Panic Selling - page 3. | Bitcointalksearch.org

oakpacific

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Quote from: lemonginger on September 09, 2011, 10:14:36 AM

Quote from: ?? on ??

A lot of people tend to believe miners need about $5-5.50 to make it worth their time, but i feel that KWH leechers or FPGA users will bring the price under that $5-5.50 equilibrium.

just my 2 cents. sure glad i sold at $11 :-)

No. The difficulty adjustment will ensure that some miners can make a profit at nearly any price. Lower prices drive miners out, difficulty ramps down, mining becomes profitable for miners remaining, more miners jump in, difficulty rises, mining becomes unprofitable, miners leave. It's a balancing feedback loop that is always in play, it makes no difference what the price is. I have no frigging clue why after a year of this we still have people insisting that the "cost of mining" somehow affects the price of bitcoins.

There is a minimum cost of running a mining rig which doesn't linearly scale with the difficulty factor.

lemonginger

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Quote from: ?? on ??

A lot of people tend to believe miners need about $5-5.50 to make it worth their time, but i feel that KWH leechers or FPGA users will bring the price under that $5-5.50 equilibrium.

just my 2 cents. sure glad i sold at $11 :-)

No. The difficulty adjustment will ensure that some miners can make a profit at nearly any price. Lower prices drive miners out, difficulty ramps down, mining becomes profitable for miners remaining, more miners jump in, difficulty rises, mining becomes unprofitable, miners leave. It's a balancing feedback loop that is always in play, it makes no difference what the price is. I have no frigging clue why after a year of this we still have people insisting that the "cost of mining" somehow affects the price of bitcoins.

johnj

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It was mentioned somewhere else that this could be "professional" investors just flushing out the boom-of-miners of their coins. I'm inclined to believe this because 1) I only started ~20 days ago, 2) I was thinking the same thing. Granted that's an optimistic scenario.

On the other hand, the price is trying to get itself back on track after the bubble. I doubt the (4?) upcoming Bitcoin Conferences are going to be cancelled. They'll be investing in the system, not the dollar amount its currently tied too. IMO, everyone worth their weight who has sold the last few days are -still- watching the market. That money isn't just *poof* gone forever.

lemonginger

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I think that's true, I don't see it hanging around in the $2-$3 range for very long.

Technomage

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Quote from: lemonginger on September 09, 2011, 09:58:07 AM

For the past few months bitcoin has only moved up on low volume, and has moved down sharply on high volume. Bubble deflation, that's all. The price was far far beyond what could fundamentally be supported in terms of the state of the available clients, the current acceptance/usefulness of bitcoins, and the extremely high inflationary period we are in right now

$5.50ish is the bottom I called a few months ago, and I still think it is likely we will settle at $4-$6 for awhile, but we may see some drops back into the $2s and $3s at some point

This is a good analysis. But I do think the bubble will have deflated after this latest crash, we're pretty much at or near the numbers the Bitcoin economy can fundamentally sustain.

lemonginger

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For the past few months bitcoin has only moved up on low volume, and has moved down sharply on high volume. Bubble deflation, that's all. The price was far far beyond what could fundamentally be supported in terms of the state of the available clients, the current acceptance/usefulness of bitcoins, and the extremely high inflationary period we are in right now

$5.50ish is the bottom I called a few months ago, and I still think it is likely we will settle at $4-$6 for awhile, but we may see some drops back into the $2s and $3s at some point

oakpacific

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Eventually, miners have to decide whether they want to keep the price up or leave. And I would never mind if GPU miners leave in flocks, my mining rig is there and ready.

Nefario

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This is great news for people looking to get into bitcoin.

iprivately

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panic selling right before the anticipated drop in weekend selling. let the market and its gyrations take its course

SlaveInDebt

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Your Minion

Today, we'd like to welcome you
to the funeral of wack motherfuckers worldwide
your days are numbered
And everybody wants to be there
but no one wants to stay around
'cause everybody feels defeated

http://youtu.be/fYDfjcOQ-eU

Surawit

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It's not "panic" selling at all. People have large amounts of BTC in them and want to get rid of it before the price drops further... That seems pretty rational to me?

arsenische

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i am tired to see it falling.. but there is no much space to fall left... just 4-5 $ down so that everybody is sure it is already at the bottom... and start a new rally! )

coined

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the real world doesn't take this forum seriously, buy buy buy or sell sell sell on here has never caused anything.

Big Time Coin

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This is panic selling, pure and simple. Highest volume since June. Panic is the reason people are selling at these prices in such high numbers. Keep up the good work in this forum scaring people into thinking bitcoin has no future. At these prices, we should see a reduction in hashing power.

Topic: Panic Selling - page 3. (Read 4714 times)