Topic: What is wrong with BTC today? (Read 4702 times)

They are pretty much correlated. You can't hedge bitcoin with litecoin.

Thats completely true and there is no doubt. The only real way you can get real cash out of your cryptos is through BTC. Sites like cryptsy trade tons of alt-coins directly to BTC, and not to cash. Its a lot larger network and way easier to cash out through BTC, and even LTC is getting viable, but theres no way you can cash out coins like junkcoin for real money.

Has anybody statistically assessed correlation between major cryptocoins on mid to longterm basis? Is it worth hedging some against another? I heard bitcoin and litecoin are not very well correlated against each other...

It's not gonna get there in two days, but does it really matter? It'll go above and far beyond in 2014.

 The value drops like that because they're pegged to Bitcoin.

Hrm, in 2 days it might be a stretch but Im hoping for at least 800 by then. Maybe my new years resolution is to stop gambling on these things

Bitcoin is over $800 on Gox again now .... and trading isn't that light. Maybe we can get back to $1000 by year end.

An update on bitcoin and litecoin's prices, LTC has hid 25$ and BTC has hit 730$ as of right now when this post was created. In about a week I would assume that the coins will go back to their prices before crashing, and if we can hope that they can rise even higher!

The point being?

Bitcoin Drops 50% Overnight As China’s Biggest BTC Exchange Stops Deposits In Chinese Yuan

As bitcoin goes down, so do altcoins. To say altcoins are bitcoin's bitches would be an understatement

I think DogeCoinGuy said something similar about Dogecoins  .

Says the "TheLiteCoinGuy"...

hehehe. that would make your year I'm sure

the end of bitcoin. thats all. now Litecoin will take its place ;-)

Still waiting for any evidence that Wall St is going to start pouring significant money into bitcoins. Hope it happens. Make a wild ride even wilder

This doesn't explain much as to why prices remain volatile even if you denominate them in, say, ounces of gold (or any other metric for that matter). Yes, financial derivatives of all kinds and speculation do contribute to this instability, but I have reasons why this would not be enough...

I would look at the price of Bitcoin as very irrelevant to long-term success/adoption, other than maybe bursts of media attention whenever an ATH catches interest.

The central economic planning that controls almost the entire world right now is basically a gigantic bubble-creation machine. QE and other such monetary policy strategies throw the rate of return on savings into the negative, and the artificially-low interest rates create an almost endless supply of monopoly money for institutional investors to throw at whatever they can to make some kind of return on money produced by the system out of thin air.

Hence every kind of bubble you can possibly imagine: oil, real estate, stocks, etc. Right now the US stock market is in one of the most insane bubbles in history.

The saving grace on the price of Bitcoin is that most likely, the influx of capital is not coming from those kind of investors with privileged access to the early stages of fiat creation. There is a strong case to be made from the example of China right now that Bitcoin is acting as an escape for savings.

Basically TL;DR: everything in the world is a volatile bubble because fiat has unlimited supply.

The real test of Bitcoin's price is going to be once we reach the stage where all that easy credit Wall Street money pours into Bitcoin. All this price fluctuation right now means basically nothing in the grand scheme of things. However if we make it to that point, and say we're seeing a price of $50k without any kind of very compelling value proposition relating to the infrastructure surrounding Bitcoin and concrete market penetration (at least Forex, money transmission, maybe some POS), then THAT is the point where people need to start crying bubble and dumping their bags.

It has climbed back up several times. The US government cannot shut BTC down, they can only regulate it, and that still isn't going to stop people from using it.

this is the effect of china not allowing bitcoin for commercial use :/