Skip to comments.Bitcoin Crashes, Loses Half Of Its Value In Two Days
Posted on 12/07/2013 7:34:43 AM PST by markomalley
It was inevitable that a few short days after Wall Street lovingly embraced Bitcoin as their own, with analysts from Bank of America, Citigroup and others, not to mention the clueless momentum-chasing, peanut gallery vocally flip-flopping on the "currency" after hating it at $200 only to love it at $1200 that Bitcoin... would promptly crash. And crash it did: overnight, following previously reported news that China's Baidu would follow the PBOC in halting acceptance of Bitcoin payment, Bitcoin tumbled from a recent high of $1155 to an almost electronically destined "half-off" touching $576 hours ago, exactly 50% lower, on very heave volume, before a dead cat bounce levitated the currency back to the $800 range, where it may or may not stay much longer, especially if all those who jumped on the bandwagon at over $1000 on "get rich quick" hopes and dreams, only to see massive losses in their P&Ls decide they have had enough.
Which incidentally, like gold, is to be expected when one treats what is explicitly as a currency on its own merits in a world of dying fiat - with the appropriate much required patience - instead of as an asset, with delusions of grandure that some greater fool will pay more for it tomorrow than it is worth today. Sadly, in a world of HFT trading, patience is perhaps the most valuable commodity.
As for Bitcoin, while the bubble may or may not have burst, and is for now kept together with the help of the Winklevoss bros bid, all it would take is for another very vocal institutiona rejection be it in China or domestically, where its "honeypot" features are no longer of use to the Fed or other authorities, for the euphoria to disappear as quickly as it came...
Two day chart, showing the epic move from $1155 to $576 in hours:
And longer term chart showing the overnight action in its full glory:
I am starting to eye silver.
Step right up! Spin the wheel...
Personally, I convert all of my reserves into Gold-Pressed Latinum which is useable throughout the Alpha Quadrant.
Man am I glad I put my money into bennie babies, Cabbage Patch Dolls, Tickle Me Elmos and my beer can collection.
Great idea! Will you please share details of the conversion process?
It is all laid out in the Deep Space Nine chronicles. One must study them very intently to gain the secret knowledge buried in them on how to do this. And it also helps to have had contact with Ferengi’s who were trapped on earth after the Roswell incident.
At least it has industrial value and is accepted/recognized as a PM. The value is right size for bartering and is unlikely to be counterfeited (unlike gold). it is as likely candidate as any. The greenback can be declared invalid by decree of the Fed and demand a switch to bluebacks by whim (whatchagointodo?) in a desperate effort to zero everything out in the event of a worldwide economic collapse. Or a worldwide currency adopted (which idea has been floated for decades).
I sure as hell aint buying stocks at the moment.
If you’re looking to preserve wealth, survival food (nitrogen packed), guns and ammo and silver are likely to remain in demand in the event of a currency disaster. YMMV
I’m stuck with comic books and baseball cards.
OMG lol. I have a friend who latched onto every single craze out there in hopes of making a ton of money. Of course she held onto them and now has plastic storage crates full of CRAP that fills one whole bedroom.
I am trying to stave off the collapse of a 33 year career.
Everything is OK now, but I still have to make a landing.
Got a call the other day from a fellow that got caught in the sequester at age 60.
I smelled a rat all along. Someone made a killing on this and it would be interesting to know who.
I remember talking with a coworker when she mentioned that she had a rare beanie baby doll that had gone up to $400.
The moment I heard the amount I barked “SELL”.
She didn’t want to.
Put it all on red....
I prefer Star Trek Federation credits.
I prefer Star Trek Federation credits.
Tulip Bulbs for sale...Real Cheap!
Exactly. That’s where my money has been going. That and items that will bring a high barter value. I also have gold, silver, and copper.
Interesting. Thanks for posting. I just happen to be watching this as I type...
“Gold-Pressed Latinum which is useable throughout the Alpha Quadrant.”
what is that and what is Alpha Quadrant?
So basically BitCoin is back to the level it was at November 21st.
We had a Platypus beanie baby. Used it for a cat toy. D’oh!
Gold-Pressed Latinum —
Latinum is a rare silver liquid used as currency by many worlds, most notably the Ferengi Alliance. Latinum cannot be replicated and the reasons for its rarity are unknown. Latinum is usually suspended within the element gold to produce the currency Gold Pressed Latinum (GPL)Gold-Pressed Latinum icon.png. see also: http://sto.gamepedia.com/Gold-Pressed_Latinum
We live in the Alpha Quadrant of the Milky Way. see also — http://en.memory-alpha.org/wiki/Alpha_Quadrant
For further information go to:
I still have a six pack, un-opened of Billy Beer. The only cans in my collection, lol.
I consider anyone that ever watched star trek a total idiot!
Live long and prosper.
Imagine what we think of you d;^)
Bitcoin is another get-rich-quick fantasy.
Except for those who got out early.
True, and also those who never got in.
Yeah, it's inherently contradictory. There can only be one or the other.
There is no real definition to “hyperinflation”. Some use it as “out of control inflation”, whereas for others it is an act of rejection of a particular currency. Similarly, deflation is sometimes considered a pricing phenomena, whereas others consider it a reflection of money supply or credit. Personally, I use “hyperinflation” to mean the active rejection of a currency (infinite velocity, plummeting value versus more stable currencies, etc.), and “deflation” to be a measurement of credit. Neither term, as I choose to use it, is a term about prices, but rather underlying conditions — the pricing phenomena is the result of those conditions. By those definitions (rejection of currency, collapse of credit), there is no inherent contradiction. They could both occur simultaneously.
Given that others choose to use the terms to reflect pricing, however, I can see why you would say they are contradictory.
No. No. No.
You have made an assertion without backing it up.
Hyperinflation is the complete loss of confidence in a currency leading to a catastrophic increase in the price of goods and services.. Deflation is the drop in prices attributed to the increase in a currency's purchasing power.
You have not shown a connection between them at all.
Wow! You must be quite a stud, posting your address and phone number in your profile then insulting people like that. I must say: I am impressed. /s