BitCoin and Cryptocurrencies - Will they fail? My 3 Predictions!

Former Federal Reserve Chairman http://search.bloomberg.com/search?q=Alan%20Greenspan&site=wnews&client=wnews&proxystylesheet=wnews&output=xml_no_dtd&ie=UTF-8&oe=UTF-8&filter=p&getfields=wnnis&sort=date:D:S:d1&partialfields=-wnnis:NOAVSYND&lr=-lang_ja said Bitcoin prices are unsustainably high after surging 89-fold in a year and that the virtual money isn't currency.
"It's a bubble," Greenspan, 87, said today in a Bloomberg Television interview from Washington. "It has to have intrinsic value. You have to really stretch your imagination to infer what the intrinsic value of Bitcoin is. I haven't been able to do it. Maybe somebody else can."

Dear Mr. Greenspan,

The "intrinsic value" of BitCoin is that it is not created and controlled by government-controlled, low-life motherfucking puppets like you. The value of BitCoin is humanities' statement about how much we fucking hate you, and the people that you serve.

Regards,

Nigel Farage
Commander, World-wide Revolution Against Low-Life Motherfuckers
 
Eh, btc is unpredictable
 
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i disagree, but im hearing this everyday. im sick of making my case for this approach(technical analysis vs. fundamental approaches).as long as it works for me, ill continue using it.
as i said, i just wanted to pitch in another angle for you guys here. i do not have or trade BTCs.

best regards,

con

I must agree with Jazzc. :-) Technical analysis that ignores the world around is nothing but a gamble. In statistical terms you want to predict the probability of trend movement given the side information (which can be news for example). E.q. you want to find p(trend given side information), not p(trend given history).

Take the classical online portfolio optimization algorithms, under the hood they work with p(trend given history). Their typical ROI is about 50%/year on the stock market - this if you ignore the fees. Include the fees and you start to loose instead. These algorithms are proven to be optimal, and you cannot perform better than them. This, unless you have some side information.
 
A comparison between BTC and the uptake in technology can't be made in this instance.
why not? why compare it against stocks, then? It's definitely more of a technology than a stock.

You have stated the facebook case before too but this doesn't stand up either as you have completely omitted the rise and fall of Myspace.
how about the rise of social media, then? Because bitcoin is not a brand, it is a protocol, a technology.
 
Bank of America gives bitcoin analysis and states a fair value of $1300: http://www.businessinsider.com/baml-initiates-coverage-on-bitcoin-2013-12

This is simply the largest endorsement of Bitcoin, yet: http://finance.yahoo.com/news/quite-simply-biggest-endorsement-bitcoin-153805744.html

What's interesting about the analysis, is that they totally ignore Bitcoin's potential in the offline world, as in credit card transactions. Seeing how bitcoins is regularly used to replace CC's and the CC market is over $150B annually, a similar 10% penetration (as attributed to the other markets) would double the market cap they gave to bitcoin, effectively making the current fair value $2600.
 
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[TD="colspan: 2"] Bitcoin Password Grab Disguised As DDoS Attack InformationWeek Attacks against bitcoin users continue, as online forum Bitcointalk.org warns users their passwords might have been stolen in distributed denial of service hack. [TABLE="width: 100%"]
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[TD="colspan: 2"] Bitcoin Boom Spreads to IPhones With Mobile-Payment Apps: Tech Bloomberg Matt Tuzzolo, who used to split restaurant bills by sending money via PayPal, now wields his iPhone to pay his fellow diners -- in Bitcoins. "It's more convenient ...
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[TD="colspan: 2"] Greenspan Says Bitcoin a Bubble Without Intrinsic Currency Value Bloomberg Former Federal Reserve Chairman Alan Greenspan said Bitcoin prices are unsustainably high after surging 89-fold in a year and that the virtual money isn't ...
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[TD] Bitcoin Has Company on Cryptocurrency Stage eWeek In recent weeks, the hype and interest around the Bitcoin virtual currency have risen to new heights as the value of a Bitcoin has now surpassed $1,000 US.
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[TD] Bitcoin Mining Arms Race Boosting Interest in Liquid Cooling Data Center Knowledge Densely-packed chips performing Bitcoin calculations are immersed in cooling fluid, which bubbles as it boils, removing the heat from the ultra-high density ...
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[TD="colspan: 2"] Bitcoin fuels new car sales at Overland Park Jeep Broadway World 'Tis the season for car sales at Overland Park Jeep Dodge Ram Chrysler, the first business of it's kind to accept the increasingly popular internet currency Bitcoin ...
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[TD] Central Banker On Bitcoin, At Least With Tulipmania You Got a Tulip ... Forbes The retired head of the Dutch central bank has commented that Bitcoin is indeed a bubble, just like tulipmania, and has gone on to point out that at the end of ...
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[TD] Sheep, Bitcoin and the $100 Million Heist eWeek The Bitcoin (BTC) virtual currency is a distributed, decentralized form of money, but that doesn't mean that those who use and abuse BTC can't be tracked.
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[TD] Bitcoin May Hold Promise As Alternative Payment System ValueWalk Since Bitcoin surpassed the $1000 mark a few weeks ago, most investors are trying to figure out how much growth the cryptocurrency has left, whether this is just ...
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[TD="colspan: 2"] Bitcoin Heist: Millions Vanish from Online Black Market Tom's Guide A secretive online black market was robbed over the weekend, costing its users possibly as much as $100 million in Bitcoins — and some say the thieves were ...
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Business Insider

