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Bitcoin Slammed As Baidu Suspends Payments Due To "Fluctuations"

Tyler Durden's picture




 

Bitcoin is being sold aggressively on heavy volume as this headline hits:

  • *BAIDU SUSPENDS BITCOIN PAYMENT ACCEPTANCE ON VALUE FLUCTUATION

And the official, google-translated announcement from the BIDU website:

This is one of the reasons Citi and BofAML noted as 'disadvantages' and it seems Baidu agrees (for now).

 

 

and as a reminder...

 

 

It appears Mt.Gox has crashed trying to handle a very large sell order... and the resulting algo mess is as follows...

 

Chart: Bitcoinwisdom

 

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Fri, 12/06/2013 - 17:48 | 4222870 Calmyourself
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Asian lady walks into a bank to change some yen to dollars, hands over the yen to the teller gets back ten less dollars for same yen amount as last week.  Asks teller "why less dollars"?  Teller shrugs her shoulders and says "fluctuations" Asian lady gets dagger eyes and yells while stomping off "fluck you too white bitch".

Am I banned?

Sat, 12/07/2013 - 04:18 | 4223914 Non Passaran
Non Passaran's picture

Don't worry, you won't get banned for lame jokes.

Fri, 12/06/2013 - 18:05 | 4222900 RaceToTheBottom
RaceToTheBottom's picture

FED/Bankster machinations on schedule and Baidu played right into it.

FED/Banksters bought a lot pushing it up on the way up.  Now they sell hard to break it on the way down.

Worked for Gold, they can use it for bit-coins.

 

 

Fri, 12/06/2013 - 18:12 | 4222916 virgilcaine
virgilcaine's picture

Use bitcoins to buy a pets.com sock puppet.

Fri, 12/06/2013 - 18:25 | 4222949 Gromit
Gromit's picture

....

Fri, 12/06/2013 - 18:32 | 4222969 auric1234
auric1234's picture

It broke below the 1 Dec lows. Now the tape is painting a very bearish pattern.

I think I'll wait a few days and then buy a few cents at $400.

 

Sat, 12/07/2013 - 04:17 | 4223911 Non Passaran
Non Passaran's picture

I had a few open orders in 350-390 range but I just cancelled them all.
I'll buy in 150-200 range or otherwise pass the opportunity.

Fri, 12/06/2013 - 18:59 | 4223031 Mad_Scientist
Mad_Scientist's picture

I don't have a dog in the Bitcoin fight, but it would be a reasonable observation to say that its main Achilles Heel for use as a B2B or B2C "currency" may turn out to be the significant day to day volatility when valued in local currency. I saw yesterday that someone bought a Tesla S using bitcoin. I'm guessing the management of the dealership do not plan a bitcoin based savings or checking account for the long term, so most of those bitcoins were probably transfered back to dollars. If someone sold the car for the bitcoin equivilant of $70K yesterday, but those same bitcoins are worth only $50K today, the selling of cars for bitcoins will not continue for very long. Employees, rent etc cannot be paid in paid in bitcoins and there would be no reason for a domestic car dealership to have to add currency fluctuations to its list of risks of operation. This was an extreme example but even selling much less expensive goods or services, a company cannot have prices fluctuate 0.5% per day, let alone 10% or 20%.

Sure if all parties paid all expenses and booked all income in Bitcoin it would work, but that's a long, log way off if ever.

Sat, 12/07/2013 - 06:14 | 4223974 auric1234
auric1234's picture

Employees, rent etc cannot be paid in paid in bitcoins and there would be no reason for a domestic car dealership to have to add currency fluctuations to its list of risks of operation.

Even worse than that. Most employees will demand USD even without the volatility. They need the benny bucks to pay their mortgage.

The only cathegory of people Bitcoin would appeal to (other than speculators) are savers. But if you're saving for your retirement and need something to rely on (not something to get rich quick, something you can rely on). Would you ever pick Bitcoin over gold?

When it comes to holding them: with the volatility, you have a get rich quick scheme, which appeals to speculators. Without the volatility, you have a poor gold substitute.

Fine, you can move them from exchange A to exchange B in order to transfer some USD from A to B. They make an excellent medium of exchange, as long as there's someone in B willing to hold them.

