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BitCrash Continues: Down 40% And Dumping

Tyler Durden's picture




 

Time to rename it BitCrash... or will it stage an amazing recovery? Alas, for this particular bubble, there are no NYSE circuit breakers nor is there a Federal Reserve-mandated "plunge protection team." And why should there be? The central banks hate all currency alternatives. Firehats: on, especially since the volume is still relatively lite.

 

Update: -50%

 

More from Tech Chrunch:

Screen Shot 2013-04-10 at 3.16.56 PM

 

Bitcoin is undergoing a classic correction after quintupling in price over the past 30 days. The currency, which was trading as high as $265 earlier today on Mt. Gox, plummeted and is now trading at around $150.

 

We’ve reached out to one of the biggest exchanges, Mt. Gox, to see what happened. But another San Francisco-based exchange called TradeHill is saying that the crypto-currency is falling because of apparent distributed denial of service attacks on Mt. Gox and Bitstamp. A denial of service attack happens when an attacker overwhelms a target with external requests, so that it can’t honor regular requests from legitimate users.

 

This also happened last week when Mt. Gox when Bitcoin reached $142 and hackers attacked the exchange. At that point, Mt. Gox said it had suffered ”its worst trading lag ever.”

 

The Tokyo-based exchange said last week that hackers are engaging in a strategy to manipulate the price of the currency: “Attackers wait until the price of Bitcoins reaches a certain value, sell, destabilize the exchange, wait for everybody to panic-sell their Bitcoins, wait for the price to drop to a certain amount, then stop the attack and start buying as much as they can. Repeat this two or three times like we saw over the past few days and they profit.”

 

It looks like this may be happening again. Aside from that, any kind of 400% increase over 30 days is probably unsustainable from a technical point of view. A correction at this point would be healthy and natural.

 

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Wed, 04/10/2013 - 14:57 | 3432788 TrumpXVI
TrumpXVI's picture

It doesn't matter what happens to electronic bitcoins.

I'm all in physical "Casascius" bitcoins.

KEEP STACKIN'!

Wed, 04/10/2013 - 14:59 | 3432799 Smuckers
Smuckers's picture

The miners have been mined.

 

Wed, 04/10/2013 - 14:58 | 3432803 cherry picker
cherry picker's picture

There is a place in Canada and real estate in NYC for sale and they'll accept bitcoins.

How many BitCoins when they listed and how many BitCoins now?

Isn't that inflation?

I thought it was inflation and fiat proof.

Wed, 04/10/2013 - 14:59 | 3432805 blindman
blindman's picture

Silent Weapons for Quiet Wars
An Introduction Programming Manual
Operations Research Technical Manual
TW-SW7905.1
http://www.lawfulpath.com/ref/sw4qw/
.
"...Economic Shock Testing
In recent times, the application of Operations Research to the study of the public economy has been obvious for anyone who understands the principles of shock testing.
In the shock testing of an aircraft airframe, the recoil impulse of firing a gun mounted on that airframe causes shock waves in that structure which tell aviation engineers the conditions under which some parts of the airplane or the whole airplane or its wings will start to vibrate or flutter like a guitar string, a flute reed, or a tuning fork, and disintegrate or fall apart in flight.

Economic engineers achieve the same result in studying the behavior of the economy and the consumer public by carefully selecting a staple commodity such as beef, coffee, gasoline, or sugar, and then causing a sudden change or shock in its price or availability, thus kicking everybody's budget and buying habits out of shape.

They then observe the shock waves which result by monitoring the changes in advertising, prices, and sales of that and other commodities.

The objective of such studies is to acquire the know-how to set the public economy into a predictable state of motion or change, even a controlled self-destructive state of motion which will convince the public that certain "expert" people should take control of the money system and reestablish security (rather than liberty and justice) for all. When the subject citizens are rendered unable to control their financial affairs, they, of course, become totally enslaved, a source of cheap labor.

Not only the prices of commodities, but also the availability of labor can be used as the means of shock testing. Labor strikes deliver excellent tests shocks to an economy, especially in the critical service areas of trucking (transportation), communication, public utilities (energy, water, garbage collection), etc.

By shock testing, it is found that there is a direct relationship between the availability of money flowing in an economy and the real psychological outlook and response of masses of people dependent upon that availability.
".... the manual

Wed, 04/10/2013 - 15:01 | 3432811 IridiumRebel
IridiumRebel's picture

http://bitcoinwatch.com/

where are we right now? 150? let's hit sub 100 for the total face rip.......meanwhile my PMs are just sitting there...FLEXING.

