Topic: The bitcoin price crashes - here's why (Read 4810 times)

Speculators expecting the price of altcoins to go up are likely to get burned at present.

Good riddance.

Speculators are on altcoins now. Bitcoin looks like a pile of horseshit to me.

Speculators are on altcoins now. Bitcoin looks like a pile of horseshit to me.

This is hilarious.  Want to know why bitcoin really crashed?  It's because it's being adopted like crazy, by businesses, but they're only using it as an ATM, not as a currency - in other words, a cheaper way to get money than credit cards.

The other reason?  Speculators.  That's right, speculators.  Speculators have left the building, and that's why the price plummeted.  If there were still a bunch of speculators out there expecting the price of bitcoin to go up, you can bet it would be going up, not down.  It's basic supply and demand.

Sanity will prevail, when speculators exit the trading and Whale hoarders bought up all the cheap coins.  

i was shocked when i saw 200$ price at first, and the first thing that came to my mind was that it might be a good opportunity to buy. but now i am not that sure

i was shocked when i saw 200$ price at first, and the first thing that came to my mind was that it might be a good opportunity to buy. but now i am not that sure

Exactly so.

Right now Bitcoin is shedding the speculative adopters because for them it makes more sense to hold USD while the debt singularity is busy devouring Dollar liquidity.

While this continues Bitcoin will see organic adoption rather than speculative adoption.

The organic adopters are were already in the informal economy, and those who get pushed into the informal economy due to the effects of USD appreciation.

Sooner or later, appreciation of the USD is going to cause financial distress for indebted Americans (statistically speaking, all Americans). As more people get pushed over the edge and end up facing the gamut of civil judgements and their associated wage and bank account garnishments, the fraction of people who need Bitcoin's censorship resistance will increase.

Someone who's facing a 100% garnishment of what little money they have in the bank would do better to have all of that value in Bitcoin, even if there's a potential 90% downside risk. Keeping 10% is better than keeping 0%.

The last time we saw this kind of mass financial distress was 2008, and just like we saw then people will adapt to financial distress by joining the informal economy.

The major difference between now and then is that "cash under the table" income is no longer an option that's restricted to blue collar labor.

The ability to get paid by clients anywhere in the world without moving funds through the banking system means that tens of millions of middle class professionals now have the same opportunity. In fact, the are arguably in an even better position because anyone who produces digital deliverables can now access a global client base.

"The Obama administration’s undersecretary for terrorism and financial intelligence, David Cohen, delivered a speech four days ago that copiously illustrates this point.

Over the past decade or so, one important way that the United States has protected our nation’s core interests, projected power, and exercised leadership on the world stage is through the increasing use of financial measures. Far from just focusing on terrorist financing and money laundering, my office in the Treasury Department is now regularly called upon to help advance a variety of U.S. national security and foreign policy goals. … financial measures have become far more powerful tools of statecraft, and their effects are multiplied in a world defined by economic interdependence. …"

You have to laugh, when you see all these Nay sayers, cherrie picking certian things, to bash the currency.... When it was $1000+ they were the same people, singing it's praise's.

Let's digest 2014

1. it was the year, where HUGE companies like DELL / Microsoft and atleast 5000 smaller merchants in only Taiwon, adopted Bitcoin.
2. Huge amounts of Fed coins were put back into circulation, when it was sold on auction. {Some are kept in storage}
3. Miners are dumping almost ALL coins back on exchanges to be converted to fiat to pay for electricity costs etc.

So the situation now, is this :

We have HUGE amounts of coins being sold for fiat, more than previous years. {Merchants like Dell / Microsoft is definately not hoarding coins}
We have coins being brought back into circulation, which was previously hoarded. {Hoarders buying products from these NEW merchants coming in}
We have Fed coins, perceived as being back in circulation. {Previously, the Fed protected those coins and it was not availlable to the public}
We have a higher percentage of coins being converted to fiat from the miners side. {As the price goes down, they have to sell more coins to pay for the electricity}

The result :

There are more coins availlable, and this push the price down.

The solution :

1. Merchants should hoard some coins, and not convert everything directly to fiat {In the long run, this will increase their profits}
2. People buying coins from the Fed autions, should see this as a long term investment and slowly put them back into circulation.
3. Most difficult option - Miners will have to find ways to reduce the amount of coins, they put into circulation. {What they are forced to do now, will even hurt them more, in the future}

Did you buy in?

Cheers, well best of luck with that bro. Think it's wise to wire funds over just in case, so I'll do that today.

Respect your decision to wait until if/when $135 hits but I think I'm just gonna wait for 2-3 days for the wire to clear and then just buy in at whatever the price is (hopefully it stays around the same/lower) 

It's going to bottom at $135. If I'm right and it hits $135 I'm buying back in for $100k.

Anmd how ironic I told this whole community back in June if someone does not get off their ass and create a demand for this coin it will tumble it will fall, and if someone with 1000s of bitcoins in thier wallet doesn't wake up and do it now those 1000s of bitcoin will be worth pennies. Call me what you want, rationalize this however you want. But for ALL OF YOU idiots on here who do not UNDERSTAND currency trading let me give you somne clues. in order for a currency to hlde true value it MUST have a demand, in order for high dollar investors to really get involved, there MUST be a demand.

It's going to bottom at $135. If I'm right and it hits $135 I'm buying back in for $100k.

I think/hope you are inevitably right - For those that agree - yourselves, like me probably have been in this game for a while and have a nice collection of BTC.

Now, my question is; At what price would you acquire more in bulk? I'm strongly considering investing another 25K and ok buying-in at current price $180