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Bitcoin Plummets Below $8,000 For First Time Since November (axios.com)

Posted by msmash on from the free-fall dept.

Bitcoin's value dipped $8,000 this morning -- the first time since November 24, according to CNBC -- just hours after the cryptocurrency made news after going under $9,000. From a report: After the news that Bitcoin had headed south of $9,000, CNBC branded the range of $9,000 to $10,000 as "a difficult one for bitcoin to break below" after its surge over $10,000 last year.

5 of 298 comments (clear)

  1. Random number generator by DrYak · · Score: 5, Funny

    I think it's time that we categorize the "BTC to USB exchange rate" officially as a "strong random number generator" and call it a day ~
     
    :-D

    (NOTE: Jokes aside, that doesn't preclude that idea of the cryptocoins' decentralized protocols can be useful).

    --
    "Sufficiently advanced satire is indistinguishable from reality." - [Tips: 1DrYakQDKCQ6y52z6QbnkxHXAocMZJE61o ]
  2. Bummer by 110010001000 · · Score: 5, Funny

    I invested a lot of money in Bitcoin when it hit $10k. I better just hold onto it until it goes over $10k again, then I will sell. Until then, I'll just sit back and collect the dividends from it.

    1. Re:Bummer by Aaden42 · · Score: 5, Informative

      The difficulty balancing algorithm prevents that from happening. The amount of computing power needed to solve each block is variable based on how much real time it took to solve the last block. The algorithm adjusts the difficulty (how much of hash has to be zeros in Bitcoin) to keep the solve time relatively constant.

      If lots of people turn off their rigs for any reason, the current block will take a long time; but the next block will drop its difficulty to compensate based on available mining resources. If the difficulty gets high enough that cost of power exceeds the value of the coin mined, some people give up, and the difficulty falls accordingly until it reaches equilibrium.

      Balancing should ensure that people who mine make a modest profit. It's only mad money for miners when the coin they mine is in the middle of an asset bubble that balloons its value almost before they've finished earning it. The bubble has to deflate eventually (I believe I hear a leaking sound now...), but mining should continue to stay profitable as long as people are interested in using coin.

  3. Bubble Economics. by jellomizer · · Score: 5, Informative

    Products that are getting more expensive because they are expected to be sold for more money later. Is often creates a bubble condition.

    The Bit Coin price kept on going up, so people wouldn't spend them, thus cause the price to go up further. Until they hit a peak were they decided to sell them. Then the market gets flooded with bit coins who's guaranteed value to increase is no longer expected. So they will sell them for less to get as much as they can out of it.

    This happened with the Housing Market
    This happened with the Tech Market
    This happened with the Comic Book Market

      Lucky for us, the Bit Coin Bubble wasn't a big part of the economy, so the looser in the Bit Coin Gamble arn't bringing the rest of the economy down.
     

    --
    If something is so important that you feel the need to post it on the internet... It probably isn't that important.
  4. Re:Below $8000 by Mr0bvious · · Score: 5, Funny

    A boy asked his bitcoin-investing dad for 1 bitcoin for his birthday.
    Dad: What? $12,250??? $19,350 is a lot of money! What do you need $8,800 for anyway?

    --
    Never happened. True story.