Yep, I'm right with you guys here. I should post all my posts warning people at $1000, and constant posts thereafter that it is ridiculous how overvalued it is.
Why it will keep going lower is that China is out of the game. I think China was part of the reason it got so high and with them out of the game it will fall back to under $100. There is nobody who is going to throw money into bitcoins to make a lot of computer geeks rich.
The main reason it is going lower is that bitcoin doesn't offer anything that Fiat, visa, mastercard doesn't offer, at least not anything that makes it worth over $100 or even $250.
Like I have always been saying, where is the money going to come from? Miners? Computer geeks? It will come from nowhere, at least nowhere to sustain these very high prices.
After $300 the capitulation is going to be very bad and we are seeing that now. Should test $200's any day really at this point.
Why it will keep going lower is that China is out of the game. I think China was part of the reason it got so high and with them out of the game it will fall back to under $100. There is nobody who is going to throw money into bitcoins to make a lot of computer geeks rich.
The main reason it is going lower is that bitcoin doesn't offer anything that Fiat, visa, mastercard doesn't offer, at least not anything that makes it worth over $100 or even $250.
Like I have always been saying, where is the money going to come from? Miners? Computer geeks? It will come from nowhere, at least nowhere to sustain these very high prices.
After $300 the capitulation is going to be very bad and we are seeing that now. Should test $200's any day really at this point.
I would suggest that Bitcoin got where it did on the back of 'natural' bullish market sentiment, but also given a huge helping hand by fraudulent trading on MtGox (800'000 BTC of price insensitive buying power can do a lot in a natural bull market phase). Now that neither Gox, Markus, or Willy are with us, we have had a wildly overinflated Bitcoin price, which needs to sink to it's natural non hyped, non manipulated market equilibrium. I hope that Bitcoin doesn't die. I would absolutely fucking love to have one day, an alternative means of conducting commerce that doesn't involve the banking system, but what concerns me is that due to the Bitcoin price becoming so over extended, the mining has gotten way over-extended and I believe that at these prices right about the $200 range, that many miners are at a 'break-even' level. Below this range what do they do? Switch their rigs off and with it goes the heart of the P2P network that keeps Bitcoin's blood pumping?
Matt the price of a bitcoin is unrelated to the cost of mining.
how can be unrelated? if the price gets too low, farm and people will stop mining
