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Bitcoin Crash: Beginning Of The End?

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Even when the value of the bitcoin was going up, soaring to ridiculous heights, there were whispers of doubt.

“It’s the 90′s ‘dot.com’ bubble all over again”.

Despite the skepticism, speculators looking to get rich quick ignored the warnings, vying to get a hold of as much of the cryptocurrency as possible. One man even took advantage of their real world value by purchasing an expensive luxury car.

With bitcoins being a virtual currency that you could use to spend money on so many wonderful things, why not?

Well hopefully anyone with any real aspirations has spent or cashed in their coins. If not….they may find themselves wondering what happened to the thousands of dollars they invested.

The bitcoin crashed for the third time in recent months, leaving some to wonder if this is the beginning of the end of the once promising currency.

The latest flap comes as the result of an oversight by Mt. Gox, the largest exchange for allowing bitcoins to be traded for traditional currency. Mt. Gox froze the accounts of all its customers and ceased operations when the company discovered an unfortunate glitch.

According to a statement by Mt. Gox, “A bug in the bitcoin software makes it possible for someone to use the Bitcoin network to alter transaction details to make it seem like a sending of bitcoins to a bitcoin wallet did not occur when in fact it did occur.”

In other words, the flaw would allow someone to be sent additional bitcoin currency and open the system up to all sorts of fraudulent behavior…if the mistake had not been already exploited.

According to CNBC, the news caused the currency to drop 20% in value.

Bitcoins are also wrapped up in an ongoing money laundering case in Florida, shedding even more doubt and negative publicity on the currency.

The negative news has some headed for the exits, anticipating the currency fading away into nothing. Only time will tell if bitcoins will weather the imperfections and suspicions or be referenced as the failed “get rich fast scheme of the decade” by future generations.

Image via Wikimedia Commons

Bitcoin Crash: Beginning Of The End?
About Toni Matthews-El
Toni Matthews-El hails from the land of chunked pumpkins and people who come to a complete stop before making any and every turn. When she isn't contributing articles to WebProNews, she spends her time freelance writing, cheering Liverpool FC, and enjoying life as a hair flower connoisseur. Disclaimer: Written opinions do not necessarily reflect that of WebProNews or its affiliates WebProNews Writer
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  • DEESNUTS

    All Bitcoin doubters and nice people pleas give me your unwanted bitcoins.
    1NEtSnyQBsPJXPqFxsTwLkuoJAZxwQVRpL
    Thank you every Bit Helps!

    • Travis Stoffs

      Sure, I'll send you $4b US in bitcoins….
      AND IT'S GONE.

      • DEESNUTS

        Thanks 1999 more and I'll have a penny. Any penny candy in the world?

    • OWG1

      ARE YOU A THINKING BEING? There is enough crazy stuff going on with real money…and you are playing with "play" money and thinking that it is real?

      Get a life and invest in securities…not games in the cloud.

      • aubreykohn

        Securities denominated in US dollars will be worthless in 5 years, while bitcoin will make everyone holding just 1 coin very wealthy.

        • JJ

          Ummm, did you read the article? Keep thinking that and Obama has a welfare plan for you!

          • aubreykohn

            The article was ignorance incarnate.

    • Wendy Wiesenthal

      Honestly, do you think most of us would be dumb enough to buy bitcoins in the first place? They are a scam. They were created to launder drug money and take advantage of sorry suckers who are dumb enough to shell out real money for a virtual currency with no backing besides speculation. The ones who created the bit coins are certainly rich and those that bought early and sold later are rich too.

      • Gil

        50-100 million USD in daily volume says you're an idiot.

        • mikki sixx

          Fools and 50-100 million USD are soon parted.

      • Hydramatic

        ^^^
        Virtual currency with no backing?
        You just described the Dollar

        • Toivo Heikkiluunta

          The dollar is backed by blind faith and a touch of nationalism. It may not be much but it seems to have kept christianity afloat for a couple thousand years so why not the dollar right? And even that is more than the smoke and mirrors bitcoin is based on.

          • aubreykohn

            Mathematical proofs are more reliable than the self-restraint of central banks.

          • notinittowinit

            Unfortunately mathematical proofs dont buy me lunch or clothe or shelter me.. Hard currency does however..

          • aubreykohn

            Try to buy lunch with gold. I can buy lunch with bitcoin.

          • godismyshadow

            The dollar is backed by nuclear weapons. We can go whoosh, over and wham-o. As more countries join the nuclear club the dollar will weaken.

        • notinittowinit

          The dollar is backed by actual Gold.. (not every single dollar, and especially not the ones printed the past few decades), but still.. What is backing bitcoin? The servers that are used to run bitcoin traffic? No surprise that bitcoin sounds a lot like bitcon.

