Why the rapid decline in price? | Bitcointalksearch.org

Cluster2k

legendary

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Quote from: Alik on June 14, 2011, 05:00:03 AM

The 2, or 5 day average values are higher then ever. Keep mining and keep searching for ways to make your bitcoins useful in every day trading of goods and services.

That's a very good point: search for ways to make BTC useful (ie. trade for good and services). So far we have seen one place where it really makes sense to use BTC, and where traditional credit card based facilities fail: Silk Road. Without BTCs being useful for real good and services there is very little to support the current BTC/USD exchange rate. The rarity of BTCs doesn't matter to anyone who does not need them.

Alik

newbie

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Seems too many of you playing this out emotionally. You have to put your emotions aside to be successfully making money especially a youngster like bitcoin. Successful traders on ForEx know they can't trade based on emotion.

All of this "omg i lost money! i baught at 8usd, went up to 30usd and now it's 10usd!" is nonsense. It's very natural and i'm glad to see bitcoin following the organic laws.

The 2, or 5 day average values are higher then ever. Keep mining and keep searching for ways to make your bitcoins useful in every day trading of goods and services.

stic.man

full member

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what about the charts have you worried?

Bit_Happy

legendary

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A Great Time to Start Something!

Quote from: tomcollins on June 12, 2011, 09:43:18 PM

Quote from: kiwiasian on June 12, 2011, 12:11:09 AM

Everyone is saying "oh, it's alright, it's just because the $30 was unsustainable and the market is just stabilizing itself"

...Alright.

Seriously, it's dropped from $32 to $10. Wtf.

What's going on? I'm seriously getting concerned now. I've lost over $100.

100 whole dollars? Shiiiiit! Start looking for bridges to jump off of.

The market dropped to $10 because no one wanted to buy something that was falling. Lots of sellers, few buyers = prices going down.

I was surprised we got to $10.25. the rebound was pretty strong.
The charts are looking sick now, IMO sell now before the panic starts.

bcpokey

hero member

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Quote from: kiwiasian on June 13, 2011, 11:01:14 PM

Quote from: Fakeman on June 13, 2011, 11:45:27 AM

Quote from: kiwiasian on June 12, 2011, 12:11:09 AM

Seriously, it's dropped from $32 to $10. Wtf.

What's going on? I'm seriously getting concerned now. I've lost over $100.

What, so you bought ~5 BTC at $32 and sold them at $10? Maybe this just isn't your thing, nothing wrong with that.

It's called mining, hurp durp.

I mined 10 BTC, which would have been worth $300 but it was then worth $100. So that's actually a $200 loss for me.

Uhm, no you didn't lose jack except for potential USD. So yeah, if I had had money in mtgox and managed to buy when the price dipped to $10 and then sold again when the price was at $24 I would have made $14xhowever much I potentially would have had in the market, so I lost 14 x ?? amount of dollars, that sucks!

On the other side of things, you GAINED $100 for the cost of perhaps $10, so your actual loss was negative $90. Probably even bigger now that its back to $20.

kiwiasian

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Quote from: Fakeman on June 13, 2011, 11:45:27 AM

Quote from: kiwiasian on June 12, 2011, 12:11:09 AM

Seriously, it's dropped from $32 to $10. Wtf.

What's going on? I'm seriously getting concerned now. I've lost over $100.

What, so you bought ~5 BTC at $32 and sold them at $10? Maybe this just isn't your thing, nothing wrong with that.

It's called mining, hurp durp.

I mined 10 BTC, which would have been worth $300 but it was then worth $100. So that's actually a $200 loss for me.

Fakeman

full member

Activity: 154

Merit: 100

Quote from: kiwiasian on June 12, 2011, 12:11:09 AM

Seriously, it's dropped from $32 to $10. Wtf.

What's going on? I'm seriously getting concerned now. I've lost over $100.

What, so you bought ~5 BTC at $32 and sold them at $10? Maybe this just isn't your thing, nothing wrong with that.

claw

newbie

Activity: 13

Merit: 0

Quote from: xlcus on June 12, 2011, 12:02:40 PM

Quote from: claw on June 12, 2011, 08:15:42 AM

It's at 17 right now. Every BTC you bought at 11 has nearly doubled

Nearly doubled? 11 to 17 = 54.5% increase

Yeah, fair enough. OTOH, it did end up doubling. And 54% is a nice gain for nine hours or whatever. I've been giddy all day.

tomcollins

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Quote from: kiwiasian on June 12, 2011, 12:11:09 AM

Everyone is saying "oh, it's alright, it's just because the $30 was unsustainable and the market is just stabilizing itself"

...Alright.

Seriously, it's dropped from $32 to $10. Wtf.

What's going on? I'm seriously getting concerned now. I've lost over $100.

100 whole dollars? Shiiiiit! Start looking for bridges to jump off of.

The market dropped to $10 because no one wanted to buy something that was falling. Lots of sellers, few buyers = prices going down.

AyeYo

full member

Activity: 154

Merit: 103

Quote from: kiba on June 12, 2011, 02:14:29 PM

I don't get the idea of circuit breaker. Other markets would just open up and benefit from the period of circuit breaking.

