TinyUrl.com/About BITCOINS : DATA, Trading and Price Dynamics

[drbubb]

About Bitcoins : DATA, Trading and Price Dynamics
"the price has exploded, going from just over $10 per Bitcoin last November, to around $140 this week"
/LINK to here: tinyurl.com/AboutBitcoins : chart : 10d
==================================================



I think it is time that I said something about Bitcoin Prices:

- Please do not buy them now, because there is a clear Feeding Frenzy underway !
(See Pricing Dynamics, just below in post #2)

KEY POINTS. regarding BITCOINS
===========

+ There is no tangible backing for Bitcoins : the valuation is merely based on Supply versus Demand

+ About 11 million outstanding x $140 = about $1.54 Billion

+ "Mining Bitcoins" : the Bitcoin creation mechanism - described here:

 

Since it takes time, effort, skill, and some luck to "earn" Bitcoins,
some people may feel that they have some genuine value.



Apparently, you can "earn" Bitcoins by solving computer algorithms (a kind of puzzle) -
It is a competitive thing, and as more people become "miners", the chances of being successful go down.

( Note: What a useless activity this seems to be! Apart from the Bitcoins earned, of course.)

Creating a secure wallet : http://startbitcoin....bitcoin-wallet/

Now that you have a wallet* and the client, you are probably roaring to go, but if you actually want to make Bitcoin (money), you probably need to join a pool. A pool is a group that combines their computing power to make more Bitcoins. The reason you shouldn’t go it alone is that Bitcoins are awarded in blocks, usually 50 at a time, and unless you get extremely lucky, you will not be getting any of those coins. In a pool, you are given smaller and easier algorithms to solve and all of your combined work will make you more likely to solve the bigger algorithm and earn Bitcoins that are spread out throughout the pool based on your contribution.
===
/source: http://startbitcoin.com/

Bitcoin Mining / Is it safe?

In theory, as the Bitcoin pool operator, I could keep the 25 BTC from a block found by the pool for myself. I'm not going to do this, but I completely accept that people do not trust the pool operator. It is their freedom of choice, and Bitcoin is about freedom.

I created the Bitcoin pool service with the rising difficulty of mining in mind because I'd like to return my investment to mining hardware. There used to be days when I never found a block at all, even with the strongest GPU on the market, which made me uncomfortable. The periodic micropayments from the mining pool offer a steadier payout, which lowers the riskiness of my investment in the Bitcoin market.
===
/source: http://mining.bitcoin.cz/

*I am concerned that getting a wallet may put someone at risk of winding up on a list kept by governmental authorities

KEY LINKS :

=========

Coindesk News : http://www.coindesk.com/

Coin MktCaps :: http://coinmarketcap.com/
/Wiki-BitCoins :: http://en.wikipedia.org/wiki/Bitcoin
Bitcoin Charts :: site: http://bitcoincharts.com/ : CHARTS: http://bitcoincharts...Szm1g10zm2g25zv
BTC exch.# 2- :: https://btc-e.com/
Online Wallets :: Post#94 : http://www.greenener...pic=17651&st=80

How BTC works : VIDEO, that talks about ledgers, passwords, etc.
Clif High: MP3 :: Bitcoin Primer (Apr. 3rd, 2013) : AboutWallets
Bitcoin Myths- :: DEBUNKED in this excellent

- see post#59 : BitcoinReport

BTC Price series :: https://docs.google.com/spreadsheet/ccc?key=0AmcTCtjBoRWUdHJuUE1mUkFxa3A0eHBDQkxZLVVFZmc#gid=0 : Charts-with-Prices

Websites to EARN Bitcoins: http://bitcoins.tumb...om/earn-bitcoin

===================
Other Bitcoin Threads on GEI: (we have been interested for a long time):

Victor's BitCoin Thread - in GEI's General Discussions ...
Cached: Jun 8, 2011 – Page 2 of 4 - The BitCoin Thread -
/ posted in Global Edges General Discussions: VictorBroom, said: "I have just been reading about Bitcoins ..."