[TD="colspan: 2"] Bitcoin Falls After China Warning - Business Insider Sam Ro Bitcoin prices have fallen by roughly $150 this morning. Earlier today, the People's Bank of China warned that the controversial electronic currency carried risk. [TABLE="width: 100%"]
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[TD="colspan: 2"] Kentucky town to pay police chief in Bitcoin — RT USA - RT.com RT City employees in Vicco, Kentucky could be receiving their paychecks in the form of Bitcoin as early as this month after officials there agreed on Monday to begin ...
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[TD="colspan: 2"] $220 Million Sheep Marketplace Bitcoin Theft Chase - Business ... Jim Edwards "He has 1% of the world's bitcoins. Its hard to clean and sell more than 4 or 5 btc at a time."
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[TD="colspan: 2"] China warns banks against using Bitcoin - Engadget Daniel Cooper We're pretty sure no Government is entirely thrilled at the idea of Bitcoin, but China's now made its feelings very explicit. The nation's various.
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[TD="colspan: 2"] Vicco Police Chief Bitcoin Interview - Business Insider Rob Wile We just got off the phone with Vaughn. He said he first learned about bitcoin three months ago through his son, and became convinced virtual currencies are the ...
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[TD="colspan: 2"] Gold And Silver "Bitcoin"-ed As Stocks Are "Baumgartner"-ed | Zero ... Tyler Durden Whether it was President Obama's call for moar debt, less spending cuts, and a safety bid from his implicit end-QE comments, technicals from moving-averages, ...
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[TD="colspan: 2"] Hugh Hendry Goes Stock, Bitcoin Bull Retard: "Don't Tell Me The ... Tyler Durden Everyone knows "you never go bull retard," but it seems Eclectica's Hugh Hendry, the hardiest of hardy Scots, has accepted that there is only one way for this ...
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[TD="colspan: 2"] Alan Greenspan: Bitcoin is a Bubble and Gold is Weak | The ... Joshua M Brown America's foremost authority on bubbles, former Fed Chairman Alan Greenspan, weighed in on both Bitcoin and gold today in an interview for Bloomberg ...
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[TD="colspan: 2"] iMore Store now accepting Bitcoin! | iMore Kevin Michaluk We've had a lot of demand from users to begin accepting Bitcoin at the iMore Store, and today I'm happy to announce that support is here! Just in time for the ...
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[TD="colspan: 2"] Million-dollar fine for sneaky Bitcoin botnet builders | Naked Security Paul Ducklin New Jersey has slapped a million-dollar fine on an on-line gaming company that sneakily used its own anti-cheating software to mine Bitcoins on its customers' ...
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www.forbes.com/sites/kenrapoza/2013/.../the-bitcoin-bubble/

