Topic: Why did bitcoin go down? (Read 9054 times)
Ddos and selloff, but it is far from the end.
You know if you look back at the history of ALL the large crashes in BTC, they are all associated with a speculative bubble which is popped by some kind of service-interruption at Mt.Gox. To my knowledge this is the 3rd, the first was Nov 2010, the second July 2012 and now the third is April 2013. This seems to be following a pattern of occurring every 8 months. Which shows that the community has an appallingly short memory.
By definition if a failure in infrastructure causes a panic, it's a panic, not a bubble. Speculative bubbles pop when they reach a point on the supply and demand curves that is unsustainable usually when supply is choked off for some reason. When an external force like a major selloff is the main cause it's a correction, not a bubble. This was nearly criminal negligence at best and intentional fleecing of the flock at the worst by MtGox. I say it's possibly intentional because if their intent was to provide a reliable service they could have added stop-loss orders even if they couldn't fix their server lag issues. The only real reason not to protect your clients with a stop-loss is if you intend to use or allow someone else to use the panic to clean up.
Not just price correction, but also the average for per man.
Which is much better than having an appallingly scrambled memory, as I only recall there ever being a major crash back in July/June 2011, and of course now April 2013. There was certainly no crash throughout 2012, as I waited through most of the latter part of it for a correction that I felt would come, but never did.
You need only go back and look at Mt.Gox history to see the bubble an crash in Nov 2010, it something like 10 cents up to 50 then back down to 20, it also ran for a shorter timer period, just a week from start to finish. In absolute terms a small thing but proportionally its was as large as the other more recent bubbles.
I have never been a Bitcoin investor but I have been a Bitcoin buyer and spender right throughout the period that you state and cant remember anything like what you state, which pretty much means it was just a glitch in the system as opposed to being triggered by either mass buying or mass selling. Bitcoin only really costs 50c or $500, if enough sellers or buyers are accepting those prices. I could go on an exchange with a handful of Bitcoins. I could put in an offer for 50c, and put in a ask for 50c. Therefore, for a brief moment, Bitcoins would be worth 50c. I could do the same in the other direction as well.
Which is much better than having an appallingly scrambled memory, as I only recall there ever being a major crash back in July/June 2011, and of course now April 2013. There was certainly no crash throughout 2012, as I waited through most of the latter part of it for a correction that I felt would come, but never did.
You need only go back and look at Mt.Gox history to see the bubble an crash in Nov 2010, it something like 10 cents up to 50 then back down to 20, it also ran for a shorter timer period, just a week from start to finish. In absolute terms a small thing but proportionally its was as large as the other more recent bubbles.
Because a butterfly flapped it's wings in Hawaii.
Now if only the darn thing wasn't facing south this wouldn't have happened.. You know if you look back at the history of ALL the large crashes in BTC, they are all associated with a speculative bubble which is popped by some kind of service-interruption at Mt.Gox. To my knowledge this is the 3rd, the first was Nov 2010, the second July 2012 and now the third is April 2013. This seems to be following a pattern of occurring every 8 months. Which shows that the community has an appallingly short memory.
Which is much better than having an appallingly scrambled memory, as I only recall there ever being a major crash back in July/June 2011, and of course now April 2013. There was certainly no crash throughout 2012, as I waited through most of the latter part of it for a correction that I felt would come, but never did.
You know if you look back at the history of ALL the large crashes in BTC, they are all associated with a speculative bubble which is popped by some kind of service-interruption at Mt.Gox. To my knowledge this is the 3rd, the first was Nov 2010, the second July 2012 and now the third is April 2013. This seems to be following a pattern of occurring every 8 months. Which shows that the community has an appallingly short memory.
Because a butterfly flapped it's wings in Hawaii.
I thought about it for a while before separating those concepts. A bubble and a correction are different in my book. I think in my opinion when a bubble burst the. Price should go back to the beginning of the bubble. This was not the case. A correction is whe. There's a spike that is not justified and the. A profit taking takes place and the price is adjusted to real values. This is just my opinion and conceptually I could be wrong though.
To me, what happened today was a huge DoS not only against mtgox, but also other exchanges and even bitcointalk! Every site related to bitcoins was somewhat slow.
I think DoS is the bug cause. We need to start isolating the exchanges and the use of brokers could be an alternative.
To me, what happened today was a huge DoS not only against mtgox, but also other exchanges and even bitcointalk! Every site related to bitcoins was somewhat slow.
I think DoS is the bug cause. We need to start isolating the exchanges and the use of brokers could be an alternative.
Hey deathcode old pal!
Just wondering how your exit strategy fared amongst these multiple DoD attacks?
Did you get yourself that motorbike you were looking at?
Some big fishes cashed out I think. 
Pretty sure because of all the price dumping on mtgox. However, there can always be something more behind that.
Most people probably did not buy in at that time, which is why it's a big shocker to people.
