Bitcoin Crashes, Loses Half Of Its Value In Two Days

I had been warning people that once Bitcoin crosses the devalued gold price that it was time to sell.
Only ONE person listened to me and he's VERY happy.
(He got out when BC was at $1170.00)
The rest of them are still telling me I have no idea what I was talking about and I EVEN heard the one person who listened to me is now being "shunned" by the other BC holders I know.
Strange turn of events...but hardly unpredictable.
This sort of volatility bodes very poorly for Bitcoin as no long term investments can ever be made using it as a currency since it's value isn't stable enough.
I am sure there will be a crowd of BC supporters who will arrive to tell me how wrong I am and why but the bottom line is BC owners were warned this is exactly the sorta thing that could happen.
Now some of them are upset that they didn't listen.
Others are still blowing the digital fiat currency trumpet.
I guess we'll just see who's standing in the end.
Last I heard it was at $576.00 a few hours ago.

www.zerohedge.com...

-Peace-

Maybe it has something to do with this? Then again, maybe not!

China has banned its banks from handling transactions involving the Bitcoin virtual currency.

The ban came in a notice issued by the People's Bank of China, financial watchdogs and the nation's IT ministry. Bitcoins were a "virtual good", had no legal status and should not be used as a currency, it said.

China refusing to recognise its legitimacy will result in the currency losing value, value that is incomprehensible to the likes of us mere observers.

reply to post by Eryiedes


I too pointed out a few threads ago , that it would end in tears.....

I got flamed and bashed..

So now I get say "I told you so"!

/Smug

Sounds like normal market activity in reaction to government intervention(China banning use by banks etc).

Time will only tell if it is a true crash or simply a market cycle(free-markets have ups and downs).

reply to post by Eryiedes

I got out at about $1000 but I bought back in a little prematurely at $750. I'd expect a bit of a recovery on Monday but from there, I'm personally expecting it to trend lower down to maybe $500 for a bit. Litecoin probably down to $14-15. It's not really a told you so moment for the Bitcoin detractors, it's at 400% of what it was at the beginning of October, prior to the recent surge and more than double the previous peak of $266 in April.

You made a profit?

Nothing like a little fear mongering to cause panic. Ahh..

Sell sell sell quick!!!!!!!!111

Wait till the US bans bitcoin too . The US will not let China out do her so that will happen soon.

OrphanApology
Sounds like normal market activity in reaction to government intervention(China banning use by banks etc).

Time will only tell if it is a true crash or simply a market cycle(free-markets have ups and downs).

It's been reasonably stable the past 12 hours. At about 700USD. But it's about time now that it changes when the this time zone affects the rates.

I wish I had the ability to buy at the moment. but to put AUD into btc here is impossible to do in a reasonable manner. Fees up the wazoo and days in waiting.. sigh.

reply to post by winofiend


Every time the media starts proclaiming that Bitcoin is done for, it comes back and doubles or triples in price again. I'm not arguing that it won't eventually fail completely but it's not going anywhere anytime soon, the buzz alone keeps it propped up.

Bitcoin has gotten the attention of Bank of America- an assessment which was published two days ago. Coincidence maybe?

China elites trying to gash it in order to buy in big.
Nothin' to see here.

reply to post by Eryiedes


This market is so speculative there is nothing concrete to go on.

None of you have any idea all you can do is wait.

reply to post by Eryiedes


China is only 1/3 of bitcoin transactions. All that's happened is now they can't pump and dump like they've been doing for the past few weeks and BC is showing its true value. Give it time and it'll be right back up there as before. Just this time not artificially inflated.

Like im some financial expert, what do I know?

The bit coin market is more volatile than a Baccarat table. While a few folks will make some money and buy a Tesla, most will lose. Call me a prophet but I will predict this does not end well but for a small few.

reply to post by Eryiedes


BitCoin is not failing at all like everyone has been saying it will.

Lets me explain :

China has banned their banks from dealing with bitcoin , this isn't a huge surprise China has a lot of crazy rules that the rest of the world does not. So all the Chinese are panicking because they think they will lose trier money. So they are doing anything they can to cash those bit coins into cash. What is most likely happening is they are sending the bitcoins to relatives in other countries who are then cashing then out and sending the money back to China. So quite simply there are being a lot of bitcoins sold at the moment which has driven the price down. Also people in the West are panicking a bit and selling. Once the panic is over and the people in China have stopped cashing out the price of bitcoin will rise again. Especially as its cheaper to buy right now and many people will see it as a good investment.

Anybody who has read my last few threads will know im a big supporter of BTC, when the news came in about china i sold half my coins instantly and now im buying back at a lower price. I have every confidence in the system.

Just give it a few months and everything will be fine again. Its a shame China has acted like they did but there no need to let it bother the rest of us. It will come back as big as ever and all the people who missed this opportunity to buy in while its at a lower price will be hating on it just like always. lol

PhoenixOD
I have every confidence in the system.

Confidence in a system of fiat never ends well.

-Peace-

reply to post by PhoenixOD


I don't hate on it, I simply don't understand it or the market that drives it's value. I am an old school guy who still thinks that money should be earned by ones ideas and effort. Don't get me wrong, I love money and I work hard to get as much as I can. I am about to get a patent on something I am going to sell to 3M.

However, I do not think that money made from the labor of others is near as sweet or reliable a the money one can earn with ones own effort. I have never invested in the stock market, nor will I invest in Bit Coins.
nor will I go tot Vegas and put it all on black.

There is an old saying that you should let your money work for you. I prefer to work for my money.
There is an old saying that says "don't work to hard". I prefer to actually do the work for what I have.

reply to post by Eryiedes


What gave you the warning that once the price crossed the devalued gold price to sell?

What the heck made the price rise so dramatically so quickly anyway?

I bought 4 bitcoins awhile ago because I had no idea what they were or how they worked so I wanted to learn. They were around 35 bucks a piece. I never really followed the market for them until Silk Road was in the news some what recently. I sold for about 150 apiece.

Ive been keeping track of the price fluctuations ever since due to the fact I could have made out with a bit more cash and I just completely don't understand whats driving the market.

reply to post by Eryiedes


I said it here a few months ago and I'll say it again. Two words - Holland, Tulips.

It's not that bitcoin has no value - but like any overhyped currency or commodity, a crash was inevitable. And there was simply no fundamental basis for the ridiculous rise in prices over the past 60 days. It was a mania, just like tulips.

Does anyone know if there's a market for shorting bitcoins? If so, then I would say it has a far better chance of leveling out in a sane fashion. If not - well, you pays your money and you takes your chances...

BTW - on a final note, I believe the world really needs Bitcoin or a currency like it. I hope it will weather this storm and ultimately become a currency that people can believe in, rather than just speculate in.

AltMotive
reply to post by Eryiedes

 

What gave you the warning that once the price crossed the devalued gold price to sell?

I listen to investors in the PM market like Peter Schiff for example.

What the heck made the price rise so dramatically so quickly anyway?

It is primarily caused by the state of infancy that BC is still in. Volatility always accompanies such things.
We may very well see a few more bubbles pop before this ride ends.
I don't like fiat currencies and I don't imagine I ever will...digital or otherwise.
Personally, I am gonna stay with gold, silver, palladium and platinum and demand physical delivery.
I don't do online commerce.
Farmers Markets don't take them.
My landlord won't take them.
My ISP won't accept them.
They aren't accepted in restaurants.
Buses & Taxi's don't accept them.
You can't pay your taxes with them.
They don't buy lap dances.
They are utterly useless to me.

-Peace-