bitcoing plungeAfter MtGox halted trading for 12 hours to allow the market to “cool down”, trading resumed at 10pm EST tonight.
Not surprisingly, the digital currency immediately plunged another 35% to $78 from $120 where it was when trading was halted earlier Thursday, before rebounding back above $100.

Bitcoin has now lost over 70% from Wednesday’s peak at $266:

bitcoing plunge

  1. People burned every minute. Everyone in this forum has gotten burned by someone or something in their lifetime. Whomever, profited off this: Good for them and those that lost and then lost everything? I feel for you, because your like the other millions of people whom have gotten played in the biggest ponzi scheme world wide.  (Currency & Bitcoin. Bubbles (housing mortgage fraud) .com bubble, stock market 2008 etc)
    So now all you have to do is recoup, get your butt back in gear and proceed to move forward. We all have taken it and some recover and some don’t? The question is where do you want to be when this thing goes bust!
    Do you want to be with the Silver, Gold and other precious metals.  Hopefully we will have a the enjoyment of being very well off, rich and some very very wealthy..
    There will be millions and millions of people who get hammered before the fall..Some will be devastated! They are not paying attention, which is going on behind the scenes. They are being programmed and reprogramed to pay attention to the mass projection of humanity. ( Movie They Live)
    There is something coming soon and it will be wicked (All this war talk, No talking of the economy, Stock Market magicalband almost impossibly (if legit) climbing on Federal Reserve purchasing $85 Billion a month of MBS). Your not financially protected and it will be very ugly. You talk to some people and they just blow you off. So this is where you take what you have told them and move along. 
    Just pray for all of mankind. The world we live in… Is just full of greed and materialistic people. I used to be apart of the materialistic life. It really doesn’t mean anything if your not enjoying life. Believe me.

    • The world we live in… Is just full of greed and materialistic people. I used to be apart of the materialistic life. It really doesn’t mean anything if your not enjoying life. Believe me.”
       
      Oh, but I do!  Many of us pass through this stage at some point in our life, only to move on to better concepts of what constitutes REAL wealth.  In the personal sense, for me anyway, real wealth is that which I can take from this Earth when I pass on to the next level of existence.  That will be the love of family and friends.  The experiences shared with those about whom we care.  The small joys that come in life and even the mistakes that we now recognize as having been mistakes and vow not to repeat.  The miracle of having happy healthy children to raise and care for and a loving spouse to share my life are at the very top of my wealth list. Having a clear conscience and few regrets is also something of great and lasting value.  Learning.  Growing. Doing good deeds.  Improving.  That’s what life is all about for me and I hope for many others as well.  Yes, I still have my mundane concerns, just as everyone does, but they neither rule my thought processes nor control my life.  Regretfully, not everyone can say this, so those of us who can must be wary of those who cannot.
       

    • The volatility in Bitcoin is interesting.  I think it’s getting an exceedingly bad rap and this is unfortunate.  The designers were brilliant anarchists who had the right idea.  However, it’s failing, like so many other representations of financial value lies in the fact as a ‘holding’ it is still a virtual ‘paper’ journalized ‘asset’ — that is, someone else’s liability.  It STILL has a ‘counterparty’ that has to perform in order to close the transaction contemplated when it was ‘opened’ — that is, when the Bitcoin was first purchased.  In a sense, it’s no different than the US dollar except in size, scope, and familiarity (scope and scale of usage).  The fiat currencies are all heading toward their own “Bitcoin Crash” moments as their respective governmental ‘counterparties’ step away from their obligations and their fiat paper implodes from the effects of the resulting “crisis in confidence.” The major difference is merely one of scale and the fact that Bitcoin doesn’t have the ongoing fraud of a Federal Reserve behind it manipulating and maintaining the illusion that it has any value.  The Bitcoin Crash has affected but a small token amount of financial ‘wealth’  So, for all the attention the volatility of Bitcoin is getting these days, it seems a big deal due only to the noise being made over it.  However, in the grand scheme of things in todays turbulent financial world, it’s but a tiny tremor.  Just watch what happens the day the US Dollar fails to catch a bid because no one believes the counterparty will make good on it any longer…  You thought the Bitcoin Crash was something???  Richter didn’t even stir compared to the scale of earth-shaking upheaval that will come when the dollar dies.
      Bitcoin, instead of being lambasted as a nefarious ponzi scheme ought to be seen, alternatively, as a prescient warning of the far bigger volatility of another fiat currency system about to implode.  The Bitcoin event should serve as a warning to us all even as the media seems to be spinning the Bitcoin event as a reason to trust the traditional financial avenues for wealth destruction… yanno, stocks, dollars, bonds… derivatives… /sarc
      Ann Barnhardt has it right.  If you can’t defend your assets personally with an AK47, you DON’T OWN ‘em!
      Surely, Bitcoin PROVES this IN SPADES!