Those who know the history are probably not surprised, those who burned their assets in the fire of bitcoin craze probably are.
This reminds me greatly of July 2011, almost to a tee. The only difference is it's so much more massive that I missed the boat on raking in some arbitrage (I didn't expect a jump to > $250). But just as then, huge run up in relatively short period of time, for no reason, while everyone jumping for joy. Then big drop, then medium recovery, then big drop, small recovery, medium drop, etc. until eventually bitcoin was almost worthless. Hopefully the fundamentals are there to support bitcoin at a reasonable value this time, otherwise it might forever solidify bitcoin as just a pump and dump scheme for those with the capital and know how.
Those who know the history are probably not surprised, those who burned their assets in the fire of bitcoin craze probably are.
This reminds me greatly of July 2011, almost to a tee. The only difference is it's so much more massive that I missed the boat on raking in some arbitrage (I didn't expect a jump to > $250). But just as then, huge run up in relatively short period of time, for no reason, while everyone jumping for joy. Then big drop, then medium recovery, then big drop, small recovery, medium drop, etc. until eventually bitcoin was almost worthless. Hopefully the fundamentals are there to support bitcoin at a reasonable value this time, otherwise it might forever solidify bitcoin as just a pump and dump scheme for those with the capital and know how.
I am astonished. What a crap all over around (all forums, portals, FB, twitter etc) ? A "massive crash" ?!
What
! A crash
But we are simply where we all been only ONE (1!) week ago. Just think of it ! ONE week ago.
How many days has passed since we all were sreaming "look ! BTC is already $100+ today !
I deeply believe that all these events has nothing to do with trust/believe in BTC, with the fundamentals of BTC
From the other side - WHAT can you expect, when MtGox, the largest exchange (70-80% market share) has an operation time lag of 4600-4800 seconds !
Grab you calculator and think again of what you got - that is a HUGE 1.2 - 1.5 hours LAG !!!
What king of trade (logical?) can you expect on such a crap system???
And compare this to a advanced FOREX, NYSE automatic trading systems, where serious contenders would not even try their chances, unless their access delay (ping, lag, what ever you call it) is less then 1-2 ms ( mili-seconds, that is)
Think of it.
While you can ( $ while MtGox is stopped for a cool-ff)
What
! A crash But we are simply where we all been only ONE (1!) week ago. Just think of it ! ONE week ago.
How many days has passed since we all were sreaming "look ! BTC is already $100+ today !
I deeply believe that all these events has nothing to do with trust/believe in BTC, with the fundamentals of BTC
From the other side - WHAT can you expect, when MtGox, the largest exchange (70-80% market share) has an operation time lag of 4600-4800 seconds !
Grab you calculator and think again of what you got - that is a HUGE 1.2 - 1.5 hours LAG !!!
What king of trade (logical?) can you expect on such a crap system???
And compare this to a advanced FOREX, NYSE automatic trading systems, where serious contenders would not even try their chances, unless their access delay (ping, lag, what ever you call it) is less then 1-2 ms ( mili-seconds, that is)
Think of it.
While you can ( $ while MtGox is stopped for a cool-ff)
there is nothing that can grow this much in price.
Except for food and water when there is nothing to eat and drink.
Except for food and water when there is nothing to eat and drink.
...and real value where there is just fiat paper monies and IOUs
real value
there is nothing that can grow this much in price.
Except for food and water when there is nothing to eat and drink.
Except for food and water when there is nothing to eat and drink.
...and real value where there is just fiat paper monies and IOUs
This is the second time Mt. Gox crashes Bitcoin.
Should we race for the third wave now ?
$140 is not low ... it was lower 3 days ago...
Until people understand what is happening there will be a lot more cheap coins
Waiting for the bottom to BUY !
Should we race for the third wave now ?
$140 is not low ... it was lower 3 days ago...
Until people understand what is happening there will be a lot more cheap coins
Waiting for the bottom to BUY !
Seems pretty straight forward, bitcoin is blowing up and MTGox can't keep up with demand. Thus it lags and people think the sky is falling. Thanks for the cheap coins last night though.
https://mtgox.com/press_release_20130411.html
https://mtgox.com/press_release_20130411.html
When you have an asset who soars +1500% in a few months you sell it. Bitcoin is not an investment and you shouldn't put all your savings on it.
I think its because it grew way to fast in two days it went from 130 to 240 there is nothing that can grow this much in price.
Except for food and water when there is nothing to eat and drink.
I think this was a correction big time but when you look at the charts you can see the bitcoin is stabilizing and even growing in price again.
It just went up to quick but it will go up again eventually, it isn't a total bubble burst its just because people came to their sense.
Except for food and water when there is nothing to eat and drink.
I think this was a correction big time but when you look at the charts you can see the bitcoin is stabilizing and even growing in price again.
It just went up to quick but it will go up again eventually, it isn't a total bubble burst its just because people came to their sense.
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