bitcoinJust a few hours ago Bitcoin was soaring to new all-time highs at $265, a double since Monday.   In the last 2 hours however, the virtual currency has collapsed over 25%, and just broke below $200.

*Update 2: Bitcoin has crashed over 60% plunging to $105, rebound bounce takes Bitcoin back to $200

25% intra-day volatility is one good way to ensure no new businesses begin accepting the virtual currency as an alternative to US dollars.



And free-fall continues, Bitcoin now down over 50% on the day!:

bitcoin crash


bitcoin crash

And subsequent rebound bounce takes Bitcoin back to $200:

bitcoin bounce

And you thought silver was volatile!

The Other alternative currency is available As $3.25 Over Spot at SDBullion!

    • I don’t think this is the last we will hear of Bitcoin.. I just think it’s fascinating because its a totally free market. No circuit breakers, no PPT, no JPM. The only freely traded market in the world.

    • BitBurp.  BitBeltch. 
      It will not be long before some governments regulate user interaction (e.g., taxes on capital gains, potential capital controls, etc.).  Policy makers in the United States are investigating the issue right now.
      The internal design of bitcoin probably will not be an issue as that will remain a distributed network powered algorithm beyond direct government control.  But governments will certainly be able to attempt to have entry and exit into and out of bitcon targeted for regulation.  A citizen of Mongolia using bitcoin probably has nothing to think about on that score.  However, a citizen of the United States and many other countries will eventually have to deal with the onramp/offramp regulation.

    • I hated it when my 1 GB Zip drive died.  I loved that thing.  In a mega-byte world, it was great.  Now, those expensive removable HD cartridges have been replaced by cheap optical disks that are almost as fast, store 4x as much, way more reliable and transportable, and cost about 2-bits each.  That’s progress for ya!  🙂

  1. When a shop/business accept bitcoin they do so with a bit of software that exhanges the bitcoin to dollars etc IMMEDIATELY. So if its worth $50 they get $50 dollars. If its worth $1000 dollars they get $1000 dollars. A common misconception is that the bitcoin sits in their account fluctuation, loosing or gaining value. Simply NOT true. 

    • Explain who’ll immediately provide the cash you speak of at the point of sale inferring a centralized buyer of “coins” when its supposedly decentralized ?
      As an IT professional, that Sounds magical. Auto-magical. Bitcoiners are huffing glue.

      It’s a pipe dream guys. I won’t waste my time buying it. I understand the concepts, but its a ponzi none the less. An algo controlled ponzi that persists by effervescent greed rather than inherit value.

  2. I think I caused this to crash. I bought $100 dollars worth back when it was around $10 or so, just for fun. So today, at 1:30, I bopped over the 9 BTC to MtGox to exchange them for FRN’s, then silver.  I watched the price fall while waiting for a confirmation…

  3. I said a little while ago that you’d see a bunch of europeans get their faces melted off after listening to max keiser and the bitcoin pied pipers. Here we are. I like the idea, but again, considering competing against the US dollar is a “unique form of terrorism” anyone who thinks bitcoin will get over without a fight is on some good dope.

    “Attempts to undermine the legitimate currency of this country are simply a unique form of domestic terrorism,” U.S. Attorney Tompkins said in announcing the verdict.
    p.s. in addition to shit coin bitcon, the most juvenile ones which make me laugh are BUTTcoin and CLITcoin. lol.

  4. @ShortStack . Seeing this was my only adventure into bitcoin, I just thought Id cash out my winnings, not trade for silver. is 4:15 now, and 2 transactions to Mtgox are not confirming, and only those. I shot a few small tx to test. Hmmm…….

  5. Bitcoin shows us a preview of the US Dollar when it suffers it’s coup d’etat crisis in confidence.  Consider the similarities!  One day, there will be no bid on the dollar because everyone will finally acknowledge that it has reverted to it’s intrinsic value of Paper and Ink.
    And, as for those clowns who disdain gold and silver with the comment that you can’t eat your metals, my reply is simply that a Federal Reserve note tastes like crap!  And, sooner or later, you’ll get the RUNS!

