Silk Road forums

Discussion => Off topic => Topic started by: rise_against on November 15, 2011, 05:21 am

Title: what caused Bitcoin to drop today?
Post by: rise_against on November 15, 2011, 05:21 am
anyone know?
Title: Re: what caused Bitcoin to drop today?
Post by: walterjr on November 15, 2011, 04:14 pm
yes, watched it happen and made out like a bandit.

there was a bid (buy) for $500,000 at 2.30 btc, and another a few hours later for $280,000 at the same price. someone with deep pockets talked everyone into selling.

market fundamentals definitely apply to this currency.
Title: Re: what caused Bitcoin to drop today?
Post by: PriscillaMarie90 on November 15, 2011, 04:17 pm
It was probably your promiscuous mother!

Just kidding, what Walt said is far more likely. :D
Title: Re: what caused Bitcoin to drop today?
Post by: the deal on November 16, 2011, 07:08 pm
yes, watched it happen and made out like a bandit.

there was a bid (buy) for $500,000 at 2.30 btc, and another a few hours later for $280,000 at the same price. someone with deep pockets talked everyone into selling.

market fundamentals definitely apply to this currency.

where did you see this?
specifically the bids to buy at certain prices...
Title: Re: what caused Bitcoin to drop today?
Post by: walterjr on November 16, 2011, 08:44 pm
ah, i made a mistake.. my bad.. first buy was for 2.50.

mtgox live data.. i watch pretty much 24/7 and have feeds. actually i watch and trade on 5-6 venues depending on their volume. it's why i'm not hedged here.
Title: Re: what caused Bitcoin to drop today?
Post by: j789745 on November 16, 2011, 11:37 pm
Even if walterjr made a mistake in his specifics regarding that bid/buy, his fundamentals are still dead on. Bitcoin is volatile, though hardly as much as it was just a few months ago. I'm glad we're in this price range though, because the dips affect us a lot less than when the price was in the 20s. I only hope we find a bottom and then a general growth trend from then on. (Maybe this is the bottom?)
Title: Re: what caused Bitcoin to drop today?
Post by: gumby on November 17, 2011, 12:04 am
I hope they rise up a bit during the holidays so I can buy some things. The price of bitcoins right now sucks for me.
Title: Re: what caused Bitcoin to drop today?
Post by: j789745 on November 17, 2011, 12:13 am
Believe me, I know. I bought a lot at 5 that I just idiotically watched slip in value before my eyes. I kept thinking it'd bounce back. But seeing it stay so relatively stable in comparison is also a positive sign for the future. It may mean that you have to wait a little before the coin you have now is worth what you bought it at, but at least we're not seeing the volatility of before, which may drive slow and steady growth as more people in underground markets see it as a volatile option (since it sure as hell isn't really being used for much else). I think what we saw before was a massive rise do to media publicity, then a quick fall as early BTC buyers sold at ridiculous gains and a bunch of SR users who signed up post-Gawker left (and yes, I signed up post-Gawker, but obviously I'm still here and buying).
Title: Re: what caused Bitcoin to drop today?
Post by: PriscillaMarie90 on November 17, 2011, 01:00 am
UH, YEAH, when I first joined Silk Road they were 8 FUCKING DOLLARS a piece, and my dumb ass (not knowing ANYTHING about bitcoins whatsoever) bought $300 worth of them. Then in the following weeks, they seemed to suddenly drop, 7, 6, 5, 4... I was able to buy what I wanted, but what a fucking rip off am i right?

I've never seen them at $8/BTC ever again since I joined 3 months ago, lol.
Title: Re: what caused Bitcoin to drop today?
Post by: CaptainSensible on November 17, 2011, 01:26 am
UH, YEAH, when I first joined Silk Road they were 8 FUCKING DOLLARS a piece, and my dumb ass (not knowing ANYTHING about bitcoins whatsoever) bought $300 worth of them. Then in the following weeks, they seemed to suddenly drop, 7, 6, 5, 4... I was able to buy what I wanted, but what a fucking rip off am i right?

I've never seen them at $8/BTC ever again since I joined 3 months ago, lol.

I can recall paying 16.00 per Bitcoin.  Shit, we all must be millionaires, how else could we afford to lose so much money through the process of buying Bitcoins? 
Title: Re: what caused Bitcoin to drop today?
Post by: j789745 on November 17, 2011, 01:36 am
It was a bubble; bubbles burst...
Title: Re: what caused Bitcoin to drop today?
Post by: gumby on November 17, 2011, 02:11 am
UH, YEAH, when I first joined Silk Road they were 8 FUCKING DOLLARS a piece, and my dumb ass (not knowing ANYTHING about bitcoins whatsoever) bought $300 worth of them. Then in the following weeks, they seemed to suddenly drop, 7, 6, 5, 4... I was able to buy what I wanted, but what a fucking rip off am i right?

I've never seen them at $8/BTC ever again since I joined 3 months ago, lol.

I came here after. I was too worried so right when the bitcoins hit my Silk Road wallet I purchased my items. No money lost and I am glad I did what I did. I only have a few bitcoins now so I don't really mind what happens but it would be nice to order 2 pills instead of one.
Title: Re: what caused Bitcoin to drop today?
Post by: wretched on November 17, 2011, 02:21 am
I wouldn't mind seeing bitcoin jump back up to the $30 mark!!! that is when I stocked up on 3janes molly, and tried to stock up on tarps lucy (I was able to buy alot of it, but the keys really fucking suck) so here's hoping
Title: Re: what caused Bitcoin to drop today?
Post by: mr.ouid on November 17, 2011, 02:38 am
UH, YEAH, when I first joined Silk Road they were 8 FUCKING DOLLARS a piece, and my dumb ass (not knowing ANYTHING about bitcoins whatsoever) bought $300 worth of them. Then in the following weeks, they seemed to suddenly drop, 7, 6, 5, 4... I was able to buy what I wanted, but what a fucking rip off am i right?

