Bitcoin Prices Plunge 831$ To 658$

Good time to buy or good time to sell ?
Honestly this just shows how worthless this currency is its not stable at all one exchange company stops business it drops almost 200$

 

I believe you answered the question yourself, sell it before you loose more money.

 

Already back up to $730 each. Probably should have bought some in at the 645-650 mark it hit last night and then resold today for profit.

If you have it i'd hold on to it for a bit and sell at $800 if it hits that again soon.

I'm no expert on BTC but I expect it to rise and pop a few times.

 

Yea but wait till it "pops" again but this time -600$

 

Personally I think BTC under $700 is a good entry point right now. The market is down on the news that Mt Gox has disabled BTC withdrawal. However, I do believe that this will be fixed in the very near future, and when it happens the market should get a pretty solid boost.

 

BTC will rise until something better comes along or for some reason it ceases to exist. It's natural for prices to fluctuate now and again, but long term BTC investment is a money pot.

 

On the next crash/plumet I'll likely be trying to invest at the 550-700$ range. I have no doubt that BTC will rebound.

 

Just wait it out.
Temporary drop, I'm sure of it

 

Why do people come here for serious financial advice? If we were professional investors, would we really be spending our time trading on Sythe? And would we be willing to share our "secrets" to making wealth? Nope.

Anyways, the price is plummeting because Mt. Gox has basically froze their services. There are rumors that they are insolvent. Historically, these sorts of incidents cause financial systems to fall apart. But the interesting thing here is that most exchanges make their money off of commission. They aren't relying on repayment of loans or portfolios paying off. They just make commission. One way I could see this financial system completely collapsing is if the increased trade volume knocks out some of the other exchanges. If people make a rush and try to exchange all their bitcoin for fiat, then the exchanges aren't going to run out of fiat. They are just letting people buy/sell from each other (unless they are investing some of the fiat that is constantly being flipped on the exchanges but not normally being withdrawn). If they are investing that fiat in illiquid stuff, then we could see multiple exchanges collapsing within the next few weeks. Worst case scenario would be if the exchanges are investing that fiat into crypto itself.

But, then again, if I were a professional investor I wouldn't be here would I?

Invest at your own risk. Meanwhile, I'm going to go grab a bag of popcorn and enjoy watching all hell break out. This is a profoundly interesting series of days in Bitcoin history.

 

Mt Gox has been largely irrelevant for the last ~9 months. IF they are insolvent (and that's a big IF), then it means they are incompetent. They've already essentially frozen fiat withdrawals, which has led to an artificial rise in BTC price. The fiat I can understand; it was reported that their bank accounts in the USA were frozen with over $5M in deposits.

Despite this freeze, however, there was often 10,000+ BTC in daily volume on the Mt Gox Exchange. That was ~$8M per day being traded at $800/BTC, which was a fairly average price in December/January. This means they should have been earning approximately $24,000 USD in fees PER DAY at 0.3% (a conservative average fee -- this implies the average user does 10,000 BTC in trades per month -- real fees should be higher).

In the past 2 months alone, the site should have earned AT LEAST $1.4 MILLION in fees! All while not having to pay out fiat.

For Mt Gox to actually not have the BTC to pay out its users, it means the company must have spent the BTC deposits. This would be extremely unethical, since BTC is highly volatile. There has been no indication that the exchange has ever had 1 BTC confiscated by the government (unlike fiat), so the only possibility of them being insolvent is them spending the BTC themselves.

I'd like to think the company is not retarded enough to do such a thing. Why on Earth would the company take out high risk investments and jeopardize its very strong risk-less income? For a company that has lasted so long in the Bitcoin marketplace, it seems very unlikely.

I think right now we must believe that Gox has its customers' BTC. From what I've read, the engineering department of the company is extremely lacking. Other more technical users have gone into detail on how dysfunctional the atmosphere is among developers.

If Gox collapses, it will have a negative impact which will sting for awhile. Although it is not necessary for Gox to exist in the future, if people lose millions of dollars from its insolvency, Bitcoin's reputation will be severely tarnished. Once they pay up, people should get the hell out of Gox and just let it die. There are much better exchanges out there, and it's time for all websites to stop advertising Mt. Gox as the go-to exchange. Its time is over.

 

R2pleasant,

Making high risk investments with a lot of leverage is how financial businesses work. That's how they make it big and make it fast. (Or lose it all and lose it fast.) The thing about crypto exchanges is there is an enormous lack of regulation. If an exchange goes insolvent, most of the money is just gone. There is nothing to protect the investors (the depositors). There are no consequences. This creates a moral hazard that encourages exchanges to use the deposits as leverage.

I don't know if they do this, but it is certainly a possibility. And IF Gox did this, and IF they go insolvent, then people are going to make a rush on all the other exchanges. Why? Because everyone is going to assume all the exchanges are leveraging with deposits whether they are or not.

 

A Bitcoin exchange is not a bank. If they are using people's deposits for high risk investment then they will all go jail for a very long time. To act as if such a practice should be expected is absurd. Bitcoin exchanges ARE regulated, and all the large ones have registered with FinCEN.

If they are using fractional reserves without explicitly mentioning this to their customers, they are certainly breaking the law.

 

Unless I'm mistaken, fincen would only matter for their business with the us citizens. Anyways, I guess we will see the truth soon enough.

 

I’m sure it won’t be long term, so better buy now and sell it in the future when the value is skyrocketing.

 

There had always been uncertainty over price fall of bitcoin. Hope prices will recover soon.

 

Obviously its a good time to buy.

It isn't "worthless as a currency" just because it is a bit volatile at the moment. It succeeds in many ways the fiat currency fails.

 

Chop chop,time to buy a lot of cheap coins again

 

They will keep plunging until MtGox is back up and running, and even then they might just stick at around 700$

 

The crash in the OP wasn't related to gox issues.

 

^^^

i'd also like to make this post to inform people to stop the hype that this currency is going to take over the world. paypal/google/apple etc have a better chance than fucking bitcoin. it's too unstable.

imo, i could see paypal taking over. i'd order pizza much more frequently if they took paypal. i think if pp wants this to happen, however, they'd have to get a better chargeback system in effect.

http://www.forbes.com/sites/stevenb...e-google-amazon-and-icahn-in-the-wallet-wars/