuations to being OK because gas prices fluctuate. I'm fully aware of how the market works, thank you. And I'm sorry you feel it's trolling and being unaware of basic economics to talk about the downsides of a deflationary currency.

So if you see upsides to investing in it, why? Based on what principle? I see a core of people with very strong libertarian/tech ideologies (not making a value judgement, just saying) who see value in this. That's great. But at the same time, a bunch of hot money is flowing in simply trying to make money off of it. When that flows out when the market stagnates, I don't see prices sticking anywhere near their current levels.

And the funny thing is, if you're "investing" in that, you're not truly investing in anything, you're merely speculating that it will increase in value prior to you cashing out. At least the stocks, ETFs, etc you disparage have companies behind that you are nominally sharing in their income with.
 
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