BTC Price is crashing today. | Bitcointalksearch.org

kokojie

legendary

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Quote from: yeponlyone on September 18, 2014, 08:43:16 AM

Anybody care to elaborate why?

Due to $1.5M PoW mining expense every single day, Bitcoin price will naturally drop when there's less than $1.5M capital inflow into the eco-system per day.

Bitcoin owners are basically charged a 10% tax by PoW mining network every single year, unless there's capital inflow to subsidize this tax. So far, Bitcoin owners has been very lucky, since in the past there indeed was huge amount of capital inflow to make the PoW mining expense seem insignificant. But this year might be the first time Bitcoin owners is feeling the expense of PoW mining.

Sevvero

sr. member

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Quote from: zeroday on September 18, 2014, 01:37:32 PM

Quote from: Dissonance on September 18, 2014, 11:57:01 AM

Just like in the stock market people like to attribute reasons why a price moves up or down. The truth is that an asset's price is based on its supply and demand. Right now there are more sellers then buyers. Why that is ? Anyone's guess but its probabaly being driven by mometum. The news over the last few months has been preety good for bitcoin with tons of new startups. , however, the huge 10X runup late last year has led to a protracted correction and alot of speculators selling. Once the sellers have been exhusted the buyers will overwhelm the sellers and the momentum will swing the other way. There really doesn't have to be a reason other then that.

These shakes are good for bitcoin economy. New people have nice opportunity to join and that makes BTC distribution more even. Only the greedy get-rich-quick guys suffer from these cyclic crashes.

>THIS IS ACTUALLY GOOD NEWS
RETARD ALERT! RETARD ALERT!

DELUDED OSTRICH, GET YOUR HEAD OUT OF THE SAND!

zeroday

donator

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Quote from: Dissonance on September 18, 2014, 11:57:01 AM

Just like in the stock market people like to attribute reasons why a price moves up or down. The truth is that an asset's price is based on its supply and demand. Right now there are more sellers then buyers. Why that is ? Anyone's guess but its probabaly being driven by mometum. The news over the last few months has been preety good for bitcoin with tons of new startups. , however, the huge 10X runup late last year has led to a protracted correction and alot of speculators selling. Once the sellers have been exhusted the buyers will overwhelm the sellers and the momentum will swing the other way. There really doesn't have to be a reason other then that.

These shakes are good for bitcoin economy. New people have nice opportunity to join and that makes BTC distribution more even. Only the greedy get-rich-quick guys suffer from these cyclic crashes.

Dissonance

full member

Activity: 167

Merit: 100

Just like in the stock market people like to attribute reasons why a price moves up or down. The truth is that an asset's price is based on its supply and demand. Right now there are more sellers then buyers. Why that is ? Anyone's guess but its probabaly being driven by mometum. The news over the last few months has been preety good for bitcoin with tons of new startups. , however, the huge 10X runup late last year has led to a protracted correction and alot of speculators selling. Once the sellers have been exhusted the buyers will overwhelm the sellers and the momentum will swing the other way. There really doesn't have to be a reason other then that.

Blinken

sr. member

Activity: 338

Merit: 253

Quote from: piramida on September 18, 2014, 11:36:56 AM

Quote from: Blinken on September 18, 2014, 09:34:40 AM

Quote from: Sevvero on September 18, 2014, 09:03:45 AM

Quote from: yeponlyone on September 18, 2014, 08:43:16 AM

Anybody care to elaborate why?

This is why:
https://www.youtube.com/watch?v=_-TLA3j-ic4

Thats a pretty interesting video.

Just to summarize this for people who don't want to listen to this guy's 15 minutes rambling lecture:

At current rates, the bitcoins generated by miners are worth $650 million per year. So, that means for the price to be stable, that much money must come into the Bitcoin ecosystem. If less buying interest than this occurs, then the price will drop (and vice versa).

Yeah the same argument of "omg no enough money coming in" from 2011. It is based on an assumption that 100% of mined coins are sold on the market immediately and nobody ever use these dollars to buy coins again. For somebody with such a low belief in bitcoin, these miner guys sure did invest alot of millions in the infrastructure

Yeah, just as a point of interest the video has some still shots in of giant mining farms, and I mean GIANT. Warehouses full of cheap PCs all wired together, its pretty incredible.

piramida

legendary

Activity: 1176

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Borsche

Quote from: Blinken on September 18, 2014, 09:34:40 AM

Quote from: Sevvero on September 18, 2014, 09:03:45 AM

Quote from: yeponlyone on September 18, 2014, 08:43:16 AM

Anybody care to elaborate why?

This is why:
https://www.youtube.com/watch?v=_-TLA3j-ic4

Thats a pretty interesting video.

Just to summarize this for people who don't want to listen to this guy's 15 minutes rambling lecture:

At current rates, the bitcoins generated by miners are worth $650 million per year. So, that means for the price to be stable, that much money must come into the Bitcoin ecosystem. If less buying interest than this occurs, then the price will drop (and vice versa).