I've never seen them at $8/BTC ever again since I joined 3 months ago, lol.

LOL that's nothing I had $40K in it when bitcoin was at $30 ;D  And then I bought more at $15 and at $10 and at $5 and at $3.... LOL I should have cashed out and spent the rest of the year in Mexico.
Title: Re: what caused Bitcoin to drop today?
Post by: anarcho47 on November 17, 2011, 03:04 am
^That is exactly the lesson I knew I would learn if I tried to use bitcoins as a fullfilment of primary monetary function.

I just use them as a unit of account.  That's it.  Store of value - no thanks.
Title: Re: what caused Bitcoin to drop today?
Post by: walterjr on November 17, 2011, 04:13 am
^That is exactly the lesson I knew I would learn if I tried to use bitcoins as a fullfilment of primary monetary function.

I just use them as a unit of account.  That's it.  Store of value - no thanks.

i have to be honest, sure.. bitcoin ate poop a few times as far as value but it's because it is becoming tied to a "real" currency. you have to remember it corrected TO the defacto standard currency of the world. USD is accepted anywhere.

not only that, but someone put buy orders to eat every single available bitcoin on the only venue with significant volume of trades. and couldn't bring it to the 1=1 point.

if anything shows how powerful bitcoin is, which from my research showed it was scary solid.. especially with all the doom talk coming from fat cats in NY.

i'm sorry, but if you want to cash out... sell them to me.

ps i quoted you anarcho47, but it's really thread relevant.. hope you don't take it as a shot at you, which it's not. :)
Title: Re: what caused Bitcoin to drop today?
Post by: anarcho47 on November 17, 2011, 04:43 am
I dont' take it as a shot at all.

But bitcoin turned into a speculation.  All you have to do is look at a chart from inception and you see a pattern that has played itself out from all history.  I can still see bitcoins being at 1:1 - and for the record, a BID at 2.50 would never get bitcoin to a 1:1 level, that's putting a massive floor on the price at 2.50USD/BTC.  if you had an offer for 500k at 1.00 though, you can bet your ass BTC would be a dollar as fast as MtGox's servers could handle that much volume.
Title: Re: what caused Bitcoin to drop today?
Post by: walterjr on November 17, 2011, 07:34 am
well, in retrospect i should have been even clearer and definitely more eloquent.

your view of it as being a unit of account is where it should be right now. it is tied to the dollar/eur/aud because that's still where we get our food from, shelter, etc from. until more people accept it as a form of payment for commercial enterprises it still will have that perception in general i think.

i'm hoping as more people offer services in bitcoin that people become attached emotionally to it in a positive way.

and you are right about the 1:1 ratio, but with the negative emotion and the large drop people could have panicked and sent it down to that quite easily (in my opinion, i'll look for instances in money markets to see if one exists for whoever reads this thread). but eating an entire venue's ask is pretty insane. and then doing it again awhile later is ballsy. someone who knows what they are doing with resources to do it jumped in, if i'm not mistaken they will have to wait quite awhile before they can short profitably.

and someone is doing it again right now. bids at 2.20 and 2.10 that surpass the ask depth by quite a bit. not the same dollar amounts, about 20% of the last move like this.

i can only fire in the dark at this point, anyone have a theory?

anyone see the same move on eur/btc or aud/btc? haven't been watching those, and they are something like the 3rd and 4th largest volume wise.
Title: Re: what caused Bitcoin to drop today?
Post by: anarcho47 on November 18, 2011, 02:51 am
From what I've been hearing there is a small closed exchange in invite-only beta right now, I think 500 or 1000 actual traders.  It's designed by one of the guys from Citi and will offer things like an actual float with short-selling, put and call options if holders want to write them (I would probably use this myself) or buy them, etc.

If that one takes off it will invite a flood of pros into the game and liquidity will flourish, leading to steady prices.
Title: Re: what caused Bitcoin to drop today?
Post by: oppyate on November 18, 2011, 04:07 am
It's easy my friends. Buy Low, Sell High. I'm new to BC's, but not to making money on Currencies or Stock. Each time I buy BC's now, I keep 10% on the side for opportunities or just to Hold till things go Up.
Title: Re: what caused Bitcoin to drop today?
Post by: j789745 on November 18, 2011, 04:11 pm
It's easy my friends. Buy Low, Sell High. I'm new to BC's, but not to making money on Currencies or Stock. Each time I buy BC's now, I keep 10% on the side for opportunities or just to Hold till things go Up.

Yeah, but if you bought at 15 or 30, things aren't going to reach that level in a long, long time, if ever. I'd like to see BTC become a legitimate international currency too, but realistically, it is just a way to help add a little anonymity what we're doing. Buy low, sell high, sure. In fact, if you study the charts you can make a decent penny off the volatility of BTC, if you buy at 2.2, knowing in a few days it'll be 2.8 or something. But for those of us who buy BTC primarily to spend on SR, we're not trying to invest and the products we want aren't always available at the time we want them, so who knows what the value will be when we want to spend our coin?

In terms of long term investing, the future of BTC is very uncertain. If what Anarcho says is happening ever gets fully realized, that'd be great for the market. But we also have to think about the fact that BTC rose sharply in value immediately after a bunch of media publicity surrounding SR, then has been dropping ever since. For months, really. There is an obvious connection and we don't know where the bottom is. Furthermore, we don't even know the certainty of BTC's future, because it is a currency used primarily as a means of obtaining illegal substances, meaning it has a big fat target on its back.

It isn't the same as the international currency exchange and it isn't the same as any stock market. If you think about it like that, you're going to get burned.