Bitcoin at all time high

[simpdog]

my apologies if i just dont get how this works, but i fail to understand where exactly all the money represented by these prices came from.

if everyone sold all their bitcoins right this instant, where exactly would 2 point something billion dollars or whatever come from to pay them?

again, apologies if this is some really obvious, simple finance thing that im not grasping. 100% not my strong point.

In order to sell a coin there needs to be a buyer. The exchanges of which mtgox is one of matches buyers to sellers. The buyers use real currency and receive a bitcoins in return. So the answer to your question is directly from the pre-existing assets of the buyers.

Good answer, although you don't answer his exact question.

If everyone sold ALL their bitcoins right this instant...

The answer is this is likely impossible. It would start the catastrophic crash (ie. only the first 1% of bitcoins would likely get the $250/coin we see now then it would go down quickly) we all predict will happen sometime in the future. If someone sweeps in last minute to buy the rest of them, it will make the bitcoin useless if one person holds them all and the demand is gone.

[sonatine]

In order to sell a coin there needs to be a buyer. The exchanges of which mtgox is one of matches buyers to sellers. The buyers use real currency and receive a bitcoins in return. So the answer to your question is directly from the pre-existing assets of the buyers.

Good answer, although you don't answer his exact question.

If everyone sold ALL their bitcoins right this instant...

The answer is this is likely impossible. It would start the catastrophic crash (ie. only the first 1% of bitcoins would likely get the $250/coin we see now then it would go down quickly) we all predict will happen sometime in the future. If someone sweeps in last minute to buy the rest of them, it will make the bitcoin useless if one person holds them all and the demand is gone.

roger that, thanks.

fucking amazing.

[mackerdoodle jones]

In order to sell a coin there needs to be a buyer. The exchanges of which mtgox is one of matches buyers to sellers. The buyers use real currency and receive a bitcoins in return. So the answer to your question is directly from the pre-existing assets of the buyers.

rofl holy shit, so basically the price could drop 20%, i could log in looking to panic sell, and find no buyers, and meanwhile the price continues to plummet.

oh sweet jesus thats magnificent.

or you could buy bitcoins from yourself (via say a corporate entity) and artificially drive up the price and then sell to some rubes???

[mackerdoodle jones]

hang on wait a sec. i will be right back.

[Beebs9Dizzle]

While we are at it ill fess up too. I bought 200 of these @ $18 a pop. Sold today for $45k

Will be playing main event this year.

Oh snap - that's double the cost of my tuition for entire undergrad.

*facepalm* should have gotten on this.

[Belly Buster]

rofl holy shit, so basically the price could drop 20%, i could log in looking to panic sell, and find no buyers, and meanwhile the price continues to plummet.

oh sweet jesus thats magnificent.

or you could buy bitcoins from yourself (via say a corporate entity) and artificially drive up the price and then sell to some rubes???

Not sure if your entirely serious but maybe before you rush into this I'll explain why it won't work.

In any trading transaction there is always a spread between the buy (bid) price and sell (offer) price. In a highly liquid market this spread can be very narrow, but also any transaction is unlikely to make a significant price movement.

In an illiquid market (such as bitcoins) where there are more buyers than sellers (or sellers than buyers), the spread will increase, driving a price differential between buyer and seller. It is this price differential that ultimately drives a change in commodity price.

If you are just selling to yourself, then you might be able to move the price, but all you will end up doing is losing out on the spread. In fact if there are transaction fees you can only lose money.

It is possible to rig the market with enough effort and market poet, but this is pointless for a commodity with no intrinsic value.

[SrslySirius]

Looks like it's taken a big dive down to 194. I was planning on selling at 300.

[sonatine]

there is some real high level finance market knowledge floating around this thread.

[simpdog]

there is some real high level finance market knowledge floating around this thread.

Ponzi Scheme Investing 101 presented by PFA.

[simpdog]

Looks like it's taken a big dive down to 194. I was planning on selling at 300.

CMONEY is god

[sonatine]

http://joowz.com/

gentlemen, it was an honor to have played with you all.

[sonatine]

omg its crashing soooooo fast...

[sonatine]

its going down harder than beebs at a chocolate dildo factory.

[sonatine]

[sonatine]

2:34 pm EST:

seventy eight dollars.


that cant be right....

[sonatine]

JohnMcCartney: it's like the great depression of the 20s-30s
JohnMcCartney: but with autism


oh god my sides ache

[Dan Druff]

JohnMcCartney: it's like the great depression of the 20s-30s
JohnMcCartney: but with autism


oh god my sides ache

Can someone explain what caused this crash?

Or was it just a case of "$266 per coin?! GTFO!"

[sonatine]

this is 100% pure conjecture but i think a lot of real heavy duty sharps figured with everyone planning on dumping at 300, they were going to dump at 290, and they did.

or dump at 250, or whatever, you get the idea.

[garrett]

The Feds are watching... lol

If a crash like such continues, it would make many wonder how "some" had such amazing timing in getting out.

[Dan Druff]

MtGox getting slow now.

Cmoney is so amazingly right-on with all of his locks.

If he ever puts out a lock that I'm not going to live through the day, I'm immediately calling up all friends and relatives and saying goodbye.