Bitcoins, I nearly bought in 2 weeks ago at $30 - General ...‎ - 3 Apr 2013
Older threads:
Cuthbert's Bitcoins - GEI's General Discussions‎ - 4 Jan 2011
mSpark's Bitcoin P2P Cryptocurrency‎ - 14 Jul 2010

 

 

// == BITCOIN DATABANK : Updated, early 2014 == //

 

BITCOINS were the Big, Big Winner for 2013 : + 59.5 times !... clean-2013 : BTC-YrEnd : updated-12mos : Log-12mos

 

 

 

 

... And also for the last 4 years+ ... clean-2009 : updated-from-2009

 

 

Nine months Cycle : 5 lows - from Oct.10 - July.13 (33mos/5= 6.6 mos.) : Next ?: mid-Jan.2014

 

==================

BTC Year-end prices = = = = = = = = = =
Year- : Price- : Change : Percent : x Start

=========== =======
start- :
2009 : ? $.05 :
7/17/10: $.05 :
2010 : $ 0.29 : +$0.24? : + 480%? :
2011 : $ 4.60 : +$ 4.31 : + 1486% :
2012 :$13.48 : +$ 8.88 : + 193.0% :
2013 :$815.0 : +$801.5 : + 5945% :
===========

 

: End - 2013 : +/- Chg . : Percent // Mo : -2014- : mom : yoy

==========: ====== : ======== / == : ====== : === : ===

J . : $ 20.58 : +$ 07.10 : + 52.7 % / J . :

F. : $ 32.69 : +$ 12.11 : + 58.8 % / F . :

M : $ 92.70 : +$ 60.01 :+183.6 % / M . :

A : $139.87 : +$ 47.17 : + 50.9 %

M. : $128.15 : -$ 11.72 : - 8.38 %

J . : $ 96.84 : - $ 31.31 : - 24.4 %

Jl : $108.03 : +$ 11.19 : + 11.6 %

A : $143.04 : +$ 35.01 : + 32.4 %

S : $127.09 : - $ 15.95 : -11.15 %

O : $206.34 : +$ 79.25 : + 62.3 %

N : $ 1,078. : +$871.66 :+422.4 %

D : $815.00 : - $263.00 : - 24.4 %

==========

12 mos. '13 : Aver. chg. : 84.9 % per month

since sq.rt of 12 is 3.46, then x 84.9% = Vol. of 294% per annum?

At that level, a One Year call ATM is worth: x40% = $850 x 2.94% x 40% = $$meaningless

[drbubb]

PRICING DYNAMICS for Bitcoins

 

 

I think it is time that I said something about Bitcoins:

 

- Please do not buy them now, this is a clear Feeding Frenzy !

 

(Chart- thanks to Positive Deviant)

 

KEY POINTS. regarding BITCOINS

(Permitting holding and transferring wealth outside the banking system)

 

+ There is no tangible backing for Bitcoins : the valuation is merely based on Supply versus Demand : their value is "transactional", ie they permit ease and confidentiality in transactions.

 

+ Their main advantage is that computer-based accounting entries establish who owns Bitcoins. And, the peer-to=peer mechanism for recording transactions and account balances is contained within software itself, which is distributed amongst users of Bitcoins via the web, so that the records are simulateously held within many computers. With multiple records, in so many places, it is (virtually) impossible to tamper with one record, or a small number of records, in order to wipe out or falsify ownership records. Account ownership of Bitcoins is via account numbers which are not readily traceable back to actual individual owners. As a result of these characteristics, it is very difficult for governments to control (OR TAX!) Bitcoin transactions. This makes Bitcoins very attractive to those who want to hold wealth outside the formal banking system.

 

+

Bitcoins can be easily transferred across borders

, using the internet and the Bitcoin software. This is another highly attractive feature since various money laundering laws are making it more and more difficult to transfer money in and out of the formal banking system, especially for banks in the West, and particularly in the US.

 

+

SUPPLY of Bitcoins is strictly limited

. "There will never be more than 21 Million Bitcoins 'in circulation' (by the year 2140), and each bitcoin can be subdivided into 100 million smaller components" called Satoshis (after the founder), so there should always be a enough small units available to allow both large and small transactions. Approximately 11 Million are outstanding now, and the number is rising at a predetermined rate (of 25 coins every 10 minutes)*, which will slow down over time - being cut in half in 2017, and cut in half repeatedly every four years thereafter.

