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Bitcoin drops 10USD in less than 4 hours

bitcoinity.org

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Re: Bitcoin drops 10USD in less than 4 hours

#41

Post by TillE »

BoyWizard wrote: post #25

The thing is, it doesn't matter. As far as I know, nobody prices anything in Bitcoins, they price things in USD/AUD/ and then convert that amount to Bitcoins for the transaction . You might end up paying 1.00 BTC, or 0.6 BTC, but it still works out to the be same in USD/AUD/ (numbers made up for example)

I feel like I'm missing something, but I can't quite understand the advantage of Bitcoins in this kind of scenario.

Who's handling all the instant real money conversions, and why wouldn't they just transfer the real money between accounts directly rather than converting it?

Re: Bitcoin drops 10USD in less than 4 hours

#45

Post by bdcravens »

SODaniel wrote: post #24
akavi wrote: post #20

Earlier quoted context omitted.

Yeup. Volatile thing continues to be volatile hardly seems to be news.

It's interesting how 'Bitcoin falls $10!!' is news, while the fact that it's gone up 50%+ in less than a month, and over 1000% in 1 year somehow is not.

Also, keep in mind this is nothing new. When it fell from $30 down to about $3, I heard the same complaints. Lot of people made a lot of money then; a lot have made $ now. Conversely, many lost huge then, and who knows what will happen now. It became so bad it cost more to mine than the resulting coins were worth, and I turned off my rigs. (Eventually sold them)

Bitcoin is a volatile, fun place to be. It's easy to convince yourself when it shoots up that you're a freaking genius for getting in it. When it goes down, the detractors think they're the ones with the clue. I think both groups suffer from confirmation bias, and this thing has several years before true stability.

Re: Bitcoin drops 10USD in less than 4 hours

#48

Post by BoyWizard »

TillE wrote: post #41
BoyWizard wrote: post #25

The thing is, it doesn't matter. As far as I know, nobody prices anything in Bitcoins, they price things in USD/AUD/ and then convert that amount to Bitcoins for the transaction . You might end up paying 1.00 BTC, or 0.6 BTC, but it still works out to the be same in USD/AUD/ (numbers made up for example)

I feel like I'm missing something, but I can't quite understand the advantage of Bitcoins in this kind of scenario. Who's handling all the instant real money conversions, and why wouldn't they just transfer the real money between accounts directly rather than converting it?

It's not that instant real-money transactions are happening, but if I owe you $5 USD, I can say "I'll pay you 0.1142BTC" and the value to you is the same (as others have said, as long as the exchange rate doesn't fluctuate too much)

Re: Bitcoin drops 10USD in less than 4 hours

#49

Post by SODaniel »

mikegioia wrote: post #35
SODaniel wrote: post #34

Something else people seem to forget is: This is an unregulated electronic currency without a paper trail. Can you say "A market that a group of people wanting to rig value would LOVE!" Nothing (as far as I can tell) stopping a group of large BTC owners to completely run the price on BTC to their advantage. Wouldn't even take that much money to drive prices, and impossible (almost) to detect and do something about.

What do you mean no paper trail? I thought Bitcoin worked by having a master list of EVERY transaction and then hashing the most recent for each new transaction. This is from the Bitcoin doc [1]: We define an electronic coin as a chain of digital signatures. Each owner transfers the coin to the next by digitally signing a hash of the previous transaction and the public key of the next owner and adding these to the en…

Transaction records? Yes. Tied to a physical person? No. There is as far as I understand nothing hindering private trades among owners, making 'rigging' entirely possible (I may be wrong).

Re: Bitcoin drops 10USD in less than 4 hours

#50

Post by SODaniel »

kinghajj wrote: post #40
SODaniel wrote: post #30

Earlier quoted context omitted.

I have no idea what variables you are using, or how you are reasoning that bitcoins somehow are 'cheap' at a certain price. Using the only scale we have available (history) $40+ per BTC is VASTLY overpriced considering the previous historical fair market value.

What makes you confident that you know that the current price is "VASTLY" above the "fair market value?" I thought that markets determine fair market values--which is exactly what's happening at the exchanges.

Of course, but with a young currency without a set 'backing' (Gold, merchandise etc) I am just saying that looking at historical valuation makes it seem like the massive value increase would speak for it being valued fairly high @ $40
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