Wed, 04/10/2013 - 15:10 | 3432896 Yen Cross
Yen Cross's picture

     I just added to my silver position. I/R.

Wed, 04/10/2013 - 15:43 | 3433093 IridiumRebel
IridiumRebel's picture

Me too brother! GO(L)D plays a long game....it's that time of the month cuz I got PMs.

Wed, 04/10/2013 - 14:59 | 3432813 bcecil
bcecil's picture

11.5 million btc traded in last 10 hours so that is quite a bit of volume more then the entire float so gas for selling running out

Wed, 04/10/2013 - 15:02 | 3432827 Godisanhftbot
Godisanhftbot's picture

 This came out of the blue, I just bought my first batch at 259 and went out for a cup of Joe, when I came back, they had repossesed my Mercedes and padlocked my McMansion.

Wed, 04/10/2013 - 15:02 | 3432830 Godisanhftbot
Godisanhftbot's picture

 Seriously, my bowels told me just YESTERDAY  were at or near a top. 

Wed, 04/10/2013 - 15:05 | 3432871 The Abstraction...
The Abstraction of Justice's picture

Tried listening to your bowels at a roulette table?

Wed, 04/10/2013 - 15:04 | 3432838 Hellomoto
Hellomoto's picture

$125.00

 

Sayonara

Wed, 04/10/2013 - 15:04 | 3432840 Hero Protagonist
Hero Protagonist's picture

502 Bad Gateway

Wed, 04/10/2013 - 15:03 | 3432845 Manipuflation
Manipuflation's picture

Now back to $180 from $160 on a volume of approx 4000 coins.

Wed, 04/10/2013 - 15:13 | 3432917 Van Halen
Van Halen's picture

A volume THAT small drops it THAT much? Am I missing something here?

Wed, 04/10/2013 - 15:52 | 3433219 Manipuflation
Manipuflation's picture

Actually that was a price rise but yes.  I have been studying the volume and price correlation for last hour.  2000BTC volume can produce wild swings in either direction.  It's pretty damned interesting what we are witnessing here folks.  I am going to get whiplash just watching the whipsaw.  It's like a mini-2008 all wrapped into one.

Wed, 04/10/2013 - 15:04 | 3432852 Smuckers
Smuckers's picture

Buy when there's #FF0000 in the Google Earth Street View!

 

Wed, 04/10/2013 - 15:04 | 3432853 Silverhog
Silverhog's picture

Wow, Pet Rock lasted longer.

Wed, 04/10/2013 - 15:05 | 3432856 InTheLandOfTheBlind
InTheLandOfTheBlind's picture

wasn't there an earlier article about shorting these "things" and now this crash?  maybe nothing to see but maybe not

Wed, 04/10/2013 - 15:05 | 3432868 orangegeek
orangegeek's picture

Bitcoin (sign: BTC) is a decentralized[9] digital currency[10][11] based on an open-source,[12] peer-to-peer internet protocol. - wiki's definition.

 

It's software folks - hardly a currency.  But don't let that stop you - go long BTC.

Wed, 04/10/2013 - 15:14 | 3432928 GrinandBearit
GrinandBearit's picture

You forgot to add "SARC OFF" at the end of your comment.

Wed, 04/10/2013 - 15:05 | 3432873 casaananda
casaananda's picture

Yeah, when gold should have been up, Bitcoin was. I hope the idiots learned a lesson. The ONLY salavation ultimately IS gold and silver, but I'll be damned if this are not rough times for us believers. 

Wed, 04/10/2013 - 15:22 | 3433011 enloe creek
enloe creek's picture

rough?  gold has not even corrected 

 

Wed, 04/10/2013 - 16:13 | 3433369 Cathartes Aura
Cathartes Aura's picture

.

The ONLY salavation ultimately IS gold and silver,

heh heh, excellent mis-spell there. . .

Wed, 04/10/2013 - 15:07 | 3432875 q99x2
q99x2's picture

Seriously I figured out what the problem is. I went to buy and clicked on the BUY BITCOINS button at MtGox and the fucker doesn't work. You can't buy at MtGox because they have a glitch on their website.

If that don't beat all hell. If someone knows how to contact them please send them an email and let them know that they have to fix their website so people can buy buy BUY.

Wed, 04/10/2013 - 15:07 | 3432880 DFCtomm
DFCtomm's picture

So this is what a true free market looks like.

Wed, 04/10/2013 - 15:09 | 3432889 yogibear
yogibear's picture

Pump and dump is alive and well!

Wed, 04/10/2013 - 15:11 | 3432905 smacker
smacker's picture

Last time I went on a big dipper, I felt sick.

