Here's a thought. Anyone buying bitcoins at these prices? If silver dropped 11% overnight, would you back the truck up? Bitcoin needs price stability to work long term as a viable currency. People have been saying that for a long time, just disappointing that we haven't reached that point yet. The AUD tends to not drop 8c overnight due to currency trading rumours, XBT needs to be a little more robust. Meanwhile bitcoins keep their high volatility speculative reputation.
I don't think I've ever said otherwise regarding price stability being needed. Pretty sure I've mentioned it a few times over the last 18 months. If it was say as stable as gold, that would be a start.
Comparing bitcoin to PM's is like comparing an abacus to quantum computing. Bitcoin as a currency is only a fraction of its functions and capabilities. Using the current market price to determine the value of an asset while the vast majority of people holding the asset have no comprehension of the present and future uses of the asset is foolish. One thing we can be sure of is that the traditional financial system is beyond broken and close to all of its functions are broken by design. You cant deny the network effect of bitcoin and while it is the concept of the blockchain that is the key to this revolution it is bitcoin that is the main player. The sharpest minds from every country around the world are all working on bitcoin. Every university has bitcoin networks all working on this technology and for people to think that it may fail or drop to zero is laughable. Its like millions of band new mercedes benz cars have just sprung up from an ancient egyptian gold mine and the people have gone crazy trading the badges without being able to comprehend the value or function of what it attached to the badges. Its all rather entertaining to me watching how people value and talk about bitcoin.
Bitcoin the "currency" is volatile not because bitcoin itself is unstable rather because its a tiny market. Antonopoulos himself said something that made it easy for me to visualize. He said a currency with 5 billion dollars of liquidity is like a kiddy pool next to the pacific ocean. Every now and then a fat dude jumps in (or out) and things slosh around a lot. Compared to that the USD is the pacific ocean and when a fat dude jumps in nothing really happens. Bitcoin the currency is currently small so exchange rate fluctuations will continue until the markets are large enough and bitcoin is traded broadly enough in market places around the world. Anyone who has even a basic understanding of what the blockchain is knows it is here to stay. Its only a matter of time until this technology takes over the world. The question is. Are you right now willing to risk a large enough slice of your own wealth right at this point in time so that when a whole bunch of fat kids jump in this kiddy pool you come out a winner. Right now there are a whole bunch of fat dudes standing at the top of this hill looking at this little pool. When these fat dudes decide to go it will be one after another and the rate at which this pool fills up will be unbelievable. Bitcoin is here to stay.
Oh wow possibly 18K coins have been stolen https://blockchain.info/address/1L2JsXHPMYuAa9ugvHGLwkdstCPUDemNCf?offset=100&filter=0 click on a transaction and from this wallet they were paying upto 1 BTC transaction fees and the origin of these coins might be form bitstamp
It looks like some people had information about the hack and were making moves before we found out about it on the 4th. All the selling started on the 3rd. The thing is that no one I know who holds a lot of bitcoin seems to give a crap about any of this. In fact most don't even care about short term price changes. Today a friend with a substantial amount of bitcoin said to me "unless something major goes wrong with the block chain itself" he doesn't care.
That's the way I look at it, I don't have tons but I find I am always happier with the investment the least I check it. I'm still sitting in LTC atm anyway, was trading it abit on those pumps before the fall, Wanna trade em for rubles short term but will beat a loss.
Its pretty telling how high the confidence in bitcoin is. Bitspamp have been pretty tight lipped about the whole thing and havnt even come out with all the details yet. It could be much worse than we know so far. But still people are buying BTC and the price is rising... Anyone who has been paying attention knows bitstamp has been shady for a while. When a company of their own accord says to customers AFTER they already have their cash that we need you to identify yourselves or we are going to freeze your funds and hand them over to the authorities then something is seriously wrong. You wont hear anything about that in the media. But it happened some time ago. How much funds did they seize? And why? Its not like any court forced them to. Its like they were in trouble and needed to find a way out. So they said "hey criminals, think you're badasses?" Well watch us just take your funds and be accountable to no one... We are real badasses!
The whole Bitcoin thing reminds me of the movie Casino. A bunch of gangsters and tricky deals that will end up with massive demolitions and a brand new reason for being.
I'm currently shorting bitcoin at Bitfinex. Targets for the drop are looking like 240 & 210 initially before a decent bounce, then it may even go as low as 110-135. I'd be looking to have orders in the 90-150 range - all depends on how much excitement there is at the time. This should be over the coming weeks I think.