 

+

DEMAND for Bitcoins is merely a function of the number of people who decide to buy them

for transactions, or as a store of wealth. The way the get bought is via various cambios* who sell them for dollars, euros, or some other currency given in exchange. An existing holder may sell on his bitcoins, or transfer them in payment for goods or services.

 

+

"Mining Bitcoins"

: the Bitcoin creation mechanism - (see post above)

 

+ Clearly, the Cyprus related banking fiasco created a strong (and temporary) demand for a currency that was outside the reach of governments and the formal banking system. When the EU threatened to "tax" all deposits in Cypriot banks (perhaps aiming at the offshore deposits held there by Russian depositors, amongst others), there was a sudden surge in demand for a global transactional currency outside bank control. Gold and silver transactions can be easier to track, and so many people turned to Bitcoins. Demand exploded, and the Supply remained constrained, so the price exploded too.

 

+ The "genuine" demand excited by money fleeing the banking system was supplemented by speculative buying from people who saw the Bitcoin prices rising. The sudden surge in articles, videos, and conferences extolling the virtues of Bitcoins fueled even more buying, and the price action developed into a massive feeding frenzy, and the price is now rising in a parabolic fashion.

 

+ Governments are bound to attack the Bitcoin market. It is a threat to their financial dominance, and their taxing authority. Already, warnings are being flashed on some websites, saying that "authorities regard those who transact in Bitcoins, as criminals." If governments move to make Bitcoin transactions illegal - either purchases, or transfers - then the Demand for Bitcoins would fall fast. If a contraction in Demand occurs as the parabolic price move is past its zenith, the price drop may be very fast, as holders rush to get out with a portion of the peak value still intact.

 

+ It is not unsual (in fact it is normal) for 100% or more of a parabolic price move to be retraced. This could take prices back to $40, or even lower.

=======

 

*25 Bitcoins every 10 minutes is :

3,600 BTC per day - at $100 is worth: $360K per day, and

108,000 BTC per month (of 30 days) - at $100 is worth: $10.8 million per month, and

1.314 million BTC per year - at $100 is worth: $131 Million per Year

 

Wow! Mining Bitcoins has become a very profitable business (and hacking to get them too!)

So this will bring in plenty of competition for both activities - watch for new, and more creative frauds

 

This chart shows what happened to Silver prices after the parabolic price move hit its top"

 

 

= = = = = SIDEBAR = = = = =

My comments are mainly based on this video:

 

Tom Woods Talks Bitcoin... Fantastic Interview

:

Support for Bitcoin amongst Austrian economists is growing by they day and in this interview, the highly admired and respected Tom Woods, discusses Bitcoin ...

= = = = = = = = = = = = = = = =

 

Bitcoin WALLETS:

 

Wallets held by Bro John - at The Bitcoin Report

Virterex, BTC-e, CoinBase, MtGox, BlockChain

==

/at 6:40 mins in :

[drbubb]

TIMING of a Possible Top in Bitcoin Prices - any day now (this week or next?)

 

Likely to be retraced...

 

 

Clif High did an excellent Podcast regarding Bitcoins

 

On March 25th, he predict a huge run-up into a possible High within 8 to 11 days.

=============

: 8 days would be : Tuesday, April 2nd

11 days would be : Friday, April 5th

 

We are now pushing towards the end of Clif High's Time Frame

 

E43 - March 25, 2013 - Bitcoin, coinbits, RMH, Bitcoins.

clifs wujo - March 25, 2013

[drbubb]

Satoshi and "the 2013 Fork"

 

 

Satoshi Nakamoto

 

Satoshi Nakamoto was the pseudonymous person or group of people who designed the original bitcoin protocol in 2008 and launched the bitcoin network in 2009. Beyond bitcoin, no other links to this identity have been found. His involvement in the original bitcoin protocol does not appear to extend past mid-2010.^[12] Nakamoto was active in making modifications to the bitcoin network and posting technical information on the BitcoinTalk Forum until his contact with bitcoin users began to fade. Until a few months before he left, he was responsible for creating the majority of the bitcoin protocol, only rarely accepting contributions.^[12]

In April 2011, Satoshi communicated to a bitcoin contributor saying he had “moved on to other things.”^[39]

 

Identity

 