Yeah the same argument of "omg no enough money coming in" from 2011. It is based on an assumption that 100% of mined coins are sold on the market immediately and nobody ever use these dollars to buy coins again. For somebody with such a low belief in bitcoin, these miner guys sure did invest alot of millions in the infrastructure

Hfertig

sr. member

Activity: 361

Merit: 250

Quote from: georgekappa on September 18, 2014, 09:30:12 AM

Someone's shorting it

http://www.reddit.com/r/Bitcoin/comments/2grhmt/heading_to_400_how_are_those_shorts_coming_in/

People short bitcoins all the time. Some where even doing it in November last year. Not the reason for the drop. There are enough other reasons why we are going down...

cozk

hero member

Activity: 812

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Quote from: Sevvero on September 18, 2014, 09:03:45 AM

Quote from: yeponlyone on September 18, 2014, 08:43:16 AM

Anybody care to elaborate why?

This is why:
https://www.youtube.com/watch?v=_-TLA3j-ic4

Did not know Joaquin phoenix was a btc expert.

Good to know.

Torque

legendary

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hodl and BUY BUY BUY

srgkrgkj

legendary

Activity: 1218

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hodl or dmup Tongue

cypherdoc

legendary

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hodl

srgkrgkj

legendary

Activity: 1218

Merit: 1000

current price $430 !!!!

Beliathon

hero member

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https://youtu.be/PZm8TTLR2NU

Quote from: ThatDGuy on September 18, 2014, 10:26:19 AM

Quote from: robmob on September 18, 2014, 09:09:10 AM

I believe the price continues to fall because the real investors are seeing Bitcoin in the news 24/7 but it is to do with drugs and hacking and not something to benefit them. I personally know a number of people who cashed out after the whole Roger episode .

Bitcoin news only having to do with drugs? Hacking?

Why are they watching the news from 2011-2013??

Just wait until the next boom cycle, when FOX "news" sets their sights on the new threat to the oligarchy.

ThatDGuy

hero member

Activity: 728

Merit: 500

Quote from: robmob on September 18, 2014, 09:09:10 AM

I believe the price continues to fall because the real investors are seeing Bitcoin in the news 24/7 but it is to do with drugs and hacking and not something to benefit them. I personally know a number of people who cashed out after the whole Roger episode .

Bitcoin news only having to do with drugs? Hacking?

Why are they watching the news from 2011-2013??

adamstgBit

legendary

Activity: 1904

Merit: 1037

Trusted Bitcoiner

that video...

its failed speculations

var53

sr. member

Activity: 345

Merit: 250

Quote from: Blinken on September 18, 2014, 09:34:40 AM

Quote from: Sevvero on September 18, 2014, 09:03:45 AM

Quote from: yeponlyone on September 18, 2014, 08:43:16 AM

Anybody care to elaborate why?

This is why:
https://www.youtube.com/watch?v=_-TLA3j-ic4

Thats a pretty interesting video.

Just to summarize this for people who don't want to listen to this guy's 15 minutes rambling lecture:

At current rates, the bitcoins generated by miners are worth $650 million per year. So, that means for the price to be stable, that much money must come into the Bitcoin ecosystem. If less buying interest than this occurs, then the price will drop (and vice versa).

Thanks for the video summary. I'm one of the people who could not face listening to the 15 minutes rambling lecture.

hotsaucee

full member

Activity: 154

Merit: 100

Quote from: Blinken on September 18, 2014, 09:34:40 AM

Quote from: Sevvero on September 18, 2014, 09:03:45 AM

Quote from: yeponlyone on September 18, 2014, 08:43:16 AM

Anybody care to elaborate why?

This is why:
https://www.youtube.com/watch?v=_-TLA3j-ic4

Thats a pretty interesting video.

Just to summarize this for people who don't want to listen to this guy's 15 minutes rambling lecture:

At current rates, the bitcoins generated by miners are worth $650 million per year. So, that means for the price to be stable, that much money must come into the Bitcoin ecosystem. If less buying interest than this occurs, then the price will drop (and vice versa).

That's intuitive and how prices work? Nothing new there at all....

Blinken

sr. member

Activity: 338

Merit: 253

Quote from: Sevvero on September 18, 2014, 09:03:45 AM

Quote from: yeponlyone on September 18, 2014, 08:43:16 AM

Anybody care to elaborate why?

This is why:
https://www.youtube.com/watch?v=_-TLA3j-ic4

Thats a pretty interesting video.

Just to summarize this for people who don't want to listen to this guy's 15 minutes rambling lecture:

At current rates, the bitcoins generated by miners are worth $650 million per year. So, that means for the price to be stable, that much money must come into the Bitcoin ecosystem. If less buying interest than this occurs, then the price will drop (and vice versa).

georgekappa

newbie

Activity: 10

Merit: 0

Someone's shorting it

http://www.reddit.com/r/Bitcoin/comments/2grhmt/heading_to_400_how_are_those_shorts_coming_in/

hotsaucee

full member

Activity: 154

Merit: 100

You won't find rational answers here I guarantee that much... In fact there are many possible reasons but there has always been volatility in the price. No need to panic

Topic: BTC Price is crashing today. (Read 2295 times)