Wed, 04/10/2013 - 15:12 | 3432908 Van Halen
Van Halen's picture

I first got into Zerohedge a couple of years ago when I began learning about the parabolic nature of the deficits and the things the US government were doing. One of the very first things I learned was that a parabolic curve is always a sign of an approaching major correction. And sure enough, here we are.

Wed, 04/10/2013 - 15:12 | 3432920 q99x2
q99x2's picture

Actually the Sell button at MtGox doesn't work either.

Poof.

Wed, 04/10/2013 - 15:12 | 3432926 Hubbs
Hubbs's picture

Now if only the broad indices got some sense.

Wed, 04/10/2013 - 15:13 | 3432933 Fix It Again Timmy
Fix It Again Timmy's picture

Bitcoin - a submarine with screen doors...

Wed, 04/10/2013 - 15:17 | 3432949 yogibear
yogibear's picture

It made some people enormously more wealthy. 

 

It's the name of the game. Get the animal spirits going and then dump!

Wed, 04/10/2013 - 15:18 | 3432966 The Abstraction...
The Abstraction of Justice's picture

https://www.bitcoin.de/en

 

is back up, which is curious. As the prices there are 150 euro at this time per btc. Now if they were hit with DDos, that would make sense, if those who manipulated the price, were counting on one exchange to do their work.

If other servers were too slow to respond, requiring manual input, that would skew the price, and slow the descent.

So perhaps, if it was hacked, that is why it was hacked. because the other exchanges now have algo clients ready to drop the price.

Wed, 04/10/2013 - 15:16 | 3432956 bdub2
bdub2's picture

If you are looking for safety/guarantees, it's simple. BUY the S&P CD, (Certificate of u.s. Destruction) Full faith and credit of the FOMC, Bank of Bernanke. Buy now, or tomorrow, doesn't matter, gains are guaranteed. Free toaster? hell no. The S&P CD gets you free access to the Algotron 5000! 

So to hell with bitcoin, gold, silver, economics, profit, loss, jobs, families, peace, truth, freedom, the Constituion, reality, free markets, integrity, morality, you. 

The only thing that matters, is G.O.D.  Globalprint Of Destruction.

SO BUY AN S&P CD TODAY!!!   Don't forget to ask about the DOW Money Market. or DOW MM. The MM stands for = Fuck you Bernanke!

Wed, 04/10/2013 - 15:19 | 3432990 johnQpublic
johnQpublic's picture

bwahahaha nice link

wtf was that?

Wed, 04/10/2013 - 15:29 | 3433051 CaptainSpaulding
CaptainSpaulding's picture

I believe this guy was on a columbo episode

Mario10.jpg

Wed, 04/10/2013 - 16:11 | 3433354 NotAMathWhiz
NotAMathWhiz's picture

See, that right there made the price of admittance to ZH worthwhile!

Now tell me how to un-see that or I'm going to have nightmares...

Wed, 04/10/2013 - 15:16 | 3432963 stateside
stateside's picture

Mommy....please make it stop! 

stateside

Wed, 04/10/2013 - 15:17 | 3432964 seek
seek's picture

just as FYI to keep in mind: >50% correction, and bitcoin is now trading at more than 10X its price in January.

Wed, 04/10/2013 - 15:29 | 3433033 RSBriggs
RSBriggs's picture

Doesn't make any sense to quote facts.  This place reeks just like the DailyKos does on a day when someone like Ron Paul makes a statement.  People's true colors coming out...

Wed, 04/10/2013 - 15:17 | 3432977 q99x2
q99x2's picture

BitCoin is only down 50% with 80% of the market, which is supposedly at MtGox, off-line.

FEDs must have busted them. Either that or Japan went into marshal law to prepare for war against the fat boy.

Wed, 04/10/2013 - 15:31 | 3433067 Mordenkainen
Mordenkainen's picture

"Either that or Japan went into marshal law to prepare for war against the fat boy."

Fat boy, now wouldn't that be ironic.

Wed, 04/10/2013 - 18:07 | 3433994 francis_sawyer
francis_sawyer's picture

Oh no... But all of us MORONS were schooled by you tech geniuses that BITCOIN was impervious to these types of things... It's time for you to dig deeper into your bag of half baked rationales...

Wed, 04/10/2013 - 15:40 | 3433127 RSBriggs
RSBriggs's picture

+1 - I see what you did there....

Wed, 04/10/2013 - 15:18 | 3432983 Sach Mahoney
Sach Mahoney's picture

The great rotation out of Bitcoin into Gold?

Wed, 04/10/2013 - 15:20 | 3432986 sbenard
sbenard's picture

Parabolic up, parabolic down.