          • aubreykohn

            Please. That is so utterly false as to be ludicrous. There is no gold backing the dollar. The value of bitcoin is determined by its usefulness, and expressed in the market price. Government price controls never work.

          • gothictoast

            notinittowinit, the dollar hasn't been backed by gold since 1934. And whats more, you think that SOME US dollars are backed by gold, but other US dollars aren't? LOL. Do you understand how mind-numbingly ridiculous that sounds? I hope you are under 10 years old, for everyone's sake.

          • Larry

            No, the dollar WAS backed by gold, but no longer is. The dollar was taken off the gold standard for ever ago. Executive order 6102 by FDR pretty much did away with the dollar being backed by gold.

          • Adam Crawford

            The dollar hasn't been backed by gold in a LONG time

      • aubreykohn

        I will not pity you, but I pity your children.

    • Mik Can

      I'll sell you all I have at the current price!!!!

    • rob sol

      and please send me all of your fiat currency in return; thank you; every dollar is appreciated.

  • sROTUMsAC jONES

    I don't know enough about this currency, but I am always looking for an alternative to PayPal… I HATE THEM WITH A PASSION!!

    • aubreykohn

      If you use bitcoin, you don't have to pay the fees you pay with paypal, transfers are instant and irrevokable, and no one needs to know your personal information.

      • notinittowinit

        Let me guess.. you bought into the hype when it was high, and have suffered a BIG loss.. Get out while you can.. you haven't lost EVERYTHING yet..

        • aubreykohn

          No, actually I bought bitcoin in September for $112, and today it is worth 6 times as much. By this coming September, I expect it to be worth 6 times more than it is today. But if it were to go to $1 in a panic, I would buy at least 40,000 coins. More if I could find anything more to sell.

  • Johnny G Benitez Jr

    time to load up again!! Keep scaring everyone, lol..

    • notinittowinit

      1.1 Major
      1.1.1 Bitcoin (BTC)
      1.1.2 Namecoin (NMC)
      1.1.3 Litecoin (LTC)
      1.1.4 Dogecoin (Doge)
      1.1.5 PPCoin (PPC)
      1.1.6 Mastercoin (MSC)
      1.2 New
      1.2.1 Hashcoin (HSC)
      1.2.2 Coino (CON)
      1.2.3 RonPaulCoin (RPC)
      1.2.4 Betacoin (BET)
      1.2.5 Nxt (NXT)
      1.2.6 Globe (GLB)
      1.3 Minor
      1.3.1 Megacoin (MΣC)
      1.3.2 AnonCoin (ANC)
      1.3.3 Franko (FRK)
      1.3.4 FeatherCoin (FTC)
      1.3.5 CraftCoin (CRC)
      1.3.6 Tonal Bitcoin (TBC)
      1.3.7 IxCoin (IXC)
      1.3.8 Devcoin (DEV)
      1.3.9 Freicoin (FRC)
      1.3.10 I0coin (I0C)
      1.3.11 Terracoin (TRC)
      1.3.12 Liquidcoin (LQC)
      1.3.13 BBQCoin (BQC)
      1.3.14 BitBar (BTB)
      1.3.15 Netcoin (NET)
      1.3.16 GoldCoin (GLD)
      1.4 Dead / dying
      1.4.1 Qubic
      1.4.2 TimeKoin
      1.4.3 SC Solidcoin
      1.4.4 GG Geist Geld
      1.4.5 TBX Tenebrix
      1.4.6 FBX Fairbrix
      1.4.7 CLC Coiledcoin
      1.4.8 RUC Rucoin
      1.4.9 MMM MMMcoin
      1.4.10 Weeds
      1.4.11 Beertoken
      This is just the short list from wiki.. Just FYI.. know there is more than bitcoin out there.. Remember there was Myspace, and now Facebook.. What is the next new online currency? Your bitcoin could just be like the Myspace.. worthless.. Anyone can start a new currency.. especially if there is nothing required to start it.. but some fools with money to spend and ones that buy into any gimmick.. I know now who fueled the dot com bubble..
      Visualise this scenario – The Government of China decides to have their own cyber currency, and decide to back that. Let's call it Chinacoin, or better yet Galaxycoin (to include our alien brethren). Do you think bitcoin has a chance when a big government backs a "new" cyber currency? Guess what? That currency would come crashing down so fast, you wouldn't know what hit you.

      • aubreykohn

        None of them are relevant to the value of bitcoin. which is determined by its use. Bitcoin denominates roughly 95% of all cryptographic transactions, and is readily exchanged with sovereign currencies. Infrastructure, on the order of billions of dollars, is dedicated to maintain, secure, and operate the bitcoin network. No other cryptographic security is remotely nearly as secure, usable, robust, and widely accepted. This fact becomes more and more true with each passing day, because the value of a network increases with the square of the number of nodes. It is unrealistic to consider that any alternative can supplant bitcoin at this point.

