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Topic: Bit coin is on a down hill slope - page 4. (Read 5532 times)

member
Activity: 71
Merit: 10
December 16, 2014, 07:26:58 PM
#21
I do find most of the comments quite funny and seriously lacking any depth of thought.

Bitcoin is currently a very speculative investment and not a currency! (one day it will mature into a currency if it continues to evolve)

I invest in BTC because of the underlying technology and because it is a serious disrupter to traditional banking and transfer of wealth.

Assuming I am correct then BTC will increase in value over time and it has done rather well so far.

The $1000 bubble is normal and so is the market correction back to 300/400. If you look at the growth, from inception to today's spot value its impressive.

The value will go up when people see it as an "INVESTMENT" and they buy BTC with Fiat. Day to day some people are buying BTC to spend but this is currently a drop in the Ocean.

Let me share with you a little bit of reality to compare where BTC is today.

Apple started out in the 70's and is about 40 years old.

In that time they have grown from a silly little nerdy company (compared with Microsoft during the 80's) to a Company worth $630 BILLION

BTC is currently worth $5billion which is less than the amount of $100 dollar shares traded in Apple each day.

Bitcoin is in its infancy and subject to reacting violently to any market action but I will tell you VERY SIMPLY why BTC price will not keep dropping.

1 More and more people recognise the technology is sound and thus an excellent alternative to traditional currency

2 As the price drops it will become more and more attractive to investors and their very action to purchase will push the price back up.

Personally I would love to see it drop to around $250/$275 because the amount of money which could flood in could be enough for a lot of Russians and Chinese to transfer wealth from dollar too.. and that means BIG FAST RISE to $500.

Then next year the same bollox will be spouted in these forums again.. Then it will move up to $1000 and the next generation of people arriving at the forum will start spouting the same rubbish from the $1000 perspective when it drops to $800.

So remember guys.. BTC is in its infancy if it suddenly opens its mouth, saying  "Daddy" or just randomly farts the whole family will bang on about it for days!

As time moves forward Bitcoin will be exposed to growing pains until it matures OR fails.. I believe it is way past failure unless something happens in the underlying technology for everyone to lose faith.

It doesnt take much to lose faith.. In less than 2 years Russians have lost faith in their currency!
legendary
Activity: 2170
Merit: 1427
December 16, 2014, 07:22:49 PM
#20
Double bottom at 270. Then buy time.

Keep waiting  Cheesy Won't go below $300

I bought a few more coins at current rate, quite happy with it.
legendary
Activity: 1512
Merit: 1005
December 16, 2014, 07:06:03 PM
#19
I understand the initial get rich quick phase is now over... I am a true believer that good things comes to those that wait. I don't mind waiting a year or two and let me mining machines keep plodding away and then cash out when things get a little better... but as i keep seeing more and more big firms taking on the payment of bitcoin it feels me with more and more hope that this will in the first or second quarter of 2015...

Does anyone else agree with me on this one? 
 

Not over. Get in.
hero member
Activity: 1022
Merit: 500
December 16, 2014, 06:35:28 PM
#18
Hi Guys

Ive always been a fan of bit coin but looking at today's stocks bitcoin and litecoin are on a stead path south.... do anyone think this will turn around or is this the end?>

Thanks

The price of Bitcoin went down from 700$ to 340$, nothing to worry too much about, there is a lot of volatility. If you are interested in Bitcoin, you can start buying some and hold for a few years.

Litecoin has been losing value compared to Bitcoin so it has been destroyed in USD.
hero member
Activity: 588
Merit: 500
December 16, 2014, 06:27:02 PM
#17
Double bottom at 270. Then buy time.
legendary
Activity: 1267
Merit: 1000
December 16, 2014, 06:04:58 PM
#16
If you really think it is going down and want to get rid of your hodlings, please feel free to send them my way.

That is, if you have any hodlings.
legendary
Activity: 1176
Merit: 1000
December 16, 2014, 05:40:02 PM
#15
I understand the initial get rich quick phase is now over... I am a true believer that good things comes to those that wait. I don't mind waiting a year or two and let me mining machines keep plodding away and then cash out when things get a little better... but as i keep seeing more and more big firms taking on the payment of bitcoin it feels me with more and more hope that this will in the first or second quarter of 2015...

Does anyone else agree with me on this one? 
 

I have a feeling there are still A LOT of speculators messing around keeping the price suppressed or over valued.  TBH I am not sure which one.

I use bitcoin soo.. the price can do w/e.

That's true, price can be at any level, and won't affect actual Bitcoin functionality. But investors in Bitcoin itself WILL be screwed as long as Bitcoin uses PoW, because PoW will destroy 10% of Bitcoin total marketcap every year, therefore any investors holding Bitcoin will lose 10% every year, guaranteed.

