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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Now I have a better measure of your certainty.

If 100% loss of value is a sure thing, there is no gamble.

Free includes debt-free!

So you work for US Dollars, don't you FreedomsReigning

That is a true pyramid scheme

The Red Coats are coming!

Still too high

It was steady around $50 just a month ago. So your investment is only up 200% instead of 400%. That's not the catastrophic collapse you think it is.

?

...

And for the support of this Declaration, with a firm reliance on the protection of Divine Providence, we mutually pledge to each other our lives, our fortunes and our sacred honor.

Exactly...

:>

.
~wobbles but doesn't fall down~

Hyperinflation is when your

Hyperinflation is when your money (currency), though you have the same number of "x", it becomes worth less. Bitcoin just saw a inflation of 50% as it lost 50% of its value.

Stores that accept bitcoins for payment, who do not IMMEDIATELY exchange those bitcoins for their local currency, just realized a 50% loss in revenue in ONE DAY.

A currency that experiencees a loss of value of 50% in ONE DAY is hyperinflation on par with any of the classic hyper inflated currencies most commonly talked about. I'd have to check the record one day inflation rate, its possible that bitcoin just set a record for loss of value in one single day...

In most hyperinflation scenarios people would seek to exchange their endangered currency for something of safety, such as precious metals or a foreign currency that is considered safer than their own. The ones who really suffer are those who continue to trade in the failing currency until suddenly it dawns on them, "its now worthless, nobody will accept them as payment for anything".

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

You have

confused the term inflation.(which results in a confusion of the term hyperinflation) Inflation is the result of an increase in volume of any given currency that ultimately leads to a loss in value of that particular currency when compared to other currencies / prices off goods and services. Hyperinflation is just at an accelerated rate.

What we are seeing with BTC is an overvaluation of the digital currency aka bubble, and the bursting of that bubble. Two totally different things.

I am in agreement with the rest of your statement though.

“When a well-packaged web of lies has been sold gradually to the masses over generations, the truth will seem utterly preposterous and its speaker a raving lunatic.” – Dresden James

"Inflation is the result of

"Inflation is the result of an increase in volume of any given currency that ultimately leads to a loss in value of that particular currency when compared to other currencies / prices off goods and services."

Are you suggesting that this is not exactly what has happened with bit coin?

The increasing prices/loss of value actually requires more than just an increase in volume of a currency. For example in the a currency can be largely increased, but if there is also a large increase in users of the currency there may be no inflation, and the users can even out weight the currency increase resulting in falling prices/increased value in the expanding currency. The currency may go into savings, out of circulation, preventing or postponing the resulting increase in prices (this is likely what is being seen with bitcoin, and "holders" (savers) bring the currency into circulation by selling or to put it another way, buying dollars with their bitcoins.

As an "increased volume of the given currency" (bitcoin) comes out of hiding the result is a loss of value.

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

Yes I am

suggesting that this is not exactly what has happened with BTC. For more BTC to enter the market they have to be digitally mined, and that takes time, the market cannot be flooded with newly created BTC over night.

What is happening with BTC is a bubble, and a correction in regards to that bubble. Bubbles are different than inflation, this bubble was not created by an increase of BTC volume,(inflation) but an increase in BTC demand, two complementary different things.

“When a well-packaged web of lies has been sold gradually to the masses over generations, the truth will seem utterly preposterous and its speaker a raving lunatic.” – Dresden James

I think the problem...

with the comparison is that bitcoins are speculative holdings and not a currency used for economic activity. Nearly identical to buying stock in a company that secretly does not make anything and does not provide any services but has a good marketing/propaganda program to build up hype.

.
~wobbles but doesn't fall down~

Bitcoins have no use.. but silver has many many many uses

this is why i buy silver...

Silver: Supply and Demand: https://www.youtube.com/watch?v=M3uNsEfgZXY

silver supply and demand part 2: https://www.youtube.com/watch?v=2auBA7xaUCk

You should buy and save silver, and buy and spend Bitcoin

Why is nobody understanding this?

Bitcoin gives a system that works in this new economy. Gold / Silver preserve our wealth that backs it.

The Red Coats are coming!

Exactly!