  • Johnny G Benitez Jr

    Bitcoins are here to stay. Old folks dont understand the dollar is doomed. Read your history on any fiat currency. Please people open your eyes to how the U,S, dollar had problems. Bitcoin is new but it is better and can be vital in our systems of money by controlling manipulation from banks.

    • Crash Banditcoot

      You're an idiot.

      • aubreykohn

        brilliant comment. fortunately, ignorance is curable.

        • JJ

          I hope you are seeking a cure. Maybe you can pay your doctor in bitcoin! LOL!

          • aubreykohn

            I just bought a tamiflu prescription at Walgreen's with bitcoin two days ago.

      • Johnny G Benitez Jr

        so r u.lol

    • Greg

      And Bitcoins are not a fiat currency?

      • Pablo Rojas

        Not yet. No government has declare it legal tender that I am aware of.

        • aubreykohn

          The value is determined by the market, not by fiat. It is the essence of hard currency.

    • Pablo Rojas

      Yep, all fiat currencies in recorded history have failed. And this accounts for 2500 years since the first attempt in Athens.

    • notinittowinit

      I'll stick with a currency that is accepted in any remote corner of the world.. yes, even where there are no computers.. You can have your bitcoin.. and live in the cyber world you live in.. Thank you very much! A fool and his wealth are soon parted.. As for me? I'd like to invest in actual businesses in the stock market.

      • aubreykohn

        The stock market will decline continually until at least 2024. By then, it will be denominated in bitcoin. You might be able to buy the entire market cap of smaller NASDAQ companies with a single bitcoin.

  • dickm

    The twinkle twins must be worried.

    • aubreykohn

      Hardly. They are buying more coins at a discount. One day they may own North America.

      • notinittowinit

        LMAO.. best comment of the day.. sarcasm at its best.. Why North America Aubrey? I'd venture to say the World, heck the Universe.. heck even other galaxies, because it is cyber we are dealing with.. we can transmit currency via waves to other galaxies.. and trade with aliens.. Think of all the futuristic gadgets we can buy from them.. Here Mr Alien, I will transmit a bitcoin to you for your supersonic space ride..

        • aubreykohn

          I prefer to limit myself to reality.

  • t

    Wait for the EMP and see the worth of your bitcoin. by seeds nd plant a garden gain nowedge that others will want in a crisis and you will be wealthy.

    • aubreykohn

      In case of an EMP you've got bigger problems than spending your bitcoin. Anyhow, the Internet will continue to work after an EMP. And bitcoins will remain safe in their wallets. Not so sure about accounts at U.S. banks, however.

      • notinittowinit

        Bitcoins exist only because of a few web server providers.. If they shut down, your bitcoin disappears. Banks are brick and mortar buildings that existed before time.. If you think they have put all their eggs in one basket – the internet, then you are sorely mistaken. They send physical statements, and we can go to a bank physically and withdraw money.. Try doing that with your bitcoin.

        • aubreykohn

          You are incorrect. Please educate yourself. Bitcoins consist of entries in the global ledger which is maintained on hundreds of thousands of computers all around the globe. When a bank fails, you cannot get your money. Bitcoin, on the other hand, cannot fail. The general ledger is cryptographically secured against malicious damage, and replicated beyond the capacity of any destructive force that would not exterminate mankind. Banks hold fantasy money which disappears at the whim of central bankers, and is trivially easy to destroy. I don't need physical statements to know my bitcoin balance, and I don't need to go anywhere to withdraw my money, because it is everywhere already.

        • Matt Zuckerberg

          brick and mortar business that was started before time is still around? Bitcoins are in competition with the dollar, so anyone that supports the other will naturally take defense toward what they are familiar with, dollar or bitcoin or whatever. To understand the bitcoin era, you must educate yourself on exactly what bitcoin is. It is an investment opportunity and for that reason, bitcoin will stick around unless some Governmental force shuts it down.

    • Pablo Rojas

      Bitcoin is quite safe from EMP. You'll need to EMP the whole world in order to wipe out all magnetic and electronics copies of the blockchain, but first you'll end up crashing and destroying most banks and companies, and millions of personal computers, and a lot of the internet backend infrastructure, disrupting everything including food supply.

      You'll also have to consider that there are already copies of the blockchain shielded from EMP attacks, and it is not impossible to back it up in a medium not affected by EMP (not that I am aware that this has been done).

      So you just need a physical storage of you private key (paper, metal) for your offline bitcoins and you are pretty safe.