And speaking of the stock market...

Wed, 04/10/2013 - 15:41 | 3433140 Manipuflation
Manipuflation's picture

There is still a stock market?  I thought SkyNet had destroyed them all.

Wed, 04/10/2013 - 15:20 | 3432993 catacl1sm
catacl1sm's picture

Big red candle right now. $113.

Wed, 04/10/2013 - 15:21 | 3432997 news printer
news printer's picture

Black Wednesday

Wed, 04/10/2013 - 15:22 | 3433000 mr_T
mr_T's picture

A Max keiser Pump and Dump.
Max either squeezd a tweenkie OR had his algos set up ahead of time to sell frozen concentrated orange juice.. Either way heis feeling good.
Im pissed I did not jump in a year ago when he pumped it. They should back that sh..t with silver...some intrinsic value is needed...

Wed, 04/10/2013 - 15:21 | 3433002 Lugnut
Lugnut's picture

Yes of course; this is exactly how you want a currency to operate, 50% valuation swings on lite inter currency trading. Its excactly like a currency. And I'm sure very liquid and easy to move your position as well.

Someone get Max K a hanky.

Wed, 04/10/2013 - 15:22 | 3433007 news printer
news printer's picture

Black Wednesday

Wed, 04/10/2013 - 15:25 | 3433009 Mine Is Bigger
Mine Is Bigger's picture

I bet this wild swing will only attract more gamblers to bitcoins.  In the medium-term (like a day or two in the bitcoin world?), this plunge may even boost the upside momentum, since many weak hands probably got out.  I have already recouped my initial investment, so I will keep my holding and watch the fireworks from the sidelines.

Wed, 04/10/2013 - 15:23 | 3433017 Fleecer
Fleecer's picture

iBitcon

Wed, 04/10/2013 - 15:24 | 3433024 pbppbp
pbppbp's picture

I'm having a problem getting my usd out of Mt. Gox. Anyone else?

Wed, 04/10/2013 - 15:28 | 3433038 adamas
adamas's picture

wtf.... are you actually telling me you believed the btc story and actually bought some ....wtf a parabola brings in all the suckers

 

Wed, 04/10/2013 - 16:52 | 3433625 3x2
3x2's picture

Virtual Currency, Virtiual USD mate

Wed, 04/10/2013 - 15:27 | 3433029 Fix It Again Timmy
Fix It Again Timmy's picture

Nothing beats bead-coins - the Dutch bought Manhattan with them...

Wed, 04/10/2013 - 17:03 | 3433702 DutchR
DutchR's picture

Cheap fukkers we were...

 

 

Wed, 04/10/2013 - 15:26 | 3433037 RSDallas
Wed, 04/10/2013 - 15:28 | 3433040 enloe creek
enloe creek's picture

bitflucoin

 

Wed, 04/10/2013 - 15:30 | 3433053 Debugas
Debugas's picture

what's the mining cost (electricity) to mine a bitcoin ?

P.S. i know for gold it is about $600 per Oz

Wed, 04/10/2013 - 15:34 | 3433063 RSBriggs
RSBriggs's picture

Varies.  Given the right gear, about 60 Kwh for 25 BTC.  Given average gear and a mining pool, probably 200 kwh per BTC.

Wed, 04/10/2013 - 15:29 | 3433057 rp1
rp1's picture

My retirement savings!!!!!  Where is the BitFed to do something about this?

Wed, 04/10/2013 - 15:30 | 3433058 RussellB
RussellB's picture

They just showed the chart on CNBC during the gold segment. 

Wed, 04/10/2013 - 15:31 | 3433061 Seize Mars
Seize Mars's picture

Rule 1). There are no accidents. This was designed to hurt Cypriots. It's not a coincidence that this goes with their gold plunder.

Wed, 04/10/2013 - 17:01 | 3433679 Bearwagon
Bearwagon's picture

Rule 2). If you aren't sure, it is sure.

Wed, 04/10/2013 - 15:30 | 3433064 q99x2
q99x2's picture

Guess MtGox is one of those mom and pop operations. Pop's taking a nap and the mailman is at the door.

Wed, 04/10/2013 - 15:41 | 3433137 RSBriggs
RSBriggs's picture

It's pretty big, and it's Japanese, and it's currenly being DDOSed. 

Wed, 04/10/2013 - 15:31 | 3433066 Balvan
Balvan's picture

ZeroFail, you don't call it a crash before it crashes. People will start buying while they're dirt cheap and tommorow's peak will be above today's peak, I guarantee you that.

