35 votes

Update: Bitcoin loses 50%, what next?; Trading Halted

Is this another flash crash versus a true pump-and-dump?
Trading halted for upgrades 4/11/2013 11:16:
http://www.zerohedge.com/news/2013-04-11/bitcoin-halted
ZeroHedge: BitCrash Continues: Down 40% And Dumping | 4-10-13
Update - see new chart at link -50%

http://www.zerohedge.com/sites/default/files/images/user5/im...

Time to rename it BitCrash... or will it stage an amazing recovery? Alas, for this particular bubble, there are no NYSE circuit breakers nor is there a Federal Reserve-mandated "plunge protection team." And why should there be? The central banks hate all currency alternatives. Firehats: on, especially since the volume is still relatively light.

See second chart at:
http://www.zerohedge.com/news/2013-04-10/bitcrash-continues-...



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Yeah

there is definitely fear out there. That's how markets go.

Unfortunately the majority of people that rushed into bitcoins didn't do so because they fully understood it. They did so greedily. So the market will reflect their feelings, which means steep price rises are possible and also steep drops.

Back up...

to 60's and 70's :p

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~wobbles but doesn't fall down~

;D

COME TO PAPA!!!

"We’ve moved beyond the Mises textbook. We’re running in the open market." - Erik Voorhees

"All over the place"...

should imply that some exchange prices are higher than MtGox.

They ALL lag... by more like 40% (the 30% I quoted was just a quick eyeball estimate). The other major exchanges were sinking in tandem (but not MtGox) and... BAM!!! .... MtGox calls a banking holiday exclaiming, "whew! we're tired and need a nap".

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~wobbles but doesn't fall down~

thank you weebles...

You are doing the bitcoin economy a huge favor.

Seriously man, I admire your continual skepticism.

People like you are what are going to fortify the bitcoin economy... Yeah, you are absolutely right in that mtgox has too much power (as well as the other top exchange companies).

We need to keep it P2P decentralized Like IT was designed to be.

(It is, I believe, either lazy or new/ignorant people that flock to mtgox) There are plenty of alternatives (I have never personally, and will never use an exchange company- and If I ever have to for some outstanding reason I would not use any of the most used.)

As for me I am pushing on to better the bitcoin economy, I am not going to go back to ben.

The only currency I feel uneasy about holding is FRNs.

I love Gold, Silver, and BitCoins each for its unique features. And I have noticed that they all complement one another where the other lacks...

Thank you Weebles... I hope bitcoiners take our concerns seriously and leave mt gox for good and exchange companies whenever possible.

"We’ve moved beyond the Mises textbook. We’re running in the open market." - Erik Voorhees

You're welcome...

glad I can be helpful. :)

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~wobbles but doesn't fall down~

Cracks me up how many folks

Cracks me up how many folks still measure the value of a currency in FRN's LOL. Oh my god it only takes half the pieces of paper it took yesterday to trade for BTC the sky is falling the sky is falling... Sigh

-----
End The Fat
70 pounds lost and counting! Get in shape for the revolution!

Get Prepared!

The value of gold

is not because it actually has a value, but because people use it to store wealth. Gold is pretty much useless except for making some pretty jewellery and few technical applications. If no one used it to store wealth, the value would be much lower. Same as bitcoin, because it's a reliable form to store wealth, it has as much intrinsic value as anything else. It's based on it's scarcity and how easy it is to use as a currency. Nothing has value except the value of it's demand and supply. Dollars have value because people demand them and use them to store wealth. However, you have to trust a central bank to trust the dollar system, to have faith in this institution much believing in the institution of organised religion- you have to give away your power. However, with bitcoin there is no institution to believe in, you have certainty that the supply will increase at a set rate and then stop and no one can change that. You don't have to believe in any central banks. You also don't have to feel guilty that children in africa are being exploited to mine your gold. Sure it's not physical, but that doesn't mean it's not real.

400+ tons...

of gold are used annually in industrial applications (approx. $18 BILLION). What is the industrial demand for bitcoins?

Five times that amount is used for jewelry every year. How many necklaces and rings are made out of bitcoin annually?

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~wobbles but doesn't fall down~

ridiculous questions..

...

"We’ve moved beyond the Mises textbook. We’re running in the open market." - Erik Voorhees

It's humid and rainy today...

yuck :\

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~wobbles but doesn't fall down~

A stable currency is also

A stable currency is also desirable. If the value drops by 50% in a single day, acceptance becomes questionable. A merchant who has a choice of accepting 2 currencies is more likely to accept the one that is more stable. If no one will accept the currency for trade, then the currency is worthless.

Anything can be used as a currency. Oil can be used, but it is a poor choice to use something that is consumed as currency. Metals are not consumed but merely traded. They have thousands of years of proven acceptance as currency. The "theory" of bitcoin may be great, but acceptance is the final arbitrator of its validity as a currency.

----------------------------------------------------------
"Ehhh, What's ups Doc?" B.Bunny "Scwewy Wabbit!"E. Fudd
People's Awareness Coalition: Deprogramming Sequence

Silver is consumed.

Silver is consumed.

Finding Equalibrium

You are right. Stability is a huge part. I am reserved about charging clients in BitCoin because there is no stability... yet! I am confidant that BitCoin will come into its own. It will stabalize... Be that $5 or $500. I don't care either way. Once it is stable, I will use it!

Mt. Gox said it was due to

Mt. Gox said it was due to unprecedented trades. They are getting 20,000 new members per day. Their trade engine froze and the system lagged and people panic sold. That is what they say - if so, this was not the bursting of a bubble.