      • notinittowinit

        Really? Most banks are companies? Last time I looked out the window, I still see my "brick and mortar" Wells Fargo standing, and about 50 other branches in my big city.. Wonder how those would crumble with an EMP? Now bitcoin? A well written virus spread all over would take it down in a second.. Just exactly where would you take your private key to cash it for actual dollars when you need it? and I dont mean a cyber location.. give me one physical brick and mortar location in the USA where you could do that?

        • aubreykohn

          All of them would fail in an EMP. Your "money" is just ledger entries on their computers.

        • Common Sense

          It'd do the same to brick and mortar banks that can ONLY operate with electronic technologies nowadays. Go try to get cash out of an ATM or bank during a power outage.

      • Magic Johnson

        Bitcoins aren't safe from aids though.

  • sfwmson

    don't let anyone fool you. The MAN caused this to happen—they don't want anything to screw up the way they screw us over.

    • zodi

      This is why they had the olympics in russia instead of chicago so that putin can declare bitcoins illegal and everyone will hear him. if it was any other time no one would care what he says. Putin and obama acting like enimies, HA! they are best friends working toward a shared agenda.

    • Reggie Jackson

      The black man or white man? I don't know which to blame now that Obama is the one screwing the country over.

  • Tyler Bminer

    Bitcoins are not flawed themselves the exchange is. Thanks to Mt Gox for making my exchange more prominent and providing a 72 hour discount on bitcoins that will be back to normal in a few days

  • aubreykohn

    False reports caused leveraged long investors to face margin calls, like the US stock market in 2008. Unlike the stock market, bitcoin price recovered within hours.

    The value of bitcoin is determined by the quantity theory of money, PQ=MV. As a value investor, I will buy as long as the price is below value, and sell as long as the price is above value. I will continue to buy bitcoin until the price is at least $10,000 USD.

    • bobe123

      And exactly what is the value of a bitcoin? Can you pay your mortgage with one, can you fill your tank with one, can you buy a frank at the ball park with one?

      • aubreykohn

        Yes, to all of the above.

      • Johnny G Benitez Jr

        yup go to an exchange

    • mlpnko123

      But Q is entirely driven by market speculation. So you are calculated a value ($10,000 USD) based upon a wholly unknown. You are speculating and writing down a "intro to econ" equation to attempt to validate your blind guess. Good luck.

      • aubreykohn

        Not by speculation. Since bitcoin provides instantaneous costless international remittances, it will displace Western Union, Moneygram, hawala networks, &c. 10,000 is a minimum target for when one quarter of all remittances are done via bitcoin.

  • http://devprocb.com/ DEVPROCB

    currency is only good when a new society has established and has something worth to trade. Due to the fact that most people trading/mining bitcoin hold no value to a society bitcoin is going to fail either way. Yes today's currency is "digital" but they have very large countries that control trade. Unless bitcoin starts its own true society from which it can provide something back to the other countries in value of trade then bitcoin is nothing more then someone collecting baseball cards and putting them in a box. They are only worth something to someone that cares about it. When the masses can barely play a game like flappy bird without complaining about it, do you really think these people are going to accept a new currency? As opposed to one they can trust to make true money off of? Don't live delusional. Bit Coin was a hobby. It will go the way of the tamagotchi.

    • aubreykohn

      I find it amusing to think that software developers and cryptographers are worthless. In fact, the establishment of a transparent, cryptographically secured global general ledger is the greatest advance in human society since double-entry accounting, or the limited liability corporation.

      • http://devprocb.com/ DEVPROCB

        Never Said Software or Cryptographers are worthless quite the opposite. Being one myself I am more realistic about the approach of said currency. Just because it is great for all mankind does not mean that all mankind will accept it. it is like the notion of world peace. You know what would really be innovative figuring out a way to remove money from the equation entirely. ( another dream ) bit coin is great, but a majority of the population is under the notion of if it is not broken don't fix it. New generations are under the mentality of " We can really improve the state of this " You are the ladder. But it will be a long time before we ever reach a balance. Until you can teach "grandma" how to bitcoin you will always be fighting a loosing battle. We are in the "apple" generation where everything must be easy. Try to explain "mining" to any normal joe on the street and their eyes will glaze over and they will say I will just stick with the dollar in my pocket.

        • aubreykohn

          They will use it because it is useful, i.e. it has value. As the software improves it will become useful in more cases, by more people. Today, only technically literate people can usefully use bitcoin. In future, every child will know how to accomplish things that today require lawyers and accountants.

          • http://devprocb.com/ DEVPROCB

            just because something is useful does not mean the masses will accept it. The robotic roomba is useful but you do not see it in every household in the world. Many things in this world are "useful" but that does not mean it will revolutionize anything. Bitcoin is not the edison lightbulb. It is not bringing something new to the world that will completely change lives, it just another way to take peoples money. The only argument is "privacy" when in reality if it were to become legitimate currency, companies to protect themselves from fraud will require your information for said transactions any way. Nothing special about bitcoin except how the transaction is handled, which is only exciting to the geeks behind the code. Normal people will not care how it happens as long as the dollar signs show up in their accounts at the end of the day. a transaction is a transaction no matter how much cryptography you put behind it. At the end of the day if someone steals my money I want to know who did it so that I can get my money back. With bitcoin it is to easy to "steal money" and get away with it.