Wed, 04/10/2013 - 15:37 | 3433110 IridiumRebel
IridiumRebel's picture

You feel better now Pookie?

Wed, 04/10/2013 - 16:13 | 3433373 StarTedStackin'
StarTedStackin''s picture

What do you think today's peak was?

 

 

lmao

Wed, 04/10/2013 - 15:31 | 3433069 eclecticskeptic
eclecticskeptic's picture

Let me see here.... someone put in an order to buy 16M. Wow! On the other hand, someone else put in the order to SELL 16M. Double Wow!

I think I'd rather be the seller, but that's just me.

"Even a 5-year-old could understand this. Quick, someone send out for a 5-year-old".... Groucho Marx

Wed, 04/10/2013 - 15:35 | 3433095 Debugas
Debugas's picture

On wall-street they call it "market-maker"

Wed, 04/10/2013 - 15:37 | 3433105 RSBriggs
RSBriggs's picture

Really?   That's odd - todays volume shows as being 115,300 with a weighted average price of USD $214.00

Wed, 04/10/2013 - 15:34 | 3433080 Hellomoto
Hellomoto's picture

Apparently lots of people having trouble withdrawing from Mt. Gox. Makes you wonder. They say its banking issues.

 

Wed, 04/10/2013 - 15:35 | 3433096 DutchR
DutchR's picture

50% crew cut, not bad if you bought early....

 

Wed, 04/10/2013 - 15:37 | 3433106 Cacete de Ouro
Cacete de Ouro's picture

BitBurger...as in I'll gladly pay you Tuesday for a BitBurger today....

Wed, 04/10/2013 - 16:10 | 3433352 SmallerGovNow2
SmallerGovNow2's picture

A great German pils...

Wed, 04/10/2013 - 15:38 | 3433107 Tinky
Tinky's picture

The GAP band summarizes thusly: Say oops upside your head

Wed, 04/10/2013 - 15:41 | 3433132 DutchR
DutchR's picture

Damn, i just had to give you a UP for mentioning the GAP band

Wed, 04/10/2013 - 15:45 | 3433160 giggler123
giggler123's picture

So if you invest your $100 today, tap, tap, with compound interest, tap, tap will give you, tap, tap, ... and it's gone... Next

Wed, 04/10/2013 - 15:48 | 3433169 IridiumRebel
IridiumRebel's picture

Gold is the currency of kings. Silver is the currency of gentlemen. Debt is the currency of slaves and BTC is the currency of DBAG parabola chasers who split time between Xbox and ZH in moms basement. Ok I'll stop. My condolences to all those who have lost their fucking ass.
SHAVE AND A HAIRCUT, TWO BITCOINS!

Wed, 04/10/2013 - 15:46 | 3433176 q99x2
q99x2's picture

BitCoin Weighted Avg:$212.20900

Wed, 04/10/2013 - 15:47 | 3433179 Poor Grogman
Poor Grogman's picture

Cmon baby keep going down to $5 thataboy...

Isn't this exciting!

Wed, 04/10/2013 - 15:48 | 3433182 spiral galaxy
spiral galaxy's picture

I expect the stock market to be following this pattern very shortly.  Ditto for Obama's polls. 

Wed, 04/10/2013 - 15:48 | 3433183 shovelhead
Wed, 04/10/2013 - 15:48 | 3433186 Debugas
Debugas's picture

wow, 30-day trading range for bitcoin is 36.65 USD — 266 USD


Wed, 04/10/2013 - 15:48 | 3433194 q99x2
q99x2's picture

Milkman's gone. MtGox now accepting orders.

Wed, 04/10/2013 - 15:49 | 3433205 No Euros please...
No Euros please we're British's picture

Don't know what the fuss is about. I'm sure it's just God's work.

Wed, 04/10/2013 - 15:57 | 3433257 TraderTimm
TraderTimm's picture

It will be the broad index's turn in May.

Mark your calendar. Now excuse me, I need to get some bargains.

Wed, 04/10/2013 - 15:58 | 3433268 Manipuflation
Manipuflation's picture

On Mt Gox' homepage it states:

We're always on. Buy and sell Bitcoin 24/7/365 with the world's most sophisticated trading platform.

I'll bet they'll wish they weren't if this keeps up.  Even PM's take a break before the overnight begins.  I think BTC needs a timeout to run to the liquor store.

Wed, 04/10/2013 - 15:59 | 3433277 Kiss My Iceland...
Kiss My Icelandic Ass's picture

Hmmm ... did somebody say "TULIPS"?

Wed, 04/10/2013 - 16:03 | 3433296 The Abstraction...
The Abstraction of Justice's picture

For about the millionth time, and is a very boorish call.