90% off sale tomorrow.

90% off sale tomorrow.

RUDE AWAKENING!!!

From Mt Gox:

Hi everyone, just a quick update on the situation and what happened last night.

First of all we would like to reassure you but no we were not last night victim of a DDoS but instead victim of our own success!

Indeed the rather astonishing amount of new account opened in the last few days added to the existing one plus the number of trade made a huge impact on the overall system that started to lag. As expected in such situation people started to panic, started to sell Bitcoin in mass (Panic Sale) resulting in an increase of trade that ultimately froze the trade engine!

To give you an idea of how impressive things were here are some numbers that we would love to share with you guys:
- The number of trades executed triple in the last 24hrs.
- The number of new account opened went from 60k for March alone to 75k new account created for the first few days of April! We now have roughly 20,000 new accounts created each day.

Due to these facts we have been busy working on improving things since last week and our team has been working around the clock to improve Mt.Gox to catch up with the demand. We will continue to release several updates today and in the coming few days to improve our system overall performance.

Also please note that we may have to close the exchange for two hours in the next 12 to 24hrs to add several new servers to our system.

Thank you for your understanding and continuous support!

https://www.facebook.com/MtGox

"We’ve moved beyond the Mises textbook. We’re running in the open market." - Erik Voorhees

What happened today was due to normal trading volume.

What happened today was due to normal trading volume.

We shook all of the weaklings off!!!

Wealth got transferred to more intelligent hands!!!

This was only a bear trap.

(eat your heart out haters!)

"We’ve moved beyond the Mises textbook. We’re running in the open market." - Erik Voorhees

... AND...

I Bought bit coins at today's LOW!!!

--> 105$$$

(get off ma nuts-haters!!)

"We’ve moved beyond the Mises textbook. We’re running in the open market." - Erik Voorhees

surge in DEMAND!

http://www.dailypaul.com/281462/bitcoin-volatility-caused-by...

Bitcoin's roller-coaster price swings on Wednesday were caused by an influx of new buyers and software that couldn't keep up, according to the largest exchange, Mt. Gox.

People trading bitcoin on the Tokyo-based exchange saw its price hit US$266 at one point, then fall to as low as $105 with high lag times for trades. The surge in interest in bitcoin has overwhelmed Mt. Gox...

"We’ve moved beyond the Mises textbook. We’re running in the open market." - Erik Voorhees

Surges in demand...

cause dramatic price drops?? :p

~scratches his head while flipping through his econ 101 textbook~

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~wobbles but doesn't fall down~

read

http://www.dailypaul.com/281462/bitcoin-volatility-caused-by...

"We’ve moved beyond the Mises textbook. We’re running in the open market." - Erik Voorhees

It will lose 100% of its value.

"Nothing" always finds its true value.

Until then, it is what it is; a pyramid scam, a means to profit off another persons loss.

How so?

I am all ears. If it is a pyramid scam, I want to understand how it is so. I am sure the government will call it such.
If I understand pyramid schemes at all, someone at the top is reaping the benefits at the cost of those below. If so, how does that apply to bitcoin? If not, what do I not understand about pyramid scams?

In a pyramid scam, more than one person profits

You're implying that in a pyramid scam only 1 person benefits from all those below. That's not at all true.

Let's look at a classic pyramid scam; "the gifting club". In a gifting club is it only 1 person who profits off everyone elses loss? No. Those who were already part of the scam profit, not just one person.

In a pyramid scam, showmanship equals profit for those who are already a part of the scam. That's why the Daily Paul is now filled with wannabe P. T. Barnum's. The profit comes from newcomers investing in the scam. You profit at their expense. They view Liberty mided people as the suckers they need to fund their pyramid scam.

Until we start arresting these BitConners, there will always be somebody who's claiming BitCoin is more than a just pyramid scam and that it has value, even if it's less than 1 penny. How much would you invest in order to pretend you're innocent and BitCoin was never just the two bit scam it was?

I say we use racketeering laws to shut down these con-men. I have no problem using force and taking a conman's liberty.

Ok

I concur... it is not just the one at the top that benefits. Fair to say the one's at the end of the line / utter bottom of the pyramid, are the "losers". In that case, the ones at the bottom got no value for their purchase, and that only the ones above them got benefit. Would that be about right?

How much are you willing to bet?

Talk is cheap.

Free includes debt-free!

I don't participate in Pyramid scams, nor do I gamble.

If you're looking to make a profit, may I suggest you look into the wonderful things happening in ByteTurd? You'll be "making money" hand over fist, and through good honest labor for once rather than a pyramid scam or gambling.

You're welcome to think of it as a gentleman's wager though?

The only question is how long can a pyramid scam sustain itself? In a world filled with confidence men who are willing to invest vast sums of wealth to get their prey to accept that poker chips are money, I'd say this Ponzi scheme still has a lot of life left.

Don't worry. I'm sure you'll be back to selling a the scam before you know it, and you can put this whole crash behind you. You can say it was just a blip on the radar while you pretend you won the wager.

I like your confidence

I like the confidence with which you speak. I would like to be as confident in the truth that it is a pyramid scam as you are. Can you explain it, or direct me to sources with the explanation? I'd be grateful. Cheers.

Why do people line up for the

Why do people line up for the slaughterhouse with regards to the dollar, sit on their life savings by investing in dollar-tied assets?

And their only problem with a currency like BTC which is independent of artificial manipulation is that it is not a commodity-money.

BTC is proof that, although hiccups in value due to tech issues can be occasional, fiat currency CAN work when not manipulated by neokeynesian, globalist, psychopathic pieces of crap....