Why does this happens?
Large amount of BTC moving?
Is this a manipulation by the large marketplaces such as Mt Gox, etc?
What are your theories?
Ask HN: Why is Bitcoin so volatile?
1–10 of 15 posts
Re: Ask HN: Why is Bitcoin so volatile?
#2I think the volatility is a product of uncertainty about security and (recently) massive speculation
Re: Ask HN: Why is Bitcoin so volatile?
#3Someone thought it'd be cool to hack some popular exchanges and info sites. And now everyone sells in panic.
Most probably the hacker is short-selling BTC (or, dumping off stolen BTC from an attack)
Re: Ask HN: Why is Bitcoin so volatile?
#4Someone thought it'd be cool to hack some popular exchanges and info sites. And now everyone sells in panic. Most probably the hacker is short-selling BTC (or, dumping off stolen BTC from an attack)
Domino effect? And is this caused because we use the data from just one major site? (MtGox)
Re: Ask HN: Why is Bitcoin so volatile?
#5Someone thought it'd be cool to hack some popular exchanges and info sites. And now everyone sells in panic. Most probably the hacker is short-selling BTC (or, dumping off stolen BTC from an attack)
> Most probably the hacker is short-selling BTC
How? Where can you short Bitcoin at the moment?
Re: Ask HN: Why is Bitcoin so volatile?
#6Someone thought it'd be cool to hack some popular exchanges and info sites. And now everyone sells in panic. Most probably the hacker is short-selling BTC (or, dumping off stolen BTC from an attack)
> Most probably the hacker is short-selling BTC How? Where can you short Bitcoin at the moment?
Convince someone to lend you BTC, or use coins you stole in an attack or otherwise illicitly acquired.
Re: Ask HN: Why is Bitcoin so volatile?
#7Yes, there is manipulation of the price via DDoS. MtGox has said so. But the exchange rate would still be highly volatile and momentum-based without that manipulation. Almost all of the current exchange rate is speculation, not intrinsic value. It is the first successful cryptocurrency, and no one knows what's going to happen.
Re: Ask HN: Why is Bitcoin so volatile?
#8Aside from the fact that nobody knows how to value BTC?
A large number of early adopters probably have no experience trading large volumes of any security, and the of Bitcoin is likely to look very different from any existing currency/commodity.
Re: Ask HN: Why is Bitcoin so volatile?
#9When the stock market drops more than 10%, trading is temporarily halted. This addresses technical issues and stops a potential panic.
Bitcoin has no such controls. It looks like a grand social experiment. For everyone clamoring for a completely unregulated, decentralized free market, you got it with Bitcoin. Enjoy.
Re: Ask HN: Why is Bitcoin so volatile?
#10For one thing, the price was almost completely driven by speculation. That's not a problem in itself, betting on the future of a new technology is something this site is devoted to. But the excitement got way ahead of the actual adoption in this case, so the price has nothing meaningful supporting it.
Bitoin (or more accurately cryptocurrencies in general) are a revolutionary technology that will change the way we do business. But the network isn't there yet. It will be, someday, but someday is down the road. It's not overnight riches, though some were treating it that way.
Another factor is that mtgox, the main exchange platform, simply cannot handle large loads. So when there's a panic, it's made much, much worse by Gox's inability to keep up. People can't see what's really happening, and they panic sell at market rates, which just sends the price down further.
If Gox were perfect, we'd still see big swings, but they'd probably be a fraction of what they are now.
I think (I hope) that the gold rush mentality will be quieted now. Then Bitcoin can grow at a more reasonable rate for a while. It might fail, but we all win if more cryptocurrency infrastructure is figured out and built up.