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Bitcoin Crashes, Loses Half Of Its Value In Two Days
Zero Hedge ^ | 12/7/2013 | Tyler Durden

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:



TOPICS: Business/Economy
KEYWORDS: bitcoin; bitcoinchart; currency

1 posted on 12/07/2013 7:34:43 AM PST by markomalley
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To: markomalley

2 posted on 12/07/2013 7:38:50 AM PST by BenLurkin (This is not a statement of fact. It is either opinion or satire; or both.)
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To: markomalley

I am starting to eye silver.


3 posted on 12/07/2013 7:40:00 AM PST by mylife (Ted Cruz understands the law, and he does not fear the unlawful.)
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To: markomalley

Step right up! Spin the wheel...


4 posted on 12/07/2013 7:45:13 AM PST by MV=PY (The Magic Question: Who's paying for it?)
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To: markomalley; BenLurkin; mylife; MV=PY; zot

Personally, I convert all of my reserves into Gold-Pressed Latinum which is useable throughout the Alpha Quadrant.


5 posted on 12/07/2013 7:51:34 AM PST by GreyFriar (Spearhead - 3rd Armored Division 75-78 & 83-87)
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To: markomalley
The government and large banks anti-Midas touch in action.

6 posted on 12/07/2013 7:53:41 AM PST by BitWielder1 (Corporate Profits are better than Government Waste)
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To: markomalley

Man am I glad I put my money into bennie babies, Cabbage Patch Dolls, Tickle Me Elmos and my beer can collection.


7 posted on 12/07/2013 8:00:04 AM PST by Kartographer ("We mutually pledge to each other our lives, our fortunes and our sacred honor.")
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To: mylife
I am starting to eye silver.

Given the magnitude of the potential deflation on the horizon (possibly coupled with hyperinflation -- this is not contradictory), holding onto wealth is a real challenge. All of these bubbles will unwind, globally. Historically, these things happen fairly rapidly, once the unwind gets going, although they generally stay inflated for a long time after everyone knows it's a bubble. Silver looks as good as anything, which is to say: who knows?

Personally, I think bitcoin could go the way of the pet rock at any time. It won't ever be a real currency, and as soon as everyone starts dumping bitcoin, there is no floor other than zero.

The most important thing to remember is that what gets artificially inflated in price (usually via artificially easy/low cost credit, or degradation of accounting rules) must come down, no matter how many people insist that "this time is different."
8 posted on 12/07/2013 8:03:57 AM PST by jjsheridan5
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To: GreyFriar; markomalley; BenLurkin; mylife; zot
"Personally, I convert all of my reserves into Gold-Pressed Latinum which is useable throughout the Alpha Quadrant."

Great idea! Will you please share details of the conversion process?

9 posted on 12/07/2013 8:10:55 AM PST by MV=PY (The Magic Question: Who's paying for it?)
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To: markomalley

http://www.freerepublic.com/focus/chat/3095997/posts?page=17#17


10 posted on 12/07/2013 8:16:47 AM PST by freebilly (Creepy and the Ass Crackers....)
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To: MV=PY; zot; NYer; Interesting Times; SeraphimApprentice

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.


11 posted on 12/07/2013 8:23:24 AM PST by GreyFriar (Spearhead - 3rd Armored Division 75-78 & 83-87)
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To: GreyFriar
Personally, I convert all of my reserves into Gold-Pressed Latinum which is useable throughout the Alpha Quadrant.

Quark approves!

12 posted on 12/07/2013 8:31:13 AM PST by Flick Lives (The U.S. is dead to me.)
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To: markomalley


13 posted on 12/07/2013 8:38:22 AM PST by Chode (Stand UP and Be Counted, or line up and be numbered - *DTOM* -vvv- NO Pity for the LAZY - 86-44)
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To: mylife
I am starting to eye silver.

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).

14 posted on 12/07/2013 8:40:10 AM PST by BipolarBob
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To: BipolarBob

I sure as hell aint buying stocks at the moment.


15 posted on 12/07/2013 8:47:02 AM PST by mylife (Ted Cruz understands the law, and he does not fear the unlawful.)
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To: mylife

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


16 posted on 12/07/2013 8:57:06 AM PST by BipolarBob
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To: Kartographer

I’m stuck with comic books and baseball cards.


17 posted on 12/07/2013 8:59:29 AM PST by windcliff
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To: Kartographer

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.


18 posted on 12/07/2013 9:23:36 AM PST by sheana
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To: BipolarBob

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.


19 posted on 12/07/2013 9:26:21 AM PST by mylife (Ted Cruz understands the law, and he does not fear the unlawful.)
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To: markomalley

I smelled a rat all along. Someone made a killing on this and it would be interesting to know who.


20 posted on 12/07/2013 9:34:33 AM PST by La Lydia
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To: sheana

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.