"Money" is the MEDIUM of exchange. It is a convenient way of transferring wealth. I would not store wealth in money. I would use it as a currency, and save in gold / silver / land.

You would buy a bitcoin for a Silver Dollar

And sent that bitcoin to a cousin on another continent which he could use to buy silver locally.

Of couse, if you hate your cousin you would never need it.

Free includes debt-free!

SteveMT's picture

After hours Bitcoin roller-coaster

Think the great BitCoin drama is over? After plunging by over 60% intraday, touching $100 from an all time high of $265 earlier, BitCoin was just getting started, posting a just as epic rebound to $200 in mere hours... before tumbling once more to $125... before rebounding again to $180... before sliding to $140... and so on.
http://www.zerohedge.com/news/2013-04-10/bitcoin-drama-conti...

I think your critical posts

I think your critical posts are actually a good thing. It means you're watching closely and possibly evaluating before you actually decide to commit to trading in Bitcoin. I think you'll do it eventually, but long after the risk and speculation has left.

buy cheap sell high make it crash buy cheap...

it's manipulated.

i am conservative, i like to hold on to my stuff for a long time without worrying.(silver)

Nothing wrong with that.

Nothing wrong with that.

You can make ten thousand

You can make ten thousand percent but can only lose 100%. Take heart.

The gambler's mind...can't

The gambler's mind...can't you mortgage your house and lose more than 100%? Sort of double down, play catch up?

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

Why would it suprise anyone

Why would it suprise anyone who is versed in Austrian Economics that Bitcoin saw a sudden surge in value after Cypress began confiscating money from bank accounts?

When people have reason to flee the fiat currency of their area, whatever they flee into will see a surge in price. Many in the Euro-zone fled into Bitcoin.

Supply and Demand people... lots of people buying, not many selling, what happens to the price of a commodity? It goes up.

Now that the panic is subsiding a bit, the price is coming back down. Big suprise. I say this is the time to buy.

The bitcoin surge was a normal free market reaction to people suddenly changing to their product as an old relieable product suddenly tanks. It isn't like the Boom/Bust cycle of central banking where prices go up because of artificially rigged markets where people are able to borrow money for "specific" goods at far below market interest rates because the Fed is piping money to a lender. Bitcoin's surge was cause & effect/supply & demand as it was ment to be in the free market.

No one is saying put all your eggs into one basket, however Bitcoins are a new player in direct competition with the Central Banking Empire. We should be applauding it and supporting it.

Whats next?

Now I invest, thats whats next.
I love crashes.

Free market capitalism isn't right for America because it works better. It's right because it's free (and it works better).

All I have to say

If you took my advise in Investing this currency and sold when it reached the triple digits and you bought Precious Metals...Pat yourself on the back.

His name is Edward Snowden

What is Capitalism?
http://youtu.be/yNF09pUPypw

www.coinabul.com

www.coinabul.com

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

in other words...if you timed

in other words...if you timed it right, nice job. For the rest of you...have fun holding the bag.

“Let it not be said that no one cared, that no one objected once it’s realized that our liberties and wealth are in jeopardy.”
― Ron Paul

You know what's not going to dump 50% in a day?

Gold. It's not that free market people are rooting for the failure of bit coin (competition is awesome), it's that the free market is at work right now. DDoS for bitcoin is a weakness that doesn't exist for precious metals.

Tu ne cede malis.

2014 Liberty Candidate Webpage:
http://candidates4liberty.com/home.html

2014 Liberty Candidate Thread:
http://www.dailypaul.com/287246/2014-liberty-candidate-thread

Actually...

a couple of hackers in the Ukraine staged an elaborate DDoS on my old silver half dollars. It didn't seem to affect them much, though.

Author of Shades of Thomas Paine, a common sense blog with a Libertarian slant.

http://shadesofthomaspaine.blogexec.com

Also author of Stick it to the Man!

http://www.amazon.com/Stick-Man-Richard-Moyer/dp/1484036417

Haha..

:p

.
~wobbles but doesn't fall down~

It sounds like the naysayers

It sounds like the naysayers want a medium of exchange whose value ISN'T controlled by the free market!

You commies can GTFO!

It has crashed before and recovered to massive levels

This may become the new BTFD (Buy The Forking Dip!) equity equivalent : )