Bitcoin Shares Crash, Lose Over 50 Percent In A Matter of Hours

Of all the current Internet curiosities, Bitcoin is one of the most fascinating. The digital/virtual currency is decentralized, has no change fees, and no state oversight to speak of, and nobody seems to know exactly what to do with it even as it grows in popularity and value.

Case in point: On Mt. Gox, a major Bitcoin trading site, the value of Bitcoin exploded from about $100 to $265 in less than a day. Before the day was out, however, the price dropped sharply to $200. A few hours hence saw the value bottom out at $125 and then bounce around from to $180 to $140.

Bitcoin shares
(Click to enlarge)

Then, Mt. Gox got hit with a DDoS attack--or maybe not. According to Mt. Gox, it was a victim of its own success. You can sense the PR spin in this update the site posted, complete with a cheerful exclamation point. (Try to ignore the spelling and grammatical errors):

“Indeed the rather astonishing amount of new account opened in the last few days added to the existing one plus the number of trade made a huge impact on the overall system that started to lag. As expected in such situation people started to panic, started to sell Bitcoin in mass (Panic Sale) resulting in an increase of trade that ultimately froze the trade engine!”

Fry
The look says it all; there's no meme text to add

The fact of the matter is that the Internet is still in many ways a Wild West, and Bitcoin is an emerging currency in that untamed frontier, which is to say that there are no banking or government institutions behind it. You can collect and spend--and, to follow the above analogy, prospect--Bitcoins, but you can from the events of the last couple of days how tenuous the whole thing still is.
Via:  ZeroHedge
Comments
JoshuaRichards one year ago

Can you guys do a primer on what bitcoins is?

I've never really understood

Clixxer one year ago

Untraceable currency pretty much. You mine it from block doing what is essentially brute force as a group or alone. When you discover a block you get bitcoins from it. Its pretty complicated but in the end its suppose to be a untraceable currency that keep inflation to a minimum. It does this by making it harder to find block, so the more people that do it the harder it is. Right now its at like 6-7 mil difficulty but 3 months ago was at 2mil. They are projecting it to be upwards of 100mil sometime this year if it keep going how it its.

I hope this helped some but I just barely grasp it enough to think about it much less put it in words.

ajm531 one year ago

appreciate sir. Did you have to google it? Cause honestly i hard time reading this too as i didnt really understand what was going on

Clixxer one year ago

No I actually heard about bitcoins a couple years ago I would say when they were in their infancy. I mined with my 6870 for a coupe days then said screw this and stopped. Fast forward a couple years later a buddy of mine started getting into it and so I have sorta. I got a couple low power AMD cards I use to mine in my HTPC but that's about it. I almost got 1 bitcoin actually but to make any money you need a ASIC which are going for 6-10k or alot of high end AMD cards to mine faster. Nvidia cards suck at mining as well as CPUs. 

Their is other currency such as litecoin that use memory bandwidth that nvidia cards might be good at but since I only own AMD I don't have anyway to test them. Just remember my description is a very short one. To actually get into it you need to do and research alot more stuff.

BorisMikhailovski one year ago

Ops almost went for it

MarkTey one year ago

If you still wanna buy Bitcoins in the UK, directly without intermediators on ebay or other middle men (with huge fees) is difficult, I made this guide with a simple process:

http://howtogetbitcoinsuk.blogspot.co.uk/

OSunday one year ago

3 years ago I tried to get my Bitcoin miner up and running but sort of just gave up and didn't think it was worth my time, man do I wish I had stuck with it.

I probably would've had about $10,000 worth of Bitcoins.

If anyone's curious to finding more information on it, recently a really informative thread's popped up on reddit, here's the link

http://www.reddit.com/r/explainlikeimfive/comments/1c3adk/official_eli5_bitcoin_thread/

Clixxer one year ago

[quote user="OSunday"]

3 years ago I tried to get my Bitcoin miner up and running but sort of just gave up and didn't think it was worth my time, man do I wish I had stuck with it.

I probably would've had about $10,000 worth of Bitcoins.

If anyone's curious to finding more information on it, recently a really informative thread's popped up on reddit, here's the link

http://www.reddit.com/r/explainlikeimfive/comments/1c3adk/official_eli5_bitcoin_thread/

[/quote]

You definitely would of had more. When I was mining a couple years ago I got a couple bitcoins but they were worth like $4-5 bucks and never did anything with them since it was not worth it to me to get actual cash for them. I wish I remembered where I had them and I could be buying a new GPU today. If you had been consistently mining the last 2-3 years you could have alot more than 10k I think.

eunoia one year ago

I'm curious as to why all the headlines focus on the crash when they're still trading for double of a month ago.  You'd think we'd be happy when geeks make a few bucks.

Clixxer one year ago

[quote user="eunoia"]

I'm curious as to why all the headlines focus on the crash when they're still trading for double of a month ago.  You'd think we'd be happy when geeks make a few bucks.

[/quote]

Heh im still waiting for it to crash back down to $50 per bitcoin. That or I got like 1 bitcoin and if it hits $200-250 I may just go sell it and be done. Right now the only way to make any good money is ASICs or having highend AMD GPUs like the 7950.

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