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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Another Hacker Attack?

Also from ZeroHedger;

We’ve reached out to one of the biggest exchanges, Mt. Gox, to see what happened. But another San Francisco-based exchange called TradeHill is saying that the crypto-currency is falling because of apparent distributed denial of service attacks on Mt. Gox and Bitstamp. A denial of service attack happens when an attacker overwhelms a target with external requests, so that it can’t honor regular requests from legitimate users.

This also happened last week when Mt. Gox when Bitcoin reached $142 and hackers attacked the exchange. At that point, Mt. Gox said it had suffered ”its worst trading lag ever.”

The Tokyo-based exchange said last week that hackers are engaging in a strategy to manipulate the price of the currency: “Attackers wait until the price of Bitcoins reaches a certain value, sell, destabilize the exchange, wait for everybody to panic-sell their Bitcoins, wait for the price to drop to a certain amount, then stop the attack and start buying as much as they can. Repeat this two or three times like we saw over the past few days and they profit.”

It looks like this may be happening again. Aside from that, any kind of 400% increase over 30 days is probably unsustainable from a technical point of view. A correction at this point would be healthy and natural.

The biggest weakness of BitCoin is increasingly becoming the exchanges themselves. World governments can destabilize the currency, rather than merely "outlaw it". I think it's world governments that are performing these attacks, btw.

My gold was lagging so bad this morning...

the glittering would freeze for a second, and the weight was all over the place. Terrible. I called my GSP, and they said lots of people in my area were suffering from gold-lag. They said it might be a DDoG.

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

Cool post.

Yeah, I will never use an exchange company. They are not needed.

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

TwelveOhOne's picture

So how do you do it?

I'm wanting to get my feet wet, but coinbase.com keeps saying it's got a 24 hour rolling limit that it hit. For the past couple days, just after I linked my account. I was kicking myself that I missed under 200, then 218, then 240 -- and today I'm glad that their site wasn't working, and that I hadn't signed up at several of them.

So how do you do it? Mining? Localbitcoins.com? Other? Thanks!

I love you. I'm sorry. Please forgive me. Thank you.
http://fija.org - Fully Informed Jury Association
http://jsjinc.net - Jin Shin Jyutsu (energy healing)

Thank you Robert for posting

Thank you Robert for posting this. Let's hope things will be back up and moving soon. I don't understand why people would root for its failure. BTC is a sign of the times and the more alternative currency, the better.

To peace and rebellion!
http://silvercirclemovie.com

so what youre saying is that

so what youre saying is that it has caught up to value of what it was worth like 3 days ago. *shrug*

disclaimer- i own exactly zero bitcoins.

Playing roulette is still a better deal in my opinion..

but what do I know..

my2cents..

www.youtube.com/truefictions

I try to change people every day. Do You?

I would agree...

...at least with roulette you know yours odds.

"Alas! I believe in the virtue of birds. And it only takes a feather for me to die laughing."

Bitcoin came out of nothing,

Bitcoin came out of nothing, it can just as easily go back to nothing. Just like our dollar.

...

Great day for bitcoin!!!

When the crash was happening, there was no way to buy... bit instant would not allow cash deposits because they were overwhelmed with people wanting to buy. It was also impossible to buy any from any exchange.

I was able to buy at 105$!!!

The wealth is simply transferring to more steady hands; people who actually understand bitcoin.

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

If you have owned Bitcoins for a year

Then you are ECSTATIC about Bitcoin's worth in dollars today.

With the price being so volatile, it would seem strange to SPEND BITCOINS right now.

I don't own any bitcoin, but let's say I have 1,000 bitcoin. If it is likely to DOUBLE in value in the next month, I'll be damned if I want to TRADE IT FOR ANYTHING.

So right now bitcoin is just a PHENOMENON and probably cannot serve as a currency today.

Im curious. What is the best

Im curious. What is the best outcome for bitcoin? Lets say it replaced gold or something, and was being used by 3/4 of the population. Anyone know how much a bitcoin would be worth in that scenario?

if it were to be used so

if it were to be used so widely, it would seem to require some differentiation in denomination or be greatly devalued in order to satisfy appropriate demand.

Theoretically,

every bitcoin can be divided into 100,000,000 satoshis. With 12 million bitcoins, that gives us 2100 trillion units, or 21 trillion "microbitcoins" divisible into 100 satoshis. This is approximately the total world money supply, if each satoshi were worth a penny.