21 posted on 12/07/2013 9:35:50 AM PST by TLOne (All terrorists want is for us to bow and worship their god. Oh, and to let them rule.)
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To: MV=PY

Put it all on red....


22 posted on 12/07/2013 9:46:53 AM PST by citizen (There is always free government cheese in the mouse trap.....https://twitter.com/kracker0)
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To: GreyFriar

I prefer Star Trek Federation credits.


23 posted on 12/07/2013 9:48:12 AM PST by citizen (There is always free government cheese in the mouse trap.....https://twitter.com/kracker0)
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To: GreyFriar

I prefer Star Trek Federation credits.


24 posted on 12/07/2013 9:48:17 AM PST by citizen (There is always free government cheese in the mouse trap.....https://twitter.com/kracker0)
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To: markomalley

Tulip Bulbs for sale...Real Cheap!

25 posted on 12/07/2013 9:49:08 AM PST by dfwgator (Fire Muschamp. Go Michigan State!)
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To: markomalley

26 posted on 12/07/2013 9:49:58 AM PST by dfwgator (Fire Muschamp. Go Michigan State!)
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To: BipolarBob

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.


27 posted on 12/07/2013 10:10:41 AM PST by BuckeyeTexan (There are those that break and bend. I'm the other kind. ~Steve Earle)
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To: markomalley

Interesting. Thanks for posting. I just happen to be watching this as I type...

http://www.youtube.com/watch?v=Cs6F91dFYCs


28 posted on 12/07/2013 10:10:52 AM PST by PGalt
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To: GreyFriar

“Gold-Pressed Latinum which is useable throughout the Alpha Quadrant.”

what is that and what is Alpha Quadrant?


29 posted on 12/07/2013 10:21:51 AM PST by dalereed
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To: markomalley

So basically BitCoin is back to the level it was at November 21st.


30 posted on 12/07/2013 10:22:46 AM PST by freerepublicchat
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To: Kartographer

We had a Platypus beanie baby. Used it for a cat toy. D’oh!


31 posted on 12/07/2013 10:41:02 AM PST by BenLurkin (This is not a statement of fact. It is either opinion or satire; or both.)
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To: dalereed

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:
http://en.wikipedia.org/wiki/Star_Trek:_Deep_Space_Nine


32 posted on 12/07/2013 11:15:25 AM PST by GreyFriar (Spearhead - 3rd Armored Division 75-78 & 83-87)
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Comment #33 Removed by Moderator

To: Kartographer

I still have a six pack, un-opened of Billy Beer. The only cans in my collection, lol.


34 posted on 12/07/2013 11:38:17 AM PST by esoxmagnum (Turtles don't win fights, they just turtle up. Victory belongs to the aggressor, not the turtle.)
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To: Kartographer

Very astute.


35 posted on 12/07/2013 12:37:03 PM PST by Chuckster (The longer I live the less I care about what you think.)
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To: dalereed

I consider anyone that ever watched star trek a total idiot!


Live long and prosper.


36 posted on 12/07/2013 12:42:44 PM PST by OwenKellogg (Fundamental transformation sucks.)
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To: dalereed
I consider anyone that ever watched star trek a total idiot!


37 posted on 12/07/2013 12:44:07 PM PST by dfwgator (Fire Muschamp. Go Michigan State!)
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To: dalereed
I consider anyone that ever watched star trek a total idiot!

Imagine what we think of you d;^)

38 posted on 12/07/2013 12:46:38 PM PST by Chuckster (The longer I live the less I care about what you think.)
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Comment #39 Removed by Moderator

To: dfwgator

ping


40 posted on 12/07/2013 1:10:12 PM PST by fhayek
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To: GreyFriar

Bitcoin is another get-rich-quick fantasy.


41 posted on 12/07/2013 2:39:13 PM PST by zot
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To: zot

Except for those who got out early.


42 posted on 12/07/2013 2:40:49 PM PST by SamAdams76
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To: SamAdams76

True, and also those who never got in.


43 posted on 12/07/2013 2:42:10 PM PST by zot
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To: jjsheridan5
(possibly coupled with hyperinflation -- this is not contradictory

Yeah, it's inherently contradictory. There can only be one or the other.

44 posted on 12/07/2013 4:25:56 PM PST by BfloGuy ( Even the opponents of Socialism are dominated by socialist ideas.)
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To: BfloGuy

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.


45 posted on 12/07/2013 4:45:06 PM PST by jjsheridan5
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To: jjsheridan5
By those definitions (rejection of currency, collapse of credit), there is no inherent contradiction.

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.

46 posted on 12/07/2013 5:01:23 PM PST by BfloGuy ( Even the opponents of Socialism are dominated by socialist ideas.)
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To: dalereed

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


47 posted on 12/07/2013 5:41:07 PM PST by Chuckster (The longer I live the less I care about what you think.)
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Comment #48 Removed by Moderator

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