Help me to understand current BTC fluctuation - page 2.

rebuilder

legendary

Activity: 1615

Merit: 1000

Quote from: imanikin on March 06, 2013, 10:59:57 PM

My opinion is that the fluctuations and instabilitiy is caused first of all by the centralization of Bitcoin USD trading at MtGox.

That exposes the entire Bitcoin system to the artistry of every pump-and-dump team that operates at MtGox.

It's great for the professional speculators, but it's not good for the system as a whole.

However, given the usual human herd mentality this idiotic situation persists.

Serves everyone right who continue to perpetuate the trading centralization around MtGox. So, party on! Cheesy

Let's assume for a moment no centralization and no market manipulation. Just people trading and speculating, looking to profit. Would you expect something as new and fast-growing as Bitcoin to have a stable exchange rate?

marhjan

full member

Activity: 215

Merit: 105

Poorer than I ought to be

"The Manipulator" that is all....

but seriously - I miss all "The Manipulator" talk, it was glorious

kerogre256

full member

Activity: 161

Merit: 100

Quote from: barbstap on March 06, 2013, 09:14:56 PM

I want to get a piece of knowledge
currently rates are too much fluctuating
what you suggest personally
as i don't have inner knowledge of btc
so i am not sure to hold btc or sell them?

I am a newbie to btc if anyone feels a bit free
then you can guide me by PM or skype it will
just take your few minutes but i will get a good
knowledge and i really want to understand inner
knowledge of BTC.
Thanks

There is 2.5 bilion internet users world wide and only 10 milion of them can have ONE bitcoin at the time if you include lost bitcoin it even less, bitcoit is SPECIAL its not perfect but it is VERY SPECIAL nothing like this ever existed before. Bitcoin is even special from e-peen point of view, how many people can say I HAVE ONE bitcoin ? No more then 10 milions if you have 10 this number is 100k if you have 100 this number is only 10 000 ...... funny isn't it ?

imanikin

hero member

Activity: 702

Merit: 503

Quote from: Timo Y on March 07, 2013, 02:30:05 AM

Your argument makes no sense to me.

If the price fluctuations are caused by professional 'pump-and-dump teams', what would prevent those teams from spreading their pump-and-dump strategy across several decentralized exchanges, if mtgox were not available to them?

For one thing, there would not be all these people who couldn't execute their orders because MtG was so overloaded and lagging when it really counts.

More importantly, there would not be a reference price set by the pump-and-dumpers, which the "traders" at other exchanges blindly follow. If you think it would be just as easy to manipulate that reference price at 5-10 xchanges simultaneously, i am not surprised my argument makes no sense to you. Cheesy

I think it would be geometrically if not exponentially more difficult to simultaneously manipulate price discovery at 5-10 xchanges, rather than one.

greyhawk

hero member

Activity: 952

Merit: 1009

Quote from: barbstap on March 07, 2013, 04:33:37 AM

Thanks for everyone's time but my main aim was to understand current unstable situation of btc
I know i can read and spend time to understand it but i needed some fast replies so i can save
myself from a big loss. I have never seen gap of $16 per btc in just one day. I am not able to get
these rapid changes. at once i thought btc is going down but then it stablize a bit between $39 to
$43 per btc. I am trying to get knowledge from others experience that's why i have opened this
thread. Waiting for more good suggestions.
Thanks

Short version: Bitcoin is backed by faith and when Faith wavers -> the price wavers.

Now faith is backing all other currencies as well, BUT the difference is, other currencies have people with guns enforcing that faith.

Solution: Bitcoin needs more guns.

barbstap

newbie

Activity: 44

Merit: 0

Thanks for everyone's time but my main aim was to understand current unstable situation of btc
I know i can read and spend time to understand it but i needed some fast replies so i can save
myself from a big loss. I have never seen gap of $16 per btc in just one day. I am not able to get
these rapid changes. at once i thought btc is going down but then it stablize a bit between $39 to
$43 per btc. I am trying to get knowledge from others experience that's why i have opened this
thread. Waiting for more good suggestions.
Thanks

Timo Y

legendary

Activity: 938

Merit: 1001

bitcoin - the aerogel of money

Quote from: imanikin on March 06, 2013, 10:59:57 PM

My opinion is that the fluctuations and instabilitiy is caused first of all by the centralization of Bitcoin USD trading at MtGox.

That exposes the entire Bitcoin system to the artistry of every pump-and-dump team that operates at MtGox.

