Topic: Will the bubble burst? (Read 4922 times)

+1

If its a bubble then it certainly has not yet reached its maximum. The down fall lately of 200$ or so is already recovering and in a few days maybe weeks everything will be reach a new highest level - I think.

Personally I'm of the mind that, even if something's a bubble, you might as well take advantage of it while you can. Got something you want? Better order now.

First of all, see my post right before yours, which deals with the issues you have.

1. As I say in my post - more crypto currencies would reduce risk manipulation and sabotage. There will always be speculation.

2. May happen, but I think it may be difficult, unpopular and possibly against the law.

3. If a better cryptocurrency gains terrain, it will be a slow process, but sure, bitcoin may not stay on top forever. I changed some of my bitcoins into litecoins, because I believe the little brother has som interesting advantages.

I have three problems with investing in bitcoins. Maybe someone can sooth my concerns.

1) I understand that bitcoins are limited in number. However anybody can make an alternative cryptocurrency (like litecoin). At the moment bitcoin is the most liquid as it is supported by all exchanges (like mtgox). However once mtgox supports litecoin it will become just as liquid. As it has the same functionality why wouldnt speculators pour into the "cheaper" litecoins once they can be easily bought over mtgox. Also why wouldnt miners start mining more litecoins, when it becomes more profitable than bitcoins. Lastly once the price is bid up, why wouldnt stores also accept litecoins.
Therefore a potentially unlimited number of cryptocurrency could be competing for available purchasing power. I understand the concept of first to market, however once litecoins or other good cryptocurrencies become as easily tradeable (over metgox) as bitcoin wont speculators speculate on them becoming as valuable as bitcoin. Why would the first to market concept and networking effect stop this dynamic.

2) Once bitcoin becomes a generally accepted medium of exchange, wont governments make it illegal to trade bitcoins with prison sentences waiting for anyone who tries. Wont this cause bitcoin to collapse in value.

3) There is always the possiblity that a better, more innovative cryptocurrency comes to market leaving my bitcoins worthless.

Diclosure: I own a substantial position in silver miners and like gold as well as silver. I am a follower of austrian school of economics. I hate fiat currencies and maybe want to buy some bitcoins in case they overtake gold as a medium of exchange. However I still have the concerns mentioned above.

Interesting thoughts - thanks! You are touching what I believe is bitcoin's major threat. The 'money-masters' of today will always be able  to crash the system, manipulate it or take ownership of it. It is predicted in this brilliant article: http://www.naturalnews.com/039850_bitcoin_bubble_crash_globalists.html

So how to hedge against that? I worry for bitcoin's weakness to withstand attacks from central bankers and large financials as JPM and GMS. And they will attack, I predict, each time the volume rises enough to appear threatening to the system. One way out of it can be if many different cryptocurrencies flourish, so that the point of attack becomes more obscure. I really wish hope some smart people can figure out a solution to this problem.

The price rise of Ripple relative to bitcoin may have been caused by recent news that they closed the round of angel VC. It hasn't really gone up much (yet) versus USD. What are the prospects of Ripple going forward? That's the $64 million question.

The price drop over the last couple of days was nothing compared to what happened earlier in bitcoin's history when it went from 30-ish to around 2. If bitcoin can survive a 93.33% price drop, it can survive going from 260 to 55...

I think there is still enough enthusiasm and support for Bitcoin that it will continue to do well for quite a while yet. The price is back up to where it was a few weeks ago and seems to be holding steady, so I think the worst is over for now. Whether Bitcoin will last longterm is of course unknown to anybody, but I see no reason it won't keep chugging along in the short-term.

I think the next bubble might be in XRP ( ripples ), they seem to have doubled in price in the last few weeks

Just wait until Spain and Italy go the way of Cyprus, there will continue to be more bubbles and bursts.  There are people who will actually need to send their money out of their country without their government knowing it.

