Bitcoin Crashes, Loses Half Of Its Value In Two Days

reply to post by ChaoticOrder


There's no beauty in a fiat currency.

-Peace-

reply to post by eManym


You obviously have never traded bitcoin. If superman has 0.1 BTC and the market price was $1000 per bitcoin, his order would be filled almost instantaneously if he placed his sell order at the market price (he would get $100 for the 0.1 BTC, not accounting for fees).

EDIT: in fact even huge sell orders will get filled very quickly if they are placed at the market price.

One way the state could destroy bitcoin is to put a tax on it as if it were currency. Since the tax authority doesn't accept bitcoin, most people with large amounts would have to dump it for currency fast.

Eryiedes
reply to post by ChaoticOrder

 

There's no beauty in a fiat currency.

-Peace-

First of all, we need to clarify how you are defining "fiat" currency. Fiat currency typically means a government controlled and issued currency. But it can also mean a currency with no intrinsic backing, which I assume is the way you are using the term. But you must keep in mind that there are key differences between bitcoin and typical fiat paper money:

Government fiat: no intrinsic backing, easy and cheap to create, no limit to how much can be created
Bitcoin: no intrinsic backing, difficult and expensive to create, finite limit to how much can be created

Government fiat: centralized monopoly where only banks can create new money out of thin air
Bitcoin: completely decentralized network where anyone has the ability to mine new coins

Government fiat: requires banks and other such entities to secure money and make transactions
Bitcoin: local wallet storage and peer-to-peer transactions which don't go through any banks

Government fiat: extremely expensive and very slow to send international transactions across borders
Bitcoin: little to no fees for any size transaction to anywhere in the world with very quick speeds

Government fiat: can be stolen by the Government or banks if they decide to freeze your accounts
Bitcoin: impossible to access your encrypted wallets or freeze your money for any reason at all

reply to post by ChaoticOrder

You forgot the most important one:
Government Fiat: Controlled by a small group who run the world, manipulate the markets, and make the laws.
Bitcoin: Not controlled by the elite, so will either end up being controlled by them, or made illegal by them.

reply to post by ChaoticOrder


I don't endorse government fiat either.

-Peace-

defcon5
reply to post by ChaoticOrder

 

You forgot the most important one:
Government Fiat: Controlled by a small group who run the world, manipulate the markets, and make the laws.
Bitcoin: Not controlled by the elite, so will either end up being controlled by them, or made illegal by them.

They might make it illegal in the U.S. but that still leaves the rest of the world. Bitcoin is a worldwide currency and they can't ban it everywhere. Plus they'd have to ban all variants of bitcoin. And they don't seem to be attempting to outlaw it anywhere, the trend seems to be that they want to regulate it instead of attacking it. I guess that way they can get their piece of the pie.

Eryiedes
reply to post by ChaoticOrder

 

I don't endorse government fiat either.

-Peace-

I didn't say you did, who the hell would. I certainly don't.

reply to post by ChaoticOrder

China's already working to oust it.
China bans financial companies from bitcoin tansactions

The excuse will be that its being used for illegal activity. So they'll either regulate it into uselessness or make it illegal. Do you honestly think that these guys who have made a mint on charging us interest on fiat currency, who have politicians in their pockets, who can tell them how to vote, are going to just throw their hands up in the air and say, “I give up the bitcoin's here now”. Heck no, they're going to eliminate it or gain control of it.

reply to post by defcon5


See this post by FlySolo for a full explanation of what is happening with China and Bitcoin.

eManym
reply to post by superman2012

 

Most bitcoin trades are for a fraction of a bitcoin and many traders are competing for each fractional trade to convert to currency. Trades occur about every 10 seconds and as the value of bitcoins gets larger, the smaller the fractional trades are.

With the market volume of bitcoin the way it is it would take years to convert one million dollars worth of bitcoins. Its not like here's my bitcoins, gimme the money. The more I research this the more I find its not a get rich quick scheme.

Also, exchanges require a buy and sell order to be exactly the same before a trade will go threw. I'd imagine its a very big headache for most traders.

How can this be true when there are bitcoin ATMs?

reply to post by superman2012


Considering the volatility of bitcoin to cash conversion, I am not sure how those machines could be profitable unless they are offering cash for bitcoin at an extreme markup, which most people would shun. From what I have read there is only one available at a coffee shop in Canada.

reply to post by eManym


It says they charge 3 - 5% for each transaction.
Link

reply to post by ChaoticOrder


BTC is fiat because it's still backed by nothing.
You're gonna tell me it's backed by electricity?
The power goes out it's less than worthless.
Now if BTC were gold or silver backed that might be different...but it's not...so, no thank you.

-Peace-

reply to post by superman2012


I used the bitstamp ATM and they told me it was a 7% fee. After I did the math off my receipt, it turned out to be more like 10%

reply to post by FlySolo


So, taking $100 for every $1000?
How could those machines not be a scam?

-Peace-

reply to post by Eryiedes


I wouldn't go as far to say they're a scam. They certainly make it easy to buy in and cash out opposed to being a bit of a computer geek and some of the red tape involved doing transactions online.

reply to post by FlySolo


If a bank did that to you (took 10% for a transaction) you'd freak...you'd spontaneously have kittens...you'd lose it...anybody would. So, why would you tolerate behavior from BTC vendors that you wouldn't accept from any other financial institution?

-Peace-

Guess I struck a nerve.

-Peace-

reply to post by Eryiedes


The banks screw me all the time. My monthly bank fees are always 50 bucks or more. My monthly bank fee is supposed to be under 30 bucks, get my statement and I've got 22 bucks in ATM withdraws, 27 bucks in regular fees and then I've got another 14 bucks in ( other bank fees). I actually went down the other day and asked what the "other bank fees" mean and was told "double fee" for using my bank card. Merchant fee AND the bank fee where the 22 bucks is supposed to cover that. No kittens last time I checked but that's because I already know the bank screws me. Every time, every month, year after year.

So I paid $3 more for one transaction. At the end of the day it's not really a big deal considering the banksters are making scads of money off you and me.