    • The biggest problem with fiat is that because governments can dilute it, it can inherently not be trusted to maintain the reflection of value. Bitcoin is designed from the ground up to ensure that it cannot be diluted willy nilly, and mistrust in it should not be chalked up to the fact that it is not a true store of value, but rather to the weaknesses of its digital implementation.
      Fiat could never be trusted simply because there is no real transparency on how the money supply is expanded by centralized agents. Bitcoin is a much better ‘store of value’ than Fiat can ever be, because it fosters complete trust and accountability in the method of its expansion. Mistrust in Bitcoins would arise not from problems in its design, but its particular digital implementation, that leaves users and exchanges open to potential breaches.
      Bitcoin, digital ones and zeroes, blah blah, terrible store of value, blah blah, ponzi scheme, blah, bubble etc. Fiat is 1000x worse than Bitcoin; and the design of Bitcoin is not responsible for any bubble related trading, since it is subject to market based price discovery.
      Don’t kill the messager. Btw, I’ve never owned a Bitcoin, but I am considering it with play money.

  2. I think the volatility comes from the way it’s traded/handled. Not that I am an expert, never set up a wallet account thingy even.
    It’s being presented as a form of exchange/wealth store. Most people will seee it as such.
    Person X buys 40 bit coins to set some fiat aside in this alternative currency. There are thousands of Mr X.
    To prevent a bit haircut by falling BTC prices, they place stop loss orders which sell automatically. They DON’T place buy orders in case the price goes up. You’re not going to buy more money when the value goes down, the money is money. When the value of money goes down, you get into firmer less liquid assets.
    So when you decide to sell some BTC, there will not be many buy orders waiting to take your money. There are no big banks that are craving your money and want to take it at full price from you. Your sell order sees the price drop and drop and drop until it finds a savvy trader’s buy order. However, in the process, you’re trigger sell stops of others. Those Bitcoins are now also rushing to leave the system.
    How did BTC get to $260 then? Ponzi hype. Max Keiser might be largely responsible for this. He reaches a large public. If thousands of viewers set out to each buy ONE of maybe a few Bitcoins, the price is going rise and rise and rise. This places a large amount of BTC in hands that are just going to check this thing out. And may want to try a sell, just to have done that also once. They take profits, as did the ones that sold their bitcoins to them over the past weeks. But when a large group tries to take profit all at the same time…crash to the bottom!

  3. Got my finger on the trigger waiting to do my first purchase (just play money) :D It will be fun to trade something currently unregulated which is a 24/7 market (well, most of the time :) I will be staying away from mtgox for sure).
    I will have something to do other than watching the gold/silver charts all the time.

  4. Anything ‘trading’ on a centralized ‘exchange’  and ‘valued’ thereby is subject to this phenomenon. If I recall correctly, there were about three or four thousand private metals exchanges throughout China a few years ago. These were independent local or regional markets acting as conduits for hand-to-hand transactions, reporting the cumulative statistics derived from those transactions to each other on a network to ascertain ranges of valuation as they ‘organically’ arose. THAT’S a FREE market and the PROPER role of exchange bourses.
     
    As China is habitually infected with dictatorial governance, however, this network of free markets was (of course) ‘outlawed’ after the ‘Invisible Hand’ provided data on … true values … for metals which centrally controlled excuses for ‘markets’ are completely incapable of deriving. Sheer will and desire of a miniscule elite clique, after all, is no substitute for countless statistical data sampling points indicating both positive and negative implications with blind indifference.
     
    Despite that I hold BitCoin and its contemporaries in the same monetary light as banknotes, I can’t see how they can attain ‘free valuation’ as long as they depend on centralized exchange and reporting of them. That model loudly calls out for manipulation and eventual abandonment. Despite any pre-conceived discomfort users of the media might be expected to experience by merely trusting in real-time algorythmic value ranges, resulting from presently-negotiated-transactions occurring in their countless numbers, that is, ironically, the exact scenario in which the scheme is better situated to succeed.
     

