Bitcoin mining
- Thread starter MrBlobby
- Start date
Soldato
It does, doesn't it. I think that's very interesting; I assumed once it started to crash, it would continue until it reached the previous stable level. It's good to be wrong.
It's a deflationary currency with limited/finite supply, which is heavily manipulated as over 50% of all supply is held by around 2,000 accounts (not people, as multiple accounts are allowed).
Anyone who buys in it is naive and lacks basic economy/finance education, and he will pay dearly to acquire it.
It will be constantly manipulated with peaks/troughs to make money for the manipulators.
Anyone who buys in it is naive and lacks basic economy/finance education, and he will pay dearly to acquire it.
It will be constantly manipulated with peaks/troughs to make money for the manipulators.
Soldato
The huge peaks and toughs that bitcoin produces is one of the key reasons why it isn't accepted in any shops. If someone had valued an item at 2BTC then a few hours ago it would be around £200, and suddenly its only £100. I'm pretty confident that the majority of bitcoin holders are people like us. Computer geeks who heard about bitcoin, discovered they can use their gaming GPUs to make money, and are slowly collecting coins, waiting for the value to get high enough before they sell. And as we saw today, even just a few people selling sparks a panic,the price starts dropping, so everyone else starts to offload their BTC while they are still worth something, which drives the price down even faster. Eventually it will hit a level where investors will start to risk it, hoping that the value will bounce back up again. Will it? Who knows.
It isn't a ponzi scheme as everyone here is saying it is. However, it is a huge bubble, which is eventually going to burst.
It isn't a ponzi scheme as everyone here is saying it is. However, it is a huge bubble, which is eventually going to burst.
Soldato
I see this quoted all the time but not sure what it means, what is deflationary about it?
Caporegime
There are trades happening in values of hundreds of thousands of pounds. Not many, but definitely enough to have me believe that professional speculators are trading them.
Edit: here is a transfer of 21,000+BTC which was over $4million at the time.
http://imgur.com/UcWwvYj
Edit: here is a transfer of 21,000+BTC which was over $4million at the time.
http://imgur.com/UcWwvYj
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Caporegime
It's deflationary in that it is and will increase in value as time goes by. This means there is always the incentive to just hold onto it instead of spend it. Currency has no intrinsic values, especially digital currency. This means, at least in theory and most probably in practice, with a finite supply of the currency, that the economy will go stale as nobody wants to sell they just want to save, and eventually nobody will be able to get any more of them. Stale economy means no economy because a currency that nobody is spending holds no value.
Well as I mentioned I heard Goldman Sachs jumped into bitcoin action as well as other investment institutions so yeah, expect lots and lots of manipulation by big boys.
Caporegime
Turns out it wasn't a DDoS that brought down MtGox, but a flurry of (presumably panic) trading:
https://www.facebook.com/MtGox/posts/455962117821534
https://www.facebook.com/MtGox/posts/455962117821534
Caporegime
The problem with a system which isn't backed by anyone or any company of any real, material, lasting worth, coupled with the way that said system attracts those who know little or nothing about financial matters yet know a great deal about the tech which can generate HUGE LOOT is that the people who make the money are almost never you.
Just something to think about.
Just something to think about.
Caporegime
But now they are under a DDoS attack.
Caporegime
I see reddit has a hand in this too.
It's just delicious.
It's just delicious.
Soldato
Whilst i have made a bit of money from them, the whole concept seems to make it easy for people/companies with a large amount of money to manipulate them easily.
As generating them at a constant rate in general means that you can in theory buy much quicker than supply, thus forcing prices up. And with a low cap of 21million there is always quite a low number in circulation thus making driving prices up easier.
As generating them at a constant rate in general means that you can in theory buy much quicker than supply, thus forcing prices up. And with a low cap of 21million there is always quite a low number in circulation thus making driving prices up easier.
People talking about larger companies manipulating peaks and troughs and how this is a bad thing......this is how the stock market is manipulated on a daily basis with whats known as "tree shaking" or "Bear Raiding", where large organisations with huge capital, pumps money in or pulls it out to induce panic buying or selling dependant on that companies goals.
The AIM market is just like this and you can see a companies stock double in 1 day, only to plummet at the end of the day with no real reason for the rise or fall.
Bitcoin maybe even more volatile, but watching prices get manipulated up and down isnt new and all forms of trading suffer this.
The AIM market is just like this and you can see a companies stock double in 1 day, only to plummet at the end of the day with no real reason for the rise or fall.
Bitcoin maybe even more volatile, but watching prices get manipulated up and down isnt new and all forms of trading suffer this.
Soldato
Big difference though, with bitcoins you are buying into nothing.
It's more of a put your money on red type of gamble.
Caporegime
Not much foul play from reddit. They've largely been trying to convince everyone to just hold back and stop trading to quell the bounce.[FnG]magnolia;24099204 said:
Bitcoin is worse because it is unregulated.
Caporegime
I only read about it on here but it all sounds to me like people are buying into a fake money, like all of the sudden giving Monopoly money a real value against the dollar.
You have to be very brave to buy into it in any real quantities.
You have to be very brave to buy into it in any real quantities.