Four hours ago it dropped with more than 50 USD. There has not been any significant news that could explain the sudden rise or sudden fall of the Bitcoin price. The actions taking place seems to be marked driven with a pure trading goggle. The question is who’s pumping and dumping. Everyone?
[dropcap size=small]B[/dropcap]itcoin has its enemies. Some of its enemies are the most powerful enemies one can have. A few countries haven’t taken a very hostile approach towards Bitcoin like China, Vietnam, and India, but there could still be shit throwing in the corridors that we are not aware of. The available bitcoins (the bitcoins up for trade on the different exchanges) decide the Bitcoin price. The amount of available bitcoins is a percentage of the total bitcoins in circulation. Therefore, it is very easy for any big organization, or partnership, to go in on multiple exchanges and start manipulating the Bitcoin price. They could buy up low, drive a positive trend in the market, and then sell it all to crash it. This makes the Bitcoin price very volatile and almost “unusable” for use as a medium of exchange.
I know why all big businesses that start to accept bitcoins have auto sell functions. Immediately after a purchase is done in BTC, they sell their bitcoins for USD, a more stable currency. And this is hurting the Bitcoin price.
Yesterday I got paid for a banner on CCN in BTC. It was late and I decided to go to sleep and convert the Bitcoins into USD early next morning. In the meantime, the Bitcoin price dropped with more than 50 USD before I got the chance to convert it. I have come to the same conclusion, that even though we would want to operate in bitcoins, it is a too unstable currency to work with at the moment.
What do you think of the Bitcoin price? Write your comment below.
This post was last modified on (Eastern Time): 05/06/2014 11:27