    • Pat… would the fact that we now have near-instantaneous access to valuation information cause any trouble for the old Chinese silver exchange system?  Would it work as well today, if implemented?
       
      It occurs to me that a significant problem with bitcoin is the amount of minute-to-minute volatility that is has.  Would this be improved via setting the bitcoin value on merely a daily basis rather than continuously, where it is highly susceptible to speculation-induced volatility?  
       
      I have no bitcoins and probably never will but I do find the concept interesting.  If used for daily purchases, however, I would need to know that they are not changing in value by large percentages while I am in the act of spending them.
       

    • @Ed_B
       
      The free market system of numerous local and regional bourses, would be ENHANCED by electronic communications, That’s what occured with the Real Bill Clearance Market in the advent of electrical, morse code, communications in the 1800′s,
       
      The best thing that could happen for BitCoin would be to leave their unit valuation COMPLETELY up to a software algo devoid from ANY banknote translation. Perhaps a gold-grain bases ratio would be better. Whatever, I don’t like the notion, so I don’t really give the subject much thought.
       
      If we had as many metals depositories as we have stinking banks, it would be a VERY simple matter to convert current electronic transfer technology to handle hard money commercial re-titling (as opposed to ‘acceptance of debt’, presently). 
       
      The ‘problem’ with either metal or BitCoin schemes, is that the volocity of exchange isn’t high enough to kill value fluctuations. Once the whole ‘matrix’ of goods-at-market settles into a relative rational equilibration (so much silver per shirt, related to so much copper per can of beans, ad infinitum) then ranges of valuation drop into ‘standards’ that last for centuries. My Mom ALWAYS amazed me when she would go shopping, she could mentally calculate the cost of a list to within a dollar, because prices hadn’t dramatically changed from her childhood in the 1930s to the 1960′s, and she always explained that feat saying HER Mother taught her prices of things! That’s the stability that develops in a completely commodity frameworked economy.

    • Free market comms seemed to be running away with itself via HFT algos, so I was wondering if bitcoin would do the same.  I do keep forgetting myself, however, in that there really aren’t any free markets left outside of the local flea markets, bazaars, and farmers markets.
       
      Yes, a gold or silver grain basis would be good. I could even deal with a small bank / CU electronic card that contained notations of ACTUAL gold and silver on deposit, so long as a 1:1 correspondence between the metal and the notations was required… and severely punished if abuse is even attempted.  Not my 1st choice, of course, but settling for half a loaf is better than no loaf at all… except to the theoreticians, of course.  The gut knows nothing of theory but everything of emptiness and fullness.  Those are the limits of its range.
       
      We need MANY fewer banks and financial companies of all kinds.  The “financials” are 4-5 times as large a portion of the economy as a thriving economy based on sound money actually requires.  I continue to wonder what would have happened in 2008 if, on hearing that the big NY banks were failing and needed a MASSIVE bailout, Bush had said, “Well, Henry, that’s why we have bankruptcy courts in this country.  The banks that grow into their positions WILL be better run and will not require any largess from the public treasury”.  My guess is that we would have had a short but very sharp recession followed by one of the great recoveries of all time, but maybe that’s just me.
       
      “The ‘problem’ with either metal or BitCoin schemes, is that the volocity of exchange isn’t high enough to kill value fluctuations.”
       
      Can you clarify this a bit, Pat.  I’m not sure what the meaning of this is in the electronic age.  Seems to me that we get a LOT of data flowing concerning prices, although I recognize that you are speaking of “value” and not “price”.
       
      “My Mom ALWAYS amazed me when she would go shopping, she could mentally calculate the cost of a list to within a dollar, because prices hadn’t dramatically changed from her childhood in the 1930s to the 1960′s, and she always explained that feat saying HER Mother taught her prices of things! That’s the stability that develops in a completely commodity frameworked economy.”
       
      Indeed.  Moms and Grams are amazing in so many ways.  I have seen charts that show “inflation” in the US since the year 1800.  It is almost flat-lined for 112 years and then takes off at an accelerating pace through today.  This is pretty clear evidence that inflation is virtually always a fiat money scheme, although huge metal ore finds can skew it a bit.  Ditto deflation, as we know from a Thomas Jefferson quote in reference to what the banks will do if allowed… and for the past 100 years, they have been about as allowed as is humanly possible… MUCH to our cost and we have yet to see the final bill for all their shenanigans.  I suspect, however, that we WILL and that it will be impossibly high.  The phrase “more trouble than they are worth” comes to mind.
       