    • So, THAT’S what they mean by a bank(note) run!  lol
      The illogic of the “you can’t eat gold and silver” is hilarious.  Take out a standard sheet of notebook paper.  Pick up a pen or pencil.  Now, start writing down everything in your life that is useful and significant to you.  You will discover that most of it is not edible. Therefore, the lack of edibility has little to do with whether or not one should have or needs any particular item.

  6. considering I got over 100 bitcoins a while back for under $100 my sell point at 250 today gave me $30000!  I doubt anything else will provide returns like that again.  The new A6 has been ordered, in silver, thanks BC!!

  7. So much for the cashless society move. They suckered the suckers like the facebook IPO. Can you imagine the looks on these idiots faces!! I bought Bitcoin at $120 and now it is at $265 and climbing.. Next thing you know the gig is up and now lets do the Gordon Gekko sale sale sale….Now everyone is selling this and the people who bought in get screwed.
    No one at the SEC or CTFC can tell there is some insider trading going on here? Really?! Blue horse shoe loves Bitcoin!!! Bitcoin is wreck-able Gordon Gekko

    • Only makes me wish I had seen the to “1 cent crash”.  Like a dog at a T-bone. Wait a minute!! Ag is like a dog on a T-Bone, only better. Just Have To Fight Off The Jackals first! The reward is forever!

  8. Someone on Zerohedge made the comment – people bragging about timing the top perfectly in 3, 2, 1…
    lol.. the bitcoins shills all headed for the hills for now. Being a silver stacker I can give them some advice on how to cover up a pair of irish sunglasses with makeup LOL!

  9. Imagine you’re at the cash register in the supermarket, ready to pay with bitcoins. As the teller prepares to initiate the transaction, you notice the price (in BTC) is shooting up. Either of you comfortable to make the transaction right now?
    Today’s bag of groceries, tomorrow a new car. Or the other way around. BTC makes buying gambling.

  10. Classic ‘greater fool’ theory at work. A bit coin that cost $10 goes to $100. Where did the $90 come from? A greater fool obviously. What ultimately must happen, it will go back to $10 or less when fools are used up. Oh well, maybe it can go on for a lot longer, there are a lot of fools to go through. 

  11. so i see people sayhealthy pullback and ddos in thesame breath. which is it, they arent related. at all..
    p.s. max kesier reporting that buy orders made at 200 last night were cleared today at 140. so the system locked up. all the shillls sold at 260 thoughand bought in at 125 again.

  12. I heard they’re proudly working in ways to process promises to bitcoin. Won’t that be good? Just like the financial system, al kinds of neat ways to go long/short will be devised. For the suckers to lose money on, and the smart ones to thrive on.

  13. Roher that CDL  There’s a new hedge fund playing the bit coin market with leverage, funded by some freaking gomers from Faciabook and Micrstufft.  $500,000 to trade and short bitcoin. And they want transparency and be able to offer interest on it. WFT. Bitcoin is so stupid I can’t come up with words to describe these idiots. If you don’t hold it you don’t it. As soon as you own your shit coin these jackasses will be leasing and rehypothecating it.

       It absolutely stuns me to see how fast Gresham’s law comes into play. 

    With the B OF J printing $2,000,000,000,000 in yen and the carry trade taking off, this flood of yen is going straight into CCC minus junk AND gold and silver.  I guess even Gresham isn’t stupid. 

    • “With the B OF J printing $2,000,000,000,000 in yen and the carry trade taking off, this flood of yen is going straight into CCC minus junk AND gold and silver.”
      Gotta love those Japanese Keynesians.  As an investor, it is my job to make money.  As silly geese, it is their job to provide it.  My investment in YCS is up 14.6%, even though we are only in the 1st tranch of all this yen printing.  Can only wonder how it will be doing when they are starting that second trillion.  😀

  14. The official story reads that this time it wasn’t even an attack. Their servers were overloaded by skyrocketing new accounts and transactions, the servers started lagging and then everyone panicked and sold. So price should catch up again soon unless something serious happens. I would probably buy this dip if I had any dry powder, but I don’t.

    I think there is yet big profits that can be made trading bitcoins until a futures market and regulations on dollar/BTC transactions are imposed. But trading is without stops on an unstable exchange could be deadly (for the faint hearted at least). I could be wrong, which is why I am staying away for now.

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