Investigations into the real identity of Satoshi Nakamoto have been attempted by The New Yorker and Fast Company. Fast Company's investigation brought up circumstantial evidence that indicated a link between an encryption patent application filed by Neal King, Vladimir Oksman and Charles Bry on 15 August 2008, and the bitcoin.org domain name which was registered 72 hours later. The patent application (#20100042841) contained networking and encryption technologies similar to bitcoin's. After textual analysis, the phrase "...computationally impractical to reverse" was found in both the patent application and bitcoin's whitepaper.^[1] All three inventors explicitly denied being Satoshi Nakamoto.^[40][41]

 

The fork of March 2013

 

On 12 March 2013, a bitcoin server (also called a "miner") running the more recent "version 0.8.0" of the bitcoin protocol created a large record in bitcoin's transaction log (called the blockchain) that was incompatible with earlier versions of the bitcoin protocol due to its size. This created a split or "fork" in the transaction log. Users ran the more recent version of the protocol while accepting and building on the diverging log as other users ran older versions of the bitcoin protocol and rejected it. This split resulted in two separate transaction logs being formed without clear consensus,

 

...which allows for the same funds on both chains to be double-spent. In response, the Mt.Gox bitcoin exchange temporarily halted bitcoin deposits.^[42] The price of a bitcoin fell 23% to $37 on the Mt.Gox bitcoin exchange as this event occurred but subsequently rose most of the way back to its prior level of approximately $48.^[33][34]

Developers at bitcoin.org attempted to resolve the split by recommending that users downgrade to "version 0.7", which utilized the oldest transaction log in the split. User funds largely remained unaffected and were available when network consensus was reached.^[43] The network reached consensus and continued to operate as normal a few hours after the split

===

/wiki: http://en.wikipedia.org/wiki/Bitcoin

[Perishabull]

ZH;

 

"Don’t Rush For Gold" - What A Real Hard Currency Mine Looks Like

 

 

When it comes to mining for alternative currencies, there is this:

"

 

An ASIC Bitcoin mining machine.

[drbubb]

ZH;

 

"Don’t Rush For Gold" - What A Real Hard Currency Mine Looks Like

 

 

When it comes to mining for alternative currencies, there is this:

"

 

An ASIC Bitcoin mining machine.

 

there are only 25 BTC's "created" each period, so there must be growing competition

 

NEWS FLOW IS SURGING - as per from Victor's Bitcoin thread:

 

(As Clif predicted, the Web is now going wild over Bitcoins - is THIS the top?)

 

Bitcoin ATMs coming soon

 

CNNMoney-1 hour ago

Bitcoin, a virtual currency that was created four years ago, has generated tons of media attention in the past few weeks.

 

The value of Bitcoins has surged in the wake of the botched bailout and mini-bank run in Cyprus and concerns about the health of government-backed paper currencies like the euro and dollar.

 

So how does a Bitcoin ATM work? Somewhat like a traditional ATM, says Berwick. Instead of connecting to your bank account, the software he and his team has developed is installed on an ATM and converts cash to Bitcoins stored in a Bitcoin wallet or extracts cash based on what's stored in your personal Bitcoin account.

Berwick will charge roughly $10,000 to ATM operators to maintain the machines and then split fees with those operators. He expects those fees to be around 3%. That's slightly higher than what you'd pay to get cash from an ATM outside your banking network.

. . .

 

Last week, the Treasury Department's Financial Crimes Enforcement Network issued new guidelines outlining what anti-money laundering rules virtual currencies like Bitcoin must follow. Critics say that the currency's anonymity makes it particularly useful for money launderers. Members of Silk Road, an online drug bazaar, use it as their currency of choice.

While more cybercurrency rules may be coming, this isn't likely to hurt demand for Bitcoins and Bitcoin ATMs. (I do wonder about that !)

 

 

Bitcoin, the 'new gold' - but what on earth is it?

Telegraph.co.uk-5 hours ago

 

Bitcoin briefly soars to record $147 high, driven by Cyprus bank flap

Register-1 hour ago

"the price has exploded, going from just over $10 per Bitcoin last November, to around $140 this week."

