Re:Thoughts on Bitcoin
by alaskamiller on Sunday December 01, 2013 @04:02PM
(#6829314)
I spent all my savings back in 2011 on bitcoins. I get what you mean. Good luck.
> My theory is, everyone's expecting it to crash.
If the market is efficient, the collective expectations is what gives the price at a given moment. It is what people are will ing to pay for it and what people are willing to sell for.
>My theory is, everyone's expecting it to crash. //
That's how a crash happens isn't it? It's not driven by any wider economic reality beyond the conviction of "investors". If the investors can be convinced that it's crashing then it crashes. That certainly appears to be how manipulative exploitation of short positions occurs.
That's because short positions are defined by using borrowed money. Not only will they lose money in a crash, they will be bankrupted into unrepayable debt by a crash. So if they think it's crashing, they have to sell before a certain price because they do not have the money to cover their position.
Re:Thoughts on Bitcoin
by sliverstorm on Sunday December 01, 2013 @07:53PM
(#6830418)
everyone's expecting it to crash
I think your sample is too small. Old-world finance looks at the charts and expects a crash, but everyone who actually holds BTC seems to have a target price of $1M
Re:Thoughts on Bitcoin
by notdrunkatall on Sunday December 01, 2013 @04:11PM
(#6829355)
All I can say for certain is that you're in for a hell of a ride. Good luck.
My theory is, everyone's expecting it to crash. So therefore it's more likely to do the opposite. Not much of a theory, but it seems to have been historically true.