Actually btc is going down because... - page 2.

Minsc

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Quote from: rebuilder on September 06, 2011, 12:57:43 PM

Quote from: Minsc on September 06, 2011, 12:52:36 PM

Bitcoins are not going back up.

So you think the experiment has failed, and Bitcoin will never gain further use as a currency?

I think it's just overpriced. I wrote this on another thread and I think it sums it up: Mining needs to be a literal loss of money after electricity so all those people mining for profit stop and the only miners are people who find it too burdensome to buy bitcoins--this way it helps by getting lots of new buyers of bitcoin related goods. https://bitcointalksearch.org/topic/why-a-drop-to-about-2coin-will-be-good-for-bitcoins-41886

osmosis

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Quote from: the founder on September 06, 2011, 12:52:46 PM

this is why it's down... period. end of discussion.

http://www.flexcoin.com/calc

It's just pure economics.. nothing more. nothing less.

"This number is the absolute fact of what is needed to be added to the bitcoin community in order to keep prices stable. This number can be a mixture of dollars, yen, euros, gold, silver or whatever currency of choice. It can also be the dollar value of services and products being bought for bitcoins (not just offered) but the total dollar figure MUST equal the amount listed above."

I know its a fact that 216,000 new bitcoins are minted each month, but I dont see that it necessarily correlates with the price. You are assuming that 216,000 new bitcoins are being sold each month. If a miner is minting these coins and simply holding them because he believes they will be worth more in the future, then they would not in any way effect the current exchange rate. I do not know how many miners are holding their coins for the future, and how many miners are dumping their coins on the exchanges.

legolouman

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Quote from: Gerken on September 06, 2011, 01:49:57 PM

Quote from: legolouman on September 06, 2011, 01:17:32 PM

By dumping into the market, people will buy it, and then spend it on hardware, and then... THAT'S HOW A CURRENCY WORKS.

As for the poof! video, the bitcoins are sitting somewhere, waiting to be bought. That means there is potential money in the system.

mmmm I smell copypasta.

Gerken

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Quote from: legolouman on September 06, 2011, 01:17:32 PM

By dumping into the market, people will buy it, and then spend it on hardware, and then... THAT'S HOW A CURRENCY WORKS.

As for the poof! video, the bitcoins are sitting somewhere, waiting to be bought. That means there is potential money in the system.

legolouman

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By dumping into the market, people will buy it, and then spend it on hardware, and then... THAT'S HOW A CURRENCY WORKS.

As for the poof! video, the bitcoins are sitting somewhere, waiting to be bought. That means there is potential money in the system.

mobodick

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Quote from: legolouman on September 06, 2011, 12:38:33 PM

I think everyone should tough it out, so to speak, and buy buy buy.

Riight, and then, when the price is high again, the miners can dump more bitcoin and the price will drop again.
Cool

piuk

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Quote from: legolouman on September 06, 2011, 01:11:06 PM

How can all of that money just disappear?

Most of it has been spent on electricity and hardware.

N12

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Quote from: legolouman on September 06, 2011, 01:11:06 PM

We are all still sitting here, and so are the big guys with large fortunes of BTC. How can all of that money just disappear?

http://www.youtube.com/watch?v=RAKsMnAM8vk

legolouman

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Quote from: Gerken on September 06, 2011, 01:05:22 PM

Quote from: legolouman on September 06, 2011, 01:03:39 PM

That's fine, if you say that bitcoins are no longer an effective investment. I'll just take all of your coins, so you don't even have to try and liquidate them.

See you're not going to do that, because you are going to wait for coins to go up (even if slightly) before you sell. You have faith in the system.

No he has faith in the not so smart people who think it's going to go back up to 10 or 12 and will buy in, only to be caught holding the bag when it continues its long slow slide into obscurity.

Well, so you are saying that the market, while having a strong community can just vanish out of thin air for no reason? We are all still sitting here, and so are the big guys with large fortunes of BTC. How can all of that money just disappear?

arsenische

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Quote from: the founder on September 06, 2011, 12:52:46 PM

this is why it's down... period. end of discussion.

http://www.flexcoin.com/calc

It's just pure economics.. nothing more. nothing less.

Playing with numbers in your form someone can get impression, that if new money doesn't come to bitcoin economy, then bitcoin would drop to 0. But it is not true. If new value doesn't come and the value doesn't leave the system, then it will just inflate slowly until it reaches some minimum (which is much greater than 0). And then it will deflate since some bitcoins are being lost everyday.

Gerken

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Quote from: legolouman on September 06, 2011, 01:03:39 PM

That's fine, if you say that bitcoins are no longer an effective investment. I'll just take all of your coins, so you don't even have to try and liquidate them.

See you're not going to do that, because you are going to wait for coins to go up (even if slightly) before you sell. You have faith in the system.

No he has faith in the not so smart people who think it's going to go back up to 10 or 12 and will buy in, only to be caught holding the bag when it continues its long slow slide into obscurity.

legolouman

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That's fine, if you say that bitcoins are no longer an effective investment. I'll just take all of your coins, so you don't even have to try and liquidate them.

See you're not going to do that, because you are going to wait for coins to go up (even if slightly) before you sell. You have faith in the system.

rebuilder

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Quote from: Minsc on September 06, 2011, 12:52:36 PM

Bitcoins are not going back up.

So you think the experiment has failed, and Bitcoin will never gain further use as a currency?

the founder

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Bitcoin

this is why it's down... period. end of discussion.

http://www.flexcoin.com/calc

It's just pure economics.. nothing more. nothing less.

Minsc

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Bitcoins are not going back up.

legolouman

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Quote from: Minsc on September 06, 2011, 12:40:07 PM

Quote from: legolouman on September 06, 2011, 12:38:33 PM

In investing, you only lose money if you sell low

Last time it did that I held onto them and they never came back up. So I learned to sell early in a freefall and wait to buy later. But I don't think it will go back up from when it hits bottom at $3.

You clearly don't remember when bitcoins were worth PENNIES. Also, how do you know it never came back up? That investment could be worth a fortune now, just look at Apple (APPL) as of right before Jobs resigned and compare it to stock prices in the 80's.

Minsc

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Quote from: legolouman on September 06, 2011, 12:38:33 PM

In investing, you only lose money if you sell low

Last time it did that I held onto them and they never came back up. So I learned to sell early in a freefall and wait to buy later. But I don't think it will go back up from when it hits bottom at $3.

legolouman

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Actually BTC prices are going down because of speculation. In investing, you only lose money if you sell low, these people don't understand that and say "OH NO, the price dropped $1, let's make a big deal, plummet prices, and speculate it's because of how bitcoin is deflationary, prone to scam and stuff."

I think everyone should tough it out, so to speak, and buy buy buy.

wobber

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Because of people that speculated them and used them as commodity. Bitcoin is a currency. Sure, we could it as a commodity in a few years whenaskk and offer ratio will be in the sky, but I believe most of us forgot to use it because of what it is. A good, bank-free method to buy things. And services.

So, as a merchant, I'm waiting the prices to go around $5 (even lower, but lower than $2-3 would be not good) and people start shopping (again).

I don't really care about the prices, I feel sad for people that loose speculating, also fell happy for the one that make some profit.

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