Skip to comments.Bitcoin bubble may have burst
Posted on 04/12/2013 6:57:14 PM PDT by mnehring
The price of Bitcoins has plunged more than 70% in the past two days, sparking a rush of activity that overwhelmed trading platforms and suggested the bubble in the virtual currency has burst.
Bitcoins were down to $77.56 as of 3 p.m. ET Friday. Prices reached as high as $266 per Bitcoin around 7:30 a.m. ET Wednesday. But the price started to fall through the rest of day and Thursday morning.
At about 10 a.m. ET Thursday, trading was halted on Mt.Gox, a Japan-based exchange that claims to handle 80% of Bitcoin trade worldwide. The price at that time was already at about $123, down more than 50% from the peak.
(Excerpt) Read more at money.cnn.com ...
Gold and silver have also dropped.
I’m ruined. I’ve lost everything. Wait . . . what’s bitcoins?
>>> Wait . . . whats bitcoins?
What does it look like? Do you have pics?
You can’t fix stupid, but it appears the bubbles that industrial strength stupid creates do eventually pop. Just like all the rest.
Its a panacea for people who complain about the imaginary value of fiat currency by creating something even more imaginary.
We need to go back to barter, I want to paid in cattle.
It's a shortened form of bullshitcoins.
That's, like, you know, easier to text in its stripped down form.
Barter makes a lot more sense. Trading actual value for actual value on your terms alone. Plus, nothing to stop you from doing that now. No legal loopholes.
>> I want to [be] paid in cattle
Fair enough, but how do we make change? I imagine that could get kind of gory.
We could make smaller animals change, like three pigs make one cattle. Or 500 chickens equal one cattle. etc.
All I know is bitcoins are a type of online currency used on the website The Silk Road. The Silk Road trades in illicit drugs and all types of products illegal to procure in the US.
Maybe menudo is the small change?
Thinking of investing in chicken coops.
I’m not surprised. A lot of people bought into Bitcoin when it burst into the mainstream, and the price was inevitably going to come back down to Earth. I still think that Bitcoin will eventually become a viable, mainstream currency.
Bitcoins are a virtual currency with key attributes akin to gold.
They rely on a mathematical process which requires a consistent amount of computing power to calculate the next “coin” which is then registered with a central recognized authority. (This like the consistent amount of work required to mine & mint an ounce of gold.) They can be possessed in an anonymous manner assuring no copying occurs. Being based on mathematics, requiring hard work to create, supporting anonymity, and - best of all - having nothing to do with governments, it amounts to viable digital libertarian cash. Maybe hard to believe, but if you learn how it works you will be convinced.
Of late, the value of one bitcoin was about $250. That’s real world money.
Alas, like other hard currencies it too suffers inflation and bubbles. Yesterday the value crashed 70%, reason unclear.
For all the reasons to not like it, know it and get used to it. Just like tablets and e-books and other technologies are suddenly dominating, independent e-cash will someday be viable and commonplace.
They never seem to halt trading when it’s flying to the upside.
I think it is primarily used by druggies.
Bitcoin is gonna shake the establishment like nothing before...
VolatileBitcoin price is volatile
The price of a bitcoin can unpredictably increase or decrease over a short period of time due to its young economy, novel nature, and sometimes illiquid markets. Consequently, keeping your savings in bitcoin is not recommended. Bitcoin should be considered as a high risk asset, and you should never store money that you cannot afford to lose with Bitcoin. If you receive payments with Bitcoin, many service providers allow you to convert them instantly to your local currency.
No, sorry, bitcoins are not akin to gold. Gold is tangible, exists in the real world, and has served mankind as money for thousands upon thousands of years.
Bitcoins are nothing but another fiat currency created arbitrarily in the mind of computer scientists. They have zero intrinsic value (even less than paper currency, because paper at least has some value). The only reason people assign value to them is that some businesses accept bitcoins for payment. However, said companies almost immediately will convert the received bitcoins to dollars, thereby demonstrating that bitcoins fail one of the chief attributes of money: They are not a store of value.
Because bitcoins are not widely accepted, they also fail another test of legitimate money: They are not a widely-used medium of exchange.
And CEO’s and politicians full of hot air and no brains would be paid in what’s left in the barnyard after the cattle are gone.
I want to be paid in coed hookers.
I built one last spring. Took a month, but it turned out to be a regular Taj Mahal. Chickens are cool. We are getting a basketful of eggs every day whether we want them or not. It's fun to give them away to our friends and neighbors. Fresh eggs taste fantastic, especially if you are used to supermarket eggs.
Anyway, the feed mill near us always has a stock of ready-made chicken coops, and they have no problem selling them for $700 to $1,000+, depending on capacity (ie., # of chickens). I recommend you "invest" in one nice coop for yourself.
This type of thinking is so passe. I am thinking of starting a company that will exchange real bitcoins for others gold.
ET - Phone home?