bitcoin crash

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Wendy S. Delmater's picture
Wendy S. Delmater
Status: Diamond Member (Offline)
Joined: Dec 13 2009
Posts: 1988
bitcoin crash

Per Forbes, Bitcoin is crashing.

http://blogs.forbes.com/timothylee/2011/08/07/the-bitcoin-crash/

jumblies's picture
jumblies
Status: Silver Member (Offline)
Joined: Jun 13 2010
Posts: 244
So, barring a major screw-up

So, barring a major screw-up by the Federal Reserve, we can count on the value of dollars not falling very much.

But the Fed have been screwing up in a major way since their inception as detailed in Chapter 10 "Inflation" of the Crash Course. If they, and other central banks, hadn't screwed up then there would be no need for Bitcoin. The fact Bitcoin exists indicates that there is a problem with the USD (and GBP, EUR etc).

So far Bitcoin enthusiasts have been buying Bitcoins as the price falls, convinced that the price will go back up eventually. But as the hoped-for rally has failed to materialize, more have gotten discouraged or bored and cash out, pushing the price down further.;

These enthusiasts are speculators and it is they who have pushed the price up and as they move out the price drops. This is speculative noise.

This process has been going on for a couple of months, and now it appears to be accelerating. I suspect it’s terminal.

I disagree. If the fundamental driver for Bitcoin's success is purely speculative then the currency will fail. If, however, the underpinnings of the success has been a real desire for a currency which central banks/governments cannot devalue through QE/printing then it will survive.

We'll see what happens.

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