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This is ridiculous! Some said the price of BTC dropped to overreaction to bad news. Well, a street vendor in UK starts accepting Bitcoin for burgers and price j
by kolev 13y ago
This is ridiculous! Some said the price of BTC dropped to overreaction to bad news. Well, a street vendor in UK starts accepting Bitcoin for burgers and price jumps above $1,000 in excitement (I'm kidding, of course). Talking about overreaction! Let's see some real commerce numbers, not marketing tricks to get more news coverage. I got tired of seeing everywhere in the news that one Florida guy bought a Tesla in California! With such volatility, you need to put a huge buffer in your pricing and only idiots and criminals will spend their BTC instead of paying with fiat in such case. There was some new about Indian business accepting Bitcoin then some Indian guy converted the price and showed Bitcoin price was x3 higher! If BTC is a currency, it should move up and down by no more than 1-2% (like a real currencies do) otherwise it cannot be used in serious commerce, period. At this point, Bitcoin, unfortunately, is a speculators tool. And if you invest in Bitcoin, don't forget, you're in the hands of the Chinese investors (kings of the panic sells) and the governments. Also, there are many fake news and incorrect interpretations of news about Bitcoin. Like some putting the wrong wording in Al Gore's mouth about Bitcoin when he meant something totally different or Snoop Dogg making a joke and people taking it seriously.
If Bitcoin dropped 40% due to overreaction to no-so-bad news, imagine what will happen when really bad news come out!
I believe in Bitcoin, but I cannot tolerate the madness around the price. Even if you use it as a speculator, your future medical bills will not be able to cover the profit you're gonna make - with such huge swings, the stress is way too much for the profits. Just try to imagine the Winklevoss seeing BTC dropping by 40% and tens of millions of their imaginary wealth disappearing in minutes! It's better to do margin trading with Forex - you can make even more with less stress. So, speculators, please, leave the Bitcoin land and move to Litecoin or other speculator playgrounds. Don't kill Bitcoin with your greed, please!
- drcode 13y agoThis recent volatility is mainly due to uncertainty about government responses to bitcoin: The price when up when the Congressional hearings were positive, and went down when the Chinese government announced restrictions on bitcoin use. Eventually, most governments will clarify their position on bitcoin and volatility will decrease.
- kolev 13y agoWell, it needs to be accepted in all G20 countries. I really don't understand why people interpret what happened in China as "not so bad" - it set a bad precedent and both France and the Netherlands had very negative statements, so, who knows what exactly is gonna happen.
- ninjac0der 13y ago>With such volatility, you need to put a huge buffer in your pricing and only idiots and criminals will spend their BTC instead of paying with fiat in such case. Then I have to say, I don't really think you see the real value in bitcoin. I was under the impression bitpay-type services would deal with the transactions. How would the volatility be an issue in that case?
- kolev 13y agoIf you're selling goods you buy with fiat, you can only hold Bitcoin for longer if you're hoping the price will go up or depending on the margin. Even if your vendor accepts Bitcoin, you still need to pay taxes, wages, rents, etc. with fiat, so, you cannot keep much of it in Bitcoin anyway.
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- ninjac0der 13y agoSo you would choose not to store your value in bitcoin because of it lacks usefulness to you. Thank you for expanding on your original statement, but I think I missed the response to the question. I however would choose to store value in bitcoin because of my own prejudice against the dollar, should I expect to see bitcoin to do better because of this?
- kolev 13y agoYou don't choose Bitcoin to store value, but to greatly increase value. If you don't believe in USD, convert to EUR or CNY. Let's be honest here, guys. We choose Bitcoin as it's more profitable and hope its value to go somewhere in the $10K-100K, which is possible, but it's not 100% sure, not even 10% at this point. I was an active observer and I saw how BTC went out of steam when it exceeded $1K. It tried to break $1.2K several times and it failed. Trade volume dropped significantly above $1K - and this was before the negative news, plus, many get burned by stolen Bitcoins or losing money from speculation. This is hurting the longevity of Bitcoin. Pretty much its future isn't in the hands of governments, but in the hands of speculators, which right now drive the majority of transactions and look for short-term profit and don't care much about the vitality of cryptocurrencies.
- mrb 13y agoPatience. Volatility of Bitcoin is not a big problem, because it will decrease over time: http://www.washingtonpost.com/blogs/the-switch/wp/2013/12/09/heres-why-volatility-isnt-a-big-problem-for-bitcoin/ http://www.washingtonpost.com/blogs/the-switch/wp/2013/12/09...
- Grue3 13y agoWhy would it decrease? Bitcoin was way less volatile in the past.
- mrb 13y agoThe article I linked to explains it. Basically: there will be more market depth, less friction in trading bitcoins, etc. Also, a linear regression (important) shows that Bitcoin's volatility HAS decreased over the last 5 years.
- kolev 13y agoThere are many manipulative articles. The higher the price of Bitcoin is, the more people will be willing to sell and less willing to buy.
- mrb 13y agoNo. If what you said was true, then high-priced stocks (shares of Apple, or Berkshire Hathaway) would be very volatile. In fact, it is the reverse: low-priced stocks (penny stocks) are the most volatile.
- ye 13y ago> it should move up and down by no more than 1-2% 1-2% in what period of time? EUR/USD pair can move 10% in less than two months. Which it did Feb 3rd -> March 28 this year. It moved -20% in 3 months (24 Jul -> 25 Nov, 2008).
- kolev 13y agoI'm talking about daily movements - with Bitcoin we see huge up and down movements, which are good for speculation, not for business.
- ye 13y agoIt will settle down, give it time, it's too new, it's still growing very fast.
- haberman 13y agoIt might settle down. It also might not settle down. BTC might lose popularity in favor of an altcoin. We don't know yet. We're in completely uncharted territory, nobody knows for sure what is going to happen.
- ye 13y agoYes, it's possible, but not likely. There's a ton of infrastructure behind bitcoin. Tons of news coverage. Tons of debate. Nobody is aware of the second biggest coin - litecoin.