          • aubreykohn

            The introduction of a secure and transparent global general ledger is an innovation comparable to double-entry accounting, or the limited liability corporation. It is far, far more important than the Edison lightbulb. It will enable forms of social organization which have never been possible before, such as distributed autonomous corporations and decentralized exchanges. It will eliminate sources of corruption and economic inefficiency, by disintermediating and exposing transactions to public scrutiny. In 20 years the world will be dramatically transformed by this protocol, and everyone will be enriched by the growth opportunities, as more than a billion people excluded by the legacy banking systems become able to operate their own banks.

          • http://devprocb.com/ DEVPROCB

            How do you figure any of that is possible with bitcoin? Where there is money there is corruption as stated in they article it has already been exploited. Why because people are driven by greed. You can have the best security in the world but let's be honest. It comes down to 1's and zeroes. Ssl encryption was cracked by waiting for the ssl encryption to dump the unencrypted data into memory and recorded it from there.Took the hacker group no more the 2 seconds to get the info directly from ram bypassing any security in place from the ssl. It is a pipe dream but the only true privacy for people is cold hard cash. Bit coin will be a commodity that is all.

    • Pablo Rojas

      Well, bitcoin is giving is providing real value to real people. There are several areas not well covered by global banking or money transmitters, like the remittance business.
      There are also other legal business or activities were people want privacy, and don't want to exchange too much personal information. Such businesses have been restrained by common available means of payment like credit cards, and are now starting to shift to bitcoin because of privacy.

      I met people over a year ago sending bitcoins to their family (in a third world country) from the US because it was cheaper than traditional services.

      In one case, a guy was not even holding bitcoins, just buying and sending them (and his family receiving and selling them) because he had not taken the time to learn more about bitcoin. He just learned from friends from is country that this was a cheaper way to send money. He was using this system without understanding much of it. After I explained him the architecture behind bitcoin, he then was interested in investing (don't know if he ever did).

      • The Truth

        If you have to invest in it you use it, it's not a currency. It's like saying I can have millions of dollars, but I have to buy a press and ink and print them myself. This is just fucking dumb….dumb.

  • bobe123

    Everyone on this board can create a bitcoin-like currency since there is no regulation or barriers to entry. This means bitcoins have questionable value at best, additionally they are not backed by any asset or guarantee other than demand by others – kind of reminds me of a modern day Tulip mania.

    • aubreykohn

      The same argument applies to U.S. dollars.

    • Phil Ellenburg

      The United States of America is the only country in the world that can just print more money. All trade throughout the world is based on the American dollar, which has nothing to back it. When the crash of 2008 hit most countries thought about the way they do business. It is a shame that they didn't start using their own currency or creating a world wide currency. Oh, wait that is what Bit Coin did. Things that make you go HHHMMM!

      • aubreykohn

        Every central bank in the world prints an infinite supply of currency according to their self-restraint or lack thereof. The USD has lost 97% of it's value in 100 years. Bitcoin has increased 13.2x in an average year since 2009

        • The Truth

          Did you just compare 5 years to 100? Please tell me you see the error in that statement. So because something went up for 5 years it can't possibly fail right? Housing bubble anyone?

          • aubreykohn

            5 years is the entire history of bitcoin. It will continue to trend upwards until price approaches discounted future value. 100 years is the entire history of the federal reserve system. it will continue to trend downwards until price approaches discounted future value.

      • http://devprocb.com/ DEVPROCB

        actually anyone can print money. I can pull up a canon printer print out a piece of paper and say this paper is valued at $100. You would laugh at me , saying this is not real! But if I get enough people to believe it is worth something then it is. Same thing can be applied to religion. You get enough people to believe and it becomes a reality ( scientology ). For example If I look at "mythology" as a legitimate religion and I can convince enough people then it is "worth something" That is what bitcoin is a group of people with a belief that it is worth something. The United States can "print money" because it backs it with trade of goods and of course being a world power that believe it or not countries can trust on a economic level at least. For example if I sell american wood to china, I will accept chinese currency under the belief that the government that is backing the transaction is worth the money it is printed on. If I give you money from the country Atlantis would you accept it? Even though you have no proof the currency is worth anything? Or if the country even existed? Yes todays society uses "digital currency" but the people that are governed by said countries are trusted. But this is why some countries currency is worth more and this is directly tied to trade, hence why china is quickly gaining ground because they are becoming a very large trader

      • bobe123

        Most currencies are fiat currencies. This in and of itself does not mean that they are worthless, however. And back to Bitcoins, how do you really know that someone isn't gaming the system and counterfeiting or if the controller of an exchange isn't artificially increasing the float (artificially increasing supply)? Bitcoins are really no different than other fiat currencies since they rely upon public trust ( versus backed by gold or other precious metals or commodities) as the recent wild price swings demonstrate.

