Bitcoin Tumbles as PBOC Declares Initial Coin Offerings Illegal

Post by davidgerard » Tue, Sep 05, 2017, 9:05 AM UTC

Lerc wrote: post #17

Aren't ICOs more of an altcoin phenomenon? How does this impact upon Bitcoin? To me It looked like Bitcoin just bounced off a psychological ceiling at 5000USD. It has done this with various round number levels in the past. It makes a bit of sense if you consider people are inclined to think something like "I'll sell when it reaches $5000" There also seems to be a tendancy to use evocative language (collapse,tumble,co…

Post by astrange » Tue, Sep 05, 2017, 9:25 AM UTC

jgalt212 wrote: post #65

modeless wrote: post #41

Earlier quoted context omitted.

People don't buy and sell ICO tokens with fiat, they do it with bitcoins. If a bunch of people want to sell their ICO tokens for fiat, they first end up with a bunch of bitcoins, and then they need to sell bitcoins for fiat. This pushes the price of bitcoins in fiat down. It's a temporary phenomenon, but the price going down can make the price fall farther, because there are a bunch of amateur traders who think it's…

> there are a bunch of amateur traders who think it's a good idea to buy when the price is rising and sell when it's falling. professional traders and asset managers do this exact same thing.

Post by xg15 » Tue, Sep 05, 2017, 9:35 AM UTC

davidgerard wrote: post #91

Lerc wrote: post #17

Aren't ICOs more of an altcoin phenomenon? How does this impact upon Bitcoin? To me It looked like Bitcoin just bounced off a psychological ceiling at 5000USD. It has done this with various round number levels in the past. It makes a bit of sense if you consider people are inclined to think something like "I'll sell when it reaches $5000" There also seems to be a tendancy to use evocative language (collapse,tumble,co…

There's weird stuff going on with Tethers, which are supposedly pegged to the dollar and fully backed, being created apparently out of nothing when Tether has no US banking arrangements, and these being used to prop up margin trading on Bitfinex. The price then goes up on Bitfinex, then on other exchanges. The upshot is: every time margin gets too deep on Bitfinex, another batch of Tethers is created out of thin air,…

Post by cslarson » Tue, Sep 05, 2017, 9:54 AM UTC

AgentME wrote: post #68

tylersmith wrote: post #67

Earlier quoted context omitted.

There's no fundamental difference. Currently there are implementation differences but those will go away. Eventually Ether will be ERC20 compliant.

>Eventually Ether will be ERC20 compliant. Citation? Ether is privileged on Ethereum. It's what mining gets you, it's what transaction fees are paid in, if proof-of-stake comes around, it will be what's staked, and any transaction can include some. I don't expect any of these to change.

Post by zhte415 » Tue, Sep 05, 2017, 10:09 AM UTC

rebuilder wrote: post #74

modeless wrote: post #41

Earlier quoted context omitted.

People don't buy and sell ICO tokens with fiat, they do it with bitcoins. If a bunch of people want to sell their ICO tokens for fiat, they first end up with a bunch of bitcoins, and then they need to sell bitcoins for fiat. This pushes the price of bitcoins in fiat down. It's a temporary phenomenon, but the price going down can make the price fall farther, because there are a bunch of amateur traders who think it's…

To go from altcoins to fiat, one needs to first buy Bitcoin with altcoins, then sell Bitcoin for fiat. Why would this not be price neutral for Bitcoin?