[Perishabull]

Google trends shows search volume on Google for "bitcoin" picking up big;

 

Search interest ranked by country;

 

 

 

 

And the BBC has a story that explains why I am not interested;

 

"Hack attacks hit Bitcoin exchange rates

 

 

Online services and exchanges dealing in Bitcoins have been hit by hack attacks that led to a drop in the value of the virtual currency.

 

Trading on the MTGox exchange, which handles most trades in Bitcoins, was sluggish yesterday as the site fought off an attack.

 

The attack helped to force a swift fall in the price of Bitcoins.

 

In addition, the Instawallet website - where people store Bitcoins - is offline indefinitely after an attack.

 

The value of Bitcoins surged to a new high this week with each one worth about $142 (£94). Barely a week ago, each virtual coin was worth only $90.

 

But Bitcoins dropped sharply in value as the MTGox exchange came under a sustained attack by hackers. The vast majority of trade in Bitcoins takes place via the site.

 

In a tweet on its Twitter feed, MTGox said it was fighting off a distributed denial-of-service (DDoS) attack, which involves a site being bombarded with huge amounts of data. The attack was one of several against the site this week,

 

The attacks, coupled with a spike in trading volumes, combined to cause delays in trades being confirmed and led the value of Bitcoins to drop sharply to about $120.

 

The attacks could be the work of malicious hackers who were trying to "game" the exchange and manipulate the value of Bitcoins so they could cash in, MTGox said in an interview with ComputerWorld. Attackers are thought to be working to a cycle in which they sell Bitcoins when values are high, then mount an attack that forces prices to crash, buy up the cheaper coins and then let the value climb again.

 

MTGox said it did not know when or if the attacks would cease but said Bitcoin owners should not panic and sell off as values fluctuated. A spokesman for the exchange added that it was in the middle of rebuilding its trading technology but the new system, which would do a better job of handling the high volume of trades, would not be ready until the end of this year.

 

In a separate development, Instawallet has shut down "indefinitely" after hackers "fraudulently accessed" its core database. In a statement posted on the Instawallet site it said it planned to open a claim process shortly so people could reclaim their Bitcoin balance.""

[drbubb]

Google trends shows search volume on Google for "bitcoin" picking up big;

 

Search interest ranked by country;

 

 

Interesting country list.

There must be some fear of confiscation in those countries.

And/or some big Western countries are asleep (relative to smaller countries).

 

The attack mentioned on the BBC is a definite negative factor.

On a pullback to the breakout point (which may take months), it could make sense to buy some.

 

The way this took-off reminds me of silver, although faster.

[Perishabull]

There's a Connection between BTC prices and the price of Mining equipment

 

ZH;

"Don’t Rush For Gold" - What A Real Hard Currency Mine Looks Like

When it comes to mining for alternative currencies, there is this:
"

An ASIC Bitcoin mining machine.

 

Here is the current price for the 60 GHs Bitcoin mining hardware

on the manufacturer website, however there are shipping delays

so you need to wait until end of April if you want one.....


Unless you want to try ebay?

Current price on Ebay;


Manic bidders have sent the value way way over that of the intrinsic value of the machine.

There are also bids for single bitcoins on Ebay of over $200.

It will be interesting to see how the collapse phase plays out when it comes.

[Perishabull]

Here is a quote from from someone commenting at the end of a Telegraph article - Bitcoin, the 'new gold'; (!)

"Just in case anybody is interested. The price of Bitcoin right now is higher in China than it is in the west. Chinese people are buying them faster than yuan can be exchanged for dollars in china(government capital controls) And the Chinese have recently been looking for something to invest in.Bitcoin seems to be about to take off in China and if it does. 1 million dollars per coin will not be an unrealistic proposition. Get in while you can."


Ladies and gentleman, welcome to the top in the Bitcoin market.

[drbubb]

Here is a quote...

"1 million dollars per coin will not be an unrealistic proposition. Get in while you can."

 

Ladies and gentleman, welcome to the top in the Bitcoin market.

 

That;s crazy : the Hacking and Frauds are about to go bezerk !

[drbubb]

As if by magic...