[TD="colspan: 2"] Bitcoin $10,000? - Forbes Bitcoin $10000? The virtual currency is up more than 8000% this year. [TABLE="width: 100%"]
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[TD="colspan: 2"] Bitcoin Or Bust: One Couple's Quest To Live On Virtual Currency ... Newlyweds Austin and Beccy Craig are embarked on an adventure to find out whether they could live on Bitcoin. (lifeonbitcoin.com). Austin Craig and Beccy ...
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[TD="colspan: 2"] China bars banks from bitcoin transactions - Yahoo News From Yahoo News: By John Ruwitch and Pete Sweeney SHANGHAI (Reuters) - China's government banned financial institutions from trading in bitcoin on ...
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[TD="colspan: 2"] Bitcoin Fever Has Spawned 100+ Copycat Cryptocurrencies ... Don't like Bitcoin? Try one of the 143 other flavors of cryptocurrency.
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[TD="colspan: 2"] China central bank warns banks against use of bitcoin - CNBC.com China's central bank warned on Thursday that financial institutions should not trade the digital currency bitcoin, due to the risk it carries risks.
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[TD="colspan: 2"] How To Keep Your Wall Street, Bitcoin And Lottery Winnings - Forbes This has been a good year for the stock market. The S&P500 (NYSE:SPY) and the Dow Jones Industrials (NYSE:DIA) are reaching new highs; NASDAQ ...
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[TD="colspan: 2"] Greenspan on Bitcoin: I Guess It's a Bubble: Video - Bloomberg Former Federal Reserve Chairman Alan Greenspan comments on Bitcoin. He spoke during an interview with Trish Regan on Bloomberg Television's "Street ...
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[TD="colspan: 2"] Bitcoin Price Could Reach $98,500, Say Wall Street Analysts The price of bitcoin could increase to as much as $98500, according to analysts at Wedbush Securities.
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[TD="colspan: 2"] Cyprus sees more stability, even bitcoin innovation - CNBC.com Cypriot Finance Minister Harris Georgiades talks about his country's faster-than-expected rebound.
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[TD="colspan: 2"] PBOC Bans Financial Firms From Bitcoin Transactions: Video ... China's central bank barred financial institutions from handling Bitcoin transactions, moving to regulate the virtual currency after an 89-fold jump in its value ...
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I don't understand what you are saying. Even if the money is hoarded on a box instead of a bank (which means they 're totally out of the economy), it does not matter at all. Prices will adjust to the new available volume. That 's what prices do - reflect the relation between supply and demand. In this case, it 's supply that changes. What 's the problem?
Supply and demand.
What happens when the next crypto-currency comes out with new features? Better security, faster transactions, etc. Demand for the old currencies drop, and so do the prices. Then what you have is a never ending war of superior currencies, because at least as of now these cryptocurrencies are started, but then they can't be updated, modified, or anything. So instead of making an adjustment to the currency, you simply have to make a whole new one...
 
Supply and demand.
What happens when the next crypto-currency comes out with new features? Better security, faster transactions, etc. Demand for the old currencies drop, and so do the prices. Then what you have is a never ending war of superior currencies, because at least as of now these cryptocurrencies are started, but then they can't be updated, modified, or anything. So instead of making an adjustment to the currency, you simply have to make a whole new one...
Actually the current cryptocurrencies can be updated.
 
Dear Mr. Greenspan,

The "intrinsic value" of BitCoin is that it is not created and controlled by government-controlled, low-life motherfucking puppets like you. The value of BitCoin is humanities' statement about how much we fucking hate you, and the people that you serve.

Regards,

Nigel Farage
Commander, World-wide Revolution Against Low-Life Motherfuckers

i second that, start a petition
 
Supply and demand.
What happens when the next crypto-currency comes out with new features? Better security, faster transactions, etc. Demand for the old currencies drop, and so do the prices. Then what you have is a never ending war of superior currencies, because at least as of now these cryptocurrencies are started, but then they can't be updated, modified, or anything. So instead of making an adjustment to the currency, you simply have to make a whole new one...

So your argument is essentially that competition is a bad thing :o Do I really need to answer that?

Open a history book. Gold and silver did not become the dominant value and exchange medium by some divine commandment or by some king saying so. They competed with everything else and won (until they got semi-banned...). We want competition to decide the winner again and not some elite, that 's the point.
 
Actually the current cryptocurrencies can be updated.

If the Bitcoin protocol is modified through a new update, then it would not be Bitcoin anymore. You would have a blockchain fork (in most cases).
 