It's great for the professional speculators, but it's not good for the system as a whole.

However, given the usual human herd mentality this idiotic situation persists.

Serves everyone right who continue to perpetuate the trading centralization around MtGox. So, party on! Cheesy

Your argument makes no sense to me.

If the price fluctuations are caused by professional 'pump-and-dump teams', what would prevent those teams from spreading their pump-and-dump strategy across several decentralized exchanges, if mtgox were not available to them?

fancy_pants

hero member

Activity: 663

Merit: 501

quarkchain.io

I think today's correction was a simple healthy correction probably triggered by the mpex exchange. Mpex.co was under ddos attack all morning and partly as a joke they pointed DNS to whitehouse.gov. some on the message boards immediately concluded that mpex was seized by the us government and pulled the trigger to get away from bitcoin. prices had gone up so much prior to that that there was no supprt and it thus btc tanked fast. mpex never went down, and remained accessable via various proxies throughout. Mtgox however got bogged down and exacerbated the market uncertainty. It appears to be over at this with only a day or two worth of paper profit having been lost by people who held tight.

niko

hero member

Activity: 756

Merit: 501

There is more to Bitcoin than bitcoins.

Quote from: evolve on March 07, 2013, 12:48:40 AM

Quote from: barbstap on March 06, 2013, 09:14:56 PM

what you suggest personally
as i don't have inner knowledge of btc
so i am not sure to hold btc or sell them?

The worse thing you possibly could do is take financial advise from strangers on the internet.

The best thing you can do is spend a little bit of time reading and understanding how bitcoin works, how traditional currencies work, and how markets work. Do not waste time on people's opinions and wishful thinking, just try to get facts straight and develop your own understanding.

evolve

hero member

Activity: 700

Merit: 500

daytrader/superhero

Quote from: barbstap on March 06, 2013, 09:14:56 PM

what you suggest personally
as i don't have inner knowledge of btc
so i am not sure to hold btc or sell them?

The worse thing you possibly could do is take financial advice from strangers on the internet.

ufmace

newbie

Activity: 19

Merit: 0

In my opinion, the price is pretty unstable mostly because there's much more traffic in speculation than in normal commerce. When the market is dominated by speculators hoping to make some money by buying and selling at the right time, then it'll tend to vary widely for any reason at all. Hopefully, the number of merchants accepting bitcoin will grow and the commercial traffic will grow with it, and that will tend to stabilize the price.

As for whether to hold or sell now, that's your call man. By asking the question, you are essentially speculating yourself, and whether you make or lose money depends on how your guesses line up with the guesses of all of the other speculators out there. This is essentially more of a financial market discussion than a bitcoin discussion.

If you want to help the situation, work to increase bitcoin commerce. Buy something you need with bitcoins, ask a merchant to support it, accept bitcoins yourself if you have any kind of store, whatever is practical for you.

EndTheFed321

hero member

Activity: 577

Merit: 500

Dude, I agree with you 100% Party on! Grin

imanikin

hero member

Activity: 702

Merit: 503

My opinion is that the fluctuations and instabilitiy is caused first of all by the centralization of Bitcoin USD trading at MtGox.

That exposes the entire Bitcoin system to the artistry of every pump-and-dump team that operates at MtGox.

It's great for the professional speculators, but it's not good for the system as a whole.

However, given the usual human herd mentality this idiotic situation persists.

Serves everyone right who continue to perpetuate the trading centralization around MtGox. So, party on! Cheesy

Stn

full member

Activity: 227

Merit: 100

It is not really "fluctuation" as with other traditional currencies. It is more like growth which explainable by the fact that this instrument is gaining higher and higher popularity worldwide. Theoretically it should stop growing sometime and start fluctuate but it is never clear when the world become "full" of Bitcoin. Population of the planet is growing too.

Herodes

hero member

Activity: 868

Merit: 1000

There's no easy way to understand how the price moves, sorry.

barbstap

newbie

Activity: 44

Merit: 0

I want to get a piece of knowledge
currently rates are too much fluctuating
what you suggest personally
as i don't have inner knowledge of btc
so i am not sure to hold btc or sell them?

I am a newbie to btc if anyone feels a bit free
then you can guide me by PM or skype it will
just take your few minutes but i will get a good
knowledge and i really want to understand inner
knowledge of BTC.
Thanks

Topic: Help me to understand current BTC fluctuation - page 2. (Read 4519 times)