       
       

    • @Ed_B
       
      “… free … local flea markets, bazaars, and farmers markets.”
       
      Sorry, still illusory in the banknote scheme. Circulating currency deflation in expanding Debt-Saturation scenario, keeps value ratios disjoint from wages and thus, discressionary outlays such markets heavily depend on, is non-optimal. A truly ‘free market’ is one where parties stand level ground.
       
      On my point about velocity … What may appear as sufficient ‘sampling’ in the case of BitCoin, given an incalculable totality of the banknote based universe, however, is infinitesimally tiny. This is why I won’t trade in metals yet. There simply isn’t a ‘fair market’ anywhere NEAR what natural, or even (higher) market ratios work out to. Keep in mind, I don’t distinguish between ‘price’ and ‘rational abundance’. Genuine degrees of abundance will not be manifest until the Plantation Scrip is completely forsaken.
       
      “… pretty clear evidence that inflation is virtually always a fiat money scheme …”
       
      Ed, what insenses me most is that this deleterious effect of currency inflation was extensively treated by the ‘Spanish Scholastics’, back in the 1600s! Then in the wake of the ‘Mississippi Company’ fiasco, came Cantillon’s landmark study on the WORSE effect of currency inflation by circulation of credit. Afterward, a whole flotilla of ever more detailed and condemning works has bombarded this now unfathomably stupid notion of virtualized ‘money’, that feigned ignorance by bankers and politicians is simply blind willfulness. No WONDER folks are ‘joking’ about hangings and gillotines.
       
      What’s “more trouble than they are worth”, is politicians left to their own direction, which is why I’m so fired up on this revival of Private, People’s Grand Juries to put the reins of control back in the hands of The People.
       

    • “Circulating currency deflation in expanding Debt-Saturation scenario, keeps value ratios disjoint from wages and thus, discressionary outlays such markets heavily depend on, is non-optimal.”
       
      Ah, OK, understood.
       
      “A truly ‘free market’ is one where parties stand level ground.”
       
      The next one of those I see could very well be my first.  :-/
       
      “This is why I won’t trade in metals yet. There simply isn’t a ‘fair market’ anywhere NEAR what natural, or even (higher) market ratios work out to.”
       
      I generally do not trade metals either, except in rare cases with people who know and understand their value… and for real things, such as ammo.
       
      “Keep in mind, I don’t distinguish between ‘price’ and ‘rational abundance’. Genuine degrees of abundance will not be manifest until the Plantation Scrip is completely forsaken.”
       
      I will keep that in mind.
       
      “…that feigned ignorance by bankers and politicians is simply blind willfulness.”

      A rational person would consider the body of evidence you cite, Pat, and would take that for things to avoid when setting up a free market / monetary system.  Those with evil intent, however, will see it as a viable game plan.  We know without doubt as to which of these the banksters cleave.
       
      “No WONDER folks are ‘joking’ about hangings and gillotines.”
       
      I can’t speak for others but I prefer the fine art of impalement for this scum… and I am NOT joking.  Let them writhe and squeal for a couple of days as gravity exacts a terrible punishment upon them for their misdeeds.  If nothing else, let it be a reminder to others of like mind that free men and women need not suffer mistreatment at the hands of such scum… at least, not without being repaid with severe consequences.
       
      Politicians, banksters, what’s the difference?  Both deserve terrible punishment for their crimes.  It is more than time to get medieval on their asses.
       
       

    • Hey Dirt,
      IMO next week will be the start of the turn up for Silver and Gold. I have positive plus information that The CFTC is investigating the last two days of trading. JPM will more than likely back The Hell Off along with Goldman Sachs.
       
      Ranger

  5. Can anybody say “Bitcoinfiscation”?

    https://bitcoin-24.com/more

    Our Service is momentarily not available.
    1. All funds (EUR, USD, PLN, GBP & Bitcoins) are safe.
    2. All withdrawals will be gradually processed chronologically from another bank account.
    3. The Polish authority closed your Bank account in Poland.
    4. Our lawyers are working with high pressure on a solution.

    We will back with Bitcoin-24 2.0 on when all declarations are finished.

    All important Emails can be send to help@bitcoin-24.com

Leave a Reply