That would make each Bitcoin worth $1 million, if it were to totally supplant all forms of money.

However, if you look at my blog, you will see that I don't think this will happen.

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

I hope some good Liberty

I hope some good Liberty lovers are making a mint! that is all that matters.

What goes up.......

Looks like Bitcoin took the escalator on the way up and the elevator shaft on the way down.

Ed Rombach

Buy more?

What's next is probably

What's next is probably what's past: Volatility.

Noone knows what Bitcoins will eventually be "worth." Some are expecting USD 100,000 - $1,000,000 / BTC. While others expect them to disappear and become worthless.

With such extreme uncertainty about their value, exponential growth in the number of people who are aware of them, and a relatively small and illiquid total outstanding amount, nose bleed volatility is only to be expected.

Over time, as experience grows, people's views on their proper valuation will converge; but as of now, we are still in uncharted territory as far as Bitcoin / cryptocurrencies in general, are concerned.

Heck, for all I know, the latest selloff could be due to early adopters needing USD to cover capital gains tax on their Bitcoin holdings before tax day.... Or (putting on tinfoil hat), the IRS drumming up volatility to make sure disgruntled taxpayers don't get tempted by BTC...

Wild, irresponsible

Wild, irresponsible speculation about Bitcoins going to $100,000 and the like are surely notions planted by those heavily leveraged in Bitcoin. I heard the same crap spewed by heavy gold and silver investors here. I expect heavy volatility to continue, but that volatility is actually an opportunity to high-risk/high-reward seekers. As I've said before, once Bitcoin is widely adopted, this volatility will disappear.

The DOW is at 14,800, a record high

DOW is alive and well with FED pumping, bitcoin dumping

=======
RON PAUL 2012

I don't believe those two

I don't believe those two correlate in this case.

I don't know either

But there was an article yesterday on LRC.com about a coordinated attack on bitcoin in the works by the PTB, very timely?

=======
RON PAUL 2012

On the other hand, people who

On the other hand, people who have been in Bitcoin for a while felt a bubble had formed. Even a drop of half keeps Bitcoin at a dizzying level of growth, which should be very attractive to new traders/investors.

Frankly speaking, this was

Frankly speaking, this was only to be expected. Something that rises that fast is destined to go down fast. Still made a tidy profit on BC though.

Anyways, anyone that went into BC thinking there would be no risks deserves to lose their money. As to how the current crash happened, it's either one ruthless speculator pumping up prices on purpose and selling it with large amounts of profit or it´s the bankers that want to sabotage BC.

And regarding the bankers, it´s only inevitable that they will intervene (if they did not do so already). These fellas own more than half the world´s money supply and they managed to do that by controlling the currencies of the world. If you think they are stupid enough to allow something to threaten their monopoly, while they destroyed nations in order to protect this monopoly, I can only say that such a notion was overly optimistic. I suspect they've been suppressing the gold and silver prices as well.

Anyways, this will be a good buying opportunity for people that know what they are doing.

as of this post

as of this post its still up 300% for the month.

I call that an investment opportunity seldom seen in history.
besides... this isn't the first time BTC has seen an epic crash.

What remains to be seen; Are the online shops still going to accept bitcoin. If not, then btc will hit a huge wall since there would be almost nothing to buy with it.

Tools of war are not always obvious. The worst weapon is an idea planted in the mind of man. Prejudices can kill, suspicion can destroy, and a thoughtless, frightened search for a scapegoat has an everlasting fallout all of its own.

"investment opportunity seldom seen in history"

Actually not, there are plenty of pump and dump stocks on the pinksheet.

"Alas! I believe in the virtue of birds. And it only takes a feather for me to die laughing."

as of this post..........

as of this post..........

Typical post pop psychology.

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

do we share a mutual position

do we share a mutual position for a change? :)

BrotherJohnF has been doing excellent analysis on BitCoins

At least in my opinion. Here is his youtube channel.

http://www.youtube.com/user/BitcoinChannel/videos?view=0

At this point I see Bitcoin as a great alternate CURRENCY, but not as a long term store of wealth.

With the volatility which bitcoin exhibits daily...

...it is totally useless as a currency.

"Alas! I believe in the virtue of birds. And it only takes a feather for me to die laughing."