Wed, 04/10/2013 - 15:59 | 3433280 Sid James
Sid James's picture

I'll buy the dip at -$475

Wed, 04/10/2013 - 16:00 | 3433283 Bicycle Repairman
Bicycle Repairman's picture

Don't kid yourself that bitcoin will "bottom out" soon.  They'll keep running it up and down until they have every last cent of anyone who believes in the bitcoin concept.  Until bitcoin volume drops to zero and stays there.  If you are stubborn, you'll keep your belief, but you will not have two bitcoins to rub together. 

Wed, 04/10/2013 - 16:06 | 3433307 israhole
israhole's picture

Barely a medium of exhchange, and no longer a store of value.  nowatimsayin?

Wed, 04/10/2013 - 16:04 | 3433314 Vic Odd
Vic Odd's picture

I gotta give credit to Brother John F (Silver Update on youtube). He just announced on his blog that he liquidated most all of his bitcoins days ago. Impeccable timing-I have new respect for him

Wed, 04/10/2013 - 16:05 | 3433315 SqueekyFromm
SqueekyFromm's picture

OH well, this needs an Irish Poem!

 

CODE BLUE!

There once was some Internet Money

Whose future was thought to be sunny.

'Til an NSA hack

Discovered a crack,

He's a billionaire now, ain't that funny?

 

Squeeky Fromm, Girl Reporter

Wed, 04/10/2013 - 16:08 | 3433332 Panafrican Funk...
Panafrican Funktron Robot's picture

You know, in looking at the prices in various currencies, this thing is super, super ripe for forex arb plays.  There is wildly different action going on within the general down move depending on the currency BTC is denominated in.  

Wed, 04/10/2013 - 16:11 | 3433345 Godisanhftbot
Godisanhftbot's picture

 try it, and when they release you from intensive  care, I'll sent flowers

Wed, 04/10/2013 - 16:22 | 3433416 Panafrican Funk...
Panafrican Funktron Robot's picture

Yeah, no thanks, I super value my sanity over nominal intraday potential wealth gains that can evaporate at any time without warning.  

Which is why I'm also not in the stock market.

Wed, 04/10/2013 - 16:07 | 3433333 Bearwagon
Bearwagon's picture

Time to dump some bitcoins and go long belgian caterers, while shorting chinese caterers, delta hedged.

Wed, 04/10/2013 - 16:07 | 3433335 adr
adr's picture

SO you placed an order to change $500 into around 5 Bitcoins a week ago. You still haven't seen the 5 Bitcoins hit your virtual wallet, but you've watched the price rise to above $250. You think to yourself, "Man, I just made $750 in a week."

SO you decide to wire $5k to Mt Gox thinking you'll get in at $250 and watch the price go to $1000 per Bitcoin. Hell it could go to $10,000 per Bitcoin.

Mt. Gox has your money and the order for the first 5 Bitcoins and the second order for 20. Your order was for Bitcoins, not for cash. You will get your Bitcoins, 25 will show up in your wallet. But they might only be worth $20 per Bitcoin by the time this crash is over.

Congratulations, you handed Mt Gox $5500 and hold 25 Bitcoins worth $500.

I may be wrong and maybe the price will stabilize at $150. You still lost a lot of money.

IT'S CALLED A PUMP AND DUMP!!!!!

The dollar isn't worthless right now. In the future it might be, but right now you can walk into and store and buy stuff with dollars, they are still valuable.

Insiders pay off people to talk up the stock of bankrupt corporations, all of a sudden the stock surges and everyone tries to get in. People hand over dollars that are worth something in the hope of changing the stock for even more dollars later on. Then the news breaks that the corporation was actually bankrupt, everyone runs for the exits. By the time it's over, the stock is worth pennies. You handed over your dollars to insiders who knew the stock they held was worthless. They laugh as they go to the bank to deposit your money.

Wed, 04/10/2013 - 16:13 | 3433372 Likstane
Likstane's picture

Good synopsis.  I still have yet to speak with anyone that has exchanged their BTC into $/AU.  No trade is complete until it's in your possession. 

Wed, 04/10/2013 - 16:44 | 3433559 Vic Odd
Wed, 04/10/2013 - 16:18 | 3433398 Dewey Cheatum Howe
Dewey Cheatum Howe's picture

That is if you trade at Mt Gox. Credibility lost if they get caught no one will trade at the exchange ever again. They'll go somewhere else or trade amongst themselves.

Wed, 04/10/2013 - 16:24 | 3433423 Bobportlandor
Bobportlandor's picture

Volatility will end this nonsense. if it's suppose to be for trade can you imagine trying to sell a product with this kind of fluctuation? Germany's Wiemar republic comes to mind.