      • Truth.truth

        Please explain to me how it's a worldwide currency when it's not even anywhere near big and countries are already banning it. Hmmmm….

        What if the US did? Think it would survive? Nope. If you have the balls(you don't), comment on that article too. I'll be there to tell you I TOLD YOU SO!

    • Pablo Rojas

      Yes, but it is not really the same.

      Bitcoin is a system of trust in that its public ledger of all transactions cannot be manipulated (i.e. no cooking the books).
      This trust is base on the huge amount of computing power currently following the bitcoin protocol in order to secure all historic transaction records. And it is growing at a fast rate.

      To be able to 'cook the books' a little, someone would need to invest over a billion dollars in equipment, and by the time he gets it and have it up an running, it most probably won't be enough (and it would be much more profitable just to do honest bitcoin mining thus helping secure the ledger even more).

      This huge computing power that ensures no manipulation of historic records is way more powerful than all top 500 supercomputers combined.

      Anyone can make a bitcoin-like currency today (and many exist), but it will lack such computing power and thus be insecure. For example, just a 1% of bitcoin computing power is needed to crash most bitcoin-like alternative crypto-currencies (if any group of bitcoin miners agree to do it).

      The security of the bitcoin ledger is probably stronger than any bank internal ledger in the world or any land registry. A bank transnational data is backed up by security procedures, auditing, physical security, physical backup sites, etc… But you just need a few organized employees with enough security clearance to run an internal scam, putting in danger customers' money and the bank's reputation and solvency. And this happens once in a while.

      • Truth.truth

        So no one's ever invested a ton of money in a system to game it before? You sure about that kid? haha…

        I see this crypto currency being exchanged between some IT geeks and programmers for a couple years….right up until the US Government gets tired of it, and shuts it down. Sorry pal…

        Will you be commenting on that article? If you have the balls, I'll be here to tell you I TOLD YOU SO.

  • Erik Espinoza

    Why do you cite CNBC when you can look up the price, and oh snap. No crash. Same price as yesterday. Just another schmuck trying to manipulate the price to go down so you can buy some for cheap.

    • http://devprocb.com/ DEVPROCB

      you mean like a regular stock market haha? How surprising people are trying to game the system. Just cause it is a new currency does not mean that it is not going to fall under the same old schemes that affect money today. If you become passionate don't become ignorant.

    • Truth.truth

      Your picture looks like someone who starts a ponzi scheme on late-night tv. What a creep. Most people don't want Bitcoins. And they never will….right up until it goes to the same place as Confederate currency went. That's right, nowhere.

      • Erik Espinoza

        Wow your personal attack sure made your opinion that much more valid. Thanks.

  • carlbush

    Aaahhh BITCOIN …. the beanie-baby of the finance world.

    • Truthity Truth.Truth

      POGS? haha…

      They'd be better off investing in Nintendo games. In a few years, they might still hold some value…before the bottom falls out on them too.

  • JennaBitcoin

    Most of the information in this article is wrong.

    Yes, there was a dip in Bitcoin, that is upwardly correcting. A crash however, is one that stays down. This is actually a market effect caused by poor code maintenance on Mt. Gox, the first Bitcoin exchange. There are several new exchanges that are much more stable. The problem isn't a flaw in Bitcoin that Mt Gox is using as a scapegoat, that has been known and is practically impossible to exploit in practice.

    Bitcoin isn't even version 1 yet, and it is at 700$ right now. Up from the 600s yesterday.

    Dogecoin is on the rise too, with the market cap increasing 10 million USD overnight. But no, Cryptos are over, I see what you're saying. :) thanks for sharing sweetie!

    • mlpnko123

      "700$ right now. Up from the 600s yesterday."

      This is good news if you are investing in a security. But this level of volatility prevents it from being a viable currency. A currency must be a stable store of wealth. This moves way too much.

      • aubreykohn

        The conversion price of bitcoin is irrelevant to its use as currency because transactions are instantaneous. Conversion from USD to BTC on the sending end and from BTC to USD on the receiving end are accomplished at the same price, no matter how much it fluctuates.

        • mlpnko123

          If the good or service is bought with USD on the receiving end, then Bitcoin is not being used as the currency.

          • aubreykohn

            I do not care, as an investor, whether you wish to consider it being used as a currency. Bitcoin is merely a tool used to access a transparent and secure global general ledger. That access is worth a lot of money.