 

http://www.bbc.co.uk...nology-22026961

 

Recent Keiser Report had Max claiming BTC wasn't able to be manipulated, but to me it would seem pretty easy. Simply ramp up sentiment (and Max doesn't exactly help in that regard) by buying / mining / podcasting to create a spike, sell at the top, then DDoS the main exchanges and buy back on the drop. Rinse and repeat. Can't see this being the usual DDoS suspects like Anonymous, as Bitcoin is very much their domain, so it's either organised crime or a deliberate attempt to make it look volatile in an effort to drive people away.

 

Is the Bitcoin hack linked to the drop in PMs today, or is that a reaction to the Japanese stimulus news? Seems rather coincidental.

 

Perhaps some smart Russian gangsters got their minds wrapped around Bitcoin and worked out that by fleeing from Cyprus banks into Bitcoins, they would ramp the price, trigger a big news flow about the price move, and thereby induce others to follow them into the trade. Now that "retail" is flooding in, the gangster/manipulators can unload, and move their money and their sweet profits to a new location, such as Hong Kong or Singapore.

 

I have no idea how much of the $1.4 Billion notional maximum value of Bitcoins might be involved in this possible Ramp-job, but even $1 - 2 million could have been turned into 5X or 10x its initial cost through an exercise like this. I would think the party (or parties) would be unloading about now. So it will be interesting to see if volumes of buying could accommodate a $10 million plus exit from a profitable trade like that from the gangster/Bitcoin speculators.

 

As you say, once the price falls back, they could try the ramp-job again. But I doubt we will see a second wave of (naive?) publicity that could match what has gone through in recent days.

 

I think this was a speculative master-stroke. Who knows, even some clever trader at Goldmans may have hatched such a strategy.

[Perishabull]

Perhaps some smart Russian gangsters got their minds wrapped around Bitcoin and worked out that by fleeing from Cyprus banks into Bitcoins, they would ramp the price, trigger a big news flow about the price move, and thereby induce others to follow them into the trade. Now that "retail" is flooding in, the gangster/manipulators can unload, and move their money and their sweet profits to a new location, such as Hong Kong or Singapore.

 

I have no idea how much of the $1.4 Billion notional maximum value of Bitcoins might be involved in this possible Ramp-job, but even $1 - 2 million could have been turned into 5X or 10x its initial cost through an exercise like this. I would think the party (or parties) would be unloading about now. So it will be interesting to see if volumes of buying could accommodate a $10 million plus exit from a profitable trade like that from the gangster/Bitcoin speculators.

 

As you say, once the price falls back, they could try the ramp-job again. But I doubt we will see a second wave of (naive?) publicity that could match what has gone through in recent days.

 

I think this was a speculative master-stroke. Who knows, even some clever trader at Goldmans may have hatched such a strategy.

 

There is definately some shady goings on, the following is from https://bitcointalk (bitcoin forum);

 

"From: Xeanu

Sent: Monday, March 25, 2013 9:35 AM

To: "Weak-hands Shakeout" distribution list

Subject: 3/22 shakeout

 

To all coalition members:

 

Congratulations on last week's shakeout! This was our best one yet. I'll follow up with the date and time of the next planned event.

 

Just a few observations:

 

1. Remember, the timing is critical. All times are posted in GMT, so PLEASE make the correct translation to your local time. (There's a tool called Google that can help you with the time conversion.) Also I recommend that you use

www.time.gov

, or similar services, to coordinate the timing down to the second.

 

2. No CHEATING! In order for this to be effective, no pre-selling or pre-buying! You must sell at the exact moment designated, so that we can maximize the effectiveness of the coalition, and maximize panic in the Bitcoin Market. This is the honor system - we can all do very well together, by increasing our BTC, without taking from each other. Remember, the more panic we create, the better off we are.

 

3. Remember, our objective is not to cause people to doubt the validity of the currency, but to shake out the weak hands, who panic at every little drop. Last week was ideal for this, due to the recent price run-up, and the number of noobs in the market.

 

4. Gondorg suggested that we adjust the rules. We're open to ideas. For now, the rules remain the same: You are to sell at the designated moment (no sooner), and stay out of the buying market for four hours, to let the panic take hold. At that point, you can buy back only 10% of whatever amount you sold, for each of the next 10 hours. After that time, you can buy whatever you want.

 

 

Please report your stats to me by the end of the day, for the 3/22 shakeout. Once I have everyone's numbers, I'll publish them back to you. Personally, I was able to increase my holdings by 12.6%, at the same investment level! I also bought in another 5% at the discount prices. I'll share the btc quantities in my follow-up report.