Wed, 04/10/2013 - 16:46 | 3433563 RSBriggs
RSBriggs's picture

I have a better scenario.  You bought 20 BitCoins last month at $20 = $400.  You sold two of them when Bitcoin hit $200 and made back your entire original investmest.   You now hold 18 Bitcoins for free.  You don't care if the price stays above $200, or drops to $150.  You can, at this point in time, get rid of all your Bitcoins and be $2,700 dollars ahead.  That's a return of 675% - assuming you bought them last month and decided to sell them at the current, so called "crashed", price of $150.   Oh, excuse me, the current bid is $179, so you can obtain a $3222 return with an initial investment risk of zero.  You do the fucking math...

Wed, 04/10/2013 - 17:00 | 3433684 Mad_Scientist
Mad_Scientist's picture

What percentage of people do you think bought at $20? Or $50 for that matter??

Wed, 04/10/2013 - 18:13 | 3434026 francis_sawyer
francis_sawyer's picture

It's contrary to your whole fucking point for the past month...

~~~

All along you've been extolling the virtue of the new crypto currency [& how everybody who didn't understand it were 'dinosaurs']...

Now you've all been exposed as gosh golly whee wow commodity speculators who run to fiat as fast as they can at the first sign of trouble...

Wed, 04/10/2013 - 17:02 | 3433685 Mad_Scientist
Mad_Scientist's picture

What percentage of people do you think bought at $20? Or $50 for that matter??

Wed, 04/10/2013 - 17:29 | 3433849 Bangin7GramRocks
Bangin7GramRocks's picture

"This is a dime Martini! If you rip it in half, you don't have two nickels; you have shit!"

Wed, 04/10/2013 - 16:09 | 3433338 Godisanhftbot
Godisanhftbot's picture

is a farking  GENERATIONAL BUY OP!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

 

Wed, 04/10/2013 - 16:14 | 3433366 Bearwagon
Bearwagon's picture

Who knows!

Wed, 04/10/2013 - 16:11 | 3433355 StarTedStackin'
StarTedStackin''s picture

Amazing recovery???????Wasn't it initially $40?

Wed, 04/10/2013 - 16:39 | 3433508 RSBriggs
RSBriggs's picture

It was initially $0.10

Wed, 04/10/2013 - 17:04 | 3433700 StarTedStackin'
StarTedStackin''s picture

That's what I thought cuz some guy used 1000 of them to buy a pizza or something.   I think $40 was the price at the beginning of the year.

Wed, 04/10/2013 - 16:11 | 3433356 SILVERGEDDON
SILVERGEDDON's picture

Bitch Coin is merely doing what all currencies do.

It is currently fluctuating at market value.

Anything based on rainbow unicorn shit and electrons is safer than hard assets.

Look at the US dollar.

The only thing holding it up is Ben Bernanke's dick, pushing it farther up Paul Krugman's ass. 

Wed, 04/10/2013 - 23:37 | 3435170 combatsnoopy
combatsnoopy's picture

I thought that bitcoin was the latest pink slip pump and dump scheme.  You can't blame them for trying.

For a second there I thought it was tied to the KOSPI.

Wed, 04/10/2013 - 16:11 | 3433362 firestarter_916
firestarter_916's picture

Equities are next.

Wed, 04/10/2013 - 16:15 | 3433378 dr_doom
dr_doom's picture

I repeat myself. Who cares about Bitcoin? Why do you waste your time commenting this cyber crap?

Wed, 04/10/2013 - 16:16 | 3433383 GOLD AND SILVER...
GOLD AND SILVER NATZI's picture

I'm sorry for those of you who might have lost money with this, as well as for those who are honest folk getting taken for a ride here.

As for Max Keiser....MUAHHAHAHAHAHAHAHHAAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHHAHAHAHAHAHAHAHAHAHAHA

Wed, 04/10/2013 - 16:15 | 3433388 crowd
crowd's picture

BitCoin - backed by drama

Wed, 04/10/2013 - 16:17 | 3433399 Bearwagon
Bearwagon's picture

Only at the very end, we will know if we were watching a tragedy or a comedy ...

Wed, 04/10/2013 - 16:16 | 3433391 pine_marten
pine_marten's picture

At least you can wipe yourself with fiat.

Wed, 04/10/2013 - 16:31 | 3433402 StarTedStackin'
StarTedStackin''s picture

I'm hopping aboard the BitCoin Train when the price is at parity with Pet Rocks

Wed, 04/10/2013 - 16:21 | 3433413 TwoHoot
TwoHoot's picture