Fri, 12/06/2013 - 18:58 | 4223032 Mad_Scientist
Mad_Scientist's picture

I don't have a dog in the Bitcoin fight, but it would be a reasonable observation to say that its main Achilles Heel for use as a B2B or B2C "currency" may turn out to be the significant day to day volatility when valued in local currency. I saw yesterday that someone bought a Tesla S using bitcoin. I'm guessing the management of the dealership do not plan a bitcoin based savings or checking account for the long term, so most of those bitcoins were probably transfered back to dollars. If someone sold the car for the bitcoin equivilant of $70K yesterday, but those same bitcoins are worth only $50K today, the selling of cars for bitcoins will not continue for very long. Employees, rent etc cannot be paid in paid in bitcoins and there would be no reason for a domestic car dealership to have to add currency fluctuations to its list of risks of operation. This was an extreme example but even selling much less expensive goods or services, a company cannot have prices fluctuate 0.5% per day, let alone 10% or 20%.

Sure if all parties paid all expenses and booked all income in Bitcoin it would work, but that's a long, log way off if ever.

Fri, 12/06/2013 - 19:10 | 4223063 The Abstraction...
The Abstraction of Justice's picture

If the Tesla dealer is in BTC for the long term then accepts these kind of fluctuations then there is no problem. These dumps have the effect of removing the lesser commited from the game. As we see in the yearly Bitcoin graph, the dips get smaller and the corrections are ever briefer. The user base is more strategic than the commentators give them credit for.

Fri, 12/06/2013 - 20:30 | 4223252 MeelionDollerBogus
MeelionDollerBogus's picture

think about it. A car dealer, a store of any sort, in bitcoin for the long term?
Businesses need high turnover for dollars/cash to pay for inventory and high inventory turn-over to pay employees, get more inventory, pay bills, taxes, etc.
That's the one thing they can't do - hold bitcoin for the long-haul. It's opposite to their business model. They don't even hold DOLLARS for the long term. it's not their job.

It's a retail OUTLET, even for cars - it's not a bank or hedge fund.

Fri, 12/06/2013 - 19:28 | 4223102 Scipionz
Scipionz's picture

You guys should buy GIC, this way you would face no risk. I love weaks  hands and sisi mentality, I make my profit from them. Stay on the sideline if you don't like it, but bitching is cluless. Thx to BTC, my car loan is.paid.off. If you dont't have 500$ to speculate, then .. Im sad 4 u.

Sat, 12/07/2013 - 08:59 | 4224070 iamrefreshed
iamrefreshed's picture

If you have to borrow money to buy a car you shouldn't be speculating in Bitcoin.

Sun, 12/08/2013 - 16:42 | 4227232 MeelionDollerBogus
MeelionDollerBogus's picture

I'll put my $500 on HVU thank you. It's higher rewards vs risk. BTC will lose 80% value by the time HVU goes up (11x SPY inverse) to $800/share (and closed at 8.34). It's knowing the dow,sp500 time-series & the power relationship. hvu = 19.8444 19.8444 / SPY 11

within about 3%. Going the other way computes SPY values within pennies.

Fri, 12/06/2013 - 19:48 | 4223151 deerhunter
deerhunter's picture

Thanks for offer mcbutto but have cheesecake here in Chicago land. I am glad to have a place to bowhunt 45 minutes west of Ohare airport.

Fri, 12/06/2013 - 20:00 | 4223171 MeelionDollerBogus
MeelionDollerBogus's picture

Get ready for it, bitfools!
900
700
400
140
50
5
No matter the rallies that's the future of bitcoin.

Fri, 12/06/2013 - 20:20 | 4223227 itchy166
itchy166's picture

$5 bitcoin is exactly as useful as $5000 bitcoin.  I can still move wealth around anonymously.  Who cares what each unit costs?

Fri, 12/06/2013 - 20:27 | 4223240 MeelionDollerBogus
MeelionDollerBogus's picture

MtQox has crashed, MtQox has crashed!!
HOW MUCH FOR MY QUATLOOS?!
Anything, ANYTHING for my Quatloos!

... on a more serious note...

you are actually right.

if Bitcoin can find a valuation and STAY there its only real flaw is grid-down risk. If that were the only risk it would be no more of a problem than existing digital currency transfer or storage.

With an additional advantage: pocket storage, eg., USB drive.

It has tons of flaws, arrays of risks, but with a bank account I would be unable to do this so all my risk is put into one basket for fiat: if it's electronic it's in a monitored, regulated bank account. I may not want to carry my money on a USB drive but the bank can't even offer it, bitcoin can.

I prefer gold, silver, paper cash as needed by the law, but having an additional option is better than not having it if for some crazy reason it's needed.

it's not anonymous unless you change IP addresses faster than the wind changes, but perhaps you do.

Sat, 12/07/2013 - 00:24 | 4223709 itchy166
itchy166's picture

Paper wallet.  Wallet saved on a microdisk..  I could give you $100,000,000 on a disk, and nobody would be the wiser.  Try to move $10,000 USD and see how many people ask questions...