 

A fool and his money soon funds my retirement!

 

- Xenau"

 

 

 

Suggests some collusion to manipulate the market.

[drbubb]

 

 

There is definately some shady goings on, the following is from https://bitcointalk (bitcoin forum);

"From: Xeanu
Sent: Monday, March 25, 2013 9:35 AM
To: "Weak-hands Shakeout" distribution list

. . .

Suggests some collusion to manipulate the market.

Indeed.
I think it may be legal, but it should not be.
It could not happen in currency markets, because someone would front-run, and go short. and so prices would drop BEFORE the scheduled "event"

So what happened on the 22nd?

As Cyprus Implodes, Bitcoin Interest Explodes


Fox Business-Mar 22, 2013
Bitcoin “is clearly having a breakthrough moment here, and a deeply ... but the deposits of oligarchs, drug dealers and tax cheats need to have ...

And, YES, that did prove to be a Buying Opportunity

[Perishabull]

A guy is claiming so have sold his $40,000 porsche for 300 bitcoins yesterday, I think it's genuine as well;

 

https://bitcointalk....6261#msg1726261

 

Oh dear, see below (emphasis mine)

 

 

"04-02-2013 Update - SOLD For ~300 Bitcoins!

Note: Price was lowered to $39k from original $41k craigslist ad. This vehicle has over $20k parts/labor in upgrades beyond stock and is equipped to outperform the current model.

 

 

The Porsche sold today for ~300 Bitcoins! If this isn't proof that Bitcoin is a legitimate currency, then I don't know what is. The buyer purchased his initial Bitcoin investment at around $4 a piece so they got an amazing deal. I'm not sure if this is the single largest item sold for BTC, but I can guarantee it's the first $40,000 vehicle sold for ~300 BTC. The buyer wishes to remain anonymous, but I've asked a bitpay representative to come and post in this thread to confirm the transaction occurred.

 

Help me spread the word, upvote the story on reddit:

http://www.reddit.com/tb/1bkhjp

 

Submit to as many news agencies as you please, Bitcoin is here to stay!

 

 

Only 8200 miles and in impeccable condition!"

 

 

:lol:

 

 

EDIT - LOL

 

[Perishabull]

Here is the current price for the 60 GHs Bitcoin mining hardware on the manufacturer website, however there are shipping delays so you need to wait until end of April if you want one.....

 

 

 

Unless you want to try ebay?

 

Current price on Ebay;

 

Manic bidders have sent the value way way over that of the intrinsic value of the machine.

 

There are also bids for single bitcoins on Ebay of over $200.

 

 

 

It will be interesting to see how the collapse phase plays out when it comes.

 

It's all happening today in Bitcoinland, Butterfly labs who sell the bitcoin miners are no longer offering for sale the above product but appear to have nearly doubled their prices today. They no longer sell the one above but one of slightly less power, a 50 GH/s one for $2499!

 

Check it out - http://www.butterflylabs.com/landing/landing-ls.php

 

 

And here's how the ebay auction finished;

 

 

That's over 3 times the price that the manufacturer was selling them for on their website earlier today! The person selling the machine doesn't even have - it's a pre-order.

 

Someone else on ebay purchased 1 single bitcoin for £245 earlier today.

 

Crazy.

[drbubb]

Real tangible asset, for overvalued Fiat?

Nice trade for the Bitcoin owner.

 

Actually, maybe he should have sold a Fiat car instead - then the trade would have been more balanced:

Fiat for Fiat.

 

Here's a car owner that should have sold his car and his Gold for bitcoins when he had the chance:

 

http://www.bloomberg...RYhlYMcHOw.html

 

The story does help to illustrate the advantage of Bitcoins in moving wealth around

[Perishabull]

After falling to $110, price is back up to $137. It makes me think we may be going through a process where longer term holders are selling positions to those sheep desperate to buy after reading the various newspaper articles these last few days...

 

[drbubb]

Volume is still high, but seems to be fading now, on each rally.

