Wednesday, December 18, 2013

Bitcoin Crashing; Off Nearly $700 From Its All-Time High

Bitcoin is now nearly off $700, from its all-time of $1,220,  at $529. Bitcoin was dropping before overnight news that China has banned Bitcoin exchanges from taking new cash. So much for governments not being able to use its heavy fist against Bitcoin.

It should be noted that if the USG deems Bitcoin a threat, it can implement legislation here in the US that will accomplish the same thing as China, the only difference being that it wouldl be done in a less heavy handed manner, though it would accomplish the same thing.

I repeat, Bitcoin is a very dangerous speculation that has no edge that can not be defeated by strong arm government tactics.


  1. Enjoy it while it lasts Robert. The Honey Badger will make you eat crow again soon enough.

  2. More wisdom from the Ostrich School of Economics. "Bitcoin is dangerous, so do not use it". This is no doubt what the 95% of cowardly original colonists in what was to become America said. "George Washington and his rebels are dangerous. Resisting them will cause you to be defeated by government strong arm tactics". Thankfully there were 5% that had some guts. The same is true today, the people with brains and guts are building the Bitcoin services that will change the world and I guarantee you that Wenzel will accept Bitcoin for his services, just like Gary North does right now, despite railing against Bitcoin.

    The fact of the matter is that if everyone in the USA started using Bitcoin to buy things on-line, it would be commercial suicide for Uncle Sam to interfere with its operation in any way. Other countries would be pouring money into e-commerce sites in the USA, using the irreversible, fraud free Bitcoin network as a means of payment.

    No government, with the ability to tax businesses at will, would do anything to stop the flow of money into their coffers. They do not care if that money is conveyed to them via Bitcoin or Brinks.

    This is the future scenario that Wenzel cannot imagine, because he does not understand the history of the internet. Bittorrent changed the way people consume movies. Bitcoin will change the way people move money. There is nothing that the government, any government, anywhere, can or will be minded do about it, once the Bitcoin client is found on every device.

    Just recently, a new plugin for Google's browser has just been released. It is a Bitcoin client. It is free to download and install. If this plugin spreads everywhere, Bitcoin will be on hundreds of millions of computers. There will be no way to stop its spread, just like its impossible to stop people making copies of music and movies online.

    Google might even incorporate it as a default feature of Chrome. Think about that if you can.

    Even without a deep understanding of how the internet works, it should be clear to anyone who can think just how big Bitcoin can become.

    These fluctuations in the price of Bitcoin are irrelevant temporary blips. Trumpeting them again and again is not insightful or interesting....unless you are from the Ostrich School of Economics. Do you see what I did there? "Österreich"... "Ostrich"?!

    1. How are the fluctuations in the Bitcoin price irrelevant if I am using Bitcoin for all my purchases as you advocate we all should do? How can anyone possible use Bitcoin as a medium of exchange if its price against all other goods can fall by 50% in a matter of days? You are confusing its future potential as a medium exchange with the very real, and draconian consequences of using it as such today. No good can ever become a medium of exchange until its price as against all other goods stops fluctuating so drastically and so quickly.

  3. I saw what you did. Wenzel is still clinging to patents, copyrights, and other government fueled monopolies. No surprise he can't see BTC's future success, he thinks those torrent innovations are immoral and illegal. He would have those "illegal" downloaders arrested and prosecuted if he could. And he will even support the Gov. thugs doing the dirty work for him. So no surprise he hates BTC. He will be quite sorry in a few years though.

  4. This will serve to scare the "institutional players" out. Good riddance. Really, what does "China" know about currencies anyway? Their central planners and currency counterfeiters are as clueless as ours. Bitcoin is a big threat to our slave holding class which is liberty in action.If it was not then they would not be taking direct action against bitcoin. The first airplanes did not fly very well, but when they did it changed everything. Encrypted currencies free from the government should be applauded, bitcoin is a good start.

  5. This makes no sense really. I've never seen anyone from China selling anything with BTC. Why would this cause a crash? Just because they happen at around the same time is proof of nothing. I'm failing to see what BTC even lost here. The point of BTC is to avoid the government. A law is not magic. It doesn't just stop people from doing something, it just calls for punishment afterwards.

    Just two weeks ago there was a drop that in percentage terms was equal or slightly larger than this. Did the Chinese law travel back in time and also cause that drop? Faulty logic has become the par for this website ever since Wenzel started railing against IP. Now it continues with BTC.

  6. Wenzel's right. Why would anyone use a currency that had a value fluctuate this wildly?

  7. Hahahahahaha. And here they come...the die hard defenders of shitcoins! Alaska3636 is right, and Ive been saying the same thing all along. Just think of the poor FOOLS that bought shitcoins at $1200. C'mon Honey badger...where are you? What about my bet. Now we know why you wouldn't take that bet! I won't say I told you...ah, screw it, yes I will! I TOLD YOU. HERE TODAY, GONE LATER TODAY. These price swings should make everyone take heed. But it won't. Oh well, I'm off to buy some cheap silver down at the pawn shop.

  8. once the mania settles down then a real discussion can begin about bitcoins' use as a currency rather than a speculative asset...