Sat, 12/07/2013 - 02:57 | 4223852 MeelionDollerBogus
MeelionDollerBogus's picture

and you could spend it and if I was dumb enough to take the paper I'd have nothing and be none the wiser.
Smarter never to touch bitcoin in the first place.

Sat, 12/07/2013 - 04:07 | 4223902 Non Passaran
Non Passaran's picture

Exactly. Which is why no sane person should buy it at these prices.

Fri, 12/06/2013 - 20:12 | 4223182 Scipionz
Scipionz's picture

Who's the fool? The one invested 500$ under 100$ and dropped half at 1k or the cow looking at the train while eating grass...?!

If you don't like the drugs, don't call the pusher.

 

I HOPE BTC fallling under 500$ so I can load from the free money I made at 1k.

This is call trading, you guys can look on the net, they will explain you all this.

Fri, 12/06/2013 - 20:51 | 4223285 Scipionz
Scipionz's picture

BTW silver is getting crush too and no complain or bitching about it here yet....this old relic.

Still, I HOPE it drop also under 19 to even 12$, that would be CRAZY deal!!!

 

I could wait until retirment for silver and/or BTC to rise to heaven and I rather switch my fiat paycheck to asset that can't be diluated like shitty fiat or shares.

Simple silver bullet proof logic.

Sun, 12/08/2013 - 16:39 | 4227227 MeelionDollerBogus
MeelionDollerBogus's picture

crushed = $5/oz , $19 = easy bargain, barely a nudge. Within a year it will be double, within 2 years it will be triple.

The value is the atoms. The price is the difficulty to acquire. Silver has intrinsic value as medicine, money, electronics parts - bitcoin has no intrinsic value.

Fri, 12/06/2013 - 20:55 | 4223318 John___Connor
John___Connor's picture

OMG BTC has collapsed to the price it was at last week! The world has come to an end. LOL.

Fri, 12/06/2013 - 22:44 | 4223561 Godisanhftbot
Godisanhftbot's picture

lol, spoken like someone who owns ZERO bitcrap

Fri, 12/06/2013 - 21:49 | 4223446 alien-IQ
alien-IQ's picture

771 and falling fast. Looks like they woke up in china.

Fri, 12/06/2013 - 22:10 | 4223493 pipes
pipes's picture

...yaaawwwn...

Fri, 12/06/2013 - 22:16 | 4223503 pipes
pipes's picture

wake me when it hits 500...

 

...and I'll buy some more

Sun, 12/08/2013 - 16:39 | 4227223 MeelionDollerBogus
MeelionDollerBogus's picture

won't wait for $100? You sure like throwing real money away

Fri, 12/06/2013 - 22:21 | 4223518 Brazen Heist
Brazen Heist's picture

The fact that on the China news Bitcoin is crashing means that a great deal of speculators are Chinese. 

The volatility problem arises due to too many people treating Bitcoin as a short term asset. Its the psychology of the market that's creating the volatility. Until most people see it as a long term asset, it will continue to fluctuate violently. Gold investors know that gold is a real long term asset, but Bitcoin hasn't yet reached that state of maturity as an asset. If you can stomach Bitcoin's volatility, then the good news is that you can pretty much stomach any other asset. It's pretty good practice to sharpen and understand your risk tolerance better. I'm breaking even right now, but I will continue to hold, since I have accepted that I am ready to lose what I have invested into this experiment. Screw giving in to fear to some news reports.

Fri, 12/06/2013 - 22:45 | 4223563 pipes
pipes's picture

Some of the volatility is due to how few (relatively) people are in Bitcoin. A splash and it's subsequent ripples seem much more significant in a small pond than in a lake.

 

We haven't even begun to see the upside yet.

Fri, 12/06/2013 - 22:53 | 4223571 Godisanhftbot
Godisanhftbot's picture

 its manipulated. by cartels of drug dealers and money launderers.  you didn't know this?

Sat, 12/07/2013 - 16:00 | 4224900 pipes
pipes's picture

Immaterial.

 

 

Sun, 12/08/2013 - 16:36 | 4227222 MeelionDollerBogus
MeelionDollerBogus's picture

if you can stomach cow turds & 2 girls 1 cup you can definitely stomach kidney pie.

Doesn't mean cow turds or eating vomit is good for you in any condition whatsoever.

Fri, 12/06/2013 - 22:43 | 4223559 Godisanhftbot
Godisanhftbot's picture

 I would normally tell my bashers to blow me, but I'm too nice a guy.\

 

bitcoin , delist

 

 

Fri, 12/06/2013 - 22:52 | 4223574 Godisanhftbot
Godisanhftbot's picture

 The main problem with BC is it's owned mostly by thieves and imbeciles.