The picture looks pretty Bearish to me, and I think we may get a high within Clif's window

[drbubb]

The drop was a hack... apparently:

 

http://www.cnbc.com/id/100615508

 

Bitcoin Hacked: Price Stumbles After Buying Frenzy

 

Thursday, 4 Apr 2013 | 6:10 AM ET

 

Online currency bitcoin had 20 percent knocked off its price overnight on Thursday as one of its major exchanges became the victim of a hacking attack leading to a sell-off in the virtual currency after reaching an all-time high.

Uncertainty over other currencies, turmoil in Cyprus and media interest are just some of the reasons commentators are citing for the 360 percent rise in bitcoin prices over the last month. The frenzied interest in bitcoins piled over onto the social media site Twitter and led to a spike in Google searches on the topic.

 

But by Thursday morning bitcoin prices had fallen to $132 from Wednesday's record price of $147.

 

=====

yes, there's been a recovery - But I see more hacking.

There's just too much value, so you cannot keep the sharks away,

 

How long before those seeking a safe haven rediscover Gold and Silver?

[Traktion]

Exchanges periodically get hacked, but the Bitcoin system itself never has.

 

The problem isn't with Bitcoin, but the way the software that runs the exchanges is written. Online banking can suffer the same problem, if the software isn't secure. However, software (from the GUI down to the OS) can be securely constructed, when the engineers are capable.

 

It is a bit like suggesting gold is flawed, because someone broke into a vault.

 

 

P.S. FWIW, I heard the MtGox hack was a DoS attack. That is, they just slowed the site down for a while.

[drbubb]

Exchanges periodically get hacked, but the Bitcoin system itself never has.

 

The problem isn't with Bitcoin, but the way the software that runs the exchanges is written. Online banking can suffer the same problem, if the software isn't secure. However, software (from the GUI down to the OS) can be securely constructed, when the engineers are capable.

 

It is a bit like suggesting gold is flawed, because someone broke into a vault.

P.S. FWIW, I heard the MtGox hack was a DoS attack. That is, they just slowed the site down for a while.

 

I think there must have been some profit-taking

[drbubb]

Money attracts criminals... Bitcoin-seeking crime is soaring / From Victor's thread

 

Cyber criminals look to cash in on Bitcoin's soaring value

. . .

Now that interest in Bitcoins has spiked, cyber criminals are coming out of the woodwork to cash in. According to Kaspersky Lab Expert Dmitry Bestuzhev, scammers have launched an ongoing social engineering campaign via Skype through which they send messages to contacts, which include links to purported images. Clicking the link results in a malware download, however. The malware "does many things," according to Bestuzhev, "but one of the most interesting is it turns the infected machine into a slave of the Bitcoin generator."

 

Specifically, "once the malware is on the victim's machine, it goes about the business of usurping the PC's processing power in the service of mining Bitcoins," [\

 

Most of potential victims live in Italy, followed by Russia, Poland, Costa Rica, Spain, Germany, and Ukraine.

The bad guys are also going after Bitcoin exchanges and storage services. On Wednesday, online Bitcoin storage service

===

/more: http://www.infoworld...ng-value-215923

 

Bitcoin mining malware spreading on Skype, researcher says

PCWorld (blog)-3 hours ago

 

Skype malware makes your PC a slave to mining Bitcoins

VentureBeat-2 hours ago

[Perishabull]

~$144

 

Coming back up to test the high;

 

[drbubb]

Volume seems to be falling on this retest of the Top

Watch for people going on spending sprees with their Bitcoins, when the price starts falling

======

 

One thing I want to watch for is the NEXT Bitcoin.

 

I am sure that people will jump on it especially fast, now that the success of the original Bitcoin has been so recognised.

If the NEXT Bitcoin corrects some of the security issues, it should do well. But many vendors may be loath to take them

when they get burned by the falling price...

• Sorry, Libertarians, History Shows Bitcoin Isn't the Future
   
  Bloomberg-Apr 4, 2013Share
  As we consider the digital-currency phenomenon that is Bitcoin, bear in mind that there are, broadly speaking, two accounts of the origin and ...
   
   
  
• I Bought a Bitcoin: How I Joined a Virtual Currency Megabubble
   
  New York Magazine-by Kevin Roose-Apr 3, 2013
  The largest Bitcoin exchange, Mt. Gox, is only taking new memberships by application owing to high demand, and my application stayed ...