Look at it this way:

Mt Gox and the minor bitcoin depositories got left holding the bag of fiat cash trash. Think about that for a minute.

Now, would you rather have the fiat cash trash or bitcoins?

Could the same thing happen to PM depositories and dealers who sell for fiat cash trash?

Hmmmmm ....

 

Wed, 04/10/2013 - 16:31 | 3433463 StarTedStackin'
StarTedStackin''s picture

Who is selling PMs for bitcoins, and you'd rather have BitCoins???????

Wed, 04/10/2013 - 16:24 | 3433429 IED
IED's picture

The problem is, its not a means of exchange .......... yet

Wed, 04/10/2013 - 16:26 | 3433437 IED
IED's picture

Except in the Ukrain

Wed, 04/10/2013 - 16:34 | 3433484 helping_friendl...
helping_friendly_book's picture

I hear people buy dope with it and get FedEx deliveries of kind bud.

Time to stock up on the chronic!!!!!!!

Wed, 04/10/2013 - 16:54 | 3433634 Bearwagon
Bearwagon's picture

Careful, lad, such deliveries can draw very unpleasant attention.

Wed, 04/10/2013 - 16:26 | 3433435 Bryan
Bryan's picture

If the central banks can't actively destroy BitCoin, you can be sure they will attempt to regulate it.

Wed, 04/10/2013 - 16:24 | 3433436 Fractional Rese...
Fractional Reserve Wanking's picture

Now I know why The Bernank was yelling "TIMBERRR" at 12pm today

Wed, 04/10/2013 - 16:26 | 3433440 ross81
ross81's picture

when's the friggin Dow gonna do this????

Wed, 04/10/2013 - 16:31 | 3433462 wisefool
wisefool's picture

Are there any websites still up reporting the price of a bitcoin in various other currencies? I keep getting "502" errors.

Wed, 04/10/2013 - 16:31 | 3433466 Zolko
Zolko's picture

Time to call in Mr. Tobin and his tax on transactions. Should solve this computerized high-frequency trading.

Wed, 04/10/2013 - 16:37 | 3433469 NuYawkFrankie
NuYawkFrankie's picture

BitTheDustCoin

Wed, 04/10/2013 - 16:35 | 3433491 mantrid
mantrid's picture

"classic correction"

 

yeah just your  classic 50% correction within hours. why don't these happen on S&P anymore?

Wed, 04/10/2013 - 16:35 | 3433492 IED
IED's picture

If bitcoin suported 1$ trillion of economic ativity .. which is not inconcievable in the next 20 years .. then a single bit coin by definition would be worth about $47,000 .. has everyone forgoten their math 

Wed, 04/10/2013 - 17:09 | 3433740 hooligan2009
hooligan2009's picture

well..1e12 / 21e6 = 47,619

if 40e6 cattle exist amongst a 16e12 economy, whats that got to do with the activity of the 99.99% of the population not involved in manufacturing cattle?

Wed, 04/10/2013 - 17:12 | 3433744 Almost Solvent
Almost Solvent's picture

Bitch, please!

 

Muthafucking bitcoin is supported by at least 102$ trillion of economic activity.

 

I will sell you one of my bitcoin for the firesale price of $300k.

 

If you buy 3, you get the 4th free. 

Wed, 04/10/2013 - 17:49 | 3433935 The Abstraction...
The Abstraction of Justice's picture

At a trillion USD, the cost of creating supercomputers with petaflop capabilities to break the 51% CPU barrier will be economical. Personally I would sell BTC to buy silver as soon as the bank flight dies down. Speculation in BTC is driven because there is nothing left to speculate in that will not fall with central bank chaff.

Wed, 04/10/2013 - 16:36 | 3433501 TalkToLind
TalkToLind's picture

Don't worry, bitchez.  Maxine Waters will be along shortly to kick off a full investigation...

Wed, 04/10/2013 - 16:41 | 3433524 DrewJackson
DrewJackson's picture

Don't worry, Be Happy.

 

http://youtu.be/fje2ac6Zo_4

 

These natural beauties cheered me up after being bitcoined.

Wed, 04/10/2013 - 16:43 | 3433532 miningman
miningman's picture

Ha! Ha! Ha! When I look at a mountain and want to tear it down and make it bleed gold...I look at the yellow iron sitting at my disposal and weigh the bottom line.  Yep, bitcoin...you go girl...I think the Mogumbo Guru said it best a long time ago:  Buy gold.  Buy Silver.  Buy oil.  Be Happy...drinking too many of these Monk brews to go into why>

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