Toolbar Peddlers Use Your System To Make BTC


Potentially Unwanted Programs or PUPs as we like to call them, are things like Toolbars, Search Agents, etc. Unnecessary junk for your desktop that usually involves monitoring your surfing/shopping habits and slowing down your system with their sub-par software that ends up hurting you much more than helping. A recent and unfortunate discovery by some of our users revealed that some of these programs do more than just cover your desktop in ads, they also steal your systems resources for mining purposes. I have written two blog posts in the recent past about Bitcoin Mining as well as the various types of cybercrime getting involved in the Bitcoin hype, either by installing miners to crunch numbers on an infected users system or otherwise stealing Bitcoins directly from online Bitcoin wallet services. This time, however, we are taking a look at a PuP that installs a Bitcoin miner on the user system, not just for a quick buck but actually written into the software?s EULA. This type of system hijacking is just another way for advertising based software to exploit a user into getting even more cash.


On Nov 22, we received a request for assistance from one of our users about a file that was taking up 50 percent of the system resources on their system. After trying to remove it by deleting it, he found that it kept coming back, the filename was ?jh1d.exe?. We did some research and found out that the file in question was a Protoshare Miner (similar to a Bitcoin Miner that uses CPU Memory rather than GPU) known as ?jhProtominer?, a popular mining software that runs via the command line. However, it wasn?t the miner recreating its own file and executing but a parent process known as ?monitor.exe.? Monitor.exe was created by a company known as Mutual Public, which is also known as We Build Toolbars, LLC or WBT. We were able to find out the connection between WBT and Mutual Public thanks to an entry in the Sarasota Business Observer. Another product belonging to Mutual Public is known as Your Free Proxy. The website for YourFreeProxy is also owned by WBT LLC, according to a lookup of their domain name. Your Free Proxy uses the Mutual Public Installer (monitor.exe), obtaining it from an Amazon cloud server. We checked out this cloud server and found monitor.exe but also some additional interesting files, notably multiple types of ?silent? installers and a folder called ?coin-miner.? Monitor.exe beacons out constantly, waiting for commands from a remote server, eventually downloading the miner and installing it on the system. So now that we have proof that a PUP is installing miners on users systems, do they do it without ever letting the user know? Well not exactly, their EULA specifically covers a section on Computer Calculations: COMPUTER CALCULATIONS, SECURITY: as part of downloading a Mutual Public, your computer may do mathematical calculations for our affiliated networks to confirm transactions and increase security. Any rewards or fees collected by WBT or our affiliates are the sole property of WBT and our affiliates. Their explanation is basically the purpose of Bitcoin Miners and that they will install this software on the system, run it, use up your system resources and finally keep all rewards from the effort YOUR system puts in. Talk about sneaky. In my opinion, PUPs have gone to a new low with the inclusion of this type of scheme, they already collected information on your browsing and purchasing habits with search toolbars and redirectors. They assault users with pop-up ads and unnecessary software to make a buck from their affiliates. Now they are just putting the nails in the coffin by stealing resources and driving user systems to the grave. Though are Bitcoin Miners bad? Are they always used by malicious ne?er do wells? No way! When used legitimately by willing participants, they help the Bitcoin network run more efficiently and make some extra cash for those willing to put in the effort. The unfortunate side is that while anyone can run a miner, anyone can also force a miner to run on a system, even if it isn?t their own. So take note if your system is running especially slow or if a process is taking up massive amounts of your processing power; it might be malware or even a PUP running a miner on your system. We at Malwarebytes are putting our foot down and detecting these threats as what they are, giving our users the option to remove them and never look back. A special thanks to Rich Matteo, Dave Nelson, Steven Burn, VictorValiant and Hammerhode for bringing to attention this threat and the efforts made to put an end to it. UPDATE: Dec 02,2013: Looks like an Independent Security Researcher, Ashkan Soltani, wrote about a similar incident on 25 Nov, concerning the gaming company E-Sports, where the state of New Jersey sued the company for installing BTC miners on users systems. Looks like everyone is getting Bitcoin fever =/.

Source:http://blog.malwarebytes.org/fraud-...toolbar-peddlers-use-your-system-to-make-btc/
 
I bought at exactly $1k, having the same guess as you. Let 's see how that goes :)

Ouch.. Before I edited my post below yours I had written something like "put a buy order at 900" but damn, people are panic selling like crazy

Idk how much you bought, but don't sell whatever you do, because thats how you'll take a loss. Its better to just wait it out.
 
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