KING OF FUD! DISCLAIMER: I own .05 bitcoins.
  • Wampler Longacre

    Basically a trader floated an order to sell an incredible number of coins all at once, and the resulting logjam was like a ceiling on the value of the currency for a while. Then the seller rescinded the order and the market resumed its usual yo-yo appearance. That’s it.

    From one article, trying to explain the slow drop in value of bitcoins:

    “The theory holds that merchantswho almost always accept bitcoins as payment for products and services and then immediately exchange them back into local currenciesare creating an excess of sellers in the marketplace, thereby adding to the fall in exchange value.”

    Duh. There has always been an excess of sellers, and there will always be an excess of sellers, for as long as the currency continues to be mined by anyone. The ONLY thing that prevents bitcoin from crashing inevitably into the floor is the adoption of new suckers buying in.

    This is what we in The Business refer to as a pyramid scheme.