Circuit breakers only work if the exchange is centralized and/or all exchanges agree to impliment them.

They're a joke anyway. As I said in another thread, if people are going to be concerned with parabolic moves down, then they need to be concerned with parabolic moves up as well. Where are the circuit breakers in the upward direction?

What Bitcoin trading needs more than anything else is the ability to short sell. That would balance markets out a little.

Valalvax

sr. member

Activity: 437

Merit: 250

Price was 8.60

Price went to 30

Price went to 10

OMFG THE MARKET CRASHED OMG!!! (sure price stopped at other prices between)

mmortal03

legendary

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Quote from: Babylon on June 12, 2011, 12:33:21 AM

For people getting into bitcoin this is a good thing.

This gives you a chance to buy more bitcoin at a lower price.

If you were looking for quick profits then not so good, but this is a very risky investment with big potential profits, that risk includes rapid drops.

I would have bought some somewhere around 10 if my transfer from Dwolla into Mt. Gox wasn't sitting in limbo since Wednesday night. Angry

kiba

legendary

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I don't get the idea of circuit breaker. Other markets would just open up and benefit from the period of circuit breaking.

FlyingFlapjack

newbie

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Quote from: Man From The Future on June 12, 2011, 08:13:57 AM

People can't get funds in on weekends. Simple as that, is it not?

Not entirely. After all, why didn't the market crash every weekend if it was only because it was the weekend?

There was also the attention from the US Senators over online drug exchanges, and that one of them closed to new members temporarily and was offline a bit this weekend.

MTGOX also had recent issues with dwolla.

So...those recent issues...the weekend issue you've noted...the psychological hurdle that $30 turned out to be this time around...and maybe a few others?

...

Still...MTGOX should have 'circuit breakers'(I'd guess virtual ones) like the NYSE to shut down trading when there are huge drops.

They might also consider freezing currency fluctuation over the weekends and enforce a 'retail' price for any transactions that would take place.

Jack of Diamonds

sr. member

Activity: 252

Merit: 251

Quote from: stick_theman on June 12, 2011, 11:18:51 AM

As for Berkshire's example, it does look like it's a huge gain, but if you look at it, it's over 20 years, long term. BTC's had a good run for the past couple days/weeks! That's just unsustainable.

I'm glad it came down again, taking a breath around this support level.

Not implying BTC has a long enough history to be compared to BH. I'm saying sharp spikes up or down are not a 'law of nature'. They only happen as a result of market conditions.
A ball that you throw in the air has no recourse but to fall back down.

Hell, I hope the price goes down every weekend as it has done in the past 3 weeks. It's the easiest few grand you'll make in a while.

I'm saying it's not set in stone and thus I'm not counting on it to make constant profits; Hence ultimately relying on mining.

xlcus

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Quote from: claw on June 12, 2011, 08:15:42 AM

It's at 17 right now. Every BTC you bought at 11 has nearly doubled

Nearly doubled? 11 to 17 = 54.5% increase

stick_theman

sr. member

Activity: 372

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Quote from: Jack of Diamonds on June 12, 2011, 11:09:59 AM

Quote from: stick_theman on June 12, 2011, 10:58:48 AM

If it comes up so quickly, it would have to come down/correct. That's the law of Gravity, my friend.

No, gravity is a physical theory. Physical theories have nothing to do with economical theory.

Take Berkshire's stock for example. It has been steadily climbing from ~$200 to $150,000 over the past 20 years while other companies have gone up and down.

My man, these ticker prices are driven by human emotions. If you have violent uptrend, you will get violent correction. There's no two ways about it.

As for Berkshire's example, it does look like it's a huge gain, but if you look at it, it's over 20 years, long term. BTC's had a good run for the past couple days/weeks! That's just unsustainable.

I'm glad it came down again, taking a breath around this support level.

Jack of Diamonds

sr. member

Activity: 252

Merit: 251

Quote from: stick_theman on June 12, 2011, 10:58:48 AM

If it comes up so quickly, it would have to come down/correct. That's the law of Gravity, my friend.

No, gravity is a physical theory. Physical theories have nothing to do with economical theory.

Take Berkshire's stock for example. It has been steadily climbing from ~$200 to $150,000 over the past 20 years while other companies have gone up and down.

stick_theman

sr. member

Activity: 372

Merit: 250

If it comes up so quickly, it would have to come down/correct. That's the law of Gravity, my friend.

claw

newbie

Activity: 13

Merit: 0

Quote from: Cluster2k on June 12, 2011, 07:51:47 AM

If we all can see the price falls on weekends and rises on weekdays, why aren't we all making money by riding the trend?

Indeed. Why aren't you?

Prices fluctuate. This isn't a problem. The problem is that you see it happening and your mind tricks you into believing that it's going to keep happening. You have to override that with reason and the best knowledge you can get. It's at 17 right now. Every BTC you bought at 11 has nearly doubled. That's freaking awesome! Unless you were tricked into thinking it was going to sink without end and didn't buy.

Topic: Why the rapid decline in price? (Read 4378 times)