Thursday, February 13, 2014

The Price of Bitcoins Breaks Below $500

Last trade: $492.01



There will be dead cat bounces from time to time, but this cat is dead.

14 comments:

  1. Only on Mt. Gox.

    But still, not very encouraging. $500 was a resistance point. Next stop 200, then 100, then 50.

    I don't see how it won't drag BTC down on the other exchanges as people panic to get their $ out of Gox, but maybe I'm missing something.

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  2. "By 2005 or so, it will become clear that the Internet's impact on the economy has been no greater than the fax machine's." - Paul Krugman

    File under epic declarations that haunt economists.

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  3. BTC is not the Internet.

    The Internet is piled miles deep with the bones of failed start ups.

    Absent state promotion via force, I don't see BTC surviving. Ripple looks far better to me as a transfer payment scheme, and there are a slew of new crypto$ waiting in the wings that don't use the BTC software.

    Unless the state declares it fiat, the odds are it will almost certainly become the Myspace of crypto$.

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    Replies
    1. Again, ignorance. True that it is not THE internet. Just like planes were not cars but still helped out as a means of transportation. Bitcoin is exactly like the internet. It is a protocol. Just like http.

      Crypto-Currencies will also be piled up with failed start-ups, but Bitcoin has the best chance to not be one of them. Want to trade back the internet for all those failures?

      Jesus, I feel like I'm taking crazy pills around here. Don't you people read books? First, you've got to get mad!

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  4. Was debating whether to bother commenting or not. Bitcoin is NOT A STOCK! Mr. Wenzel would you mind at least backing up your posts with logic?

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  5. This is one fucked up market.

    http://bitcoincharts.com/markets/currency/USD.html

    Clearly, no ability to arbitrage Gox with other players. Yikes. That ain't a market!

    And look at the bid/ask spread on Localbitcoins! Seriously, how the fuck does THAT happen..!?

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    Replies
    1. If those things freak you out, you've never been that close to real markets before, or not really paid attention to micro ones in your own life. Sometimes a sandwich is 4$ at one store and the store right next door is selling the same sandwich for 5$, OH THE HORROR! Large spreads in thin markets is NOT weird.

      Also, research why those phenomenon exist and then maybe you will realize your ignorance about BTC.

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    2. (To Anon @ 1:38) Dude, I'm not anon @ 12:30...but you are talking about a current bid/ask of $1038/$444.

      First, your example to be even relevant numerically, you'd have to a $4 sandwich compared to a $10 sandwich.

      Second, trying to compare apples to oranges, or a tuna salad sandwich to a ribeye steak sandwich using your poor example, you failed right out of the gate. You just showed everyone here how ignorant YOU are when it comes to "real markets".

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    3. LOL.. Comparing the spread in a $4 sandwich to(what some people are trying to say) the spread in a currency? These types of people are the ones buying bitcoin.

      Bitcoin will be laughed at in a few years as people say "Anyone remember bitcoins?"

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  6. You underestimate the Honey Badger of money - like everyone before you who has predicted its demise during the last half dozen stress tests. Time will tell, bitcoin is anti-fragile.

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  7. Yes, the argument that Bitcoin will be supplanted by other cybercurrencies nonetheless concedes an important point: that will happen because and if Bitcoin is the right sort of thing. The way forward for people who want to be free and who want that preference reflected in their ways of doing daily business. Bitcoin may indeed succumb to the classic curse of early adopters. Still, that means that the argument over principle is over, and Bitcoin won.

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    1. "Still, that means that the argument over principle is over, and Bitcoin won. "

      Do you thinking "winning" means a virtual currency that is not anonymous and has similar transaction fees to Paypal, VISA, etc?

      Yea, if you think the principles of "Napster" won, I'd say check your premises.

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  8. Musings again from the idiot gallery. Thanks Rob!

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  9. Mr. Wenzel, Would you be so kind as to specify in what possible worlds you will concede that Bitcoin has succeeded? What would Bitcoin have to do to satisfy you?

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