Sat, 12/07/2013 - 00:27 | 4223668 itchy166
itchy166's picture

Sounds more likre USD than Bitcoin

Sat, 12/07/2013 - 16:04 | 4224917 pipes
pipes's picture

As are Cadillac Escalades.

 

That doesnt mean they don't give a nice ride, cretin. 

Sat, 12/07/2013 - 00:28 | 4223712 Godisanhftbot
Godisanhftbot's picture

 I bet

 U wish

 You sold

 At 1200

 I bet

You'll wish

You sold 

at anything

 

 

 

 

Sat, 12/07/2013 - 01:51 | 4223811 debtandtaxes
debtandtaxes's picture

I bet

U

r wrong.

;)))

Losing 20% ... (yawn)

Silver n gold have lost more than that.......

Sat, 12/07/2013 - 03:42 | 4223884 Non Passaran
Non Passaran's picture

You mean 50%?

Sun, 12/08/2013 - 16:35 | 4227217 MeelionDollerBogus
MeelionDollerBogus's picture

not one atom of gold or silver was lost with USD / fiat price changes.

that's the key difference. Value is intrinsic, it's atomic.

Sat, 12/07/2013 - 02:43 | 4223843 moonstears
moonstears's picture

buy LTC and FTC?

Sat, 12/07/2013 - 03:28 | 4223870 Dre4dwolf
Dre4dwolf's picture

LTC is a buy at 4$~7$.

 

Its going to go that low................ which sucks for my mining operation.

 

Buy LTC at 7$ to put a floor on my mining operation lol, this computer aint gona pay itself off without suckers.

Sat, 12/07/2013 - 02:46 | 4223844 mijev
mijev's picture

Every time ZH posts a bitcoin article, the same irrelevant responses are posted and I have to scroll through that tedious shit to find the interesting things people are saying. 'It's an NSA plot.' We know. No one gives a fuck about the NSA. 'We told you so.' We know. We knew that from the previous 100 times you told us. No one gives a fuck about that either. 'You can't hold a bitcoin.' We know. That gives us two hands free to jerk off with. 'Bitcoin is going to crash.' Maybe. Maybe not. You don't know. We don't know. But most importantly WE DON'T FUCKING CARE! Blah blah. If you don't like anything digital, then go back to your abacus, your vinyl records (vinyl underwear is ok), your newspaper or hustler mag, whatever. If you have an original thought then by all means post it. Just stop posting the same fucking dreadful platitudes. Please. Pretty please.

Sat, 12/07/2013 - 02:48 | 4223845 Godisanhftbot
Godisanhftbot's picture

 What the going rate in Bitcon for a clue?

Sat, 12/07/2013 - 03:30 | 4223876 Iam Yue2
Iam Yue2's picture

Bitcoin: Last:$650. High:$1,118. China rout continues.

Sat, 12/07/2013 - 08:58 | 4224065 iamrefreshed
iamrefreshed's picture

Just curious, what happens to Bitcoin if the electric grid fails? Yes, TEOTWAWKT.

Sat, 12/07/2013 - 09:30 | 4224091 mijev
mijev's picture

If the grid fails then who is the NSA going to monitor? If it gets to that stage, we're pretty much screwed anyway.

Sun, 12/08/2013 - 16:32 | 4227211 MeelionDollerBogus
MeelionDollerBogus's picture

I'm not. Life existed with no electric grid, no gas pipelines, no gasline and no cars. It was different but the skills are not completely forgotten.

I'm getting ready for it and I won't be unprepared at all when it happens.

Urbanites living off cell phones & ad revenue who have no real working skills will die.

I'm not one of them.

Sat, 12/07/2013 - 18:11 | 4225226 kita27
kita27's picture

Three articles i read about Bitcoin,  1) was about the treasury being concerned and holding congressional hearings about what to do in regards to the digital currency.

 

2) Was about Bit coin going parabolic in price then dropping, then parabolic, then dropping, then ... you get the picture.   Im just assuming the result of the congressional hearings was to organise a task force to totally destabalise Bitcoin so that it cannot be trusted.  

 

3)  A car company accepts Bitcoin as payment for car!?   At what price?  $1300 on Monday   or $900 on Tuedsay?   lol,,  i think you see what i am getting at.

 

 

Sat, 12/07/2013 - 18:14 | 4225244 Death By Cold S...
Death By Cold Steel Report's picture

Its the same people who crushed the silver, and crushed the gold. 

Do NOT follow this link or you will be banned from the site!