I bought 2000BTC back in May 2012, part sold all the way up to $200, where I sold the remainder. Netted me a decent return hehe.

just joined to say that - im off now to house-hunt (seriously!)

oh, and to get the notaried/apostilled docs off to mt gox so they can give me my fcking money!!!


bye all.

The bubble will burst. Not because this isn't a feasible idea, but because greed based on speculation alone will keep the trust level at a very low level.

I expect there to be ups and downs until the currency gains broader acceptance amongst merchants. It will take a few years to develop, but I say hold on to those BTCs and accumulate as many as you can! I wouldn't be surprised to see BTCs hit 1k or even 10k at some point in the future.

I must thank the bank for their crappy service saving me from the the bear slide!

I'm sure this has been said before, but the amazing thing here is that we are still in the infancy of cybercurrencies and as bitcoin gets harder to mine, and more attention stokes demand, the price will ultimately go up. yes, there's a lot of volatility now, but that's just because the market is still in it's infancy.

Hang onto your BTC for 5+ years and you'll make a killing. My opinion.

Seeing ppl at work stopping to actually work and speaking only about bitcoin...... i just hope the market will stabilize soon productivity will rais and will be able to use bitcoin again in more calm way

At what value would you place the mean?

Read the news man coinsetter.com The legit exchange is on it's way will be here in no time.

Pop!

  It seems the current problem with BTC and what's driving the price down is a loss of faith by the public in general in the currency which is due to the inability the brokerages have shown in being able to handle a huge amount of trade.
   They've discovered that it's not water tight and everyone but the hardened speculators want out before the thing goes back to 13.85 where it started this climb back in February.
   It's a pity that these 'one man band' operations have created a titanium needle for their bursting of the 'bubble' since it could have been strong enough to withstand the sudden global surge of investment capital that it was raising when it 'blasted off' in value two weeks ago,
   The major brokers were so swamped they couldn't handle people's requests for funds and this was perceived as as failure. probably true given the Ddos attacks on Mt.Gox and probably the same on nearly every other exchange worth mentioning, all of which showed themselves as just a bunch of amateurs.
   'Mt.Gox has utterly proven itself a mountain that doesn't really exist even in cyber space, they couldn't get the rocks piled up quick enough to stand above their circumstances. The first part of this statement is ironic, since the subconscious psychological image presented by the term 'Mt.Gox' implies that it has the nature of a summit, an impenetrable stronghold and some sort of fortress composed of a mountain (implied to be 'golden' from the first two letters of the word 'gold' and the letter 'x' added to denote an exchange. How very far from the truth this now looks.
   The future place that BTC will inevitably hold in the global economy can only be achieved when the so-called major players in BTC brokerage can prove they're technically up to speed and as safe as an actual physical oz of 99.999 gold when 10 billion dollars appears in their bank accounts from  buy order investors and in a day they can process 20,000 new account orders and still get a lunch break.
   Obviously, these days are not here yet and it leaves me to ponder this question, did the well conceived, concerted Ddos effort to quash the exchanges abilities to cater to the needs of new buyers occur in order to deliberately devalue the BTC and cause it to slide out of public favor and, was the source of these attacks not so much 'rogue' forces attempting to deliberately manipulate markets to make for themselves a shady profit, but some high level hacking by those administrations within the G8 who saw the potential for the BTC as a new alternate currency over which they had no real power?
   Perhaps inside the TOR network might be the safest place to put the next 'Mt.Gox'? That is, if the major banks of the world (in partnership with the G8 and under a contract with clauses where the ownership of BTC is regulated to include full and open disclosure to those governing bodies of the identities of those who are purchasing BTC and also with the inclusion of equally mandatory, conditional requirement to allow the tracking of the detailed market movements of every BTC)
   I wonder if they aren't already arming their IT departments amd the world's largest supercomputer to assist in vending the BTC as the future 'media ordained' 'safe' brokers and take full advantage for themselves of this inevitable slide away from the world's ever crumbling hard currencies?