Sunday, February 16, 2014

Bitcoin Price at Mt Gox Falls Below $300.00

Last price: $275.76. Prices on other exchanges in the $640.00 range.


9 comments:

  1. Wenzel is so obsessed. He posts the price more often than I check. If a man posted this often about homosexuality in the news, what would you think about him?

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  2. At the end of Nov 2013, it took 1.1 bitcoins to purchase and ounce of gold. Now it takes 4.8 bitcoins to purchase an ounce of gold. Great safe haven.

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    1. Sounds like you've read the book "How to Lie With Statistics". Expand your time frame a few months and you'll get a different result.

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    2. Looking at the the three month price chart at http://www.coindesk.com/price/ and the three-month ago gold price at http://www.kitco.com/charts/popup/au0182nyb.html?sitetype=fullsit, it looks to me like end of November was gold US $1,225 and Bitcoin at US $450 = 2.72 Bitcoiins per ounce of gold. Today is US $1,320 gold at US $590 = 2.23 Bitcoins per ounce of gold. So - Bitcoins are doing pretty well - even against rising gold.

      Using Mt Gox Bitcoin price in mid-February is fallacious - that is not an accurate market price. To see actual up-to-the-moment trading price - and also minute to minute flow of national currencies INTO Bitcoin, see http://fiatleak.com/

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  3. Robert Wetzel - I follow your website daily, because I think that it offers much useful insight. But - your approach toward Bitcoin reflects ignorance and bias.

    Your post in this case is technically accurate - but, due either to ignorance, or desire to mislead - it is deceptive. Selling prices Mt Gox are no longer an accurate representation of actual value.

    As of mid-February, treating Mt. Gox as being representative of Bitcoin exchanges is like treating the health of Eastern airlines, or Pan American Airways, or TWA as being representative of the health of airlines, or the health of Bear Stearns or Lehman Brothers as being representative of the health of the financial banking industry. All these players had their moments in the sun, but - through mismanagement - they all collapsed. That does not directly impact the health of the business sector in which they operated.

    Here is something to look at: http://fiatleak.com/ This webpage reflects currency of various nations flowing into Bitcoin. Pricing displayed for each currency is updated for each and every trade - so the price in each currency reflects the price for the most recent single trade. Watch the Chinese Yuan flowing into Bitcoin. It flows at a rate exceeding US $20 million equivalent PER DAY. That's more than US $7 BILLION per year. Divided by 12,000,000 Bitcoins outstanding - the Chinese trade alone provides a "flloor price" of more than US $600 per Bitcoin.

    You can legitimately challenge/question the validity of the fiatleak.com data - but if that data is correct, Bitcoin itself is quite healthy - notwithstanding any problems at Mt Gox.

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  4. That difference between exchanges doesn't make any sense. What is to stop people from buying from mtgox and transferring to a wallet on a different service and selling at a higher price? Am I missing something?

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    1. That is a very legitimate question. The answer, I imagine, is that you cannot transfer your Bitcoins out of your Mt. Gox account due to "technical issues" or somesuch. If they are being sold on Gox for $253 and $500+ on Vircurex, it is pretty obvious that you would buy on Gox and sell n Vircurex.

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  5. According to the citation at the bottom of the page at fiatleak.com, the transactions that are illustrated on that site are drawn from recorded trades at the following exchanges:

    "Data from MT.GOX, BITSTAMP, BTCChina, BTC-E, Bit2c, Mercado Bitcoin BR, Local Bitcoins, OKCoin, BTCTrade, Huobi China, bitx.co.za, Cavirtex"

    What you need to remember is that at any given exchange, the listed "price" for a Bitcoin is simply the lowest "offer to sell price" that anyone is offering - for what could be one Bitcoin. The next lowest offer - for the second Bitcoin at that same exchange - might be US $300 higher.


    So - if Mt.Gox is showing a price of $253 - and you want to buy 100 Bitcoins, you might find the cost of the first Bitcoin is $253, the price of the second Bitcoin is $300, the price for the next five Bitcoins is $450, and the price for the last 93 Bitcoins is $635 each. I suspect that Bitcoin "inventories" are not high at some (or many) exchanges - and that some do, in fact - operate via arbitrage - buying at other exchanges, to fill open orders, while capturing the "spread."

    "What is to stop people from buying from mtgox and transferring to a wallet on a different service and selling at a higher price? "

    The bottom line is: You are welcome to try that - as is everyone. But - outside of the continual cash flow from China - there is presently not much dependable demand. So - unless you have a way to "pull" Chinese demand to buy from you, you may find yourself sitting on your "Bitcoin bargain" for a long time.

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  6. Ha ha...it just gets better every day. for me, anyway, and not the shitcoin fools. buy gold. keep defending the sinking Titanic that is shitcoins.

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