Would be interesting to know what kind of money this guy has got as a reserve given it is widely believed he is a teenager.
Usually 6 digits in USD and 5 digits in Bitcoin.
but not now, huh?
now you have 0 digits in USD probably.
Topic: Why bitcoin is currently (Jan 16th) crashing and why it may continue - page 4. (Read 5951 times)
January 16, 2012, 11:31:30 AM
Usually 6 digits in USD and 5 digits in Bitcoin.
but not now, huh?
now you have 0 digits in USD probably.
January 16, 2012, 11:30:04 AM
Would be interesting to know what kind of money this guy has got as a reserve given it is widely believed he is a teenager.
Usually 6 digits in USD and 5 digits in Bitcoin.
January 16, 2012, 11:27:41 AM
As you probably know, the "Bitcoin for Dummies" episode was a huge success. Many people are searching for bitcoin and many people are buying bitcoin. Because of this, many people are trying to buy on Bitcoinica. Too many people are trying to buy, so Bitcoinica ran out of reserve.
The way Bitcoinica works when it is in no reserve mode is this:
-if you are neutral (not short, not long), you can ONLY sell
-if you are long, you can ONLY sell
-if you are short, you can buy and sell
This leads to the strange paradox that when so many people are trying to buy, the price will fall.
This is new.
When we went from 2 to 7, Bitcoina did not allow people who were shorting to close their position (by buying), so we had the opposite problem -- when so many people wanted to buy, the price rose EVEN FASTER. This was because people who had short positions had no choice but to be liquidated, forcing the price up.
Despite there being so much support for Bitcoin right now, we may actually see prices drop faster and faster.
The way Bitcoinica works when it is in no reserve mode is this:
-if you are neutral (not short, not long), you can ONLY sell
-if you are long, you can ONLY sell
-if you are short, you can buy and sell
This leads to the strange paradox that when so many people are trying to buy, the price will fall.
This is new.
When we went from 2 to 7, Bitcoina did not allow people who were shorting to close their position (by buying), so we had the opposite problem -- when so many people wanted to buy, the price rose EVEN FASTER. This was because people who had short positions had no choice but to be liquidated, forcing the price up.
Despite there being so much support for Bitcoin right now, we may actually see prices drop faster and faster.
As soon as some of the longs are liquidated, those of us who still have some margin held back will catch the knife... I've still got a small long, but I dropped quite a few above 7 so I'll happily stock back up.
January 16, 2012, 11:25:40 AM
Would be interesting to know what kind of money this guy has got as a reserve given it is widely believed he is a teenager.
January 16, 2012, 11:22:57 AM
As you probably know, the "Bitcoin for Dummies" episode was a huge success. Many people are searching for bitcoin and many people are buying bitcoin. Because of this, many people are trying to buy on Bitcoinica. Too many people are trying to buy, so Bitcoinica ran out of reserve.
The way Bitcoinica works when it is in no reserve mode is this:
-if you are neutral (not short, not long), you can ONLY sell
-if you are long, you can ONLY sell
-if you are short, you can buy and sell
This leads to the strange paradox that when so many people are trying to buy, the price will fall.
This is new.
When we went from 2 to 7, Bitcoina did not allow people who were shorting to close their position (by buying), so we had the opposite problem -- when so many people wanted to buy, the price rose EVEN FASTER. This was because people who had short positions had no choice but to be liquidated, forcing the price up.
Despite there being so much support for Bitcoin right now, we may actually see prices drop faster and faster.
The way Bitcoinica works when it is in no reserve mode is this:
-if you are neutral (not short, not long), you can ONLY sell
-if you are long, you can ONLY sell
-if you are short, you can buy and sell
This leads to the strange paradox that when so many people are trying to buy, the price will fall.
This is new.
When we went from 2 to 7, Bitcoina did not allow people who were shorting to close their position (by buying), so we had the opposite problem -- when so many people wanted to buy, the price rose EVEN FASTER. This was because people who had short positions had no choice but to be liquidated, forcing the price up.
Despite there being so much support for Bitcoin right now, we may actually see prices drop faster and faster.
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