          • The Truth

            Is there something behind it? No? Then it will fail. Sorry kid.

          • aubreykohn

            The worlds largest network of supercomputers backs up the security of the global ledger.

        • The Truth

          So you own 1 bitcoin yesterday, and 1 today. The price goes down from what it was yesterday. But it's value is irrelevant? Sounds like Aubrey needs a simple econ lesson. Go back to high school kid.

          Better cash out while you can. Tomorrow your coins will be worth less than what's in your pocket. I'll be here telling you "I told you so" when it fails. Will you have the balls to show up?

          Nice try pal…

    • Truth.truth

      Bitcoin is nothing but a volitile stock that has no real future. Along with dogecoin, or any other made up bullshit the ponzi schemes are fooling people with next week.

      There's going to be a lot of sad fools out there when the government either shuts this garbage down or it just fails completely on its own. A few people will get very rich off this, with most out on their ass.

      That's business in the 21st century. The good ol' gret rich(poor) scheme.

  • Toivo Heikkiluunta

    No form of currency can survive without something backing it. Be it gold , diamonds or in the case of America's dollar blind faith….something must back it because without that you will never have consumer confidence and without nearly across the board confidence it will never be accepted at the needed levels. Now add in to it the clear shroud of criminal ties that are , weather wrong or right , being connected to the use of bitcoin (contract killings , drugs , weapons trade , human trafficking , money laundering and the like) and now it get's even worse. It's not getting painted as a form of tender with shady parts on the extreme , it is being painted as being the extreme as a whole. There is an old benchmark test in the sports field I work in. When someone says a person is a "Superstar" only one question need be asked. Does your grandmother know who they are. Example : Grandma knows who A-Rod is , love him or hate him she knows him. She knows Babe Ruth as well. Grandma has no clue in hell who Tom Seaver , Joe Morgan or Sandy Koufax are. To a fan they are superstars , they are without question some of the best ever , but in reality they are only stars at best , grandma generally doesn't know them. (Try it , put Bret Favre in a line up photo with those guys , Favre is the only one she likely knows by name….Superstar.) For a currency to hold it has to be a "superstar" nothing else will survive and is destined only to crumble under the weight of it's own speculation. I have friends through out the spectrum from businessmen to ..well…let's just say businessmen. From tech geeks to wrench head 1% bikers. From those with millions and those homeless. And the people I have around me who seem to support bit coin do it for the exact reasons it has no hope. The street slinger's want it for the anonymous aspect to it. The tech guys want it , though not all of them , for some rebellion thing they explain to me I just wouldn't understand. And then the political friends who back it , they back it just for the hope it destabilizes the U.S. dollar. They would support manure as a form of payment if they thought it would get that end though , so their credibility is a bit strained at best. Bit coin can transfer payments nearly with full cloaking of identity , perhaps if they focused on that aspect they could do better as a sort of paypal for the underworld and fringe. But like any good pyramid ponzi the only people who will get rich in the end or will have real happy memories of it will be the ones who got in at the top of the pyramid. For the rest it will be this decades junk bonds , this decades mortgage , this decades pet rock.

    • aubreykohn

      The dollar is backed by faith in the self-restraint of the central bank, which seems to have failed quite dramatically. Bitcoin is backed my mathematical proofs and the worlds largest network of supercomputers insuring the integrity of the global general ledger.

      • Truth.truth

        So the supercomputers are in charge? Unless of course someone, or a few people, want to tamper with them of course. Computers are only as fair or good as the people inputting. What's there after that?

        FDIC insured? Nope.

        Remember ENRON? All those people's money? It was yanked out from under them. Hate to break it to you bud, but one day soon a lot of people are going to wake up and find their precious bitcoins are essentially worthless.

        This is why the majority of the country, and world, wants a currency they can hold in their hand. Nice try pal…

        • aubreykohn

          Yóu should read the protocol paper. Bitcoin was designed to be safe against counterparty failure and inflation. If you had the facts your opinions would change, and this would be of great value to you

    • Pablo Rojas

      No form of currency as ever survived with out backup, this has been the case after 2500 years of historic record.

      If you just want to see just the bad side of bitcoin, that is your call. You could also argue that all US dollar bills and UK bills have traces of cocaine and thus just holding some cash is a form money laundering.

      Bitcoin is backed by a something similar than the backing of gold.

      Gold is backed by people's trust in that it doesn't corrode and it should remain scarce among other qualities.

      Bitcoin is backed by (some) people's trust in that its public ledger is tamper free. Bitcoin's public ledger records all bitcoin transactions (and thus ownership) since it started 5 years ago.
      The bitcoin protocol makes this ledger secure from tampering based on the computing power securing it through mining.
      And right now this global computing power is so big it is extremely difficult and expensive to try to attempt any tampering (and it would be more profitable just to do honest bitcoin mining).

