Topic: So what are the real reasons bitcoin fell so low? (Read 3998 times)
I hope we won't relive the $2 era. It took so long for that too pass
Edward50 was less frothy, genuinely believed what he was saying and argued his case well. Even if I disagreed with him, he gave food for thought.
Infinitely better than the likes of faillling, Chuckee, fewcoins, xioxao.
Infinitely better than the likes of faillling, Chuckee, fewcoins, xioxao.
So there were people with characteristics similar to fallling even in the early stages of bitcoin. 
Greed.
The only way to get "cheap" coins is to push the price down.
I believe its mining companies trying to run the small timers out of the mining business. Therefore they get a larger hash rate and get more coin. They shorted a ton, dropped the price, and are now able to mine more and even buy more at lower prices.
The only way to get "cheap" coins is to push the price down.
I believe its mining companies trying to run the small timers out of the mining business. Therefore they get a larger hash rate and get more coin. They shorted a ton, dropped the price, and are now able to mine more and even buy more at lower prices.
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I remember shorting at $4...
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I remember shorting at $4...
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How were you doing that?
On Bitcoinica.
After seeing this happen a few times I pulled out the remaining 400 or so bitcoins leaving "only" about 40 bitcoins on the site.
The next week it was "hacked".
It was later found that blatant manipulation was happening so that trades such as mine were short squeezed.
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I remember shorting at $4...
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I remember shorting at $4...
...
How were you doing that?
People sold for $ is the only reason.
I remember shorting at $4 waiting to close the short at $3.50.
It reached $3.60 then shot up to $4.50....short squeeze.
That was with several hundred bitcoins.
People sold for $ is the only reason.
I have wet dreams about going back in time to the OP's post date and buying 15,000 bitcoins with the $30k I had sitting in SAE's. My problem would have been I would have sold at $20 btc
After reading this, would you have sold and waited for the price to drop below $1 back in November 2011?
(...) speculative bubbles pop. So here we are.
the undervaluation phase is being executed even though everyone expects it? Or maybe I'm just speculating wrong for a change.alot of people think the undervaluation phase is going to be below 1$ ... wishful thinking
(...) speculative bubbles pop. So here we are.
/thread in third post. This answers the posed question completely.
Boom, Bubble, Burst, Bust. And here we are, show has gone as expected with all the phases pretty plain in the price history alone, and people STILL ask what happened?
It even seems that the undervaluation phase is being executed even though everyone expects it? Or maybe I'm just speculating wrong for a change.
Something to keep in mind is that bitcoin was created to be a currency, not an investment.
I'm not convinced that that is true. I cannot see it being a very powerful stand-alone currency (that is, without legal state sponsorship) without a claw-back capability. The designer(s) seem to me to have been thoughtful enough to have considered this.Theoretically, it is a store of value because there is a fixed supply (that is dribbling out to us slowly over decades). It will only be a store of value, though, when enough people/businesses are accepting bitcoins that prices are fixed in bitcoins, not in USD converted to current USD/BTC rate.
It's potential as a store of value is as strong as the value people place in it. Just like USD, property, gold, pork bellies, or just about anything else.
Remember, bitcoin is still in beta, and could be for a very long time. That's okay.
Agree. I theorize that it is actually much better in the long run if Bitcoin plays opossum for as long as it takes for it to be obviously useful, and for all of our sake that it never happens. My main trouble is that I am having difficulty actually enjoying this, but that's my own problem.
What I think will be interesting to see is whether Bitcoins are picked up as a major medium of exchange between people in the next country to see its currency collapse the way the Zimbabwe dollar did.
I had never thought of the potential for a conflagration to start in that way, and it is an interesting point to ponder (and possibly one to put some consideration into facilitating.) I guess it would need to happen in a place where people had pretty good access to technology. Greece? Hmmm...
If bitcoin keeps shrinking at this rate we'll have to move the decimal point further to the right. 
lol good one...bitcoin is getting bigger,
the stock price doesn't reflect, the growing community.
Bitcoin sites are trying to out do each other, and so the quality of the services bitcoin provides grows and becomes better every day.
when bitcoin was worth 30$ there was hardly anything you could do with a coin expect buy and sell it on Gox or trade hill
ironic!
From my experience, bitcoin websites still have quite a ways to go. Can you link to some examples of what you consider quality bitcoin websites?
BTC 2 CD-key is nice, and have been reviewed:
http://www.thebitcoinreview.com/site.php?site_id=750
click "Visit Bitcoin 2 CD Key"
I've seen a lot of growth of Bitcoin financial services, but I'm honestly quite disappointed by the lack of growth of commerce. It's become an amazingly sophisticated currency that still has very few realized applications.
If bitcoin keeps shrinking at this rate we'll have to move the decimal point further to the right.
lol good one...bitcoin is getting bigger,
the stock price doesn't reflect the growing community.
Bitcoin sites are trying to out do each other, and so the quality of the services bitcoin provides grows and becomes better every day.
when bitcoin was worth 30$ there was hardly anything you could do with a coin expect buy and sell it on Gox or trade hill
ironic!
If bitcoin keeps shrinking at this rate we'll have to move the decimal point further to the right.
Something to keep in mind is that bitcoin was created to be a currency, not an investment. Theoretically, it is a store of value because there is a fixed supply (that is dribbling out to us slowly over decades). It will only be a store of value, though, when enough people/businesses are accepting bitcoins that prices are fixed in bitcoins, not in USD converted to current USD/BTC rate.
Remember, bitcoin is still in beta, and could be for a very long time. That's okay.
What I think will be interesting to see is whether Bitcoins are picked up as a major medium of exchange between people in the next country to see its currency collapse the way the Zimbabwe dollar did.
Remember, bitcoin is still in beta, and could be for a very long time. That's okay.
What I think will be interesting to see is whether Bitcoins are picked up as a major medium of exchange between people in the next country to see its currency collapse the way the Zimbabwe dollar did.
Some months back I was very bearish and mostly everybody on the forums was very bullish. They swore that bitcoins would never go to $2.00, or even lower than $10 for that matter.
So here we are, bitcoin dropped below $2.00 today.
So what are the reasons that bitcoin dropped so much?
So here we are, bitcoin dropped below $2.00 today.
So what are the reasons that bitcoin dropped so much?
A better question is probably why did they go up so much. When I bought my first bitcoins a year ago for 24¢ each, I never dreamed they'd reach USD parity within a year.
I believe a few investors with deep pockets pumped money in to create a bubble and many of us saw the price rising so quickly that we panic bought. Then the investors got out quickly (drop from $32 to $17 was within about 24 hours if I recall correctly, BEFORE the Mt Gox hack).
Then the price has dropped steadily back to actual demand. Not sure whether we've arrived there yet or not. Only time will tell.
+1
A better question is probably why did they go up so much. ... a few investors with deep pockets pumped money in to create a bubble ... we panic bought. Then the investors got out quickly ... Then the price has dropped steadily back to actual demand.
Nail, head, hit.
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