Crytocurrencies everywhere plummet in wake of recent arrest and upcoming china ban

[nicehat]

 

 

 

Following the arrest of Charlie Shrem (CEO of Bitcoin exchange Bitinstant) for money laundering on 1/26 at JFK, cryptocurrencies everywhere plummeted. He was accused selling more than 1 million of bitcoin through Silk Road.

 

While most currencies suffered even great losses (litecoin fell more than 12%, dogecoin fell 14% and lesser-known infinitecoin saw its value fall by more than 25%), only vertcoin, which is worth $0.36 per coin, saw growth, up nearly 13%

 

Another currency, Fedora, suffered the heaviest 24-hour loss, tumbling almost 45%, while the world's most valuable (and sought after) crypto-coin, 42 Coin, fell by 16% to $258,486 per coin. The funny thing about 42 coin is that only one coin exists out of a total of 42 which can ever be mined. 

 

Another reason for the drop is the upcoming Jan 31 ban by the People's Bank of China. Other international players like Bank of Russia have also come out of the woodwork, declaring bitcoin trading a "high risk activity". The bank went on to warn citizens and businesses, especially financial institutions, about the risks associated with using crypto-currencies.

 

These losses also come New York's financial regulator begins a two-day hearing to discuss the future of bitcoin and crypto-currencies as a whole. All we can be sure about is that more uncertainty and drops in value may be in the immediate future for all currencies. At least thats what I think. What about you guys? 

 

http://www.ibtimes.co.uk/bitcoin-litecoin-dogecoin-more-all-report-heavy-losses-wake-shrem-arrest-1434099

 

http://www.ibtimes.co.uk/bitcoin-exchange-ceo-charlie-shrem-arrested-money-laundering-charge-1434037

[TTesla]

exactly why I never invested in them WAAY TO VOLATILE  

[MasterJV]

Dat Meme is awesome... Link?

[Ryan Leech]

That's funny I just got my brother into mining yesterday. I wondered why the difficulty was so low!

[Morpheus]

Dat Meme is awesome... Link?

http://gyazo.com/bda2f0e72d07e7f8a69ac718794c10b3

[TheMissxu]

Please, let AMD GPU prices go back down!

 

Didn't china ban coins twice already?

[qwertywarrior]

Please, let AMD GPU prices go back down!

 

Didn't china ban coins twice already?

they can ban them as much as they want

even ban reincarnation

[hawaiims]

I don't understand people who invest in buttcoins (pardon my silliness), of which there are many. Seriously, why would anyone want to invest now? It's extremely unlikely that a single bitcoin will be worth tens of thousands of dollars, and I feel like it has already reached a target price of maybe around 1000 USD per BTC. The huge amount of fluctuation in bitcoin prices also makes it a very unsafe investment (lucky bastard who bought his damn tesla at the peak BTC price), and those that made huge amounts of money have already cashed in (the very early adopters) 

 

/End of rant

[JaeDee884]

Lower value = lower difficultly = mine more coins.

only lower difficulty if people stop mining, if everyone else thinks the same to you, it just means difficulty will still keep going up

[bcredeur97]

Guys... get ready to buy up all the cheap GPU's on ebay and other used stuff sites. an R9-290 may return to its orignial value :DD

 

 

 

cheap coins=no profitability=massive selling of GPU's

[wpirobotbuilder]

I think some people will start mining even more now. We've all seen how these currencies jump back up in value even after steep plunges. Good way to make some money.

[dalekphalm]

I don't understand people who invest in buttcoins (pardon my silliness), of which there are many. Seriously, why would anyone want to invest now? It's extremely unlikely that a single bitcoin will be worth tens of thousands of dollars, and I feel like it has already reached a target price of maybe around 1000 USD per BTC. The huge amount of fluctuation in bitcoin prices also makes it a very unsafe investment (lucky bastard who bought his damn tesla at the peak BTC price), and those that made huge amounts of money have already cashed in (the very early adopters) 

 

/End of rant

12 months ago, a bitcoin was worth like $20-30 USD. Many people said the same thing as you (Why would you invest in bitcoins? They've ALREADY reached $30 a coin!). If the coin crashes below $1000, especially if it's a significant crash, then it will likely go back up over time. The bitcoin has actually been fairly stable in value over the last several months.

[hawaiims]

12 months ago, a bitcoin was worth like $20-30 USD. Many people said the same thing as you (Why would you invest in bitcoins? They've ALREADY reached $30 a coin!). If the coin crashes below $1000, especially if it's a significant crash, then it will likely go back up over time. The bitcoin has actually been fairly stable in value over the last several months.

Yes, but that was not really my point. My point is that 12 months ago, nearly nobody knew about bitcoins. But ever since it's appearance in media, the price has inflated to the point of coming close to 1000$ a piece for one, and that is mostly due to speculators that bought them up in the (stupid) hope that it would increase in price dramatically the same way it did 2 years ago. And now, just like you said the price has stayed mostly constant between the 400 to 900$ mark (although that's still a heck of a lot of fluctuation).

 

Besides, would you really want to invest in a currency that is owned 10% by one unknown user by the nickname of Satoshi? Imagine if 10% of dollars circulating were all owned by one guy. It would be ridiculous and extremely scary. The day that this user decides to somehow cash in, the value of bitcoins will plummet. 

The legality of the coin and the tax evasion schemes that could be perpetrated through it already show that this is a very unsafe currency to invest in. This very thread is an example of that. 

 

The early adopters of bitcoin made tons of money, but now that it's gone mainstream I find it extremely unlikely that a drastic increase in value will develop. Heck I'm willing to bet that in one year's time, it will still be worth less than 1000$. At that rate, it would be wiser to just do it the old fashioned way and invest in stocks or something. 

[Stark_Source]

Yes, but that was not really my point. My point is that 12 months ago, nearly nobody knew about bitcoins. But ever since it's appearance in media, the price has inflated to the point of coming close to 1000$ a piece for one, and that is mostly due to speculators that bought them up in the (stupid) hope that it would increase in price dramatically the same way it did 2 years ago. And now, just like you said the price has stayed mostly constant between the 400 to 900$ mark (although that's still a heck of a lot of fluctuation).

 

Besides, would you really want to invest in a currency that is owned 10% by one unknown user by the nickname of Satoshi? Imagine if 10% of dollars circulating were all owned by one guy. It would be ridiculous and extremely scary. The day that this user decides to somehow cash in, the value of bitcoins will plummet. 

The legality of the coin and the tax evasion schemes that could be perpetrated through it already show that this is a very unsafe currency to invest in. This very thread is an example of that. 

 

The early adopters of bitcoin made tons of money, but now that it's gone mainstream I find it extremely unlikely that a drastic increase in value will develop. Heck I'm willing to bet that in one year's time, it will still be worth less than 1000$. At that rate, it would be wiser to just do it the old fashioned way and invest in stocks or something. 

 

 

My landlord asked me about investing in bitcoins the other day. For better or worse, I said to him 'If schmucks like you and me are finding out about them now, it's already too late to invest."

[Phillyphries]

I can't be the only one who thought that OP said Charlie Sheen for a second lmao