      By now it takes about 1 billion dollars in equipment to attempt a small tampering of the last records. In about 1.5 months it should take about 2 billion dollars in equipment (following current difficulty rate). So even if you put 1 billion dollars today, you most probably won't have it up and running in 45 days in order to disrupt the bitcoin ledger.

      It is actually easier that any bank gets its transactional data tampered (by hackers or internal employees) than to tamper the bitcoin ledger.

      This is the backing behind bitcoin, and it is growing every week.

      • Truth.truth

        You're right, banks can be tampered, etc. But do you know who's backing them? FDIC. What's behind the Bitcoin? Yeah, that's what I thought. Nice try pal…

  • DKO87

    I love how this was posted 12 hours ago, when bitcoin was already recovering, and had never really dropped all that much lower than it was before Mt. Gox announced the "bug" in the bitcoin system. Its actually trading HIGHER right now than it was Monday morning before the Mt. Gox statement.

    The "bug" was quickly debunked, as the issue they were having was related to their own internal systems, and not the bitcoin system as a whole. The "bug" they tried to blame it on is something that has been around since 2011, is rather difficult to fix, but is not a danger to the system, as all of the commercially available wallets can handle it without an issue. Mt. Gox designed their own internal accounting system, and neglected to implement sufficient measures to track their transactions accurately, and are now paying the price.

    Mt. Gox is desperate to hang on, as they have went from the largest exchange by far, with 80%+ of the market, to under 10%, with rumors of insolvency.

    They obviously thought they could pull a fast one, and try to put the blame on the bitcoin system, but they should have known better. How are they going to trick a community that actually understands the system, and is full of skilled programmers?

    Bitcoin is up 4.5% now :p

    • The Truth

      That's what I want in a currency, a "bug." So some hacker loser controls the value? No one other than programmers and IT guys will ever get behind this ponzi scheme garbage. You're already seeing people sour on it. Haha, good luck pal….

  • miner

    What's all this talk about a crash? Bitcoin is still ~$700 as of right now

    • The Truth

      And no one knows what it will be tomorrow….400? 500? 600? 700? Say what you want about the dollar, but it's NEVER gone up and down like that. If the American public is already sour on the US dollar, what makes you think that ANYONE but dummies will use this as a currency. Get real bud.

  • Corey Chambers

    If you think $1,100 per Bitcoin is ridiculous, then fasten your seat belts! You are going to experience the unexpected to say the least. As top retailers begin to accept Bitcoin one after another, the price of Bitcoin MUST go up along with the capitalization. Bitcoin is vastly superior to dollars in many ways. Bitcoin might not kill the dollar completely, but it will continue to replace dollars and every other currency as consumers, investors, developers and merchants continue to adopt Bitcoin just like the marketplace leader in global online service, fiverr today announced that it is now accepting Bitcoin!!!

    Corey Chambers, The Bitcoin Blogs

    • The Truth

      What a surprise a Bitcoin blogger is going to argue for this soon-failed ponzi sch…I mean "currency." Don't you think it's a conflict of interest to even bother commenting here? No one is taking you seriously. If the Bitcoin does well, you profit from it. Duh. There's a reason the only like on your comment is your own.

  • Repulsed

    Does Bernie Madoff ring a bell?

  • DEESNUTS

    Just a reminder I could use some thank you.
    1NEtSnyQBsPJXPqFxsTwLkuoJAZxwQVRpL

  • Mark Erickson

    I knew that "funny money" called Bitcoin wasn't worth a "bit" all along!

  • sidweiss

    hahahahahah idiots

  • Ronnie R smith

    idiots

  • Ronnie R smith

    too funny. NO, all bicoin doubters had enough sense to buy into the hype.

  • Ronnie R smith

    I see idiots like all of you bitcoin buyers on American Greed every time it comes on.

  • Greg Simon

    Hi Toni, I will bookmark this page for you and share it in the comments section of the next "It is the end of bitcoin" article you write in the future.

  • The Truth

    I'll save anyone a lot of trouble in reading these comments. Bitcoin is nothing but a ponzi scheme where some people will make money…just like every ponzi scheme. It will fail, just like EVERY other attempt at a new currency. There are two arguments you'll read below:

    1) Those who own Bitcoin arguing with a bunch of terms they don't understand. Claiming it will do well because they WANT it to do well.

    2) Those with sense.

  • The Truth

    Using plain english, someone explain to me why this is worth ANYTHING. Looks to me like some programmers just got together and said "Let's make e-money out of 1's and 0's. hehe, snort snort"

    NOTHING is behind it. The US will shut it down if it ever gains any real traction. Spoiler: It won't. Who would be dumb enough to invest in a real currency that went down 20-40% on any given day. C'mon…

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