Posted on 12/07/2013 7:34:43 AM PST by markomalley
It was inevitable that a few short days after Wall Street lovingly embraced Bitcoin as their own, with analysts from Bank of America, Citigroup and others, not to mention the clueless momentum-chasing, peanut gallery vocally flip-flopping on the "currency" after hating it at $200 only to love it at $1200 that Bitcoin... would promptly crash. And crash it did: overnight, following previously reported news that China's Baidu would follow the PBOC in halting acceptance of Bitcoin payment, Bitcoin tumbled from a recent high of $1155 to an almost electronically destined "half-off" touching $576 hours ago, exactly 50% lower, on very heave volume, before a dead cat bounce levitated the currency back to the $800 range, where it may or may not stay much longer, especially if all those who jumped on the bandwagon at over $1000 on "get rich quick" hopes and dreams, only to see massive losses in their P&Ls decide they have had enough.
Which incidentally, like gold, is to be expected when one treats what is explicitly as a currency on its own merits in a world of dying fiat - with the appropriate much required patience - instead of as an asset, with delusions of grandure that some greater fool will pay more for it tomorrow than it is worth today. Sadly, in a world of HFT trading, patience is perhaps the most valuable commodity.
As for Bitcoin, while the bubble may or may not have burst, and is for now kept together with the help of the Winklevoss bros bid, all it would take is for another very vocal institutiona rejection be it in China or domestically, where its "honeypot" features are no longer of use to the Fed or other authorities, for the euphoria to disappear as quickly as it came...
Two day chart, showing the epic move from $1155 to $576 in hours:
And longer term chart showing the overnight action in its full glory:
I am starting to eye silver.
Step right up! Spin the wheel...
Personally, I convert all of my reserves into Gold-Pressed Latinum which is useable throughout the Alpha Quadrant.
Man am I glad I put my money into bennie babies, Cabbage Patch Dolls, Tickle Me Elmos and my beer can collection.
Great idea! Will you please share details of the conversion process?
It is all laid out in the Deep Space Nine chronicles. One must study them very intently to gain the secret knowledge buried in them on how to do this. And it also helps to have had contact with Ferengi’s who were trapped on earth after the Roswell incident.
Quark approves!
At least it has industrial value and is accepted/recognized as a PM. The value is right size for bartering and is unlikely to be counterfeited (unlike gold). it is as likely candidate as any. The greenback can be declared invalid by decree of the Fed and demand a switch to bluebacks by whim (whatchagointodo?) in a desperate effort to zero everything out in the event of a worldwide economic collapse. Or a worldwide currency adopted (which idea has been floated for decades).
I sure as hell aint buying stocks at the moment.
If you’re looking to preserve wealth, survival food (nitrogen packed), guns and ammo and silver are likely to remain in demand in the event of a currency disaster. YMMV
I’m stuck with comic books and baseball cards.
OMG lol. I have a friend who latched onto every single craze out there in hopes of making a ton of money. Of course she held onto them and now has plastic storage crates full of CRAP that fills one whole bedroom.
I am trying to stave off the collapse of a 33 year career.
Everything is OK now, but I still have to make a landing.
Got a call the other day from a fellow that got caught in the sequester at age 60.
I smelled a rat all along. Someone made a killing on this and it would be interesting to know who.
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