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Bitcoin Crash. Scary For Bitcoiners.

by JosephC
17 replies
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Saw this article about a problem with bitcoins that began earlier this weekend.

http://finance.yahoo.com/blogs/the-exchange/third-bitcoin-crash-in-three-months-reveals-cryptocurrency-flaws-161929360.html;_ylt=AwrBJSB6iflSfxsAxvzQtDMD



It is weird to me that some invest so much time and money in something that has more of a risk in stocks. I feel that bitcoin is like gambling. You just guess if the price will go up or down and see if you make some money. Still could be profitable, but is it worth it?
#bitcoin #bitcoiners #crash #scary
  • Profile picture of the author absolutelee
    Because bit coin doesn't have centralized government banks propping it up, there will always be more volatility. That's great if you're on an upswing. Not so good, if you're not. Bottom line, don't invest more than you can afford to lose.
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  • Profile picture of the author lotsofsnow
    As any investment vehicle or currency bit coin is subject to volatility.

    The stock market and other currencies have seen much crashes that were much steeper and of much longer duration.

    So, I would not worry too much.
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  • Profile picture of the author buddy7
    I wrote in my journal when bitcoin was at $80 that I was going to be kicking myself for not investing some in it. And I was when it was at $1000. :-)
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    • Profile picture of the author harrydog
      Bitcoin and all the other crypto currencis are just at the beginning of their evolution. Bitcoin may or not fail who knows but the genie is now out of the bottle and governments around the world are struggling with how to cope with a new era of exchange of value.
      Fiat currencies are only as good as the trust behind them and the governments are fast losing that trust from the masses.
      Their answer is to just print more money therefore devaluing what you hold. This cant go on and there will be a major correction some time soon. The stock markets are bloated on free money , buying their own stocks back. Bankers are back raking in billions having been bailed out by us the tax payers with not a single one of them going to jail for their greedy outrageous speculation
      We the people suffer every time with job loses tax hikes, housing crashes and huge levels of debt.

      Bitcoin is not just an alternative currency its more of a methodology (built on mathematical cryptography - go read about the Blockchain to see how it works) of how to complete transactions between people without any middle man like a bank or government. When they sort out how to regulate and therefore tax it then it will take of in one form or another. It may take years yet.

      The major problem at the moment is that it is seen as a speculative vehicle and not a currency. This causes the volatility and that stops it being a currency per say as retailers and businesses can't sell products and services without stability.

      The recent crash (as I write its trading at $649 on Bitstamp and $526 on MtGox) is due to the exchanges not being robust enough with software systems that are prone to transaction problems when ratifying transactions through the blockchain. MtGox especially has caused most of the bad press having frozen withdrawals. Until a week ago MTGox was trading at nearly $100 above Bitstamp per Bitcoin, now the position has reversed. Their problems are all down to poor software implementation.

      I personally have a small amount of Bitcoin and Doge Coin and spend quite a bit of time studying the whole area. It will be interesting to see where it all goes. I dont think it will go away and when and if it does crash to a more reasonable level it may be the time to jump in and buy some more. I am also getting free Bitcoins and other altcoins using various sites.

      If I were you keep your eyes on how this all develops and you may soon see people on this forum selling products for Bitcoins - thought about myself.
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      • Profile picture of the author seasoned
        Originally Posted by harrydog View Post

        The recent crash (as I write its trading at $649 on Bitstamp and $526 on MtGox) is due to the exchanges not being robust enough with software systems that are prone to transaction problems when ratifying transactions through the blockchain.
        You see, ****THIS**** is the problem with bitcoin. NO STANDARD VALUE! HERE, you show a difference of $123 on only TWO exchanges! That is over 23%!!!!!

        Steve
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  • Profile picture of the author popstocks
    Banned
    giant pyramid scheme..time it right , take high risks and you could havemade a mint...but that's over now.
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  • Profile picture of the author seanwilliam1988
    It's actually worth it to invest in bitcoin. I've seen a lot of businesses that became successful and people who became millionaires because of this new digital currency. Though there are drawbacks, it's only because this cryptocurrency is not yet accepted globally.
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  • Profile picture of the author sbucciarel
    Banned
    All I can say about Bitcoin is I'm glad I'm not involved with it.

    Silk Road 2 Loses $2.7M in Alleged Bitcoin Hack | News & Opinion | PCMag.com

    "Our initial investigations indicate that a vendor exploited a recently discovered vulnerability in the Bitcoin protocol known as 'transaction malleability' to repeatedly withdraw coins from our system until it was completely empty," Defcon wrote.

    According to CoinDesk, transaction malleability is "an attack that lets someone change the unique ID of a bitcoin transaction before it is confirmed on the bitcoin network. The change makes it possible for someone to pretend that a transaction didn't happen, if all the right conditions are in place."

    As the International Business Times noted, transaction malleability has been around since at least 2011, but the topic made headlines recently when bitcoin exchange MtGox suspended all withdrawal transactions, citing transaction malleability.
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    • Profile picture of the author Daniel Evans
      This needs to be nipped in the bud.

      It's all going to end in tears.....and end it will.
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    • Profile picture of the author seasoned
      Originally Posted by sbucciarel View Post

      All I can say about Bitcoin is I'm glad I'm not involved with it.

      Silk Road 2 Loses $2.7M in Alleged Bitcoin Hack | News & Opinion | PCMag.com
      THIS is why I said you NEED a CENTRAL SERVER!!!!!!! There is one for EVERY public stock, except for a few like the pink sheet ones. There is one for MAJOR raw commodities! WITHOUT IT, you are subject to things like this ID change, or exchange changers that simply changed the exchange rate, or spread on their software for bit coin.

      Steve
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  • Profile picture of the author @i
    up and down like a yoyo, i think it will pick back up and be stronger than ever
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  • Profile picture of the author garyv
    People have been predicting the end of Bitcoin for several years now, and there's a similar crash on just about a monthly basis. And yet it's still 2000% higher than it was this time last year.
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  • Profile picture of the author hardraysnight
    i am still confidently mining, albeit on a small scale and looking at further solar panels to further reduce my costs

    life goes on
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  • Profile picture of the author BitcoinCorporationNet
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    • Profile picture of the author dailycoinsnet
      No it's not scary at all just normal behavior for cryptocurrency. At this point Bitcoin price is seeking it's value and everyone knows that price isn't going to stabilize anytime soon. If you look into other new investment plans you realize that there have been relative few problems with Bitcoin so far.

      I'm not going to sell my Bitcoins as price is going to rise a lot in the next 2-3 years.
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      • Profile picture of the author meccabiz
        As long as we don't spend our life savings on cryptocurrency and take advantage of the sites that are giving away these coins for now, I don't see the harm in investing in them.
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  • Profile picture of the author ahlexis
    Plus in some cases there are people who are trading it like Forex . . . daytrading it, believe it or not . . . or using other standard short-term stock market methods.

    Question is, does the volatility come from the daytrading? Or does the daytrading and the profits involved come from the volatility?
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  • Profile picture of the author chbartel
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