The only savior will be new money coming into the Bitcoin eco-system, if there's no new money, then investors in Bitcoin will experience a perpetual downward spiral.

Sounds great. Probably sounded great in 2011 and 2012 and 2013 and.. you get the idea.

You may have a point a few years down the line but certainly not now.
hero member
Activity: 672
Merit: 500
December 16, 2014, 05:02:41 PM
#14
It on a downhill slope right now, but it is going the climb back up again. I am not worried about price fluctuations, it is expected for an investment or currency.
legendary
Activity: 924
Merit: 1000
December 16, 2014, 04:09:10 PM
#13
1.) Big corporations are adopting Bitcoin. Tigerdirect, Overstock, Paypal, and Microsoft now accepts Bitcoin. These companies are likely set up to automatically cash out in USD with prices set in USD to minimize risk. This means that when you purchase something with Bitcoin this creates sell pressure which helps drive the price of Bitcoin down.
Usage on those services is tiny. Overstock did $3M in Bitcoin business in 2014. Paypal and Microsoft accept Bitcoin only for some very limited purposes. TigerDirect accepts Bitcoin mostly as an old promotion; their Bitcoin page is trying to sell obsolete Radeon GPUs for Bitcoin mining. (They're out of stock on their sale of old Butterfly Labs units.)

$3M is not that small especially since people panic and it can lead to a domino effect. And overstock is one of the smaller companies that accept bitcoin compared to tigerdirect and now microsoft. If it catches on the sell pressure might be greater.

Anyway I am sad and kinda also wondering why the price is dropping. I do not think its the overstock news and It should have had a sustained increase due to microsoft's bitcoin policy (although it is limited).
legendary
Activity: 1204
Merit: 1002
December 16, 2014, 04:04:43 PM
#12
1.) Big corporations are adopting Bitcoin. Tigerdirect, Overstock, Paypal, and Microsoft now accepts Bitcoin. These companies are likely set up to automatically cash out in USD with prices set in USD to minimize risk. This means that when you purchase something with Bitcoin this creates sell pressure which helps drive the price of Bitcoin down.
Usage on those services is tiny. Overstock did $3M in Bitcoin business in 2014. Paypal and Microsoft accept Bitcoin only for some very limited purposes. TigerDirect accepts Bitcoin mostly as an old promotion; their Bitcoin page is trying to sell obsolete Radeon GPUs for Bitcoin mining. (They're out of stock on their sale of old Butterfly Labs units.)
member
Activity: 67
Merit: 13
December 16, 2014, 03:35:05 PM
#11

Here's my personal take on what the prices are dropping:

1.) Big corporations are adopting Bitcoin. Tigerdirect, Overstock, Paypal, and Microsoft now accepts Bitcoin. These companies are likely set up to automatically cash out in USD with prices set in USD to minimize risk. This means that when you purchase something with Bitcoin this creates sell pressure which helps drive the price of Bitcoin down.

3.) Speculation. People see the price going down, get scared and sell more. This is pretty much how bubbles pop, but it doesn't have to be because of a popping bubble.

3.) Government undervalue. Correct me if I am wrong, but it's my understanding that the Bitcoin sold in government auctions were recently sold below market prices. When a large number of anything - Bitcoin, Stock, whatever - is sold below it's previous value that becomes the new value.

Here's why I believe the prices will go back up:

1.) Microsoft example: When more people realize that it is more convenient to purchase Bitcoin than it is to purchase Microsoft points that is going to increase buy pressure. Think about how much people spend around the world on Microsoft points alone knowing that there is no way they can move that money elsewhere or even spend with Microsoft it if their accounts are suspended. This will inevitably create more buy pressure. At first this will result in more stable prices than dramatic increases (as has already started to happen), but as more people decide to hold Bitcoin like they hold available Microsoft points the buy pressure will begin to outpace the sell pressure which will drive prices steadily up, although I am confidant that the sell pressure balance will make this more gradual.

2.) Speculation. Even if all other factors leads to a gradual increase in prices there will be increased investments in Bitcoin as people begin to see the prices go up. This will create a new bubble which will drive prices higher. This is inevitable, but there is a serious danger in this. As mentioned in the previous example, average people will hold it more when prices are stable, but as prices go up they will notice that their buying power goes up with the Bitcoins they are holding to be spent. This is fine at first, but it will help to feed the bubble which will eventually pop and the moment prices go down again the average people will get scared and hold less of it which will cause the sell pressure from big companies like Microsoft to have an even larger impact helping the price to crash faster. The only thing that would buffer this is the fact that impulse buyers, seeing that their Bitcoin are worth a bit more, will think instead that the price of their games are now cheaper and will buy more which will slow the growth of the bubble which would in turn slow the shrinkage of the bubble.

Of course, this is primarily based on how economics work. Not specifically the economics of Bitcoin. It's relatively predictable, but outside factors could still harm it. For example, if people in Florida really do get convicted for selling Bitcoin without a license that will seriously hurt it's adoption. I don't believe it will stop though.

