Topic: Why are people selling? (Read 1360 times)

Well I'm agreeing with you basically. I wouldn't put my life savings into it myself. Too risky. But I do think its worth having a stake in it because of the staggering huge potential. Only invest what you can afford to lose. If you invest in a couple of bitcoins, which one day are worth 10's of thousands of dollars you had nothing to lose, and everything to gain.

Because buying 1.000 coins at $8 and selling them at $60 it's still a nice profit a lot of people can use.

It is because people dont want to lose too much or simply want to cut loss. Selliing to make price lower then buy to sell again at higher price

I'm confused. How do you make money without selling?

No matter how bullish, people are always selling.
No matter how bearish, people are always buying.

All markets require buyers and sellers.

Maybe we really were a tad overbought (bubble). Wouldn't be the first time in a market.

Yes, markets are irrational both ways. Pigs get slaughtered.

So now they are selling because of the price implosion

Because of the price explosion.

Why were people buying in first place?

because the people selling now are the people who amassed coins by proxy I think  . once all those get hovered up demand will get pushy again...

I agree on potential but that is not fundamentals to currency.  This is called speculation and is high risk.  Only people who are looking for quick profit or who are fools with their money would put a huge percentage of personal into something like that.  Not everyone can afford to gamble with their life savings and investments.

A good example I use because my family works there and has made millions is Exxon.  They are super conservative yet over the long run always profit and are paying dividends.  We are dependent on their product and there is super low risks.  Apple has a P/E around 9 now like Exxon but, their products change fast and are a huge risk.  One small mis-step and they are screwed.  Exxon can dump oil out and act horrible to the environment and yet they still make money.  They are one of the tightest managed companies on earth and the largest.  Bitcoin is almost the opposite end of the spectrum.

TL/DR - My original point is Bitcoin does lack fundamentals and with high risks expect big swings and price to drop.

Bitcoins is a highly speculative bet in those terms, but the potential is staggering. Electronic money free from central control and low transactions fees, sent anonymously around the planet ignoring borders. Yes staggering. The genie is out the bottle, and growing by 1000's of % per year virtually. These bubbles are growing pains.

Weak hand theory?

Panic induced sales?

Do we really know answers?

Hell no

The fundamentals maybe "stronger than ever" in your mind however, with the MtGox problems they are not in other people's minds.  Also there are huge risks and unknowns with Bitcoin which a lot of investments do not have.  Bitcoin does not have wide adoption either which for most investors is "fundamental".  The last few weeks have proven the currency does not have a stable price which is "fundamental" for investors in currency.  If it was being used and worth more it would not be going down in value.  Stop deluding yourselves.

People buying Bitcoin are doing so based on speculation.  My first thread here asked for how on earth could Bitcoin being going up in price when there are no fundamentals.  Four pages later no one could offer any and all I've seen so far is speculation on top of more speculation and people pretending those things are real and not possibilities.  I'm talking wide spread adoption and usage.  Bitcoin ATM's are supposed to happen however there isn't one working yet nor has it gotten through government regulation.  Western Union was looking at Bitcoin as it was going up in value.  I haven't heard from them since the crash.  Just more speculation.  I last read Silk Road is doing like 22 million per year which is nothing.  Marjiuana alone was a 6 billion dollar industry in the USA before the states legalized it somewhat.  Maybe Silk Road is doing more than that this year?

Its all part of the psychology of bubbles. After the mania comes the fall and a long consolidation. People will sell, but a platform will be established for the next big move up. Just need patience now.

Because the price is going down.
Why is the price going down?

Because the rally ran out of buyers (more selling than buying).

Price isn't based on fundamentals alone. It's a sum of market (=people) sentiment. Right now Bitcoin is a speculation instrument, and most of the market seems to feel that it will drop, so they're selling to cut the losses/earn some profits on shorts/buy back later when it's cheap.

To allow us to buy cheaper coins!

Edit: or they are all smart and buy back in much lower...

I just cannot understand that. Fundamentals are stronger than ever and everyday new businesses accept Bitcoins.