Another important factor to consider is the value of USD. People don't usually think about that, but if the price of Bitcoin goes up and the price of USD goes up faster it will look like the price of USD is going down. The fact that America classifies Bitcoin as a commodity means that the price of USD won't be directly impacted by exchanges to and from Bitcoin, but other markets can still impact it. Inflation, Deflation, and various global market conditions can easily cause Bitcoin to go down in one currency while going up in another. I strongly believe that the global market conditions impacting fiat currency is at least partly to blame for the current price drop, but that's a bit more complex. What I can say is that people have been making money investing in currencies since long before Bitcoin existed. Myself included.

.......

Personally, I am liking the lower prices. It's giving me better returns on mining investments since people with higher electricity costs are taking their units offline Wink Although, when prices are lower I find myself less likely to sell because I am confident that it will go back up so I guess I am at least partly relying on speculation.
legendary
Activity: 3066
Merit: 1147
The revolution will be monetized!
December 16, 2014, 03:10:10 PM
#10
Leaders don't ask what is going to happen, we f-ing make things happen.  Wink
legendary
Activity: 1778
Merit: 1043
#Free market
December 16, 2014, 03:09:44 PM
#9
Bitcoin is more than a pump  & dump and it is also more than a simple crypto-currency ...
legendary
Activity: 1806
Merit: 1003
December 16, 2014, 03:08:29 PM
#8
I understand the initial get rich quick phase is now over... I am a true believer that good things comes to those that wait. I don't mind waiting a year or two and let me mining machines keep plodding away and then cash out when things get a little better... but as i keep seeing more and more big firms taking on the payment of bitcoin it feels me with more and more hope that this will in the first or second quarter of 2015...

Does anyone else agree with me on this one? 
 

I have a feeling there are still A LOT of speculators messing around keeping the price suppressed or over valued.  TBH I am not sure which one.

I use bitcoin soo.. the price can do w/e.

That's true, price can be at any level, and won't affect actual Bitcoin functionality. But investors in Bitcoin itself WILL be screwed as long as Bitcoin uses PoW, because PoW will destroy 10% of Bitcoin total marketcap every year, therefore any investors holding Bitcoin will lose 10% every year, guaranteed.

The only savior will be new money coming into the Bitcoin eco-system, if there's no new money, then investors in Bitcoin will experience a perpetual downward spiral.
legendary
Activity: 1722
Merit: 1000
December 16, 2014, 02:41:41 PM
#7
I understand the initial get rich quick phase is now over... I am a true believer that good things comes to those that wait. I don't mind waiting a year or two and let me mining machines keep plodding away and then cash out when things get a little better... but as i keep seeing more and more big firms taking on the payment of bitcoin it feels me with more and more hope that this will in the first or second quarter of 2015...

Does anyone else agree with me on this one? 
 

I have a feeling there are still A LOT of speculators messing around keeping the price suppressed or over valued.  TBH I am not sure which one.

I use bitcoin soo.. the price can do w/e.
member
Activity: 103
Merit: 10
December 16, 2014, 11:05:26 AM
#6
I understand the initial get rich quick phase is now over... I am a true believer that good things comes to those that wait. I don't mind waiting a year or two and let me mining machines keep plodding away and then cash out when things get a little better... but as i keep seeing more and more big firms taking on the payment of bitcoin it feels me with more and more hope that this will in the first or second quarter of 2015...

Does anyone else agree with me on this one? 
 
legendary
Activity: 1372
Merit: 1252
December 16, 2014, 09:23:22 AM
#5
OP, do you want to be a pioneer or not? If yes, then enjoy the pain of a long wait until gains because the initial get rich quick phase is over, now its a long waiting game and big massive donkey balls to hold are needed.
legendary
Activity: 4200
Merit: 4887
You're never too old to think young.
December 16, 2014, 06:56:44 AM
#4
Welcome to Bitcoin!

I suggest you read the white paper.

https://bitcoin.org/bitcoin.pdf

Excellent suggestion.

Understanding the protocol is paramount.

hero member
Activity: 688
Merit: 500
ヽ( ㅇㅅㅇ)ノ ~!!
December 16, 2014, 06:23:30 AM
#3
Ive always been a fan of bit coin but looking at today's stocks bitcoin and litecoin are on a stead path south.... do anyone think this will turn around or is this the end?>

Hello!

I'm fairly confident it will turn around! At some point above zero!

But, it will only do so after you have sold all your bitcoins or forgotten about them and lost the hard drive you kept them on.
legendary
Activity: 3598
Merit: 2386
Viva Ut Vivas
December 16, 2014, 03:56:05 AM
#2
Welcome to Bitcoin!

I suggest you read the white paper.

https://bitcoin.org/bitcoin.pdf
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